Tuesday, October 30, 2012

Why can't we win the war on poverty?

According to the New York Times and other Satanic organizations, we need to give more food stamps and welfare to the lazy ass holes that never finished school, can't speak English, and show up for "protest for pay" demonstrations like the Occupy movement.  See http://www.nytimes.com/2012/07/29/opinion/sunday/why-cant-we-end-poverty-in-america.html?pagewanted=all 
for an article written by a retard who favors a socialistic police state.

Any person that does not finish High School should not be eligible for any government benefits of any kind.  Public education is free and if a stupid ass quits in order to deal drugs or make babies, that person deserves to starve to death. 

It is NEVER the responsibility of government to help anyone.  This includes grants for college, guaranteed loans for businesses, etc.  Also government should NEVER promote racism by funding ANY organization with a racial nature.  Racist organizations like NAACP help blacks at the expense of everyone else.  Just because blacks are an inferior race when it comes to intelligence is no reason to force smart people to fund them.  Blacks can play football for millions of dollars even though they can't add 2 plus 3 or speak understandably.  If they want to earn a good living, but can't play sports, they should do what white people do: go to school.

White people as well as everyone else needs to realize that illegal aliens and lazy blacks are good for one thing only: Target Practice!

This may sound harsh to some people but it would eliminate poverty and crime, permanently. 

Saturday, October 27, 2012

Utah State Legislative Candidates

Utah State Legislative Candidates

Dear Supporter,
Campaign for Liberty gave candidates for State House and Senate an opportunity to provide a straight answer to the following questions.  The candidates’ answers can be seen below the list of questions.
  1. Will you oppose efforts to cooperate with a national ID card system and vote to block all state funding for and cooperation with any national ID scheme including the Real ID and Pass ID programs?
  2. Do you oppose the use of unmanned devices being used for law enforcement and used in order to fine citizens?
  3. Would you support legislation that would require the courts to inform juries of the principle of Jury Nullification?
  4. Will you support legislation that would protect citizens’ right to film public officials performing their official duties, as long as they do not interfere with official business?
  5. Will you support legislation to end the use of “no knock” warrants?
  6. Will you support legislation that would allow TSA agents to be charged with sexual assault if they use invasive “pat-down” procedures?
  7. Will you support legislation that would allow school tax credits?
Survey Answers
State Senate

“Y”= Yes “N”= No “+”= Will Sponsor
Dist Party First Name Last Name City Q1 Q2 Q3 Q4 Q5 Q6 Q7
1 Democratic Luz Robles Salt Lake City

1 Republican Chelsea Woodruff Salt Lake City
Y Y+
6 Republican Wayne Harper West Jordan

6 Democratic John Rendell West Jordan

7 Republican Deidre Henderson Spanish Fork

8 Republican Brian Shiozawa Cottonwood Heights

8 Democratic Josie Valdez Murray

10 Republican Aaron Osmond South Jordan

13 Republican Mark Madsen Lehi

14 Republican John Valentine Orem

16 Democratic Gregory Duerden Provo

16 Republican Curt Bramble Provo

19 Libertarian Courtney White Ogden Y+ Y+ Y+ Y+ Y+ Y+ Y+
19 Republican Allen Christensen North Ogden

19 Democratic Peter Clemens North Ogden Y Y Y Y Y Y N
20 Democratic Brent Andrews Sunset Y+ Y+ Y+ Y+ Y+ Y+ Y+
20 Republican Scott Jenkins Plain City Y Y Y Y Y Y Y
23 Democratic Breck England Bountiful

23 Republican Todd Weiler Woods Cross

24 Constitution Trestin Meacham Richfield

24 Republican Ralph Okerlund Monroe

25 Republican Lyle Hillyard Logan

27 Republican David Hinkins Orangeville

27 Democratic Mike Binyon Moab

28 Republican Evan Vickers Cedar City

28 Democratic Geoffrey Chesnut Enoch

29 Republican Steve Urquhart St. George

29 Democratic Terence Moore Santa Clara

State House

1 Constitution Becky Maddox Brigham City

1 Republican Ronda Menlove Garland

1 Democratic DeLoy Mecham Brigham Y Y+ Y Y Y Y Y
2 Republican David Lifferth Eagle Mountain

3 Democratic Roger Donohoe Hyde Park Y Y+ Y Y

3 Republican Jack Draxler North Logan

4 Democratic Doug Thompson Logan

4 Republican Edward Redd Logan

5 Republican Curt Webb Providence

5 Democratic Al Snyder Mendon

6 Republican Jake Anderegg Lehi

6 Democratic Gabrielle Hodson Lehi

7 Republican Ryan Wilcox Ogden

7 Democratic Linda Protzman North Ogden

8 Democratic Nick Velis Ogden Y Y+ Y Y N Y+ Y+
8 Republican Gage Froerer Huntsville

8 Libertarian Jared Stratton Ogden

9 Democratic Neil Hansen Ogden Y Y Y Y+ Y
9 Republican Jeremy Peterson Ogden

10 Democratic Christopher Winn Ogden

10 Republican Dixon Pitcher Ogden

11 Democratic Pamela Udy South Weber Y Y
11 Republican Brad Dee Washington Terrace

12 Democratic Benjamin Pales West Haven Y Y Y Y+ Y Y+
12 Republican Richard Greenwood Roy Y Y Y Y N Y N
13 Democratic Bradley Asay Clinton

13 Republican Paul Ray Clinton

14 Republican Curtis Oda Clearfield

14 Democratic Jon Christensen Syracuse

15 Republican Brad Wilson Kaysville

15 Democratic Gibbs Smith Kaysville

16 Republican Steve Handy Layton

16 Libertarian Kevin Bryan Layton Y+ Y Y Y+ Y Y Y
16 Democratic Douglas Sill Layton

17 Republican Stewart Barlow Fruit Heights

17 Democratic Bonnie Flint Fruit Heights

18 Democratic Doug Macdonald Framington

18 Republican Roger Barrus Centerville

19 Democratic Lynn Anderson Bountiful

19 Republican Jim Nielson Bountiful

20 Republican Becky Edwards North Salt Lake

20 Democratic Daniel Donahue N. Salt Lake

21 Constitution William Bodine Tooele Y Y Y Y Y Y Y
21 Republican Douglas Sagers Tooele

21 Democratic David Swan Tooele

22 Constitution Marilee Roose Magna

22 Americans Elect Kenneth Froehle Magna

22 Democratic Susan Duckworth Magna

23 Democratic Jen Seelig Salt Lake City

23 Republican Richard Barnes Salt Lake City

24 Republican J. P. Hughes Salt Lake City N N N N Y Y Y
24 Democratic Rebecca Chavez-Houck Salt Lake City

25 Republican Sinama Meli Salt Lake City

25 Democratic Joel Briscoe Salt Lake City

26 Democratic Angela Romero Salt Lake City

26 Republican Andres Paredes Salt Lake City

26 Green Mark Whitaker Salt Lake City Y Y Y Y Y Y Y
27 Republican Mike Kennedy Alpine

27 Constitution Scott Morgan Draper

28 Democratic Brian King Salt Lake City

28 Republican Rick Raile Salt Lake City

29 Republican Lee Perry Perry

29 Democratic Heidi Bitton Ogden Y Y Y Y
Y Y+
30 Republican Fred Cox West Valley City Y Y N Y N Y Y
30 Democratic Janice Fisher West Valley City

31 Democratic Larry Wiley West Valley City

31 Republican Fred Johnson West Valley City Y Y Y Y Y Y Y
32 Democratic Alain Balmanno Sandy

32 Republican LaVar Christensen Draper

33 Republican Craig Hall West Valley City

33 Democratic Liz Muniz West Valley City

34 Democratic Celina Milner Taylorsville

34 Republican Johnny Anderson Taylorsville

35 Democratic Mark Wheatley Murray

35 Republican Casey Fitts South Salt Lake

35 Libertarian Chelsea Travis Midvale Y Y Y Y Y Y Y
36 Democratic Patrice Arent Salt Lake City

36 Republican Dana Dickson Salt Lake City

37 Republican Anne-Marie Lampropoulos Holladay

37 Democratic Carol Spackman Moss Holladay

38 Democratic Elias McGraw Kearns

38 Republican Eric Hutchings Kearns Y Y Y Y Y Y Y
39 Democratic Barbara Eubanks Taylorsville

39 Republican Jim Dunnigan Taylorsville

40 Democratic Lynn Hemingway Salt Lake City

40 Republican Grace Sperry Salt Lake City

41 Republican Dan McCay Riverton

42 Republican Jim Bird West Jordan

43 Republican Earl Tanner Salt Lake City

43 Democratic Jeff Bell West Jordan

44 Republican Christy Achziger Murray

44 Democratic Tim Cosgrove Murray

44 Unaffiliated John Jackson Sandy

45 Democratic Gary Forbush Sandy

45 Republican Steve Eliason Sandy

46 Republican Wyatt Christensen Cottonwood Heights

46 Democratic Marie Poulson Cottonwood Heights

47 Republican Ken Ivory West Jordan

47 Libertarian Chase Lantis West Jordan Y Y Y Y Y N Y
47 Democratic Joseph Huey West Jordan

48 Republican Keven Stratton Orem

49 Republican Derek Brown Salt Lake City

49 Democratic Mark Quigley Sandy

50 Democratic Billie Larson South Jordan

50 Republican Rich Cunningham South Jordan

51 Republican Greg Hughes Draper

51 Democratic Sonja Jorgensen Draper

52 Unaffiliated Aaron Davis Herriman

52 Democratic Daniel Paget Herriman

52 Republican John Knotwell Herriman Y Y Y Y Y N Y+
53 Republican Melvin Brown Hoytsville

54 Republican Kraig Powell Heber City

54 Democratic Chris Robinson Park City

55 Republican John Mathis Vernal

56 Democratic Leslie Dalton American Fork

56 Republican Kay Christofferson Lehi Y Y Y Y

57 Democratic Scott Gygi Pleasant Grove

57 Republican Brian Greene Pleasant Grove Y+ Y+ Y Y Y
58 Republican Spencer Cox Fairview

59 Republican Val Peterson Orem

59 Constitution Benjamin Norton Orem Y+ Y+ Y+ Y+ Y+ Y+ Y+
59 Libertarian Kenny Barlow Orem Y Y Y Y Y Y Y
60 Democratic Emmanuel Kepas Orem Y Y N Y N Y N
60 Republican Dana Layton Orem

61 Democratic Robert Patterson Provo

61 Republican Keith Grover Provo

62 Democratic Brent Holloway St. George

62 Republican Jon Stanard St. George

63 Republican Dean Sanpei Provo

64 Democratic Boyd Petersen Provo Y Y Y Y Y Y N
64 Republican Becky Lockhart Provo

65 Constitution Ken Bowers Spanish Fork Y Y Y+ Y+ Y+ Y+ Y+
65 Republican Francis Gibson Mapleton

66 Democratic Brian Hauglid Spanish Fork Y Y Y Y Y Y Y
66 Republican Mike McKell Spanish Fork

67 Democratic Scott Parkin Santaquin

67 Republican Marc Roberts Santaquin

68 Constitution Paul McCollaum Abraham

68 Democratic Thomas Nedreberg Eureka

68 Republican Merrill Nelson Grantsville

69 Republican Jerry Anderson Price

69 Democratic Christine Watkins Price

70 Democratic Wayne Hoskisson Moac

70 Republican Kay McIff Richfield

70 Constitution L. S. Brown Richfield

71 Democratic Billy Kehl St. George

71 Republican Brad Last Hurricane

71 Constitution Paul Sevy Virgin Y Y Y Y Y Y Y
72 Republican John Westwood Cedar City

72 Libertarian Barry Short Cedar City Y Y+ Y Y Y Y
73 Utah Justice Party Ty Markham Torrey

73 Republican Michael Noel Kanab

74 Democratic Lee Ann Riddoch St. George

74 Republican Lowry Snow Santa Clara

75 Constitution Randall Hinton St. George

75 Republican Don Ipson St. George

75 Democratic Cimarron Chacon St. George

Thursday, October 25, 2012

Obama: Half-black but all Democrat

New York can be a lonely and desolate city. My only date on this rainy Tuesday night is Chris Matthews — the last liberal left who will still talk to me about race. The rest of the Non-Fox Media are lying in wait, hoping I’ll disappear so they can revive the old chestnuts about racist Republicans again.
Among many such myths, there’s Reagan’s Philadelphia speech, George W. Bush’s speech at Bob Jones University, someone yelling “Kill him” at the mention of Barack Obama’s name at a Sarah Palin rally, tea partiers calling Rep. John Lewis the N-word, Scott Brown’s red pickup truck, dog whistles, code words, and on and on and on.
All of these myths are disproved in my book, “Mugged: Racial Demagoguery From the Seventies to Obama.” You should brush up on the facts because liberal lies never die. They just hide from the light like cockroaches and rush back out after dark.
Since my book came out, MSNBC, the Official Network for Racism Detection, has moved on from trying to convince black people that Republicans are promoting slavery and segregation to trying to convince women that Republicans plan to redefine rape and ban contraception.
Just two months ago, Lawrence O’Donnell was accusing Sen. Mitch McConnell of racism for saying Obama “has been working to earn a spot on the PGA Tour.” (What IS it about black people and golf? It’s such a dusty old stereotype!)
When most people think of golf, they think of the single whitest sport in the world, after polo. A few years ago, a PGA reference would have been made by Democrats only in order to sneer about elitist, country club Republicans.
But according to O’Donnell, McConnell was trying to align “the lifestyle of Tiger Woods with Barack Obama.” Liberals feel they have the right to say what symbols mean, which can change at will, according to circumstances.
These days, even O’Donnell is off the racism beat. He has been reduced to challenging Tagg Romney to a fight — from the safety of his television studio.
Only Chris Matthews is still on racism patrol. After the third presidential debate on Monday night, Matthews said that conservatives and “the white working class in the South” have a “racial hatred” for Obama. Why, Chris is so crazy about black people, he’s even considering hiring one someday to work on his show! Not yet, but soon.
Liberals always cry racism in moments of stress, so it’s understandable that Matthews would lash out. It must be very stressful seeing Obama go down in the polls even following the debates he allegedly won.
With the economy in the toilet and the Islamic world on fire, when Obama appears in person it’s even worse than if he were sleeping. That’s why — contrary to popular belief — the first debate was Obama’s best performance.
Perhaps if liberals hadn’t coddled Obama his entire life, giving him college acceptance letters, standing ovations and Nobel Peace prizes just for showing up, he would have been more prepared to debate someone a little more challenging than John McCain.
It’s hard to evaluate Matthews’ slander inasmuch as it contains no facts. But if it’s conservatives and “the white working class in the South” who are burning with racial hatred, why don’t white liberals ever vote for black representatives in their own congressional districts?
Black Democrats apparently can get elected to Congress only from majority black districts, whereas black Republicans are always elected from majority white districts: Gary Franks, J.C. Watts, Tim Scott, Allen West and (we hope!) Mia Love.
How come white liberals won’t vote for a black representative? Why can’t a black person represent Nita Lowey’s district?
Democrats do nothing for black Americans except mine them for votes, ginning them up with tall tales about racist Republicans. This week, a guest on MSNBC said that Republicans’ idea of foreign policy is to go to war with “one of those brown countries over there.”
This is in contradistinction to Obama, who simply wants to impoverish the brown people over here. Have you seen the black unemployment rates lately? (They’re hard to notice, since the NFM keeps them hidden in that vast warehouse with the Ark of the Covenant.)
The august New York Times recently explained that illegal immigration has no effect on unemployment because illegal immigrants compete only with “native-born workers without a high school diploma.”
As noted by Vanderbilt law professor Carol Swain, author of “Debate Immigration,” that means black workers. Illegal immigration, she says, harms blacks “the most because they’re disproportionately low-skilled.”
In liberals’ view, blacks don’t count. They aren’t — in the Times’ words — “the bulk of native workers.”
According to the Times, Obama’s black supporters were dismayed at a White House meeting last year when cards were passed out to campaign donors with talking points about how Obama had helped various groups. There were cards for women, Jews, gays and lesbians. But no talking points for how Obama had helped black Americans.
So Joe Biden tells a black audience that Romney wants to “put y’all back in chains,” and MSNBC hosts claim opposition to Obama’s re-election is based on “racial hatred,” and the Democrats believe their work is done.

Wednesday, October 24, 2012

Domain names for sale


If you are interested in any of these, please call 435 565-2210 or email floyd at hostiam.com

Thursday, October 18, 2012

Tolerance is Evil

Let me preface my remarks with a Christian post to the National Catholic Register:

The Tolerance Deal Is Broken
National Catholic Register ^ | 8/6/2012 | Patrick Archbold 
Posted on Mon Aug 06 2012 08:33:43 GMT-0600 (Mountain Daylight Time) by marcbold
Among all the words in a language already so battered and bruised as to almost become unrecognizable, one word stands out for having taken the brunt of the beating.
Tolerance has been so misshapen by the abuse that many people think that it means something opposite to its nature. After all injustice the word has suffered, I am unsure if it can or even should survive. Nevertheless, I wish to testify to its true meaning, even if in eulogy.
So let us begin with the basics. Contrary to what you may have heard, tolerance of its own can never be a good thing. By its nature, tolerance means abiding a bad thing. Even in our diminished capacity, nobody would say that they tolerate something good. One doesn't tolerate ice cream. One tolerates liver.
Metaphors aside, to tolerate is to abide something wrong, something in error, something evil.
Now many people today would have you believe that tolerance is the highest of the civic virtues, but it is not and never can be. Abiding evil can never be a virtue in and of itself and therefore it can never be demanded of anyone, least of all a Christian.
There are many reasons Christians may legitimately tolerate error, but they all must have one thing in common, the good of the sinner. We sometimes tolerate such error in the hopes that eventual realization of the folly will lead to repentance and eventually to truth. But there are also some errors and actions that cannot and must not be tolerated for the good of the sinner and the good of society.
In a pluralistic society such as ours, we have wisely limited the power over government to be intolerant toward religion...
I am tired of being tolerant.  I am tired of tolerating niggers on welfare that refuse to go to school.  I am tired of illegal aliens getting any benefit of any kind as a reward for coming here illegally.  Actually, I am tired of seeing an illegal alien alive.

It is time that Americans stand up and declare that tolerance is OVER.  Illegal aliens should be shot on sight as they cross the border, or later.  Niggers call each other niggers and it is time for all people to address blacks as niggers.  As long as niggers can call whites crackers, we can call them niggers.

It is time to demand that law enforcement arrest illegal aliens.  Any police officer refusing to make the arrest should be fired and banned for life from working in the public sector.

It is time to call queer fags what they are.  They are mentally deranged individuals that do not know what sex they are or what sex to mate with.  We should not offer them any additional rights just because they are queer. 

Wednesday, October 17, 2012

Candy Crowley should be fired

The fact that the "fat crow" (Candy Crowley) had a job after the debate proves that CNN has absolutely NO interest whatsoever in reporting UNbiased news.  Some could argue that the fat crow's interruption of Romney telling the truth was an act of treason that could potentially permanently ruin the United States and that therefore, Candy Crowley should be given the death penalty for treason. 

CNN has always been a liberal queer loving channel, often referred to as the Communist News Channel.  By allowing the fat crow to work even 5 seconds after her treasonous act puts CNN in the laughable parody opinion channel group of cheerleaders for Blacks for Poverty and Slavery as suggested by the human imposter President Obongo.

Now that CNN has indicated that their news is not to be taken seriously, but rather just so much propaganda as is the case with MSNBC, any person that watches CNN is complicit in the crow's treason and should be considered anti-American.

Thursday, October 4, 2012

Warnings That A Massive Stock Market Crash Is Imminent

Warnings That A Massive Stock Market Crash Is Imminent

Michael Snyder
The Economic Collapse
Oct 4, 2012
In the financial world, the month of October is synonymous with stock market crashes. So will a massive stock market crash happen this year? You never know. The truth is that our financial system is even more vulnerable than it was back in 2008, and financial experts such as Doug Short, Peter Schiff, Robert Wiedemer and Harry Dent are all warning that the next crash is rapidly approaching.

We are living in the greatest debt bubble in the history of the world and Wall Street has been transformed into a giant casino that is based on a massive web of debt, risk and leverage. When that web breaks we are going to see a stock market crash that is going to make 2008 look like a Sunday picnic. Yes, the Federal Reserve has tried to prevent any problems from erupting in the financial markets by initiatinganother round of quantitative easing, but 40 billion dollars a month will not be nearly enough to stop the massive collapse that is coming. This will be explained in detail toward the end of the article. Hopefully we will get through October (and the rest of this year) without seeing a stock market collapse, but without a doubt one is coming at some point. Those on the wrong end of the coming crash are going to be absolutely wiped out.
A lot of people focus on the month of October because of the history of stock market crashes in this month. This history was detailed in a recent USA Today article….
When it comes to wealth suddenly disappearing, October can be diabolically frightful. The stock market crash of 1929 that led to the Great Depression occurred in October. So did the 22.6% plunge suffered by the Dow Jones industrial average in 1987 on “Black Monday.”
The scariest 19-day span during the 2008 financial crisis also went down in October, when the Dow plunged 2,675 points after investors fearing a financial collapse went on a panic-driven stock-selling spree that resulted in five of the 10 biggest daily point drops in the iconic Dow’s 123-year history.
So what will we see this year?
Only time will tell.
If a stock market crash does not happen this month or by the end of this year, that does not mean that the experts that are predicting a stock market crash are wrong.
It just means that they were early.
As I have said so many times, there are thousands upon thousands of moving parts in the global financial system. So that makes it nearly impossible to predict the timing of events with perfect precision. Financial conditions are constantly shifting and changing.
But without a doubt another major financial collapse similar to what happened back in 2008 (or even worse) is on the way. Let’s take a look at some of the financial experts that are predicting really bad things for our financial markets in the months ahead….
Doug Short
According to Doug Short, the vice president of research at Advisor Perspectives, the stock market is somewhere between 33% and 51% overvalued at this point. In a recent article he offered the following evidence to support his position….
● The Crestmont Research P/E Ratio (more)
● The cyclical P/E ratio using the trailing 10-year earnings as the divisor (more)
● The Q Ratio, which is the total price of the market divided by its replacement cost (more)
● The relationship of the S&P Composite price to a regression trendline (more)
Peter Schiff
Peter Schiff, the CEO of Euro Pacific Capital, has been one of the leading voices in the financial community warning people about the crisis that is coming.
During a recent interview with Fox Business, Schiff stated that the massive financial collapse that we witnessed back in 2008 “wasn’t the real crash” and he boldly declared that the “real crash is coming”.
So is Schiff right?
We shall see.
Robert Wiedemer
Economist Robert Wiedemer warned people what was coming before the crash of 2008, and now he is warning that what is coming next is going to be even worse….
“The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2012.”
Harry Dent
Financial author Harry Dent believes that the stock market could fall by as much as 60 percent in the coming months. He is convinced that stocks are hugely overvalued right now….
“We have the greatest debt bubble in history. We will see a worldwide downturn. And when you are in this type of recessionary environment stocks should be trading at five to seven times earnings.”
So are these guys right?
We shall see.
But I do find it interesting that some of the biggest names in the financial world are currently making moves as if they also believe that a massive financial crisis is coming.
For example, as I have written about previously, George Soros has dumped all of his holdings in banking giants JP Morgan, Citigroup and Goldman Sachs.
Infamous billionaire hedge fund manager John Paulson, the man who made somewhere around 20 billion dollarsbetting against the U.S. housing market during the last financial crisis, is making massive bets against the euro right now.
So where are these financial titans putting their money?
According to the Telegraph, both of these men are pouring enormous amounts of money into gold….
There was also news last week in an SEC filing that both George Soros and John Paulson had increased their investment in SPDR Gold Trust, the world’s largest publicly traded physical gold exchange traded fund (ETF).
Mr Soros upped his stake in the ETF to 884,400 shares from 319,550 and Mr Paulson bought 4.53m shares, bringing his stake to 21.3m.
At the current price of about $156 a share, these are new investments of about $88m of Mr Soros’ cash and more than $700m from Mr Paulson’s funds. These are significant positions.
So why would they do this?
Why would they pour millions upon millions of dollars into gold?
Well, it would make perfect sense to put so much money into gold if a massive financial crisis was coming.
So is the next financial crisis imminent?
We will see.
Most “financial analysts” that appear in the mainstream media would laugh at the notion that a stock market crash is imminent.
Most of them would insist that everything is going to be perfectly fine for the foreseeable future.
In fact, most of them are convinced that quantitative easing is going to cause stocks to go even higher.
After all, isn’t quantitative easing supposed to be good for stocks?
Didn’t I write an article just last month that detailed how quantitative easing drives up stock prices?
Yes I did.
So how can I be writing now about the possibility of a stock market crash?
Aren’t I contradicting myself?
Not at all.
Let me explain.
The first two rounds of quantitative easing did indeed drive up stock prices. The same thing will happen under QE3, unless the effects of QE3 are overwhelmed by a major crisis.
For example, if we were to see a total collapse of the derivatives market it would render QE3 totally meaningless.
Estimates of the notional value of the worldwide derivatives market range from 600 trillion dollars all the way up to 1.5 quadrillion dollars. Nobody knows for sure how large the market for derivatives is, but everyone agrees that it is absolutely massive.
When we are talking about amounts that large, the $40 billion being pumped into the financial system each month by the Federal Reserve during QE3 would essentially be the equivalent of spitting into Niagara Falls. It would make no difference at all.
Most Americans do not understand what “derivatives” are, so they kind of tune out when people start talking about them.
But they are very important to understand.
Essentially, derivatives are “side bets”. When you buy a derivative, you are not investing in anything. You are just gambling that something will or will not happen.
I explained this more completely in a previous article entitled “The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System“….
A derivative has no underlying value of its own. A derivative is essentially a side bet. Usually these side bets are highly leveraged.
At this point, making side bets has totally gotten out of control in the financial world. Side bets are being made on just about anything you can possibly imagine, and the major Wall Street banks are making a ton of money from it. This system is almost entirely unregulated and it is totally dominated by the big international banks.
Over the past couple of decades, the derivatives market has multiplied in size. Everything is going to be fine as long as the system stays in balance. But once it gets out of balance we could witness a string of financial crashes that no government on earth will be able to fix.
Five very large U.S. banks (including Goldman Sachs, JP Morgan and Bank of America) have combined exposure to derivatives in excess of 250 trillion dollars.
Keep in mind that U.S. GDP for 2011 was only about 15 trillion dollars.

So we are talking about an amount of money that is almost inconceivable.
That is why I cannot talk about derivatives enough. In fact, I apologize to my readers for not writing about them more.
If you want to understand the coming financial collapse, one of the keys is to understand derivatives. Our entire financial system has been transformed into a giant casino, and at some point all of this gambling is going to cause a horrible crash.
Do you remember the billions of dollars that JP Morgan announced that they lost a while back? Well, that was caused by derivatives trades gone bad. In fact, they are still not totally out of those trades and they are going to end up losinga whole lot more money than they originally anticipated.
Sadly, that was just the tip of the iceberg. Much, much worse is coming. When you hear of a major “derivatives crisis” in the news, you better run for cover because it is likely that the entire house of cards is about to start falling.
And don’t get too caught up in the exact timing of predictions.
If a stock market crash does not happen this month, don’t think that the storm has passed.
A major financial crisis is coming. It might not happen this week, this month or even this year, but without a doubt it is approaching.
And when it arrives it is going to be immensely painful and it is going to change all of our lives.
I hope you are ready for that.