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DeVaul

"They must look like they are victims and not the authors of the messes they are creating."

My ex-wife used this strategy in court. It was very effective with the judge and infuriating to me.

I admit that I do not understand the strategy, but I have noticed that all criminal masterminds try to use it. I remember a mafia kingpin who tried to pretend he had alzheimers or something. The jury almost bought it!

Lawyers especially love this strategy and I suspect they often encourage its use by those whose actions cannot be explained away very easily except by "victim status".

It is disgusting and unconscienable.

Christian W

It's a favourite with politicians too. Most wars start out that way. Or if you want to smear your opponent. Take his strength and turn it into a weakness by badmouthing and innuendo. When people figure out the ploy it is too late usually.

Buffalo Ken

Hey has there been a conversation going on around here? Has there?

Can anyone answer this question?

The question of Peace?

With a big P?

Peace,
Ken

Buffalo Ken

Ken of the 2 ...

that is who...

I am.

--of the two--

Peace,
Ken

P.S. --- I know ---- goofy!!!!!!

JT

I think the plan is to let the whole world eat US inflation as long as possible.
And I honestly believe that is the best solution for US citizens as long as it can be done.
US debts cannot be honored without devaluation and it´s starting to sink in around the world. But if you can drop the dollar 50%, maybe the debt could be managed.
After that rates will be raised to 5-7% and the dollar will rise against other currencies.
I think this is the plan.
Why US can do this?
a. every cenral bank wants to devalue their currency against dollar (by buying dollars)
b. every central bank holds dollars (in US bonds, Freddie and Fannie etc), because selling them makes dollar fall even more. They hold dollars even if the rates are well below rate of infation (lesser evil)
c. every country needs dollars to buy oil

This has always worked for US in the past.
I hope it works this time too.

What could destroy this?
a. any one of your enemies decides to dump their dollars (China, Japan or Russia)
b. any one of your enemies decides to dump their bonds and stocks in US.
c. oil could be sold in other currencies

If Fannie, Freddie and a few banks with them failed that would lead to disaster b.
Cutting back on US military spending would lead to disaster c.
Dropping the dollar too much would lead to disaster a.

So I think this balancing act will end next year with intrest rates at 5-7%. After that 200 small US banks will still fail, but thats the price.

But I would use the word "victim" cautiously when describing any US citizens. The real victims are people dying of high food prices around the world. They die because of US inflation.

Buffalo Ken

Plus I would say this as someone who just drove acrose the u.s. There is land here and this land is of incredible value.

Incredible. Those of us here will do fine as long as we recognize what is in our own interest.

You know?

Peace,
Ken

Buffalo Ken

Good-night, good-night. I mean it.

"Everybody passed me by...."

Peace is so easy....

Buffalo Ken

Sorry, that was a family thing as I suspect we all can appreciate.....

Anyhow, I've been on vacation, but now I'm back.

Re-gardless, this is my last post for awile.

Peace is easy.

Peace,
Ken

Buffalo Ken

OK - All of U all are so slow ---- this shit is going to happen so fast most of you will never see it coming....but it is coming....

I'm just letting you know!!!!!!!

Peace is on the way.

Peace.

Buffalo Ken

Hey - lets all knock on wood!

RobG

BK - go to bed. And next time consolidate all comments into one entry. Peace.

Elaine Meinel Supkis

Buffalo, I was outside in between violent thunderstorms, building the front deck.

JT, you are right. Not only is food inflation ultimately due to the US empire but high oil prices. We are the gas guzzlers of this planet. No nation uses as much as we.

Buffalo Ken

RobG - you are a theif who thinks more than is of merit.

Go to sleep RobG. Go to sleep.

Buffalo Ken

Thas post came before what I saw was said. So take it or leave it if you know what I mean.

RobG

BK - peace! Those of us on dial-up lines take longer to download the latest from the site - it's just a request - will not happen again - profuse apologies.

Jojo

Hanky Panky Paulson is as much as a lil' innocent boy as was Eddie Haskel.
The fiat system, leveraged to infinity, is broke - they know it, you know it, and I know it.
We should all be filled with rage because of the fact of their greedy criminality, and now they are going to take down the currency and the government, because they lost the game and now want to wipe the game board clean in a self-indulgent act that will cause world wide suffering.
Today on TV, Obama fresh back from his Messianic world tour, told the interviewer, that shareholders and management of Freddie and Fanny should be protected, and all our attention should be on providing liquidity to the mortgage industry. (Almost direct quotes)
Vote, but without hope.
Peace is when Buffalo lay down to sleep.

Buffalo Ken

Hey for the last week I've seen many deer. They ought not be so unafraid of folks. They have gotten easy.

Enought of that is what I think...time for the real deal...this ain't no game....

double down if you think you have what it takes but remember when you gamble with more that what you possess, then you will eventually lose all you have forever or you will learn.......

seems as such to me.....

Peace is when the buffalo roam the plains as the buffalo were meant to be....

Buffalo Ken

OK - so I admit it....I am a fool. What about you....or U if you (u) prefer. She (that women) does things that are so impossible to ignore...Hey should I post this foolishness..when will the generational ridiculousness come to an end....i hope soon. Don't you think it it time to put an end to this foolishness????? Don't you think. Think please. Think.

So now I wonder should I post all of this possible incredulousness....oh well, what do i have to lose....actually, I have much to lose, and let me tell you, I will defend. I will defend. I defend. I am a defender.

Buffalo Ken

I am a defender. A safety if you really want to know.

Good night to all and peace to all.

The fool (me) will try to shutup as the fool should. Shutup for good.

Peace,
Ken

Oz Observer

You ain't no fool BK. You are just fatigued. So am I.

It's the loneliness of the long distance runner.

Elaine Meinel Supkis

Or long distance limper, in my case. Can't run so hot anymore.

Ah, the wonder of it all! Just posted a story about the debt ceiling that was boosted by nearly a trillion dollars, secretly, naturally.

GAH. Stupid! Stupid. No news about it, of course.

Elaine Meinel Supkis

Jojo, like the comment about Eddie Haskell. Good play there.

Never Trust Goldman--And Especially Someone Who Ran It!

Hank does not give a damn about the tax payers. He just got the government to squeeze out some of the shorts so there will be more juicy bones for him and his friends to feast upon years later.

Fannie, Freddie and the Housing Bill is merely posturing and appeasing the masses while at the same time grabbing more power for himself.

Any man who is worth $1 billion who ran Goldman knows what he is doing.

Hanky Panky

Also to your point on Asia, China is one of Paulson's Pals. Isn't that why he was picked for the job in the first place?

China is long up the gills Fannie and Freddie debt.

JT

Yep. My all time favorite Elaine cartoon is Miz Liberty in the bath tub of red ink with a razor blade.
It says it all in one image. Take my loans and inflation or I´ll kill myself.

It´s like E=mc2, simple truth.

Elaine is right about infinity too. Someday one of your enemies will say "Do it", until that they will just sell you cheap razorblades.

If I could be dictator of US for one day I would:
a. raise gasoline tax to 2$ per gallon
b. raise diesel tax to 1$ per gallon
c. raise heating oil tax to ,50 cents per gallon
d. raise the tax on electricity to 10c per kwh
e. drop military spending 5% annually for the next 5 years.

And take whatever havoc these taxes would make in the economy.
And spend the money (2 trillion dollars annually) on social security, government building projects, education and handling the US debt.

This is what dictator JT would do if given the chance.

Poorer people than most US citizens still drive to work every day with 9$ per gallon gas. They won´t drive SUV´s though and will not want to heat/cool 6000 SQUARE FT mcmansions 50 miles from work.

Buffalo Ken

JT - awesome post. I'd vote for you, but if you are a dictator, then I suppose my vote really doesn't even matter.

Hey - you know what - lately it seems as if votes don't matter anyhow plus they can be swayed one way or the other so easily based on the whims of "a few" (or at least, so "the few" think). So hell, lets just skip the voting bush-shit altogether since thats what its become. Shit with a capital B located in the made-up city of DC run by "a few" who are so very confused and getting more and more befuddled as each day goes by.....

I propose JT for dictator of the country - at least long enough to implement the above suggested remedies!

Peace,
Ken

ken from california

hello elaine community!

allow me to weave back and forth between politics and economics.

http://graphics8.nytimes.com/images/2008/07/25/world/obama600.jpg

wow, these images have impact. to wit:
http://www.nytimes.com/2008/07/28/us/politics/27cnd-campaign.html?hp

"Mr. Obama's lead had widened from three percentage points at the beginning of his trip to a more statistically significant nine points."

never mind that i'm a little cynical about the him praying at the Wailing Wall and not visiting real contemporary walls, like the ones the surround the west bank. when voting americans are upset about america's geopolitical power on the wane, this is a show of amazing candidate strength. mccain should be freaking out. I'm simply amazed
at obama getting ordinary berliners involved in the voting process. obama is using their vote to help win the american election.

at any rate, his speech seemed to prep for a transfer of military power. he seemed to say,"hey guys, you need to take over where we're gonna have to leave off". well, perhaps the military-industrial-complex can just change their national anthem tune. the bankers dont care as long as the wall and bomb makers keep singing (under their breath, of course).

speaking of bankers, that article mentions "he will consult with advisers including Paul A. Volcker, the former Federal Reserve
chairman; Robert B. Reich, the former labor secretary; Robert E. Rubin, the former Treasury secretary, and Lawrence H. Summers, another former Treasury secretary."

these guys are allstar bankers. Volcker is the guy who killed 70s inflation. i like him. he might accidentally set off a derivatives bomb because he might be so interest-rate-hikes-can-fix-anything. i
hope that wouldn't set off real world bombs. but he's not a tool, and i think is a nice and very responsible guy.

rubin wikipedia bio it reads like this, "early in his career, his high risk activities made him partner. then in politics, he saved banker ass by bailing banks out of their high risk activitivies. last year, he took a peak at citibank's off-book activities, and ran screaming."
welcome back to politics, mr rubin, and please dont fight too much with volcker. if there's a pre-election banker bullet with obama's name on it, he'll keep it out of a loaded gun.

summers is a tool. read his wikipedia page and tell me if you disagree. note to self: dont be a tool.

this is an excellent review of greenspan's book (and by proxy, bernanke's world view) by riech:
http://entertainment.timesonline.co.uk/tol/arts_and_entertainment/the_tls/article3073738.ece

"What Greenspan did not tell Clinton, but admits in his memoirs, was that Clinton had been saddled with Reagan's profligacy – almost exactly as Republicans had planned it. "Reagan had borrowed from Clinton, and Clinton was having to pay it back.""

this guy understands high level banking:"The choice was Clinton's, but Greenspan held a gun at his head."

if you want to crawl inside obama's political-economic perspective, read reich's comments. they paper the walls in obama's head.

i know elaine will say these guys are looking for more status quo. but it does seem to me that aside from allowing the red to flow, they want to tip that blood at least to invest domestic things rather then in the war machine. isnt that at least something to hope for? i'm interested in what you think. all of you who read this.

love,
ken

Step 5 of the Paulson Plan

Per Step 5 of the Paulson Plan I wrote above, MER is raising $8.5 billion.

Quite shameful in light of its massive earnings miss 10 days ago, denying the need for fresh capital on its call, and now puking assets off its balance sheet for much lower than book value. Sadly, MER will get away with it. Funny that they didn't mention how misvalued the CDO assets were on their earnings call on July 18th. Even funnier that the stock closed up 1% post earnings on the 18th.

I guess the banks can be Enrons as long as they are Pals with Paulson. After all, Thain is the ex-CFO of Goldman.

MER can't be the only ones on the block with another puke shot and capital raise out there. Paulson is letting the banks lie.

Elaine Meinel Supkis

Love all the comments. You are are all on the ball or maybe at the ball or rolling the ball. How about playing ball?

Hit another homer! Bang. Baseball bats have other interesting uses, as we all know. But we can't show this to these guys who are wrecking the economy.

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