Preferred v Ordinary Shares


QUESTION: Hi Martin,

What are your thoughts on preferred shares? Especially the ones with good quality DBRS ratings. Will they survive the downturn or will they fail?
Thx
FS

ANSWER: Ordinary and preference shares are a claim on corporate earnings and assets. Dividends for ordinary shares may be irregular and indefinite, whereas preference shareholders will receive a fixed dividend which will accrue usually if the payments are not made in one term. Ordinary shareholders are in a riskier position than preference shareholders since they are the last to receive their share in the event of liquidation. That may not be a concern in a blue chip company. Nevertheless, they also are open to the possibility of a higher dividend during times when the firm is doing well in contrast to preferred shared with fixed income.

Preferred shares can be looked upon as a hybrid debt where you have a claim on the assets, but like a loan, it has a fixed rate. Ownership of preference shares offers advantages and disadvantages. On one hand, it provides a higher claim on earnings, assets, and fixed dividends. On the other, it limits voting rights and the possibility for growth in dividends in times when the company is financially sound.

The good companies will generally survive. This is a collapse in government – not the private sector

Trump’s Agenda is Officially Dead


 

We should not expect Trump to get any of his agenda items through Congress. Trump’s promises to replace the Affordable Care Act, invest in infrastructure, and cut middle class taxes have been essentially shelved. The Democrats refuse to cooperate on anything in hopes of using that against him in 2020. What this really means illustrates my concerns. Government has simply ceased to exist and all we have is a couple deadlocked in a bitter divorce.

This reminds me of the best scene on this subject from “When Harry met Sally” and how bitter a divorce can be. This is what politics has degenerated to and it is in line with our computer’s forecasts that this is the end-game for Western civilization. There is just no going back. Government is now a battle to see which side can destroy civilization first. Websters’ defines civilization as “refinement of thought, manners, or taste,” none of which we can see in Washington anymore.

The entire purpose of civilization is everyone coming together because the sum is greater than the individuals. Today, we have reverted back to the individuals and there is no longer any cohesive sum that is greater. We have devolved backwards and it will take the crash and burn of government before we can rise from the political ashes with hope of a new government structure that once again respects the liberty of the individual.

While the Democrats have officially killed the Trump agenda, what they fail to understand is that this is also the destruction of their agenda as well. There will no longer be a government of ALL the people, it is now a government of us v them. That is how civilization dies. It defeats the entire purpose of forming societies. Politics has become a confrontation to impose tyranny upon your opponent. The very core of socialism is to deny individual freedom. The state comes first – the individual second. Everything the American Revolution stood for is now completely overturned.

Creepy Smallville Actress Allison Mack Pleads Guilty to Being Sex Slave Mistress in NXIVM Case…


Creepy is too soft a description for the behaviors Ms. Allison Mack attested to in court today.  According to her guilty plea Ms. Mack plead to a racketeering conspiracy and direct racketeering.  However, her action within the ‘racketeering conspiracy‘ is far worse than the disingenuous legal terminology.

Ms. Mack recruited people into a sex cult, then helped organize blackmail material that forced her recruits to engage in sex cult behavior with Keith Raniere which included the branding of victims as sex slaves.  Everything about this is cult activity is deviant in the most extreme.

Ridiculous apologetic phrases like: “I now realize I was wrong“, sound absurd when contrast with this sick and demented behavior.

As if there was ever a possibility at the beginning of an evil collaboration to NOT REALIZE blackmail, sex trafficking, occult branding and forced manipulation of people was wrong.  Whiskey-Tango-Foxtrot… this type of sociopathic disconnect is really alarming.

NEW YORK – A teary Allison Mack pleaded guilty to two federal counts Monday in the NXIVM sex-cult case.

“I have come to the conclusion that I must take full responsibility for my conduct and that’s why I am pleading guilty today,” said a choked up Mack, who admitted to one count of racketeering conspiracy and one count of racketeering.

Mack attended court in dark relaxed-fit pants and a creamy mock-neck sweater. She kept her hair in a bun and sported leopard sneakers, as she had at her last court proceeding.

At the beginning of her allocution, Mack explained in part what drew her to NXIVM. Many of the members were “wonderful people and some of whom, I now realize, were not.”

“I joined NXIVM … to find purpose,” she said of the group, which was headed by co-defendant Keith Raniere. “I truly believed I found a group of individuals who believed as I did.”

“I believed Keith Raniere’s intentions were to help people,” she said. “I was wrong.”

Prosecutors allege that NXIVM, an Albany-area organization that offered costly self-help classes, contained a secretive sect called DOS that “operated with levels of women ‘slaves’ headed by ‘masters.” (read more)

This stuff is evil.  Almost beyond comprehension.

Fear of Inflation & Sterilization


QUESTION: Mr. Armstrong; you were friends with Milton Friedman. Do you agree with his view that the Great Depression was caused in part by the Fed refusing to expand the money supply? Isn’t Quantitative Easing expanding the money supply yet it too has failed to create inflation. Would you comment on this paradox?

Thank you for your thoughtful insight.

P

ANSWER: Yes, this certainly appears to be a paradox. This results from the outdated theory of economics which completely fails to grasp the full scope of the economy and how it functions. This same mistake is leading many down the path of MMT (Modern Monetary Theory) which assumes we can just print without end and Quantitative Easing proves there will be no inflation. They are ignoring the clash between fiscal policy carried out by the government and monetary policy in the hand of the central banks. This is a major confrontation where central banks have expanded the money supply to “stimulate” inflation. Governments are obsessed with enforcing laws against tax evasion and it is destroying the world economy and creating massive deflation.

In 1920, Britain legislated a return to the gold standard at the prewar parity to take effect at the end of a five-year period. That took place in 1925. Britain based its decision in part on the assumption that gold flows to the United States would raise price levels in Britain and limit the domestic deflation needed to reestablish the pre-war parity. In fact, the United States sterilized gold inflows to prevent a rise in domestic prices. In the 1920s, the Federal Reserve held almost twice the amount of gold required to back its note issue. Britain then had to deflate to return to gold at the pre-war parity. Milton saw that the Fed failed to monetize the gold inflows, fearing it would lead to inflation. So what we had back then was the opposite roles. This predates income tax being applied to everyone so there was no hunt for taxes on the part of the government. The scale was tipped because the Fed was imposing deflation by sterilizing the gold inflows.

Conversely, following World War I, France had counted unrealistically on German reparations to balance its budget. When they did not materialize, it used inflation as a tax to finance expenditures. In 1926, France pulled back from the brink of hyperinflation. Unlike Britain, France’s inflation had put the old parity hopelessly out of reach. Consequently, France returned to gold but at a parity which undervalued the franc. Fearing inflation, France sterilized its gold inflows to prevent a rise in prices declining to monetize the gold.

Therefore, all the theories behind MMT are once again wrong for they are only looking at one side of the equation. Today, simply stashing money in a safe deposit box is illegal and considered to be money laundering. The government can justify itself in confiscating your assets even after you paid your taxes.

Therefore, in the ’30s, Milton’s criticism of the Fed was justified because there was no massive hunt for taxes from the fiscal side. Today, we have the fiscal policies hunting capital resulting in a contraction economically (declining in investment) while you have QE just funding the government – not the private sector. It is a different set of circumstances today v 1930s.

 

America’s Public Schools are a National Disgrace Teachers Unions & Democrats Being the Main Culprit


Published on Apr 1, 2019

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Now more then ever we need your help keeping this channel producing REAL content for REAL people https://www.paypal.me/ConservativeRes… If Your Child’s School Is Failing, Thank The Unions As America’s public schools welcome back students from summer vacation, enrollment is projected to surpass 50 million students this year. But many of these students are falling behind. The United States ranks No. 35 in the world when it comes to mathematics — behind Russia and Vietnam. When it comes to science, the United States is pegged at No. 27 globally, trailing countries that most Americans couldn’t even identify on a map. Reading scores are the most disturbing: 64 percent of America’s eighth-graders read below their expected grade level. Among students from low-income backgrounds, roughly 80 percent of eighth-graders score below grade level in reading. Yet America is a global leader in education spending per student. The U.S. dishes out more than $12,500 per student on secondary education — roughly a third higher than other developed countries. From 1984 to 2014, annual federal outlays for elementary, secondary and vocational education skyrocketed from about $6.5 billion to more than $40 billion — a 176 percent increase after adjusting for inflation. So if money’s not the problem, then who’s to blame for America’s failing schools? Teachers unions. America’s largest teachers unions — the National Education Association (NEA) and American Federation of Teachers (AFT) — are notorious for protecting underperforming teachers through generous tenure policies. According to one estimate, only 1 in 500 tenured teachers is ever fired for poor performance. That comes out to 0.2 percent. Lawyers and doctors with advanced degrees often suffer more from underperformance. In California, roughly 98 percent of teachers attain tenure — or “permanence” — after two years of employment. Yet research shows that, from 2004 to 2014, only 19 out of about 300,000 tenured California teachers were dismissed for poor performance. In states like Mississippi, it only takes a teacher one year to secure tenure. This leads to last-in, first-out firing procedures which disproportionately punish the youngest teachers who haven’t been tenured yet — no matter their qualifications or experience. And it indirectly punishes American students, who lose out on learning from up-and-coming teachers. But when education proponents propose tenure reform and merit-based pay — which would reward the best teachers while weeding out the worst — they are vilified by union bosses. AFT President Randi Weingarten recently claimed that supporters of such policies have “turn[ed] scapegoating into an art form.” “Tenure is not a job for life,” Weingarten often argues — despite the statistics showing otherwise. She’s not alone. NEA President Lily Eskelsen Garcia routinely urges union members to “[stand] up to the scapegoating of educators and [demand] more respect,” while claiming that critics of overly generous tenure policies are liars. Big Labor has committed to upholding the status quo, bankrolling politicians who oppose school choice and other fixes to our struggling schools. Meanwhile, the children of many dues-paying union families suffer as well. Higher-quality private schools are much less accessible to the family of a unionized store clerk than the local public school. The NEA and AFT’s Super PACs have spent more than $185 million on political activities and lobbying since 1990 — almost $23 million of it coming in 2016. This doesn’t even take into account millions more in non-PAC expenditures, which teachers unions use to fund the Democratic Party and an array of closely aligned special-interest groups. In 2015, AFT contributed nearly $1.5 million to the Democratic Governors Association and $400,000 to the Democratic Legislative Campaign Committee, while the NEA dished out more than $725,000 to Catalist — a leading Democratic data firm. The NEA ranked as the top organization funding Super PACs during the 2014 election cycle — well ahead of conservative power players such as the Republican Governors Association (No. 18), Freedom Partners (No. 55), and American Crossroads (No. 66). (The AFT finished a respectable No. 13 on the list.) And the overwhelming majority of teacher union money going to Super PACs — 99 percent — props up the Democratic Party and liberal advocacy groups opposing education reform. The NEA contributed a grand total of $0 to Republicans and conservative causes in 2014. (Yet the most recent NEA survey of public school teachers found that 55 percent of teachers characterize themselves as “conservative” or “tend to be conservative.”) America’s students deserve more than politics as usual. Link to Article: https://www.americanthinker.com/blog/… https://www.americanthinker.com/artic…

“AOC” Dancing Socialism into the Hearts and Minds of Young People Everywhere


Published on Jan 5, 2019

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Now more then ever we need your help keeping this channel producing REAL content for REAL people https://www.paypal.me/ConservativeRes… Ocasio-Cortez Tax Plan Creates 82.7% Top Income Tax Rate for New Yorkers In an upcoming 60 Minutes interview, Congresswoman Alexandria Ocasio-Cortez (D-N.Y.) will call for federal income tax rates of up to 70 percent as part of a proposal to create vast new government spending programs. The current top federal income tax rate is 37 percent, so the Ocasio-Cortez plan will nearly double the tax rate for the top bracket. New York State has a top income tax rate of 8.82 percent while New York City has a top rate of 3.876 percent. So under this proposal, her constituents would pay a top combined income tax rate of 82.7 percent: Federal income tax rate: 70.0% NY state income tax rate: 8.82% NYC income tax rate: 3.876% TOTAL: 82.696% New Yorkers would not be the only ones suffering under the Ocasio-Cortez plan. California taxpayers would pay a top rate of 83.3 percent (70 percent plus the California rate of 13.30 percent). In addition to this high income tax rate, taxpayers would remain impacted by other taxes including payroll taxes, taxes on capital gains income and dividends, and the death tax. Further, while Ocasio-Cortez has not released details of any other tax hikes to pay for her plan, this would likely not be the only income tax increase if she had her way. For instance, Senator Bernie Sanders (I-Vt.) proposed a $2 trillion 2.2 percent payroll tax on all families and a $10 trillion 6.2 percent payroll tax on all businesses as part of his socialized healthcare plan. Congresswoman Rosa DeLauro (D-Conn.) and Congresswoman Jan Schakowsky (D-Ill.) have proposed numerous tax hikes including a new, 5 percent surtax on those making $500,000 per year and an increase in the Obamacare payroll tax from 0.9 percent to 4 percent. Regardless of the specific proposal, it is clear that Democrats want higher taxes on the American people as they made clear when they changed the House rules to make it easier to raise taxes. Just last night, Democrats rejected a proposal to make permanent the $2,000 child tax credit (up from 1,000) and the $24,000 standard deduction for families (up from $12,000). Based on their record this will not be the first of many cases where Democrats oppose middle class tax relief and advocate for higher taxes on the American people.

The death of democracy? Why unintelligent protest may wreck society


Published on Apr 26, 2018

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Evolutionary biologist Heather Heying rose to prominence as a member of the Intellectual Dark Web after she and her husband, Professor Bret Weinstein, spoke out against a planned “Day of Absence” at Evergreen State College, where white students, staff and teachers would vacate campus and only minority students would remain. Their opposition to the event led to accusations of racism and a string of protests, threats, and violence, leading The Seattle Times to call the college a “national caricature of intolerant campus liberalism.” Democracy depends on protest, Heying asserts above, but a new strain of unintelligent protest on the Left may damage the very values liberals are trying to protect. “Increasingly we have groups who are claiming to be emerging from this age-old culture of protest who are actually tamping out dissent, who are saying there are things that cannot be said, there are things that cannot be thought, there are research programs that cannot be done,” she says. “… But they don’t tend to be armed in the way the extreme Right is, and so it’s easy for people to imagine that they’re not as dangerous—but shutting down dissent, shutting down the ability to discuss ideas, is actually the beginning of the death of democracy.” In this video, Heying looks at tribalism and dissent from an evolutionary perspective, and highlights how technology has hijacked our ancient brain to create a more polarized society than ever before. Follow Heather on twitter: @HeatherEHeying and on Medium and through her website, http://www.heatherheying.com.

 

 

Psychology of Redemption in Christianity


Published on Jan 26, 2016

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SoundCloud Podcast Link: https://goo.gl/qQOg75 iTunes Podcast Link: https://goo.gl/9tgW21 This is a TVO Big Ideas Lecture from 2012, presented at INPM’s Conference on Personal Meaning. It discusses the idea of redemption in Christianity from a psychological perspective, comparing in part to ideas of transformation in psychotherapy.