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mad mike

wacky berannke isnt a tool of the rich, he is the rich exploiting gov-ment service for himself and his buddies.
wacky bernanke, punky paulison and creepy corzine all have invaded the public sector to engage in largess on their own behalf.
i might have mentioned before. corzine wants to shut state parks in the great state of new jerky, but his ex gold-man-sacker buddy dan gets a 2 million dollar contract with the state.
should bernanke be allowed to let gold-man-sacks use the discount window at the fed? talk about blatant fraud. in china as in the usa there are two types of citizens, those with perks and priviledge and those without.
there are lots of children working in factories. but those with money and connections go to schools. and we cry for those that get squashed in earthquakes and ignore those who die a little every day in some factory. some schools are really factories. a fireworks factory blew up a few years ago. turns out it was kids in a "school". there is one thing they do different in china. they grab those fuck up exploiters and execute them. here they get medals of freedom or cushy jobs as consultants. cripy whitman another ex gov-ner of that great state of new jerky raided a billion dollar pension fund, went to d.c. told everyone air at the smoldering ruins of the world trade center was safe
and gets a shyster judge to rule that no one would enter public service if they were held responsible for lying to the public!
send them all to gitmo,Q-ber and waterboard them all.
the man enslaved to wealth can never be honest.
there is no limit to human greed and folly.(tm)


Elaine, you'll love this tidbit from Reuters... basically it's a load of rubbish from the Jaded Pirates Morgan about their *entree* into trading of actual petroleum.


SINGAPORE, May 14 (Reuters) - JPMorgan Chase (nyse: JPM - news - people ) & Co will begin trading physical oil by year-end, increasing its exposure in a market that could rise to $200 a barrel, the bank's global head of commodities said on Wednesday.

The bank plans to expand in commodities and energy trading, Blythe Masters said, despite expectations of job cuts in other areas as it prepares to take on staff from Bear Stearns (nyse: BSC - news - people ) at the same time it deals with turbulent financial markets.

"We will start trading in physical oil and refined products by the end of this year," she told Reuters in an interview.

START trading?!?!? Greatly expand trading, more like. And making a killing. While they drive oil prices to $1,000.00 a barrel and bankrupt everybody else in the process.

May their derivatives bring them to a bad end.

Elaine Meinel Supkis

Next they will announce they plan to corner the rice and noodles markets.


They gonna get burned big time. There is a reason why OPEC is there.

Crude oils market is not really "free market" It is highly controlled. the producers are few and the distributors are even fewer. There are bunch of guys with computer monitors buying and selling stuff, but they are really meaningless when right down to it.

JP morgan is going to go the way Enron does in a few years. They are not in control whatsoever. (enron had to hide loss, because they thought they know gas and oil market, btw.)

Elaine Meinel Supkis

You are probably right.



"Experience since the mid-1960s shows that massive government deficits and Federal Reserve lender-of-last-resort intervention increase the robustness of the financial system. That is, in the modern economy the job that was [formerly] done by deep depression can be accomplished [now] without the economy going through the trauma of debt deflation and deep depression. However, the government deficit and lender-of-last-resort interventions that abort the consequences of fragile [leveraged] financial structures lead in time to inflation. Inflation enables firms, households, and financial institutions [and governments] to fulfill [debt] commitments in [plentiful] dollars that they could not fulfill at stable prices." - Hyman Minsky

Let's add to the benefits of dollar inflation that the inflated dollar drops in FX value, making imports less expensive and reducing the trade deficit. It's naive to be shocked that Ben & Co. are willing to inflate our currency; hell, you know they are intentionally inflating it. The only possible downside from their point of view would occur if either a) Everybody holding Treasuries started dumping them and didn't stop until they were worthless or b) Inflation got so bad (say 1979 level) that somebody had to bite the bullet (a la Volcker) with 20% interest rates to correct it. Well, if you understand that it is now the absolute GIVEN at every level of our society (including the Fed) that the U.S. Government will never pay off its national debt, you must understand that it is now the absolute GIVEN that no one will abandon Treasuries ("they're the modern bullion of the world trade system"), and it is now the absolute GIVEN that world deflationary forces will prevent 1979 from happening again. This latter given is made possible by assuming that commodities inflation is just another asset bubble waiting to pop. So, all you have to do to stop worrying is enter the magical world of the Fed, put your faith in their GIVENS, and smile at the upside of inflation.


Sorry, I see a typo - the inflated dollar makes "exports" less expensive, not "imports'.

Bear of Little Brain

Nice headline, but don't follow your logic, unless you are being deeply ironic.
If the US will not pay off its debt, will it attempt to pay it down? And how? With a strong currency? There are no indications that I see of that returning any time soon. If it will not pay it down or off, it is unlikely to maintain a steady state condition. Hence, greater debt. Once others judge that the policy is not to pay it off or down with strong dollars, but with devalued dollars or not at all and so increase debt endlessly, the game is to get out of dollar holdings before the next guy and before the panic, or at a time chosen by the holder. This is not compatible with "the absolute GIVEN that no one will abandon Treasuries". If you remember, when Bush publicly humiliated the Chinese leader in Washington a few years ago, in the usual exchange of gifts, he (Bush) was presented with a copy of "The Art of War", a Chinese classic. Don't be surprised if there comes a time when the Chinese, the Japanese, the Russians and everyone's uncle pull the plug on the dollar at a time of their choosing. It may even be coordinated. The New World Order may not be quite what the Neo-cons expected! The world is regrouping and the dollar is becoming marginalised. You say that Treasuries are "the modern bullion of the world trade system", but that is less and less the case. I imagine the gold price may be a good indicator of the faith in US Treasuries.
Re-reading your last comment, "smile at the upside of inflation", makes me think you must have meant this as irony. If so, and I just haven't got it, then "nice one". I fell for it.

Just as an aside, Bloomberg UK reported that a meeting has just taken place between ministers from the BRIC countries. Russia, India, and China were the main participants, but the Brazilians were also invited to attend, which they did. I didn't hear all the report, but they all seem a bit miffed with the US for its constant criticism of human rights (pot, kettle, black?). They are meeting again next year. Looks like the inhabitants of all Asia are closing ranks against the attempts by the Western Powers-that-be to continue "The Great Game".


Papa Marx? Now I see how you got yourself banished. It's like bull baiting to the summertime patriots, gets them foaming at the mouth every time.

Bear of Little Brain

Latest hubris: Democrats want to make $20Bn arms contract with the Saudis dependent on lower oil prices.

1. Maybe the Saudis don't need the weapons anyway, but see it as a way of giving Americans jobs.

2. I imagine Chuck Schumer hasn't seen the videos of the latest Russian fighter planes, or been told about the deadly Chinese Silkworm missiles. Having weapons not used by the Israelis could have advantages.

Self. Shoot. Foot. Off topic, but still part of the puzzle.

Elaine Meinel Supkis

Saudi Arabia and China: today's topic. Interesting news there. News Americans should fear.

I wrote very extensively about the Hu visit, its implications and made accurate predictions. Bush was an arrogant, stupid fool and we will pay dearly for all that. As usual.

The US media continues to be very sly about China and instead of praising the hard, heartbreaking work of the Chinese in their rescue operations, they make all sorts of horrible, snide comments. I can barely bring myself to watch. Not one news media brings up New Orleans and contrasts the vicious refusal to aid black Americans when they were dying slowly, en mass a la Burma.


Elaine, until now I thought your vision was the most gloomy one. (discarding the nuts on the net)

Not anymore.




In my town the only PBS affiliate showing the BBC World Service cancelled it for basically a show about local "fashion" and local "hip culture" to catch that twentysomething market. In other words, something unwatchable. Now all we have left here is the Lehrer News Hour, which puts me to sleep, and the silly rubbish put out by the corporate media.

At least the corporate media temporarily redeemed themselves and SHOWED the suffering in New Orleans, forcing BushCo to actually do something and get those people out. If BushCo were to do Katrina all over again, they'd declare martial law and impose a media blackout from day one, so that noone would find out that people were starving a la Myanmar.

Elaine Meinel Supkis

Yes, the resemblance with Myanmar is absolute. Bush wanted to clear out New Orleans and his buddies even boasted, before the damn hurricane, this would be the best way to do Urban Renewal!

Paul S

Plenty of 'hubris' in DC to go around. I do not believe one party has a monopoly on arrogance or ego. The 'hubris' of those in Washington DC is caused by WAY too much inbreeding. As I've said before the gene pool of the country folk you saw in the movie "Delivereance" is HUGE compared to the gene pool in DC. Too many folks in Washington DC have this "Masters of the Universe" complex. These arrogant fools are going to drive the WHOLE country off the cliff and never stop thinking that being the ruling class is their God-given right. (Like the 'divine right of Kings'. So much for the concept of democracy.)It is going to take outside intervention to cure what ails Washington DC. Some members of Congress and those in the media may need to be euthanised.


Yes, I intended irony. I don't accept these polyanna GIVENS (I'm a Murphy's Law, Chaos & Complexity Theory, 2nd Law of Thermodynamics type guy). But, it's important to understand that Ben and Friends do hold fast to these GIVENS and are not preparing for alternative possibilities. They know these things can happen, but must assume they won't. Why must they? Because if they don't provide bailouts and low interest rates (as all central banks do in credit bubble crises such as we are now experiencing) there will be a credit collapse and HUGE DEFLATION worse than the Great Depression; they will avoid this at all costs and happily inflate away believing that is part of how you prevent a credit collapse. Besides, they figure they'll "save" the world from the Great Credit Disaster now, and someone else can jack up interest rates later if inflation gets real bad (which it might). I personally believe the foreign governments who are holding devaluating Treasuries are doing so only because there is no other currency yet ready to replace the dollar internationally (and probably won't be during their tenure in office) and no single government whose redemption guarantee is based on as strong and stable an economy as the U.S. Yet. But I know that the run on the dollar and the dumping of Treasuries could start at any time for any reason, and that would be a disaster that would make the Great Depression look mild. So, I can understand why in order to sleep at night the Fed has to act as if these things will never happen and promote a deflationary status quo as a set of GIVENS.

Bear of Little Brain

Don't expect you will see this, since I'm revisiting this post on Saturday, and you've all moved on.
Phew! Glad I pondered whether you were being ironic or not. Sorry not to have actually realised it, though; I could have spared myself all that typing (I'm really slow).
Hitler had "Mein Kampf", Bernanke has "Inflation: making sure it doesn't happen here". A manifesto is usually an intention.
All the best.

Elaine Meinel Supkis

Bear, I check all over the place going way back...heh.

Good comments, as per usual. Great writing, as we fully expect, everyone.

The history of the collapse of the British banking system pre-WWII is very pertinent for us to look at so I will talk yet again about it.

Royal Dutch


Jim Smith

"Bear, I check all over place going way back...heh" -- Elaine, you are something else!

Elaine Meinel Supkis

Yes, Jim.

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