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Thanks for the heads-up on the proposed regulation change by Medicare/Medicaid; this had somehow escaped my notice. I became disabled 6 yrs ago, so I was aware of the 2005 change; I read my CMMS quarterly statements with a magnifying glass.

Unfortunately, I need rehab services on a continuing basis - and an aide. Those bastards really do want to throw people in the ditch - I mean a nursing home.

Thanks for all your great work.


Mephistopheles claims to be a part of that power that always wants to do evil, but always makes good. The converse is the bumbling idiot who always tries to do good, but ends up causing nothing but trouble.

This blog brings things down to earth, so that financial matters are not much different to buying a few kg. of potatoes at the shop. If someone explains how you go to the supermarket shelf take the potatoes and pick up the price from the checkout as you leave, he is probably an addle wit.

Webster Tarpley piece on the Great Depression was something like that: "When this Wall Street Bubble had reached gargantuan proportions in the autumn of 1929, Montagu Norman sharply cut the British bank rate, repatriating British hot money, and pulling the rug out from under the Wall Street speculators, thus deliberately and consciously imploding the US markets." [NOTE: Actually raised the British bank rate from 4.5% to 5.5% in February 1929 to repatriate gold and stop speculation.]

J.K. Galbraith was a stuffed shirt, and responsible for much incantation himself. Besides he always fell back on the dubious axioms of economics. Actually the present situation is much like he said things were in 1929, from his books published in 1975 when he was flavour of the month, and popular guru paving the way for the present situation. He said the Federal Reserve lowered the bank rate in August 1929 by 0.5%, then walked away from the mess. The market completely recovered, only to completely crash in October. [NOTE: Apparently classical theory says that central banks should raise the bank rate and lend freely but only on good security - a politically difficult manoeuvre these days.]

Now things are completely different to 1929, owing to the vigorous application of Cart-before-horseism over the last several decades. Today the local outrage was a strident woman explaining how those people defaulting on their utility bills due to falling wages and high mortgages, will be lost and forever excluded from future credit. The local stock exchange is back in record territory, 6500; after falling to nearly 5500 about a month ago, but due only to a computer malfunction.

I apologise for being a little behind the game.


i couldnt believe it when i saw that you yanks measure inflation minus food and energy, WTF???? i thought to myself, the 2 basic cores of survival arent measured.... crazy stuff but crazy is to be expected from the good ole US of A these days.


Interesting analysis. This begs the question whether the US will continue increasing debt to overseas holders until they can no longer service the debt with new debt. And what happens if the Chinese and Japanese quit or slow their debt purchases? Seems like a giant Ponzi scheme waiting to unravel.

Will the US massively devalue the dollar and leave the debt holders with nearly worthless paper or will they let things ride until the system self-adjusts and devalues the dollar for them?

What will this do to the dollar as the reserve currency?

Any guesses Elaine?


With the US at 25% or global GDP and an economy that is 70% consumer based any kind of a shock to the system could remove up to 15% of global consumer demand.

When tied to your earlier piece about Peak Oil this bodes especially ill for the US economic outlook 3-5 years out IMO.

Elaine Meinel Supkis

The dollar has basically ceased to be the reserve currency of the world. Or rather, so much of it has been parked inside of the reserve FOREX funds in Russia, China and Japan, they can't be bothered with more funds and they are now buying euros which is why euros are going up and up and up while the dollar is going down and down and down.

And Peak oil is just about here: we can't tell until all the data comes in and there is a 6 month timelag in all this and on top of this, several big oil exporting nations are also very secretive.

TKN, thanks for the long comments. Gives me something to think about. The devil is in the details and the magic making money machine is very satanic which is why I am now saying we are deep within a currency-speculative bubble which my latest story has some elements concerning this mess.

We are DEFINITELY in a monetary bubble created by lopsided world trade based on the dollar. This will pop badly and the rising value of gold proves there are many betting this will happen.

Elaine Meinel Supkis

Ginnie, my dear husband is disabled and very vulnerable. So we track this sort of news closely. I greatly fear old-fashioned fascism which tends towards depression and saving money by killing people starting with the disabled.


Ravi Batra again?! I thought he went away after his last crash didn't materialize.

"In your soon-to-be published book titled, "The Crash of the Millennium..."

Crash of the MILLENIUM? Ravi... the current millenium has 993 years left in it yet.

"Institutional and speculator organizations went from 10% to 80% while individual investors dropped to 20%. ... The average private investor is rapidly vanishing due to lack of free funds one can use to take chances on the vargarities of Wall Street."

Not so. The average private investor... invests in funds. 401K, mutial funds, annuities, etc., etc. in the heyday of the private investor, there just weren't that many places to invest besides portfolios of individual stocks. Now people don't have to pick stocks... they just put their money in some "Wilshire 5000"-type fund that buys the entire market.

"Suddenly, it was all the rage to empty out the asylums. But the mentally ill were dumped into the gutter, literally.'

That was a confluence of two bad ideas. First, it was decided that confining people involuntarily violated their Constitutional rights. They were supposed to be released into "voluntary" community treatment... but the small numbers of community treatment centers that were built weren't voluntarily utilized by the mentally ill.

Elaine Meinel Supkis

Well, the Thousand Year Reich lasted um, as long as this century so far. So one can talk about 'Millenium' to one's heart content. It is a term of endearment.

Neuro Artist

Batra is probably correct about the crash of the millenium.

The coming crash will result in wwIII, and I doubt those surviving that, will want (or have the capacity) to speculate in vague things like paper money, bonds, CD's, Hedge Funds etc. They would probably be more prone to speculate in how to survive the winter, when there will be rain, and how to make a house, and how to make use of that flatscreen TV. In about 600 years or so I predict the next major speculative bubble might re-appear, probably in something stupid like tulip bulbs.


"Crash of the MILLENIUM? Ravi... the current millenium has 993 years left in it yet."

*sigh* You are nothing if not predictable.

The crash actually started in 2000.

But Easy Al did the bidding of his fascist masters and blew a lending bubble (usually and erroneously described as a housing/real-estate bubble) to bail out the stock speculators.

So we've compounded a bubble with a bubble.

The impending crash, is, in fact, a millenium crash. And thanks to the stall tactics practiced by Easy Al and BushCo, it's going to be a lot worse than it needed to be.

Elaine, everey time I read your blog, the urge to dust off my magick and put the mother of all bindings on Dubya, Poppy, Cheney, Putin and those chumps in China and Japan grows very strong. (The deaths of Cheney and Putin, in particular, would remove a tremendous amount of shadow from this world.) Their callous selfishness, at the expense of so many, simply enrages me. However, I'm content in the knowlesge that I've worked off all my Karma, and all I have to do is make it thorugh this life. Because my only clear intention at this point is never to come back to this wretched little kindergarden.

Neuro Artist

John, are you sure that little urge will not play a trick on you and you will have to come back and work it out? Anyway, what is a few more lives post wwIII?


"Anyway, what is a few more lives post wwIII?"

Well, for one thing, you can definitely say you live in interesting times. Imagine holding hands with your loved one and staring at that beautiful glowing flower on a moonless night.

After WWIII, I fear we can only hope and dream that there may some day be something called a "tulip bulb mania".


Well, the ire at their selfishness arises, and then I release it. So no, unless I act upon it, I will not have a problem. And besides, all the bad actors are storing up mountains of Karmic debt by their own actions.

However, this has given me an idea; employing a defensive/restitution technique I perfected a long time ago. Hadn't really thought to apply it to people I'm not personally and directly in contact with. All such people I've employed this technique on have come to a most unhappy state of existance, without my having taken any untoward action against them in any way; the advantage, of course, is that by not setting any negativity into motion, I incur no repercussions. But after all, these creeps are harming me and those whom I care for by their selfish actions; so why not?

Elaine Meinel Supkis

Oh, the battles over control of Geronimo's skull!

Doing these things involves lightning bolts and of course, Karma plays a big roll. Alas for us imperfect humans. After all, what are we doing?

I killed a bunch of wasps today, for example. Their dead tree fell down in the forest. They were homeless so a thousand of them tried to make a new home...in my chimney! So I poisoned them. I guess, my karma took a big hit as far as the Insect Kingdom was concerned. They will be out looking for me later, in the Other Realm.

Hahaha. Stay clear!

But the main thing is, we do make the bed we sleep in which I keep saying. Fixing things is hard work and we must work harder.


I don't think that killing wasps in your chimney incurs bad Karma.

That whole "turn the other cheek" business has been used by unscrupulous elements to promulgate an attitude of rolling over and taking whatever unpleasantness comes your way. I'm having none of that.

No, incurring bad Karma would involve purposely roaming your land, making a point of killing wasps wherever you find them, when they posed no harm to you.

In fact, what I do revolves largely around the idea that Karma must be paid. I've merely realized some rights that each of us have, and at times choose to deliberately excercize these. Central to this principle is the surrender of all outcomes to Creation/God/call-it-what-pleases-you.

Neuro Artist

Sounds very reasonable John. I guess you mean it is the intent behind the action that is determening your Karma?


Ohh, yes. Intention is everything. While you will pay a penalty if you inadvertently kill someone, or do something that screws up their life, by far the biggest generator of Karma is willful bad intention. We see this reflected in our own legal system, (Earth is but a reflection of Eternity, after all!) where murder carries a whole different penalty structure than involuntaery manslaughter. And if an outright accident kills someone, often no charges are files, under the premise that sometimes, things just happen. Of course, Karmically speaking, there are no accidents and no coincidences. Still, intention is the single key determining factor.

One might just as easily say that the wasps in Elaine's chimney incurred the bad Karma that led to their deaths by nesting there. They had any number of places in which to nest, that would not bring them into conflict with her or anyone else.

Elaine Meinel Supkis

Worse, I was working on the roof when this mob of wasps came out of the woods, thousands of them! I now know how the natives of the New World felt when my WASP ancestors came. But they didn't have cans of Raid available.

Karma: that is when the ruling class fights each other.

Neuro Artist

Ah, Raid, that isn,t very good for your nerve system, Elaine. Though obviously it was even worse for the WASPs....

I pray for the release of the Karma incurred by Greenspan et al, in this life, though its obviously gonna be difficult. Hanging might help his (and his accomplices) soul to slightly better futures.

Wonder if you can take out options on his soul, just speculating....

Elaine Meinel Supkis

Spray them all with Raid.

Neuro Artist


Wouldn't be surprised if the ingredients in Raid were developed by IG Farben. Its about time the elites taste their own medicine.

Next time smoke the WASPs in your chimney! Better for you! Get rid of your wasps by all means too....

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