Peachtree City, GA

Okay AR...can we talk for a moment? It's official! After the meeting of the G20 all of the World's Governments are now focused on "fixing" the problems at all costs. Hmmmmm...so when did government get bigger than the market? Don't know. Back to the G20 in uno momento.

First...what you may or may not know is that recently the Financial Accounting standards Board (FASB) suspended its rule #157-e...the Fair Value Rule. Basically this rule requires banks to value their assets using a "mark-to-market" method. Not sure what mark-to-market valuation is all about...go back and check out an earlier post of mine. Anyway, the FASB reports that the new measure purports to guide asset holders who mark their holdings to market through a two-step process to help them decide "whether a market for a financial asset that historically was active is not active and whether a transaction is not distressed."

Okay so hurdling all the legal mumbo jumbo this basically means that banks now have greater flexibility and can use their own valuation methods. This could lead to reduced bank write-downs and boosts to their net income. However, what scenario have we created by allowing these institutions to mark up prices on assets? Are we not attempting to expose all these toxic assets and further create incentives for investors to buy them up? Is this more lying to investors and taxpayers to shore up the financial markets bottom lines so they can report higher earnings? On the other hand, if the new changes caused some growth on bank balance sheets..does it not make sense that they should be in a better position to lend? Regardless of either way is Valuation not the real problem here? Did the lie on wall street stem from utilizing the face value of assets? Got you scratching your head now, right?

While you're checking your scalp, back to the G20. President Barrack Obama stated at the G20 meeting last week in London that, ".....he came to listen and not to lecture" Yes...listen we all should, and watch very closely. Talk of US economic supremacy is now being replaced with collaboration, diplomacy, and cooperation. Yeah you saw the picture of President Obama with Russian President, Dmitry Medvedev, China's president Hu Jintao, and the President of Italy, Georgio Napolitano looking like a reunion of old frat buddies. But did you get past the smoke and mirrors to see some of the things that were really going on...How about talks of a New World Reserve Currency!

Oh but the Oligarchs are at it again! Just to bring you up to date an economic alliance has been formed between Brazil, Russia, India, and China back in 2008. The B.R.I.C. nations represent the 4 largest oil production countries in the world lead by Russia. (You probably didn't know that Rusia produces even more oil that the Middle East) Essentially, what is happening is that with the US national debt soaring at over $11 trillion and expected to grow another $10 trillion over the next 10 years, some countries are worried. China hold $2 trillion in foreign reserves with two-thirds of that in US assets. Then came the announcement that the central bank was to buy $1.1 trillion in securities. Xie Xuren, China's Finance Minister, and Zhou Xiaochuan, Governor of China's central bank are becoming increasingly vocal as one of the world's emerging and evolving economies focused on reshaping the global economic landscape.

Of course with this type of bulging debt, a concern UN panel has publicly stated that the world should replace the dollar. Not only that, China, Russia and its partners have all called for the establishment of a New International Reserve Currency. Oh no folks, this consortium won't be be looking for something based on the gold standard but more so on something that would allow oil to be reflected independently. Remember, under the OPEC agreement oil has been traded in US dollars since 1971. Opps..of course there are always pundits. Remember, Iraq switch to trading oil in euros. Iran has been asking customers to pay in non-dollar currencies and have converted all its oil export payment to non-dollar currencies. Hugo Chavez has little love for the dollar and Venezuela has been bartering with oil.

Could the rise of the Euro be partially the reason for the Iraq attack? Check back to 2002. Saddam Hussein may have seal his doom when he announced in 2000 that Iraq was no longer going to accept dollars for oil and decided to switch to the euro. Even stranger, this change somehow missed being reported by the big media conglomerates. By the way, the dollar was reinstated again about mid 2003. However, what has been revealed is that there was active Pentagon planning for operations against Iranian suspected nuclear facilities. Okay, Okay we all know the publicly stated reasons and consequences for Iran housing "weapons of mass destruction." What you did not know was that Iran had the ultimate nuclear weapon aimed at the financial system of America.... The Iranian Oil Bourse. Just think about it, Iran was about to commit the mother of all sins....creating its own exchange to compete with the US NYMEX and London's IPE when it came to trading oil.

Getting back to B.R.I.C...in a surprise move at the G20 meeting, China suggested the world move towards greater use of the International Monetary Fund's Special Drawing Rights, created by the IMF in 1969 as an international reserve asset. The expansion would include the rouble, the yuan, oil,and gold.

Now I'm sure we can all make a point about what will come to past and maybe even predict what is about to come. Perhaps we will all be partially right. But the truth be told, the Chinese and Russians are taking the first steps to plant the seeds at the G20 that the US is jeopardizing the dollars as the world currency by printing massive amounts of money. So while thousands of blokes in London gathered to protest at what some feel is the epicenter of financial hijinks, I can't help but to ponder on the fact that the financial structure of the US is truly broken and what will be the repercussions to the average guy like me; or why the lack of oversight and greed that was allowed to fester and permeate for such a long time.

How can we trust anyone? The security and investment community contributed $146 million in campaign
contributions and the banking industry added another $34 million. How do we stop the Bernie Madoffs, Mark Dreiers, and AIGs of the world who use fixed financial reporting, payoffs, corrupt elected officials and fear to perpetrate their criminality. All for the love of money. But alas..these folks and opportunities would not exist if not be for greed disguised as the American Dream that allows the average person to become the next rape victim and the rising professional to become a criminal.

Hey Peachtree City and AR friends, as you know April Fool's day is normally full of playful pranks, and plenty of tomfoolery but the prank on this April 1 is a real threat to millions of computers. Well, you may not have heard about it until recently on the news or 60 Minutes but a virus call Conficker C, threatens come out of dormancy and take over your computer on April Fools Day. The virus is said to be able to disabe all your security programs and then proceeding to steal all your personal information. In fact, CBS reported that it had a recent fight with this virus which took them 10 days to find and isolate. Does Conficker C pose a viable threat? All I can say is that everyone needs to at least be prepared.

How can this be you say? Well from what I heard the "worm" may be already on your system laying dormant in a Window file in an important system folder. It was reported that the "worm" spreads through malicious websites, unreliable downloads and infected USB drives. Once triggered, the virus will take over making it impossible for you to start you system even in safe mode or go to websites to get anti-virus software. What is even scarier is that now that your computer is vulnerable, it can now be controlled by the entity that created the virus.

CNN reported that this virus has infected between 5 to 10 million pc's!! Microsoft has a bounty of $250,000 out for anyone that can tackle the virus and located the creator. Don't take this warning lightly. It is believed that the first strand of Conficter was created out of a free function for security programs by MIT Computer Science professor, Dr. Ronald Rivest and has been around since 2008.

The biggest shock that I heard yesterday on 60 Minutes was that a huge number of "viruses" were created by gangs of hackers in...Russia. Not only that....the hackers were kids. The only thing that was even more astonishing than a 14 year-old kid resorting to this type of malicious behavior was that these hackers actually advertised their viruses openly on the web!

The last piece of information I want to send out to everyone is that although this virus may pose a very viable threat, there will be all kinds of vendors out there soliciting their anti- virus software that is probably bogus. That's right folks, hackers have found all kinds of ways not to make money. So check with Microsoft or an experienced software expert for more advice and information. The best of the best have been working on protecting us...Let's hope its in time!

Boulignini Shoes and Accessories located in Peachtree City, Georgia is a virtual artist studio featuring conversation-starting accessories. The boutique exudes a stylish sense of surprise offering shoes, boots, handbags, belts, jewelry, and unique one of a kind accessories created by local and international designers and artisans.

Shoe connoisseurs will find styles by Donald J Pliner (their #1 seller!), Vaneli, Frye, Oh, Matosse. Deer,
Dr. Scholls, Deer, Uggs, and Carlos Santana. By the way, shoes have gone green too! While you are there, check out the stylish J41s, a shoe made by Jeep featuring partially recycled rubber! Boulignini also has it in the bag with a sumptuous array of handbags by Donald J Pliner, Hobo, and Sandra Roberts to name a few.

One of most unique jewelry collection at Boulignini I found was part of the Leakey Collection called "Zulugrass Jewelry."This luminous jewelry collection is actually natural grass beads dyed in over 200 rich color combinations mixed with sparkling Czech glass beads. Multiple colors of the handcrafted 27″ single strands are combined and worn in a wide variety of styles as necklaces, chokers, anklets, bracelets, belts, and home accessories. This jewelry is lightweight, water resistant and durable. Did I also mention that the elastic used was created to suspend Tobey Maguire in Spiderman!

The wonderful story of Zulugrass takes us to the Great Rift Valley of Kenya and Tanzania which is home to the Maasai people. Tall, proud and graceful people adorned in colorful clothing and ornaments, the Maasai have kept their traditions intact such as herding cattle and living off the land as the modernized world continue to develop around them. A terrible drought lasting several years, ended in 2001 devastating their pasturelands and their livelihoods. The men were forced to herd their cattle hundreds of miles away leaving the women to feed, clothe and educate their children.

Enter Phillip & Katy Leakey who had been living among the Maasai in the Kenyan bush. They came up with an imaginative idea that would utilize the excellent beading abilities of the Maasai women, and it used grass, an available sustainable resource, as the primary element. Soon the women were harvesting grass, one blade at a time. The long grass was dried and cut into bead-size pieces and dyed lovely hues - blues, greens, reds, yellows, pinks, purples, earth and natural tones - which were then strung into necklaces and bracelets. The Leakeys added brilliant Czech glass beads to their designs, mixing them wit the soft luster of the grass beads and giving sparkle and a contemporary flair to the jewelry. Zulugrass was born.

Philip and Katy Leakey's inspiration gave birth to Zulugrass - the beautiful jewelry handcrafted by experts, the Maasai women of Kenya. Zulugrass continues to provide much needed and desired opportunity for these wonderful women and their families. Over 1,000 women handcraft Zulugrass jewelry, for the opportunity to have their own income to better their lives. Local artist have gone a step further by providing beautiul assessories to compliment this beautiful jewelry. This is a must see collection! But don't wait too long Zulugrass is a popular item at Boulignini's.

The Couture's connoisseur and Entrefashionista is Marie Egan. Marie, a former tennis instructor and founder of the Ball Tennis Club in Peachtree City, has owned the store since 2002 and since the move to their new location several months back she has doubled the amount of floor space to accommodate their growing business! Stop in Boulignini's and you will be greeting by any of the 8 amazingly helpful consultants; Jeny Carroll, Kim Clayton, Denise Martin, Kit Gregg, Debbie Gregory, Sylvia Quijano, Katie Craggs, or Mindy Belote.

Guys, if you see your wife's closet filled with shiny black shoe boxes you know she is a Plinerholic and more than likely a Boulignini client. That reminds me it's time to check my wife's closet again!

For more information contact:

Boulignini -Shoes & Accessories
312 City Circle
Peachtree City, Georgia 30269
770-632-1085

Looking for a great place to shop but tired of the same ole shopping mall experience? How about checking out The Avenues in Peachtree City, Georgia?

The Avenues At Peachtree City offers shopper a different experience with a more open-air feel to its upscale shopping experience. Come enjoy the small town feel of this community with its unique architectural appointments such as sprawling green landscaping and ornamental arrangements, park benches and ornamental lamp posts, bronze sculptures, and those sparkling fountains giving the Avenues a modern feel and a fresh urban flavor.

As you take a stroll on the beautiful promenades you will find a host of beautifully decorated storefronts reflective of the swank and sophisticated styling of local and national merchants. However, the developers and architects, Cousins Properties took pain-staking measures to evoke parameter and the diversity of the stores and shops contributed to the overall design intentions of this magnificent shopping mecca.

Getting hungry? Well the selection of speciality restaurants is awe-inspiring. In fact, some even offer bistro and outdoor seating. The environment of The Avenues At Peachtree City reflects the convenience you seek, and the ambiance of the upscale malls coupled with beautiful landscaping, spacious promenades and ample parking.

I'm sure while you're enjoying shopping or dining at one of the restaurants more than likely you are bound to meet friends or family since The center has fast become a popular meeting spot as it is not only convenient but offers the convergence of shopping and recreation.

Come experience the The Avenues difference with shops offering unique gift ideas food, fun and the latest trends from Ann Taylor Loft, Jos. A. Bank Clothier, The Bombay Company, Kirkland's, Talbot's, Williams-Sonoma Boulignini Shoes & accessories, Victoria's Secret, Banana Republic, Children's Place, Claire's Boutique, Atlanta Bread Company, Ritz Camera, Yankee Candle, Starbucks Coffee, Ted's, Thai Spice and more!

For more information contact:

The Avenues At Peachtree City
200 City Circle
Peachtree City, GA 30269-3120
(770) 486-6587

Hey AR, Remember the scene from the classic 1983 movie with Al Pacino, "ScarFace" where the mob boss Frank Lopez (played by Robert Loggia) was bringing in the new guy Tony Montana? Big Frank told Tony with a vociferous voice, "never underestimate the extent of the other person's greed!" Wow, I can see Spielberg or Scorsese chomping at the bit waiting to see how things play out with AIG and the Feds. They are probably anticipating not only a huge movie blockbuster but more that likely a sequel to boot...Cha-Ching!

How about the scene from Wall Street where the great Gordon Gekko (Michael Douglas)is recruiting his next protege, Bud Fox (Charlie Sheen). Gekko is in his office where no expense has been spared right down to the cuban cigars on his desk. He get up on his soap box and begins pontificating to Fox. "The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It's bull*@%$!"

With a smirk, Gekko's continued with his indoctrination. "You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now you're not naive enough to think we're living in a democracy, are you buddy? It's the free market. And you're a part of it. You've got that killer instinct. Stick around pal, I've still got a lot to teach you." "Greed captures the essence of the evolutionary spirit," Gekko concluded.

Indulge me for one more example. One of my favorite movies was the Wizard of OZ. Yep, it is so metaphorically messaged besides it links to then Populist theory that I also utilize it to illustrate how we fall all so often for the smoke and mirror. Basically, I find the story to be an ingenious parable written by L. Frank Baum related to the effects of US Monetary policy on the American population. By the way, Baum was a shy and sickly guy who was also owned a newspaper, was a student of Shakespeare and the son of a oil tycoon.

In the Wizard of OZ Dorothy (representing American Values) was told that if she followed the yellow-brick road (which symbolizing the debate in the 1896 election to use gold as the standard for currency.) to the Emerald City (Washington DC) that she would be able to get to the great and powerful OZ ("0z" representing an ounce of gold) who would be able to send her back home, right. In the meantime on the road she met the Scarecrow (representing farmers) who wanted a brain, the tin man (the industrial worker) who wanted a heart, and the cowardly lion (representing Democratic presidential candidate Williams Jennings Bryan) that wanted some courage. Even Dorothy's shoes which were originally silver, representing the silver standard. Look at all the metaphoric symbolism.

Then when the group (Toto too) finally reach their destination (The Emerald City) they are gripped by fear because nobody has seen the wizard or even gone to his throne room. So there he was this big huge head with no body, red eyes a monstrous voice and it even spitted fire. They when Dorothy asked for the Wizard to help her get back to home the wizard conditionalized her request by telling Dorothy she had to kill the wicked witch of the west (President William McKinley). Of course, Dorothy got her wish to go back to Kansas and good ole Aunt EM through Glenda the Good witch (Grover Cleveland) but remember she had to give up the "golden cap." However what was also so intriguing was that eventually when we peeked behind the curtain, the Wizard of OZ was a fraud! He was just a regular man...but it was fear that gave him his power and influence. Sounds familiar?

To be honest folks, getting past the metaphors, and other cinematic similarities, we have some huge
problems to deal with in our country. Yes, the spotlight and mobs are all focused on AIG right now and maybe they should be. But if you really peep the wizard if the focus is on AIG you will find that the $135 million paid in bonuses pales in comparison to the $120 Billion AIG paid out to mostly European banks due to all the "credit default swaps" sold. What's a credit swap? Basically a credit default swap is insurance against a debt default. Now picture the magnitude of this product in the face of our current mortgage crisis.

As you know, Joseph Cassanos was the man behind the AIG debacle and was "retired" effective March 31, or 2008. Probably about the same time the retention bonuses were negotiated. The language regarding the bonuses did include mention that the bonuses could be withheld if fraud or a felony could be proven. But what you may not know is that Cassanos' golden parachute included a nine month contract for consulting services for $1 million per month.

I know what you are thinking folks. I can paraphrase your thoughts by coining another memorable quote from the movie Network, "I'm mad as hell and I'm not going to take it anymore." Well in that movie the
character Howard Beale was speaking about change too. He just felt you had to get mad enough first.
Not a problem, that seems to be the sentiment of Capital Hill...right Barney? But the real revelation here is that our economy is now global and interlocked with emerging economies like china playing a big role. As further proof AIG not only operates in 50 states but 140 countries! So, could the real flaws be in a collapse of disciplines in the private markets? Maybe even more so the global economic model.

Is monetary policy enough to end this financial crisis? What about the proposed Obama budget that would literally add on 1 trillion dollars to our debt for the next decade? Did you also know that the Treasury is planning to buy up more toxic assets? Is the currently financial climate going to allow for the partnering of investors and the Feds giving the same groups responsible for this crisis an opportunity to make even more money?

Again, just food for thought. By the way, stay tuned, President Obama is live in prime-time this week.