Karl Denninger

Kunstler Exposes The "Financial Ass-Rape" Of American Healthcare

If you seek to know why this country is in so much trouble, check out the lead reports about the health care reform bill in today’s New York Times, WashPo, and CNN. You will find there is no intelligible discussion in any of them as to what’s actually ailing US health care. All you get is play-by-play commentary about which political tag-team is “winning,” as if this were a pro wrestling match...

What The Hell Is Going On? - Part 3

"I’ve tried my best to seek truth, reveal government deception, and generally be a thorn in the side of the establishment. Based on Mencken’s definition, I’m a dangerous man to the government, who has spread discontent among those capable of thinking things out for themselves. You may not realize it, but the war has already begun. No matter what the hell is going on, I sure hope the good guys win."

Forget Big Brother, Facebook Is Watching (And Listening) To Everything You Do

The debate over Internet privacy and the responsibility social media companies should carry in protecting user privacy never ceases to spark controversy — among both users and tech insiders. But while Facebook, one of the most popular social media networks, struggles with accusations of news suppression and even fraud, a new report on the network’s microphone settings is reigniting past fears of surveillance that were never fully addressed.

Weekend Reading: All About Janet

"In a worst case scenario, the real economy effects of the oil sector and the earnings slowdown hit the frothy commercial real estate and REIT sector, which in turn begin the widening of the contagion begun by energy high yield. Combine this with the sudden stop to lower quality energy credits I believe is inevitable and you likely have stall speed – or even recession. And that’s where subprime auto ABS, student loan securitization and US munis come into the picture for the US domestic economy. Those markets get hit in recession."

Guest Post: The Ugly Truth Donald Trump Has Exposed

The fear in both the GOP and Democratic party is visible at the surface when it comes to Trump, and it's not that he's any of what they've accused him of.  No, it's really much simpler than that, and both Republican and Democrat parties, along with the mainstream media, are utterly terrified that you, the average American, is going to figure out what underlies all of these institutions in America.

New Snowden Leak Exposes AT&T's "Extreme Willingness To Help" NSA Spy On Americans

Newly disclosed NSA files expose the spy agency's relationship through the years with American telecoms companies. As NYTimes reports, The National Security Agency’s ability to spy on vast quantities of Internet traffic passing through the United States has relied on its extraordinary, decades-long partnership with a single company: the telecom giant AT&T. The documents, provided by the former agency contractor Edward Snowden, described the NSA-AT&T relationship as "highly collaborative," while another lauded the company’s "extreme willingness to help."

Five Reasons Why America Is Done

"Until and unless we at least resolve all five of the following, and everyone involved wears an orange jumpsuit and has their corporate and institutional edifices closed down with the ill-gotten gains disbursed back to their victims we are, as a nation, DONE."

Is Congress Enabling The 'Disabling' Of America?

Sometime next year Social Security’s $150 billion disability-insurance program will become insolvent. Congressional loosening of benefit requirements, and more-importantly allowing people to remain on disability effectively for life once they gain it (less than 1% of the people on disability return to the workforce in any given year) make the problem one that is utterly intractable without major changes. And so Congress' bipartisan Social Security Advisory Board has urged change...like shifting funds to the Social Security disability fund from the Social Security retirement fund.

Fourth Turning Accelerating

"In retrospect, the spark might seem as ominous as a financial crash, as ordinary as a national election, or as trivial as a Tea Party. The catalyst will unfold according to a basic Crisis dynamic that underlies all of these scenarios: An initial spark will trigger a chain reaction of unyielding responses and further emergencies. The core elements of these scenarios (debt, civic decay, global disorder) will matter more than the details, which the catalyst will juxtapose and connect in some unknowable way. At home and abroad, these events will reflect the tearing of the civic fabric at points of extreme vulnerability – problem areas where America will have neglected, denied, or delayed needed action.” - The Fourth Turning - Strauss & Howe – 1997

Harvard Research Shows 'Guns Don't Kill People, People Kill People'

In an inconvenient truth moment for the anti-gun lobby, Harvard's Don Kates and Gary Mauser expose the facts behind gun control and violent crime. While not the first time we have discussed this awkward reality, the depth of the academics' datasets and the findings are unquestionable that there is in fact a "negative correlation" between violence and gun ownership. As they state, "where firearms are most dense violent crime rates are lowest, and where guns are least dense violent crime rates are highest," concluding that "The burden of proof rests on the proponents of the more guns equal more death and fewer guns equal less death mantra, especially since they argue public policy ought to be based on that mantra... But those correlations are not observed when a large number of nations are compared across the world."

Guest Post: A Brief History Of Cycles And Time, Part 1

If we’ve learned one thing over the years from following markets, economics, and geopolitics is this: no man can push the Wheels of History. It unfolds in its own time and no other. The waves of human emotion, of optimism and pessimism both long and short term haven’t changed. So why are the markets still going up? Why can’t people respond to warnings of the blogosphere, or warnings of collapsing economies and accounts right before their eyes? Answer: Because they can’t. It isn’t time - yet... Human emotions and behavior run in cycles of set period. Obviously humankind cannot become infinitely more optimistic forever into the future. In the same way trees don’t grow to the sky, at some point human expectation must reverse and become less optimistic, more conservative and pessimistic until it reaches an opposite extreme. And this theory has a lot going for it: if governments truly controlled stock markets, economies, nations, then why would they ever decline? No government or market would ever voluntarily get smaller, less powerful, and prosperous. And yet despite everything they can do to prevent them, markets and economies always, always DO reverse. Always.