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Market Watcher

Lots of internet guys have been watching and reporting the current financial problems. Doug Noland over at Prudent Bear has documented this whole business in accurate thorough detail with his weekly reports for a number of years now. The Minyanville people have done good work. Jim Grant has published important material on the net as has Jerry Gross of Pimco.

The old mass media ignores the story even now. Hard to picture such behavior as ignorance, even willful ignorance, eh?

Ace hanlon

Great rant Elaine!


When the media, government, central bank and commercial banks all conspire to loot untold trillions from the citizens of a country, there will eventually be a price to pay.

Here is what the Feds will find when they try to haul the rioting peasants off of Oklahoma.

Expect the Obama/McCain Peasant disarmament act coming soon to a Congress near you.


Oklahoma Full Auto Shoot



Robert Sczech

Greenspan tried the impossible in an act of desparation. Fact is, productive capital in the US is in decline since the early 1970s. The solution to the declining base of industrial capital was to grow the service sector (finance, software, entertainment etc). As the prospects for the dot com sector of the economy collapsed in 2000, Greenspan immediately understood that his historic responsibility was to maintain the capital base of the US. Capital on which lending (the main business of the banking sector) can be based. That was indeed important in order to secure economic growth. Greenspans brilliant idea was to lower interest rates to historically extremely low levels which in turn led to the housing boom. That indeed led to a artificially high capital base. Unfortunately for us and Greenspan, that solution was unsustainable. We can not base the economy on housing.

The solution to the present credit crisis is NOT to increase interest rates. To the contrary. We need to continue the trend of Japan and Greenspan and lower interest rates. Increasing interest rates will bankrupt the economy. Economic growth in the post peak oil area is an illusion. The best we can hope for, is zero growth. To finance that growth we need to lower interest rates to Japanese levels (1% to 2%). In order to escape hyperinflation, we need simultanously to tighten lending standards. A typical mortgage loan should be approved only with a downpayment of 40%. That will take care of the savings problem. We can still loan money at 20% down but only with significantly higher interest rates. The idea is that we need to restructure our economy by investing into areas like public transportation, water, the electric grid, away from consumption of nonrenewable resources. The goal should be to prepare the economy for the end of oil (and many other resources) in 30 years. We need a revolution. The old receipes of Volcker will not work. We need to debase existing savings via inflation and at the same time provide credit for those who are willing to restructure the economy. Pretty much what Roosevelt has done in 1930.


You really get me riled up. I don't even finish reading you posting and comment. What the heck do you expect. YOu want the media to report. To whom???? All you have to do is turn on FSTV or even the BBC. PUblic TV has it. No one wants to turn it on. You wanted to dumb down public schools. You got it. Morons skating as genius. You drove all the people with a searching intellect underground, to despair, to despondecncy. And now you cry when there is no one to hear your call. Too bad. You can't pick and choose your spots. You got second and third rate intellect eating at the front of the line, and you think they are going to save you? Welcome to Brezhnev time. Go read 'Welcome to the MOnkey House.' Every one had a good time all the time. The euro is up, the dollar is up, the yen is down, not a peep out of the G8 about the half percent yen rate. These idiots are looking for a source of inflation - better get Inspector Closeau on the case.


Yea right GK. A six year old girl and her hundred pound overweight dad. There's a couple of hundred thousand vets who just came back from a meat grinder that would turn your hair gray overnight, from Falluja, Mosul, Kandahar. And they can't get a job.


Calvino, you are absolutely correct about the Vets and that is why they are going to be staying there for 50 years.

hakan with the reindeer

Elaine, I have my own wierd thoughts about Greenspan.
Have you researched his writing during the 60's and 70'.
He was promoting a gold-standard in a hard way. I have been reading a lot in the FED archives and every time the issue with gold and currencies was mention he seems to be the first in favouring a gold-backed solution. Perhaps he will be proven a 'Gold-bug' at heart before this saga is ended (I cannot believe the man is plain stupid)?

Look at this also:
"My deceased friend, Teddy Butler-Henderson, met Alan Greenspan in the 1960’s. They apparently discussed the Kondratieff Cycle. According to Teddy, Alan Greenspan confided that he hoped he could be Federal Reserve Chairman at the onset of a Kondratieff winter, because he felt he could defeat winter by substantially increasing the money supply and reducing interest rates to near zero. He had his wish and effected those actions following the 2000 stock market peak.

This effectively put winter on hold but massively compounded already excessive credit to the extent that people who should never have had access to loans were willingly given them. Now the credit bubble that Alan Greenspan initiated is beginning to unwind. The process will be horrific and cannot be reversed.

Incidentally, Mr. Greenspan told Teddy during that same conversation that if he failed to thwart the Kondratieff winter, it would make what followed 1929 look like a ‘Sunday school picnic.’ This is what we have to expect."

So.. the first snowstorm of a Kontratieff winter perhaps was postboned by the ultralow rates in the beginning of this century. Now the storm is back, and it has awakened the Derivatives Beast.

Blunt Force Trauma

Calvino stated:

"The euro is up, the dollar is up..."

No. The Euro goes down when the dollar goes up. Unless you were stating that they are both up against the Yen. Yet the dollar is only 'up' 0.55% against the Euro. Not much of a rise.

Currently, the Euro is $1.54 U.S. The U.S. dollar is artificially inflated anyway. If there weren't a dollar peg for oil and the Chinese weren't holding over a trillion in Forex reserves, I'd bet that the U.S. dollar would be at par with the Mexican Peso. Come to think of it, the Mexican Peso's 10:1 ratio against the U.S. dollar is narrowing.

It's why I DON'T watch BBC or FSTV. They try to tell you that 'all is well'. Bloomberg TV is great for that too.

Elaine Meinel Supkis

Calvino is often rather off his reservation. His comments here were...um....queer!

I spent my entire life starting from the deep inside within the government fighting like a little demon with my dad over disarmament, relations with Russia and China and the education system as well as financial matters.

Each year, the government has shoved me away more and more and more. Now, as I rail totally on the outside, they cover their ears and scream 'La, la, la, la...I can't hear you!'

I used to appear on national TV. Now, I can't get in the news unless I jump off a cliff, naked. I have accepted this.

But they know they can read my cartoons if nothing else. They hate this and won't do this. I love these cartoons because they make me laugh and clearly show that I know what the hell is going on here.

I am not the only writer who has been shoved into the darkness! There are many very, very, very good writers who correctly analyze what is going on and they are all studiously ignored. Ms. Whitney is in the news and tells the truth but she doesn't go nearly as far as we predictors go. She mostly gives what I call the optimistic view. Even so, people threaten to kill her and wish she were not in the news. It is only a matter of time that she joins us in the dark.

The G7 decided to raise the value of the dollar and restart the Japanese carry trade. This noxious deal will utterly and totally destroy the US. We will definitely go bankrupt. Note the top cartoon: the US budget deficit was now a shocking $8 trillion. Since then, a mere 2 years ago, it has risen another $1.6 trillion! And is shooting upwards!

How on earth can the dollar be strong?

To Mr. Szech: in your first paragraph, you claim high interest rates will be terrible. Then on the last paragraph, you suggest high interest rates ONLY FOR HOME BUYERS! HAHAHA. What you want is to STEAL savings from savers a la Japan! In Japan, as I carefully point out, all the businesses get 1% level loans while all home buyers, etc pay through the nose to the Yakuza.

So they have a depression at home and huge profits for exporters! Talk about deadly. The Japanese workforce can't save and they can't retire and they can't keep up with inflation of all commodities! They pay for the rise in commodities via dropping wages! This is literally killing them. They are not having children. People under the age of 30 are committing suicide in increasing numbers.

What a horror! Terrible times for them!

Elaine Meinel Supkis

Hakan: yes, Greenspan was a gold bug. But he is also a whore. So when he got the gold, he had joyless sex with the dollar and got it sick with AIDS. He is a total idiot and is paid huge sums to advise people about money.

Like going to a whore for marriage advice. Well, they all deserve to get what he is dishing out.


Trauma.. yes, I was referring to the yen. The G8 is talking the dollar up when they should be talking the yen up, they talk about intervening to bring up the dollar when they need to intervene to bring down the euro/yen. The absurd 1.66 exchange has blown property bubbles in Club Med, displacing industrial capacity. In other words, the same wicked game the Japanese played with the USA. Whenever the productive economy needs to adjust, the Bank of Japan is there to make sure that it does not. AT some point, these consumers that Japan is cultivating will be out of money, driven to a permanently lower economic level. That appears to be the end game.

Elaine Meinel Supkis

You are correct, Calvino. Yes, the game is one of temptation. Japan uses the promise of eternal carry trade as a lure.

Paul Jenkins

Ross Perot is back



Hey, news flash. Bernanke apparently has some trepidation about taking things to infinity:

"There are limits to how big the deficit and the debt can be," he said in response to questions after a speech to a health-care event organized by the Senate Finance Committee.

I'm thinking, wow, that's great. Maybe there's hope. But then he qualifies it:
"Soon it will begin to have effects on interest rates, it will have effects on economic growth, and on stability, so ... it's not just balancing the federal budget, it's really a much broader question of the stability and strength of our economy over a longer period of time," Bernanke said.
Yahoo news


Ah, it seems that the big boys are tossing one of their own to the peasants & praying that it will hold the peasants at bay:

Ex-CEO of Broadcom pleads not guilty to 25 drug, securities charges

SANTA ANA, Calif. (AP) -- Co-founder Henry T. Nicholas III (hahaha, pretentious airs of the artificial aristocracy, he has a III) of Broadcom Inc. pleaded not guilty Monday to federal drug and securities fraud charges alleging wrongdoing inside and outside the microprocessor company....The 48-year-old billionaire entered the pleas to 25 counts contained in two indictments unsealed June 5.

One indictment details 21 charges in what authorities claim was one of the largest cases ever involving improper accounting for stock-option backdating

(This guy is nasty)...accuses him of slipping ecstasy into the drinks of business associates, maintaining a drug warehouse and concealing his illegal conduct with bribes and death threats...


Elaine, you have a right to be very proud of these pieces of art due to your rare combination of artistic and intellectual capabilities.

But I also think they may POSSIBLE hold the key to breaking through the MSM into the consciousness of the masses. That is their true power.

Imagine if they could be combined into a talking slide show or maybe with a brief paragraph of text that your average 5th grade education (American) can understand.

Then maybe we could Digg it up, or put it on YouTube. Will you do this? Would you like someone to do it for you and let you preview it?

I honestly use to have NO HOPE for breaking the MSM monopoly on information, but this gives me the faintest glimmer of hope.

Let us know.


IMHO, it's been a deliberate take-down... the only questions are "Why?" and "By whom?"

Here are a couple of interesting quotes on journalism from Rudolf Steiner...looong ago (plus ça change, plus c'est la même chose):

"But truth is not the concern of this note, for its aim is to say what it wants to say while counting on it that the magical power of modern journalism has persuaded people to believe everything. And you can certainly often count on this. The power of journalism is indeed one of the means on which certain societies count." R. Steiner 1917

"Of course certain situations cannot be judged if certain things are not known, and judgements born of ignorance, made about whole nations, work in the most terrible way. Today so very much is born out of ignorance. This is, as a matter of fact, caused by that black magic — I have described it like this on other occasions too — known today as journalism. It is a kind of black magic, and there was a certain truth in the way folk legend felt the inventors of the art of printing — with all the perspectives this opens up — to be black magicians. "

Black magic for sure!



Please tell us your opinion about LS9.com. Talk about the goals of this company in the next post about energy, ok ?

Elaine Meinel Supkis

GK, I am actually going to try this. Thanks for talking about it.

Am looking into the LS9 concept. Found the web page, PJSV.

Tal: Yes, I read Steiner. A great philosopher.


Was Bernanke meant to be wearing khakis in the top cartoon? Because it looks more like he has no pants on

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