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Spain economy is imploding. UK is imploding right behind it.

(housing bubble burst. I think Europe is about to sink.)


Yuan Falls Most in Six Weeks; Pace May Ease on Slowing Growth

``The People's Bank of China will slow down appreciation as inflation is easing and export numbers are moderating too,'' said Nizam Idris, a currency strategist with UBS AG in Singapore. ``We are not likely to see the kind of appreciation in the first quarter,'' when the yuan advanced 4.2 percent.

The currency declined 0.19 percent to 6.83 a dollar in Shanghai as of the 5:30 p.m. close, from 6.8169 at the end of last week, according to the China Foreign Exchange Trade System. That's the biggest drop since June 4.

Today is the third anniversary of the end of the yuan's 8.3 link to the dollar, during which time the currency has gained 21 percent.


Oh yeah. China is done with playing nice in forex. they are lowering the yen again.


1) The bank refusing to accept IndyMac cashier's checks is WAMU ( Well's Fargo also apparantly ).
2) WAMU is not "on the list" of non-shortable if naked entities.
3) WAMU is a good place to owe money not so good a place to place money.
4) Local banks and ( even better ) local credit unions are somewhat safer places to keep your rapidly depreciating Federal Work Permits stored.
5) No bank can pay off its depositors. It is probably better to be first in line, than to wait until the legacy media tells the tale.
6) FDIC the I stands for INSURANCE. The insurance premium is set by actuaries, based on historical data regarding bank failures. There is not enough $ in the FDIC accounts to pay off depositors in the situation where many banks fail simultaneously. The INDYMAC failure has already eaten a HUGE portion of the FDIC insurance fund.
7) The treasury can print money to make up for the FDIC shortfall, but that is just inflation disguised. The FED RES can borrow money into existance ... more inflation and the first recievers ( Institutions on the LIST) get the seignorage profit to boot.
8 ) There is no Santa Claus; there is also no sanity clause.

Royal Dutch Paper

Excellent article,

A local gas station here was offering a discount on gas if you paid in cash!!!


Like many investors who were naive about the true workings of our parasitic banking system, I feel betrayed and am becoming cynical to the point that damages my spiritual well being.

The many fine articles and comments emanating from this blog are both wonderfully informative and therapeutic (the realization that I am not entirely alone).

I want to share my plan for dealing with the coming calamity with you; Elaine, and the fine group of people who post comments with the hope of getting some feedback.

My plan is to move most of my investments offshore (I sold off most of my stocks during last week's rally). It's a simple plan:

1) Hedge against the declining dollar by investing directly in foreign markets - of course the problem is what currency does one select. My original plan called for the Euro but I suspect the Euro will also tumble.

2) Buy foreign stocks that have a good record of paying dividends.

3) Buy some precious metals (maybe 20% of portfolio).

Any suggestions or tips will be most greatly appreciated.


1) All fiat currencies will tumble. Some more quickly than others some less quickly.
2) All the major currencies are fiat currencies.
3) Anything that can be substituted for a paper ( fiat ) currency can be confiscated and will be confiscated.
4) Skills cannot be confiscated, but you can be forced to practice your skills if you have given hostages to fate.
5)If that DR in your sig means you are an MD of some sort; learn to barter your skills for stuff.


Somethings to consider:
There is approximately $300 in cash and currency/person circulating. ( not bank accounts just cash and currency ).
In inflationary and hyperinflationary times, people who receive cash try to dispose of it immediately, so the velocity of the money in circulation speeds up.
Useful Stuff depreciates slower than fiat money.
A working axe will last a lot longer than a handful of rapidly depreciating paper with funny pictures on it.
It is good to trade, good to barter, good to rid yourself of cash to people who still think that paper money is "real."

Elaine Meinel Supkis

Several things: when a major empire especially one dead center in the middle of the global economic trade, goes down the tubes, all others do too.

The dynamics of the present situation are obvious: we will have wars because the US will launch intimidation/looting expeditions. This always is the outcome. The US can't do this to China or Russia but can do this to Iran, Saudi Arabia, etc. This is why all the parties in the crosshairs of a desperate empire are now rapidly triangulating with nuclear Russia and nuclear China.

As individuals we have one direction we can go in: we can politically organize. Of course, we keep losing our leaders such as Ron Paul's retreat due to various circumstances. But we have to keep seeking some platform which we can use to unite and protect ourselves.

All great revolutions happened when the middle class stopped supporting the ruling class and joined with the 'peasant' class! Right now, we are about only half way there. It will be quite a while before both are in the same boat.

Until then, understanding history, understanding money and understanding how markets work is useful because we can teach our children so they can rebuild things. This is a major tool! One that is invaluable.


Here is nice mainstream article preaching against debt: Yahoo - Dave Ramsey on Debt in Retirement

Q: If there is one critical message about debt and retirement that you'd like to emphasize most to Bankrate's readers, what would that be?

A: Avoid it and get out of it as quickly as possible. Debt is just a financial death knell, and if it adds risk to the life of the 32-year-old parent of three children, it adds tremendous risk to the life of the 72-year-old retiree.

So if you want to send it to friends and family as a favor, bookmark it and email.


I have to disagree with Elaine.
There is no evidence that any political organization has ever been beneficial.
If it is one's goal to be a follower, then of course organize yourself into having a leader. There will always be someone whose great desire is to be a model for park statues. The closest the world came to a beneficial political organization was the confederation of states that existed for 10 years after the treaty of Paris was signed.
Wealth are the creations from work, money is not wealth.

Paul S

As I am sure everyone here knows, the current goings on also explain why there is such a push from banks for a "cashless" economy. If one has cash in their pocket, they can choose when to make a purchase AND on what to purchase. If you have a cash debit card, the banks can cut you off anytime of their choosing. And the banks can liquidate your assets easier. They may do this when inflation is not enough.


A fed reserve bank of SF speech, May 28:

"Now that you are all thoroughly depressed, let me come back to monetary policy and the Fed.

"It is only natural to cast about for a solution—any solution—to avoid the fiscal pain we know is necessary because we succumbed to complacency and put off dealing with this looming fiscal disaster. Throughout history, many nations, when confronted by sizable debts they were unable or unwilling to repay, have seized upon an apparently painless solution to this dilemma: monetization. Just have the monetary authority run cash off the printing presses until the debt is repaid, the story goes, then promise to be responsible from that point on and hope your sins will be forgiven by God and Milton Friedman and everyone else.

We know from centuries of evidence in countless economies, from ancient Rome to today’s Zimbabwe, that running the printing press to pay off today’s bills leads to much worse problems later on. The inflation that results from the flood of money into the economy turns out to be far worse than the fiscal pain those countries hoped to avoid. "

Market Watcher

Hi, Elaine,

CK says, "There is no evidence that any political organization has ever been beneficial."

Aristotle pointed out that "Man is the political animal". Aristotle is saying that politics is what differentiates humans from other animals, and that nothing else does.

Aristotle was wrong, a bit, in his generalization, because modern research shows that most (maybe all) vertebrates organize themselves in political ways. It is not a stretch to say that many insects do also. So what that insects communicate chemically instead of verbally?

Politics is always about who gets and who pays. Who dominates, and who submits. This obviously can become a bloody affair.

Anthropologists currently hold that "primitive", non-literate societies had something like a 70% death rate, amongst the males, to political violence, that is, to war.

Very possible a true (unlike what we saw in 1861 - 1865, which was more a war of conquest) civil war is coming up. Much depends on how "reliable" the ruling class finds the military organizations leaving quite a lot of room for hope for us little people. We live in interesting times.


America becoming poor: Here is the study, Emaine.



All our military people take a solemn oath upon entering service.

They swear to protect our Constitution against all enemies foreign and domestic.


Here is a great read from the Overstock.com CEO Robert Byrne concerning naked short selling. Peace




We long ago passed the "Minsky Moment" and have entered the territory of the "Marx Moment." Our government has now made it explicit that our financial system does not exist to meet the needs of we the people, but rather we the people must meet the needs of our financial system - or else.

Elaine Meinel Supkis

No, not the 'financial system' but the GNOMES. They must be serviced or their wives will divorce them. So they are willing to destroy all the economic systems if need be to keep their ill-gotten wealth.


I have already hit the bottom, through medical bankruptcy and then death of my spouse. My strategy: 1. have a small backyard garden and fruit trees for shade 2. have power tools and hand tools to craft other tools 3. know how things were done before the industrial revolution (there are some really good websites with this info) 4. know where the files are, to keep the pitchfork sharpend

Elaine Meinel Supkis

Norcalkid, I'm so sorry to hear this. Medical problems should not destroy or enslave us financially! This is one of many systems that need desperately to be reformed.

And the loss of loved ones is always a hammer blow no matter how we try to prepare ourselves for this loss.

My heart goes out to anyone who suffers so. Good luck, hang on there and keep faith in the future.


OMG, you are on to the next post and we haven't yet 'laughed' ourselves into a tizzy over the naked shorts: (
How Naked Short Sellers and CNBC Bamboozled the SEC

Within three days, this grim circus, with a lot of help from the mighty hedge fund lobby, would reduce the SEC’s “emergency order” to a twisted joke – a grand gesture to do nothing whatsoever.

The day after the SEC’s declaration, the circus was already well under way, with the hedge funds spinning furiously and their media marionettes singing the party line: short sellers are “vital” to free markets; everybody loves free markets; only bad companies and bad CEOs complain about short sellers – go investigate the CEOs, hands off the “vital” hedge fund managers.

As for billions of dollars of phantom stock threatening to topple the American financial system – don’t even mention it. If somebody does, repeat, over and over, “Only bad companies complain about shorts…shorts are vital”

I sketch out the hedge fund party line only for those who are new to the so-called “debate” over naked short-selling. If you’re a long-time crusader, you’ve heard it all before. You’ve heard it on CNBC so often that you’re probably now banging your head against a wall and saying something like, “oogly oogly oogly,” half-mad with incomprehension – still unable to come to terms with the utterly surreal spectacle of an important television news network, in the United States of America, completely whitewashing a massive crime.

Elaine Meinel Supkis

oogly oogly oogly! HAHAHA.

Correct analysis, indeed, Rob G. But this leaves out the sex parts.


Paulson promises to return power to the Congress once peace and
stability is returned to the markets.

1) Staff Wall Street with my pals.

"Bobby, it will be like the Mellon Days. Let's stuff it with
Blankfein's level 3 assets."

2) Short squeeze the market so hard they will never sell FRE or FNM
when I speak.

"Kneel to Paul!"

3) The most crowded shorts probably will report the worst numbers.
Let's squeeze them so hard they will be celebrating multi-billion
dollar losses.

"Wachovia lost $9 billion, missed estimates, AND slashed their
dividend? Excellent..."

4) No one stuffs garbage down people's throats better than a Goldman

"George, not even your father would dream that such a thing could be
possible. Kenny can sell anything."

5) Make sure my pals unload risk and raise fresh capital before the
market realizes that we are not "months" but "years" away from a

"Get to the Choppa!!! Now!!!"



Who (by name) was doing the short selling ?

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