Infinite Money For Infinite Loans Create Infinite Inflation

October 13, 2008

Elaine Meinel Supkis

Today, we talk about anti semitism, the Jewish riots in Acre [didn't hear about that? Ah!] the gold markets and the gnomes of Switzerland who have been caught with their pants down. We learn that the solution the G7 central bankers and government officials have chosen is...hold onto your gold bars and coins....INFINITE INFUSIONS OF PAPER MONEY. Yes, that is the 'solution'. Sigh. Will they ever learn? They not only claim, this is a liquidity, not an overboard debt crisis but Paulson also announces, the US will NOT protect itself from a flood of imports. Got that? Good.

Fed Says ECB, Others to Offer Unlimited Dollar Funds

(Bloomberg) -- The U.S. Federal Reserve said central banks will offer financial institutions unlimited dollar funds, backing up efforts by governments to restore confidence in markets.

The ECB, the Bank of England and the Swiss central bank will conduct dollar auctions with maturities of seven days, 28 days and 84 days at a fixed interest rate, the Washington-based Fed said on its Web site today. The Bank of Japan will consider introducing ``similar measures.''

This is no helicopter drop. This is every bank bomber on earth is going to load up with paper money backed by vast government debts and then it will dump the entire mess right on top of the huge pile of worthless paper equities. This supposedly will restart lending in a world awash in red ink.

When banks see no profits in lending, they stop lending. When debtors are too deep in debt, bankers sensibly will stop lending. When nations lend too much to themselves, they find it increasingly hard to attract money from other nations and end up bankrupt. When anyone over-expands use of credit, they end up either paying very high interest rates or going under. The fact that global interest rates were going up and up DESPITE huge, huge, huge attempts by governments and central bankers to drop rates so 'economies could grow', this meant that we had hit that magical ceiling where it is not possible to lend cheaply, so greatly.

Instead of facing reality, all the people who created so many bubbles from 1974 to today when to work with magic wands, demanding that the flying magical piggy bank shower debtors with more credit. This failed, of course. Any money poured into the banks, stayed there.

Simple, of course: so many borrowers were going bankrupt and the derivatives instruments based on reselling bonds based on the potential of a bunch of bedraggled borrowers repaying vast debts somehow, well, this failed. And so banks had to 'recapitalize' themselves which is fancy antsy talk for 'attract savings, by gum!'

Well, the way we attract savings is by raising interest rates. Then lending it out again, at more than the rate offered to attract savings. The true cost for attracting savings is around 7% globally. But the central bankers want it to be around Japanese levels: .5%. Even 0%!

This way, a certain someone can borrow infinite money for spending on infinite imports: the US can continue to gorge on world resources and cough up hairballs of debt. This pile of hairballs [my cat just did this in the office] is rising as high as Mount Olympus. The hope is to increase 'liquidity' so that the hairball pile will be higher than the Himalayan mountains. Next: grow it until it is high as the moon.

World leaders look for joint action on economy
(China Daily)

the high-profile officials of the 20 major economies, both developed and developing, released a statement, in which they pledged to work together and to use "all necessary tools to overcome the financial turmoil, and to deepen cooperation to improve the regulation, supervision and the overall functioning of the world's financial markets".

"The depth and systemic nature of the crisis call for exceptional vigilance, coordination and readiness to take bold action," the IMF said in its statement.

"There is a resolve in the international community that this crisis will be resolved, that no tools will be spared to address its ramifications," said Youssef Boutros Ghali, Egypt's finance minister and the new chairman of the IMF's policy panel.
US Treasury Secretary Henry Paulson announced late on Friday the government intended to buy part ownership in a number of American banks, equal to partially nationalizing the industry. It would be the first such move in the US since the 1929 Great Depression.

"The international community has expressed its commitment to joining hands to fight the crisis," said Hua Min, director of Fudan University's Institute of World Economy. "But given their different situations, the major economies may have different readings of the crisis."

They have suffered varied levels of impact from the financial crisis and, therefore, some of them are not very keen to show their hand, he said.

In the UK and Iceland, for example, things have become fairly serious and the governments of both countries must take immediate action. But in France and Germany, the financial institutions are not facing such a dire situation as in the US or the UK.

Lack of consensus among the major economies could offset the effect of global efforts to resolve it, said Zhao Xijun, finance professor at Renmin University of China.

"Some countries may have underestimated the potential impact of the crisis."

Some countries underestimated the potential impact? How about all? Or does this Chinese professor suggest that ONE country isn't underestimating this mess? Hmmmm....let us review some back history here. Last year, before July, the IMF, the G7 and a host of economic writers in the West and Japan tried desperately to convince the Chinese Dragon that growing a FOREX reserve to protect their banking system was STUPID.

Buying and hoarding gold was DUMB.

Building a Sovereign Wealth Fund was RIDICULOUS. Not only that, all these goofy guys suggested that the Chinese open their bank vaults to let the reckless infinite money makers of the G7 to enter and poke around. China declined and continued to grow all these systems even as the G7 raged and howled. I suggested that the US and UK as well as others, imitate China. Why is that?

HAHAHA! Human nature! When one powerful system decides to suddenly do something, everyone else better do it too or they will be caught with their pants down. So when the US finally became aware that not just Japan but China was amassing huge, huge FOREX reserves, we should have done the same. Of course, this meant buying yen and yuan! HAHAHA. We didn't do that. Instead, we tried to 'talk down' the dollar vis a vis these two currencies that were backed by giant FOREX reserves!

I will note here that Japan hopes to flood its empty bank vaults at home with lots of yen that they hope will not strengthen but weaken. They love the idea of flooding the home base with money that will enable huge trade profits. The yen has risen against most world currencies and the Japanese are grinding their teeth in rage over this horror! They forced the yen back down to 100 to the dollar, their top line. It strengthened to 98 to the dollar last week and this caused the Japanese Nikkei to plunge over 800 points.

Now, on to a seemingly different topic: rising anti-semitism and the Jewish rioters in Acre.

Haaretz: Conspiracy theory faults Jews for Lehman Brothers' collapse

A new anti-Semitic conspiracy theory has been spreading online over the last few days, claiming that on the eve of Lehman Brothers' collapse last month, the firm transferred $400 billion to Israel.

But the allegation of the transfer of $400 billion of Lehman Brothers' cash to Israel is much more focused. The story making the rounds was written as if it were a news report from Washington, and has a byline of the "Voice of the White House." The story names three Israeli banks that allegedly received the money, explains in detail Israel's extradition laws and bank-secrecy act, and charges American law-enforcement authorities of having knowledge of the transfer. It also cites excerpts from a real story that appeared on the Bloomberg economic news service wire about estimated losses of $400 billion in the brokerage division of the investment bank.

The "story" first appeared a week ago on the Web site of Jeff Rense, a former journalist who has published numerous conspiracy theories involving Jews, Israel and the American administration.

Israel is extremely interconnected with the US. To the point that much of our security systems including the very obscure and nearly totally invisible head of Homeland Security is a Mossad dual-citizen agent who is primarily a citizen of Israel. And notably, unlike nearly all of our allies if not all of them but Israel, this tiny nation which has a very parasitic relationship with the US government, has laws that forbid the US from demanding criminals be returned here for trial!

Yes, Israel is like Argentina! Instead of having normal diplomatic relations, anyone who is a Jew can move or rather, flee to Israel and won't be forced back to any nation, not even the biggest bankroller of Israel, the US. So a Jewish person can commit even murder here and get away with it if the Jews in Israel decide it is OK to assassinate someone here [yes, they have protected murderers this way!].

This, in turn, causes no end of fury in the US and Europe. In Europe, we can't discuss any of this or the people doing this will be arrested by the Thought Police. Instead of killing anti-semitism, these prosecutions of historians, novelists, editorialists, actors, etc. is causing tremendous hatreds to build in the dark. Since the Jewish community is very heavily involved in banking and have been for centuries due to anti-semitism locking them out of other occupations, they become targets when they screw up the banking they do.

Note that THEY DO SCREW UP. This is what is missing in most mainstream stories about 'anti-semitism'. Muslims sheltered Jews for centuries during which the Christians had the cruelest rules and riots aimed at killing off the stubborn Jewish communities that huddled in ghettos across Medieval Europe. Now, they hate the Jews with a burning passion for the simple reason, the Jews have replaced the Christian crusaders and are invading Muslim communities and treating them like dogs or swine. To the even greater fury of the Muslims, none of this is explained in European or American mainstream news media due to Jewish control of many, many media and editorial positions.

Which, if we ever mention this, is furiously attacked by Jewish editors and owners as 'anti-semitic'. Even though they will go to great lengths, including changing their names, to hide themselves from scrutiny. Just try discovering how many media owners are Jewish? Nearly impossible unless one is very diligent. In Israel, they boast about this control which is why I read the Jerusalem Post, for example. They, at least, make no efforts to hide the degree the community controls things in the bigger, 'Christian' countries of the G7 complex!

Jews attack Arab motorist driving his daughter home

Outgoing prime minister Ehud Olmert called for an end to the violence between Jewish and Arab residents of Acre, saying that there was a feeling that the population of the city was being "held hostage by a group of extremists."

Olmert spoke at the weekly cabinet meeting in Jerusalem on Sunday morning, hours after the car of a Jewish Acre resident was torched before dawn as violence between the city's Jewish and Arab residents entered a fifth consecutive day.

However, at press time, the violence appeared to be diminishing, and although tension and anger were still palpable, attempts were being made to return to normalcy. Although police remained on alert, the large police contingent that worked to separate Jewish and Arab protesters had time to rest, and the numbers of police seen on the streets had been drastically reduced.

The police thugs are all Jews. They hit Arabs and gently try to restrain maddened Jewish bigots seeking to terrorize their neighbors into leaving. Relentlessly, they stone, harass and steal from their neighbors in the hopes that this will drive them out and more Jews can take over the abandoned housing. This is how Israel was founded, how it grows and how it hopes to take total control of the Holy Land. This is NEVER EVER EVER condemned by ANY European or American mainstream news media.

Instead, these riots coupled with assistance by the Jewish neo-Nazi police are characterized as being either all the fault of obviously outraged Muslims or are caused by 'both' even though it nearly always starts with Jews doing something really horrible to their neighbors. If the police were fair, this wouldn't escalate into full scale riots. But the police enable these riots just like in the US during the civil rights struggles and then the police riots of the sixties. Integrating the police forces which were 100% white was a high priority item, one that I heavily endorsed when I lived in a mixed race community in NYT patrolled by hostile police who hated 'those hippies' and 'them thar n...ers'. It was very painful, interacting with these men who were unreasonable, vicious or outright, insane.

It was one of the hardest jobs I ever undertook. Once, a very studious and sweet black school boy I knew very well and tutored, stumbled at a school crossing and tripped over the foot of a police officer who clubbed him. He came home, crying, his glasses crooked, and this nearly started a riot only I said, 'I will go take care of this!' All I wanted was a public apology to the boy.

Nope. This evolved into a massive battle to get the police captain replaced and finally, we won. The replacement was still a white guy but he wasn't a budding member of the KKK at least! He immediately went into the black community with us and apologized profusely. This cut down on the nutty cops attacking us.

Well, in Israel, the cops attack half of the people with cruel impunity. And ignore Jews attacking these neighbors. This is so like the Deep South before civil rights! Since a majority of the Jews doing this are from the US or Russia, of course, they should know better. But they aren't knowing anything: they want NO civil rights for their neighbors. They want their neighbors dead.

And the US media should condemn this, not protect it!

Haaretz:

A steady stream of officials visited Acre on Sunday, among them Tourism Minister Ruhama Avraham Balila, who announced a PR campaign to bring domestic tourists to the Western Galilee, particularly Acre.
*snip*
The Acre municipality on Sunday had to deal for the first time since the Second Lebanon War with residents who had lost their homes. This time it was not because of Katyushas from Lebanon that did not differentiate between peoples, but the result of the recent vandalism and riots. This time, all the families who lost their homes were Arab.

Dozens of people gathered at the entrance to City Hall on Sunday to demand that the municipality finds them alternatives residences. The homes of some had been lost to arson, others were hit by rocks and some people were simply afraid for their lives if they went home.

That last group includes the Ramal family: a widowed mother, a son and daughter. The daughter, Walah, 19, tried together with other women to get to their apartment on Alkalai Street, protected by municipal inspectors, but they quickly fled after a crowd of young Jewish men threatened them. "I can't believe we're refugees in our own city," she said.

The city said it had found hotel rooms for everyone in the meantime, as it searched for more permanent alternative housing.
*snip*
Knesset members from the United Arab List-Ta'al, Hadash and Balad and the deputy chairman of the northern branch of the Islamic Movement, Sheikh Kamal Hatib, participated in the meeting with Olmert. They presented to Olmert and Peres a petition signed by a quarter of a million Arab Israelis demanding a neutral committee of inquiry to investigate the events of October 2000, in which several days of violence broke out inside Israel and 12 Israeli Arabs and a Palestinian were shot dead by the police.

Not one Jewish family is moving. All the ones fleeing are Arabs. The Jewish overlords are very happy to assist. Move them into FEMA trailers and then shove those into ghettos or the sea. Like New Orleans. The dual-citizen creep, Chertoff, ignored the dying, the drowning in New Orleans because he wanted to clear the blacks out of that city. Note how the Jews ruling the Arabs think that Acre needs more Russian 'tourists'! The Russians are INVADERS who are taking over the Holy Land with the huge, huge financial assistance of the American Jews like Chertoff. Whose family came from Russia.

Anti-Semitism Is Countercyclical
By CATHERINE RAMPELL

Last week I joked to a friend that, were there a futures market for anti-Semitism, Black Monday 2008 would have been the time to buy. Just think about it: Not only would the conspiracy theorists be claiming that “the Jews control Wall Street” (which got us into this mess), and that “the Jews control the media” (which of course covered it up), but also that “the Jews control Congress” (which delayed resolving the mess because of Rosh Hashanah).

It appears my clumsy attempt at satire has been borne out. Last week Hung Huang wrote that a book blaming “the Jews” for today’s international credit crisis is climbing China’s best-seller list. In recent days the Anti-Defamation League has been e-mailing members about the anti-Semitism that today’s financial crisis has apparently provoked:
*snip*
All this shouldn’t be that surprising, I suppose. Germany’s economic woes after World War I were certainly exploited as part of the anti-Semitic narrative. Not that I expect broken glass or anything this time around.

On that note, have an easy fast.

Sigh. The Jewish community can't have it both ways. They have a very huge influence, far beyond their proportion in the general population, in the financial sectors. So they have a responsibility to curb looting, stealing, etc. It is natural for people to place blame when things collapse. And the best way for Jewish people to protect themselves is to censor and punish members who go hog-wild and loot the banking or financial systems. There is tremendous anger at the Wall Street bail out. Since nearly all the costs of this is being shoved onto the general public and NOT ONE person is being put in prison or punished or even losing their ill-gotten fortunes while our banking system collapses....this is producing epic levels of anger.

The media won't talk about this, look at this or do anything except attack anyone who talks about this...they certainly will censor and do censor me, for example. The media hopes to shove this anger onto Muslims. Which is succeeding greatly! For the Christians hate the Muslims more and more and a study done in Germany recently sees anti-Jewish AND anti-Muslim feelings rising all over Europe. This is a very, very dangerous force! I begged the Jewish community to pass strict civil rights laws in Israel and to be more diligent in going after Jews who are warmongers and who give bad advice or take too great risks in banking but they protect them, not go after them with due vigilance. So now, the usual thing will happen: all Jews, most of whom are totally innocent, will be ruthlessly persecuted!

GAH! I hate this and am filled with fury that this will happen. I don't want it to happen! I am 100% for total civil rights and equality of all people, all religions! I want this liberal tolerance to spread! But like a black ink blot, the horrors in the Holy Land are setting the stage for massive global ethnic cleansing which will probably cause WWIII. Now, back to economics:

The New York Times:

The Wall Street geeks, the quantitative analysts (“quants”) and masters of “algo trading” probably felt the same irresistible lure of “illimitable power” when they discovered “evolutionary algorithms” that allowed them to create vast empires of wealth by deriving the dependence structures of portfolio credit derivatives.

What does that mean? You’ll never know. Over and over again, financial experts and wonkish talking heads endeavor to explain these mysterious, “toxic” financial instruments to us lay folk. Over and over, they ignobly fail, because we all know that no one understands credit default obligations and derivatives, except perhaps Mr. Buffett and the computers who created them.

Somehow the genius quants — the best and brightest geeks Wall Street firms could buy — fed $1 trillion in subprime mortgage debt into their supercomputers, added some derivatives, massaged the arrangements with computer algorithms and — poof! — created $62 trillion in imaginary wealth. It’s not much of a stretch to imagine that all of that imaginary wealth is locked up somewhere inside the computers, and that we humans, led by the silverback males of the financial world, Ben Bernanke and Henry Paulson, are frantically beseeching the monolith for answers. Or maybe we are lost in space, with Dave the astronaut pleading, “Open the bank vault doors, Hal.”

I like that last line. This editorial is correct. Money was made out of thin air. But it doesn't talk about how ALL fiat money is made the same way! The illusive character of this money is obvious today: all the main central banks [EXCEPT CHINA?????] are now conspiring to create INFINITE money out of thin air. It doesn't take genius to do this. It is tremendously easy to do. Ask Zimbabwe. All you do is add zeros to the money calculations. Tell everyone, 'We are mailing everyone a $600 check. Have fun spending it!' Then make it $6,000. And then, $6,000,000. Keep adding the zeros while the actual economic base remains the same size or shrinks as people cease selling pretty much anything.

Derivatives was a SNEAKY way of doing this! It flooded the world with cheap lending. It 'reduced risk' so the banks felt free to lend like rutting rabbits. More and more and more loans were granted. Until they were unpayable. Now, we see the central banks and central governments of all the top economic powers on earth manufacturing money en mass and this will flood the world with cheap loans, they hope. Holy cow. Loans which are backed by the world's taxpayers. The people pulling this stunt won't be ignored! And the Christians doing this, when cornered, will yell, 'The Jews made me do this!' and the mobs will go after the Jews just like the Jews in Israel go after Arabs with total impunity.

Wall Street Cedes M&A to Bank Collapses as Fees Decline to 2005

(Bloomberg) -- The only bright light in mergers and acquisitions is looking more like a death star now that 60 percent of the $389 billion in takeovers since the beginning of September are the result of bank collapses.

The loss of more than $5 trillion of shareholders' equity -- wiping away the biggest percentage of the stock market since 1937 during the Great Depression -- means that fees of about $36 billion from share sales and M&A are down 33 percent so far this year from 2007, according to data compiled by New York-based research firm Freeman & Co. Business is so bad that no one sees any recovery before 2010.

``There will be a deeper decline in investment banking than we've seen so far,'' said Dirk Hoffmann-Becking, an analyst at Sanford C. Bernstein & Co. in London. ``If you're a patient on a drip, you won't go out and play football.''

Damn blast them all! EVERY ONE OF THE TAKE OVERS OF THE LAST 8 YEARS WERE BOGUS! Not one of them should have happened! NOT ONE!!!! The gnomes want to restart this goofy, dangerous and stupid game because it made stocks soar on world markets. It filled bank vaults of the bankers with loot. It was all about dumping epic amounts of debts on top of all the G7's businesses. GAH! This should be outlawed!

Using leverage to buy up each other is a scam. And the gnomes who control the news and the banking systems are desperate to get this scam running so they can sit at home, click on the webpages of various organizations, see who has the least debt on themselves and then using the Japanese carry trade, buy up these things by using loans. And this game was a great money-maker and is directly 100% responsible for the present collapse!!!!

This is why they refuse to talk to outsiders like me. Imagine if I were at that G7 meeting, walked into the room and began to explain how the take-over mania using borrowing tools provided by the central banks, is the ultimate problem and must be outlawed. They would shoot me dead before I got through the door.

Fed Says ECB, Others to Offer Unlimited Dollar Funds

(Bloomberg) -- The U.S. Federal Reserve said central banks will offer financial institutions unlimited dollar funds, backing up efforts by governments to restore confidence in markets.

The ECB, the Bank of England and the Swiss central bank will conduct dollar auctions with maturities of seven days, 28 days and 84 days at a fixed interest rate, the Washington-based Fed said on its Web site today. The Bank of Japan will consider introducing ``similar measures.''

Policy makers from the Group of Seven nations pledged at the weekend to take ``all necessary steps'' to stem a market panic after the MSCI World stock index plunged 20 percent last week. Central banks last week cut interest rates in tandem for the first time since 2001, the U.S. plans to buy $700 billion in distressed assets from banks and in Europe, the U.K. is leading a push to keep lenders afloat with taxpayers' money.

``By providing unlimited dollar funds they are acting on the back of the G-7 plan to ensure the system is fully liquidized,'' said Lena Komileva, an economist at Tullet Prebon Plc in London. ``We're going to see even more liquidity provided and more aggressive rate cuts are coming.''

Inflation grins as she flexes her powerful wings. 'Ah, my dear, beloved baby, Derivatives Beast, has eaten all the fake wealth of those gnomes! Now they are praying to me and hope I will take flight! Whee!'

Her dire sister, Depression, weeps. 'I am so damn sad. They don't want me. Well, eat them all, Inflation. I will come no matter how much they feed you.'

This is so easy! We don't need computer geniuses to figure out basic economic forces, do we? We don't even need numbers!

Austria witnesses new gold rush

The interest in gold coins is so great that many of the world's major mints are struggling to keep up with demand, including the Austrian Mint, which produces the Vienna Philharmonic - one of the best-selling bullion coins worldwide.

Sales of Vienna Philharmonic gold coins have gone up by more than 230% since last year.
Kerry Tattersall, the director of marketing at the mint, says production has gone into overdrive.
"We are running at present something like three shifts on all of the machines, on the presses, producing both gold and the silver bullion coins.

Some Europeans have long memories. The global rush to gold is a mixed bag. Asians basically were the majority of the gold market until raging inflation coupled with an epic rise in gold prices sucked down much of the discretionary income of Asian workers. So gold glided down starting last March, as I explained back then. Since then, the market has shifted greatly. It is nearly impossible to get a swift delivery of gold in the G7 nations. Yet the value of gold is kept bouncing between $900 an once and $800 an ounce. Some gold hoarders are hoping to spark a commodities bubble and see gold shoot up in price.

Well, the G7 will enable this goofy dream. Gold, instead representing stability, will be used by ALL parties to represent inflation. The hope of gold buyers today is to protect savings from the 0% regime the central bankers are cooking up. And I guess, at this point in time, this is one of very few options. Just remember, all central bankers, when their flood of inflation money is sucked into gold rather than spent to pay off loans or buy stuff, will attack gold hoarders with the oldest weapons on earth: military mercenaries paid by the ruling elites to loot their own people.

A good article from GoldSeek.com:

Bond Market Collapse is Imminent By Adrian Douglas

What is more likely is that bond holders were waking up to the certain hyperinflation coming as a consequence of the largesse of the government’s massive rescue plans.

Many analysts are incorrectly talking of deflation. Falling stock markets or falling housing markets do not contract the money supply. The government’s bailouts and “liquidity” injections on the other hand increase it. John Williams shows at shadowstats.com that the money supply is expanding at 14% and when the government guarantees all bank deposits and probably all interbank lending I can’t imagine what it will be!

Imagine that instead of living through this nightmare yourself you were watching this complete financial drama unfolding in Venezuela. Who in his right mind would predict that Venezuela would experience massive deflation as a result of creating massive amounts of money and credit out of thin air? So why is it different for America? The laws of economics are not country specific.

The one huge flaw in all the gold sites online is they have a monotonous story line. They seldom give good advice to traders and they vacillate about the idea that the only real way gold will work is if it is run by the government in the mint. Namely, they want the government to buy up all the gold if we go back to a gold standard. I say, the government will NOT buy it all up, not at the price we pay for it during the inflation time. Typically, the government 'buys' it up by setting a draconian, much lower price and then sends in the goon squads to take it all. Period.

So be forewarned.

Der Spiegel, Germany: Gigantic Swiss Banks Hold Steady -- For Now

The Swiss have been forced once already to wave goodbye to a national icon. Swissair, whose solidity earned it the moniker "the flying bank," shut down in 2001. It was a traumatic crash-landing for the whole country, and Swissair's collapse cost the state over 2 billion Swiss francs (€1.3 billion). The big banks also bore guilt for the failure. As later became public, UBS had refused to extend funding to Swissair for emergency operations. This is how the bank earned its nasty nickname among the populace, "United Bandits of Switzerland."

Now, UBS is once again in the hotseat. Since the financial crisis began, the firm has experienced heavy losses and has seen writedowns of 45 billion Swiss francs (€29 billion). The investment bankers on Wall Street allowed themselves to run riot, above all with the meagre savings of small deposit-holders. UBS announced last week it was cutting 2,000 investment banking jobs. As the Neue Zürcher Zeitung recently put it -- with refreshing openness -- "the nicest thing you can say about the American bankers -- and about their imitators as UBS -- is that they were unscrupulous."

Many are fearful of the consequences should UBS capsize. Switzerland's gross domestic product totals 512 billion Swiss francs (€332.1 billion). UBS's balance sheet adds up to 2 trillion Swiss francs (€1.3 trillion) -- four times as much. Even Switzerland's second biggest bank, Credit Suisse, oversees assets totalling 1.2 trillion Swiss francs (€778.4 billion). Together UBS and Credit Suisse have over 640 billion Swiss francs (€415.1 billion) in outstanding loans.

"We owe this crisis an uncomfortable revelation: UBS and Credit Suisse are too big for Switzerland," wrote the ex-editor-in-chief of the German weekly Die Zeit, Roger de Weck, last week in the Swiss periodical Das Magazin. "If they went bankrupt, a flourishing country would be ruined."

Switzerland is one of the oldest pirate coves on earth. The place was very poor until the peasants banded together, defeated their rulers and formed free cantons which were armed to the teeth. They then discovered they could make lots of loot and literally loot a lot if they hired themselves to the chivalry and to despots as mercenaries. To this day, they guard the golden hoards of the Popes. Note that the present fop of a Pope pokes around the planet, denouncing wealth and power! HAHAHAHA. Maybe his Swiss guards will smother him in bed some night.

Anyway, all this looting loot was hauled home by the free Swiss and is the foundation of their wealth. Now, they screwed up as they played the other pirate game of the 21st century. Well, they also said gold was worthless when the G7 was desperately telling Russia and China this lie! To demonstrate how useless gold was, the Swiss sold much of their gold reserves! Now, they die.

Well, that is what happens when one gets a tad too irrational and arrogant.

Banking giants to be nationalised

Two of Britain's biggest high street banks will in effect be nationalised today in a dramatic move by the Government that follows a day of international negotiations aimed at co-ordinating a pan-European approach to the global financial crisis.

The development, where the state will take a majority shareholding in Royal Bank of Scotland (RBS) and a large share of Halifax Bank of Scotland (HBOS), emerged as European leaders appeared ready to follow the UK-led strategy of bailing out ailing banks by using public funds to take large stakes in them.

ALL banks will be sucked into the central bankers' maws. And then we have no 'competition' not only domestically, but globally. Welcome to the New World Order which is desperate to get Russia and China under its thumb. Then, they can globally control the value of gold and oil! Then, they can make themselves rich by giving themselves all paper wealth and forcing us to work for a small share of this paper which they get totally for free.

Paulson: protectionism no answer to financial crisis

(Reuters) - Treasury Secretary Henry Paulson cautioned on Sunday that countries that turn to protectionist policies to try to escape damage from the global financial crisis may make it worse.

"Isolationism and protectionism will not offer a way out," Paulson said in a statement prepared for delivery to the World Bank's development committee.

"Although we in the United States are taking many extraordinary measures to ease the crisis, we are not pursuing policies that would limit the flows of goods, services or capital, as such measures would only intensify the risks of a prolonged crisis," he added.

GOOD GRIEF IN HELL! We are planning to do NOTHING AT ALL to stop the trade deficit? Gads. The entire reason we are in a global collapse is due to the inability of the US to continue the present status quo. And this news proves me right! They are trying to revive the status quo that is all about higher and higher debts and deficits in the US. Something we should be fighting tooth and nail. Fixing this is the #1 priority of the US. And instead of fixing this, our leaders are SURRENDERING. So it is only a matter of time, when we collapse, forever and totally.

China has a calendar they launched in 1986. In year 50 from that date, the Chinese money will be the world's currency and the US will be bankrupt. I suspect this is one project that will come in early. Congratulations to the Chinese. They are very smart people. They are also not Jewish. The competition to see who will run the planet's systems isn't merely ethnic/religious. It is political and no system can rule the world unless it is also a global power. Europe is not united at all. But Russia and China are. The US is, too. But will falter and die if loaded down under a mountain of debt hair balls.

Australian dollar collapses

The Australian dollar collapsed to multi-year lows against the US currency and Japanese yen in late trade today as a deepening financial crisis saw investors evacuate riskier assets.

With the outlook for the global economy deteriorating fast due to the ongoing credit market turmoil, investors are pricing in chances for more rate cuts by the Reserve Bank of Australia (RBA) before year end, adding to the Aussie's woes.

All the highflying nations that were part of the Japanese carry trade complex are collapsing. The krona has now vanished as a currency. I would feel sorry for all those poor currency traders who were not pros who were taken to the cleaners! The only really successful currency traders are all very, very, VERY politically connected so they get plenty of warnings of troubles ahead. Guys who trade by reading charts and graphs, looking for signals, will always be ten steps behind those people who make the news, own the politicians and control the central banks. The Bilderbergers, just for example. The Real Rulers. Who fear the future Real Rulers, the Chinese.

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Hi, I have read through some of the blogs on that list, and have learned a lot from reading through them.

[home business,small business,affiliate]

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