August 29, 2008
Elaine Meinel Supkis
Time once again to look to the recent past so we can see clearly where things are going today. I am rather vain about the fact that I have nearly always called the future correctly based on incoming information each daily cycle. It is even rather scary, how prescient my predictions are. Well, this is due to knowing where money and power come from: that lovely golden Cave of Death. Anyway, we have a small pause today in the news, the major news being Mother Nature taking aim at US oil rigs right when both of our candidates for emperor are threatening Russia and daring Russia to cut energy to Europe. So oil prices are jumping upwards like a frog on a French frying pan. We get to visit the BIS headquarters in Europe to learn more about global currency markets. Yikes.
From August 28, 2007: What Lola Wants, Lola Gets...No More
Over half a trillion spent on goosing up the markets and there was less than two weeks of happy hysteria then reality returns and markets drop. The people destroying the economic power of the West aren't done yet. They can give this dead market a few more expensive jolts of electricity. But the debt ratios in the West are all nearing to or over 100% GNP. This means the economic rule of the European and American empires is about finished. The picnic at Jackson Hole this week is really a panic. The Bank of Japan is speaking there and will explain how to 'fix' everything, HAHAHA.From Bloomberg:The rally in 30-year Treasury bonds, the most profitable U.S. government securities in the past 15 months, may become a casualty of the Federal Reserve's efforts to ease a widening credit crunch.
Yields on so-called long bonds will increase because Fed Chairman Ben S. Bernanke may lower borrowing costs and cause consumer prices to rise at a faster pace, said Brian Carlin, head of fixed-income trading at JPMorgan Private Bank.Investors will demand a ``higher risk premium,'' said Carlin, who helps oversee $100 billion of bonds in New York. ``Fed cuts may, in fact, turn out to be quasi-inflationary.''
This is the Horns of Dilemma, the Horn of Plenty is empty. As the US looks puzzled and shakes it ever harder hoping for goodies from Asia to pour out, it is time to talk about reality: the US cannot run all its economic systems in the red forever and forever. This is physically impossible. I have been saying this since the early 1970's. If we time-travel, we can see what was obvious back then.
HAHAHA. 'Quasi-inflationary'? What's that? Why, it is commodities shooting to the moon, that's what was so quasimoto about this desperate lunge to revive banking and global markets by handing out free loans to the biggest banking bandits. The hope was, this money would flow like a broken faucet into the pockets of US homeowners and thus, restarting the Home ATM machine business. People sit at home, it goes up in value, they go refinance themselves deeper into debt and continue being the Consumer Nation.
But it is the Crashing Nation. There is an upper limit to debt. All debtors hate this concept. The deeper into debt an entity, government, business, homeowner goes, the more debt they desire. This keeps things afloat. Once this is cut off, there is a cascade of unpaid bills that pile up rapidly the deeper into debt the entity is. This is why avoiding this condition is of greatest importance. This is all very sad, actually. The US experiment with eternal debt will end in the total loss of our entire empire and the dismemberment of our nation itself. History tells us this with greatest clarity.
When Spain went bankrupt trying to put down the Dutch and English 400 years ago, it gradually lost all of its many colonies and provinces ending with Napoleon invading and destroying the remainder of Spain. The Ottoman Empire nearly took Vienna in the 1600's even as Spain was fighting the Dutch. By 1800, the Ottoman empire was on the rocks. By 1920, the Ottoman empire itself was totally dismembered. The results of this are still relevant today. WWIII will probably be centered on wild attempts by Europe and the US to continue destroying and ripping apart that former empire. Only this probably won't happen. Not if the US goes bankrupt.
We see a clear pattern here: no empire lasts much after going bankrupt. Russia was very rapidly dismembered when it went bankrupt from 1990 to 2000. It is only beginning to reassemble itself. Now that Russia is solvent. Unlike the US which is deep, deep, deep in debt.
From August 28, 2007:PANIC, Part III
As I keep saying, the Dragon is very angry. And all the talk about the Fed dropping interest rates and weakening the value of the holdings of this dragon, it will not support this but figure, it is time to strangle the US golden goose and kill it off once and forever. The panic in the world stock markets resume as everyone realises this harsh reality. Bad housing news hits hard but this is the fault of the media spreading fake cheer all over the place just a few days ago. They will paper over this mess and 'save' the markets...again. But they can't do this to infinity despite the boasts. The Dragon will NOT allow this.
*snip*
The fantasies upholding our economy are falling one by one but not fast enough. There is still a belief that the US controls our interest rates and we can cheat the Chinese the same way we cheated the OPEC nations back in the 1980's or the Japanese in the 1990's. But everyone knows we will try to cheat everyone out of their investments and they are now moving to prevent this. OPEC has kept a good grip on the price of oil which continues to be high. Japan has us by the throat via their FOREX reserves and China is now figuring we are finished and is turning attention to destroying Japan's power.
From Market Watch:DAVID WEIDNER'S WRITING ON OFF THE WALL:Sentiment is growing that Bank of America Corp.'s Kenneth Lewis may have won a place in the pantheon of great Wall Street titans by using his financial clout to help the country avoid economic ruin.
In some circles, Bank of America's (BAC:50.37, -0.50, -1.0%) $2 billion acquisition of a stake in Countrywide Financial Corp. (CFC:19.68, -0.32, -1.6%) is being seen as critical to the end of the Panic of 2007.
HAHAHA. The award for stupidest article this year goes to this story! This story assumes that the Bank of America did this due to smarts and not because Bernanke ordered them to do this if they wanted their overnight rate cut and $38+ billion bail out. Mr. Lewis will join those paragons of pathetic fools, the guys who tried to stop the collapse in 1929.
I was correct about the Bank of America. This bank is frantically running around the planet begging OPEC, China or Russia to buy it, please! The president of the Bank of America certainly will be on a pantheon of fools. Note how Market Watch fondly thought the G7 banking collapse was over and done with...after less than one month of hell? HAHAHA. New readers, do take the time to read these older articles. They are full of mischief.
Next, an educational article from exactly a year ago:
Stocks went up and everyone who put us in this economic mess now are convinced old Santa Bernanke will follow in Greenspan's footsteps. We will now enter a foolish cycle of sudden rises and sudden falls in interest rates that have no connection with reality. And indeed, I will prove that this has been so since the middle of the Vietnam war when Americans voted for Guns and Butter. We have been dining on this toxic dish nearly all my life. And it is bankrupting us gradually. This slow descent into financial death is now going to speed up if Bernanke pretends inflation is less than 4%.
Just to review today's astonishing news, here is Bloomberg:The Federal Reserve will probably cut its benchmark interest rate to 4 percent as slowing U.S. economic growth restrains inflation, said Edward Hyman, chairman of International Strategy and Investment Group.
The worst housing slump in 16 years is weakening the economy after the Fed raised borrowing costs 17 times from June 2004 to June last year. A mortgage-market survey conducted by Hyman's firm showed conditions are ``pretty bad'' and ``among the lowest ratings we have ever gotten,'' Hyman said.``They will start to ease in a measured way, 25 basis points every meeting,'' he said in an interview in New York. ``I think the economy will react favorably to it'' and probably avoid a recession, he said.
Hyman said he sees a ``better economy next year,'' with stocks and Treasury yields rising. Slacker growth this year will ``put inflation aside'' as a concern for the central bank, he said.
What has irritated me for many years now is the belief that spending is our economy. This is false. Only after we deduct our trade deficit, can we see if we 'grew' an economy and the answer is a resounding 'NO'. We are not growing anything except an ocean of red ink. Consumer spending is driving America into a very deep hole. We should NOT be encouraging spending, we should be encouraging SAVINGS. Debt has ballooned and savings has collapsed. Ergo, we need to rebalance them with each other.
Not only were these gnomes indulging in wicked wishful thinking, they were totally wrong in their analysis and therefore, their predictions stank. Why is that?
If wishes were fishes, we would all be swimming in the deep blue sea! These poor saps just wanted to get rich. So they figured, if they talked as if there was no crisis or it was a small mess and not a mega-mess, it would be small. Like little children who spill the milk taking it out of the fridge and then trying to drink directly from the spout, they can't just shove it back into the container. So if they minimize the damage, they can pretend there is no spilt milk. When the house is burning down, we don't want firemen saying, 'I don't see a fire and it is a little fire, oh, the roof is on fire? Well, that means the fire is about to go out. Let's pour on gasoline. That will fix it.'
The Fed poured gasoline on the inflation fires! I knew this. It was painfully obvious back then. Anyone who claims no one knew, is lying.
From August 29, 2007:Bernanke Will Drop Interest Rates To 4%!!!!!
BREAKING NEWS: BERNANKE WILL DROP INTEREST RATES TO 4%! ARRRRGH!
As expected, markets overseas echoed yesterday's panic on Wall Street. Ever since the .com crash, investors have begged wizards to write new spells that create instant wealth. The wizards used two spells: the 'let's exploit Chinese labor even more' spell and the 'let's create pre-Great Depression investment trusts of various sorts' spells. Both no longer produce easy wealth because the basis of both is piling on debts in the Western empire's populace. The last gasp of this long process of indenture came when Greenspan had to lower interest rates 4% below the real rate of inflation which caused the balloon we now see going bust. Today, I talk about SIV funds, another goofy creature created by these magicians.
*snip*
I was about to publish my story warning about repeating the Greenspan super-low interest rates while pretending there is no inflation when this hit the news wires! And of course, this is PURE INSANITY. And stocks are shooting up! Obviously, Bernanke and his gang surrendered to the financial class who brought this mess down on our heads in the first place.
Now they are safe...until China starts teaching us Mandarin. We are so doomed. But the party will roar on, houses will sell, America's debts will increase to 200% of our GNP instead of 100% and our empire will lose its entire industrial base and anyone saving money will be wiped out, totally.
I knew that was the beginning of the helicopter rescue Bernanke promised Congress. Instead of arresting him, they cheered him. The biggest wastrels on the planet earth is our Congress! They want infinite debt with all their hearts and souls. They are all criminal except for a forlorn handful. I grimly knew that Bernanke would drop rates to 1%. He has hesitated at 2% but itches to drop it further. This, in the teeth of epic inflation. The trick they are now trying is to lower the price of oil. This, they pray, will stop global inflation. A silly idea. They, themselves, spent the last 15 years, claiming that oil prices are not the basis of all domestic inflation.
No indeed. It is cheap money via sub-inflation level lending that fuels inflation. Oil simply rises to the surface, so to speak. It just makes the PAIN of inflation so hideous. And the masses notice this and begin to get somewhat agitated if not downright violent.
Now, on to today's news:
No Wall Street Credit Seizure at U.S. Open Grand Client Slam
(Bloomberg) -- The U.S. Open has one up on Wall Street. It's escaping the credit crunch unscathed.The U.S. Tennis Association, organizer of New York's Grand Slam tournament, sold out its 84 luxury suites at an average price of $250,000 for the two-week event that ends Sept. 7, even with a $5,000 increase over last year.
Companies including MassMutual Financial Group, International Business Machines Corp. and JPMorgan Chase & Co. pay a total of $50 million a year to sponsor the tournament, according to the USTA. The Open attracted a record 715,587 visitors last year.
``The Open is one of the best corporate events,'' said Stephen Newman, 43, a director at the structured credit products group of Deutsche Bank AG in New York, at JPMorgan's hospitality tent just outside the National Tennis Center. ``You eat, talk and sit next to the person. It's kind of an ideal venue.''
Things are dire and the parties roar onwards. The wealthy financiers are not getting richer but they are certainly NOT poorer. Their income stream has slowed down but they have lots and lots of wealth. And they are out to make deals with other rich people. Golf, horse events and tennis are good for this because the pace is slow, there is no cheering or shouting to interfere with talking business. Making money is social. They make connections which are then exploited. This isn't business at all. This is cronyism a la ruling class nobility style.
The goofy parties these same people threw for our corrupt Senators in Denver are the same sort of game. The rules are harsher at these events so it couldn't be a sit-down dinner. Instead, it had to be 'spoon food' so the caterers made HUGE spoons and loaded these up with food. HAHAHA. Babies eat spoon food. Mama shoves it down the tykes' throats.
ABC news doesn't have to worry about being strangled and then threatened and arrested at the US Open. The Open is not on the radar because it is business, not political. Except it is political but we are not supposed to know this, of course.
Trade winds aren’t blowing in Washington these days, but business is puffing hard in the Mile High City.Two prominent groups--the Consumer Electronics Association (CEA) and the U.S. Chamber of Commerce--are on a quixotic offensive at this week’s Democratic National Convention, pushing for approval of several free trade agreements stalled by the Democrat-controlled Congress.
*snip*
Undaunted, the CEA, a group whose 2,200-plus members include just about everyone having to do with electronics, from Microsoft (nasdaq: MSFT - news - people ) to Gibson Guitar, wasted no time in getting to work. They want to see trade deals approved so they can export electronics more cheaply to burgeoning markets.On Monday, several hours before the convention officially opened for business, the group released a survey claiming that 62% of Democrats say they benefit from free trade. CEA is wrapping a seven-week, 28-state bus tour (to end at the GOP Convention in St. Paul, Minn.) called “America Wins with Trade.”
Why aren't workers attacking this silly bus? Heh. At least give it a flat tire. The US workers are still waiting for Santa Claus. Exports are up! Wow! Only the dollar shoots upwards. All our trade deficits since the Floating Currency was launched, have always happened during bad recessions. I suppose a great depression will make it level due to US no longer consuming imports. And this survey: hogwash.
Did the survey say, 'Did you save money buying manufactured goods from China last year?' for example. You bet. If the American public is this suicidal, I would blame the media. The media has been, across the board, totally pro-'free trade'. The NYT and Washington Post are certainly fearfully fond of this Flat Earth style economy! Try getting anyone with an anti-free trade voice access to the business or editorial pages!
Oil Rises in New York as Gustav Threatens U.S. Gulf Platforms
(Bloomberg) -- Crude oil headed for its biggest weekly gain in almost two months and natural gas rose as producers evacuated rigs before the arrival of Gustav, forecast to be the largest hurricane in the Gulf of Mexico since Katrina.Royal Dutch Shell Plc and ConocoPhillips started pulling workers from Gulf of Mexico platforms and cutting production in a region that pumps 26 percent of U.S. oil and 14 percent of gas output. Louisiana officials said they will start evacuating residents today in two counties around New Orleans that house refineries owned by Exxon Mobil Corp. and Valero Energy Corp.
Look at how hurricanes are now popping up in the Caribbean:
Right on time for the US to try to pick a fight with one of the world's largest energy export countries, Russia. The effects of this inflation will savage the US consumers. And will be more of an excuse for Bernake to drop interest rates to near zero. We seem to have a poor method of learning about cause and effect. I suppose another epic hammering of the US economy might finally drive this lesson home.
The depth and breadth of Asian foreign exchange markets have improved markedly in recent years. Volumes grew rapidly and the diversity of market participants increased. Activity in Asian currencies remained concentrated in onshore markets to a much greater degree than that in major currencies, indicating that foreign exchange controls are having the intended effect of stalling the internationalisation of Asian currencies. At the same time, foreign exchange controls appear to be restraining the development of Asian foreign exchange markets by depressing derivatives trading and fragmenting activity between on- and offshore markets.The development of foreign exchange markets is closely linked to the participation of foreign investors in local bond markets. The absence of a liquid derivatives market in which to hedge currency risk might deter foreign investment in local currency bonds and, therefore, limit the diversity of bond market participants. Managers of multi-currency bond portfolios typically prefer to hedge the associated currency risk because the volatility of currency returns is greater than the volatility of most bond returns; open currency positions are usually found to
add volatility to bond portfolios without adding much return (Ramaswamy and Scott (2005)). This contrasts with equity portfolios, where the case for hedging is less convincing because the volatility of equity returns is much higher. The link between foreign participation in equity
markets and the development of foreign exchange markets is correspondingly weaker.
*snip*
These same factors were undoubtedly responsible for part of the increase in the turnover of Asian currencies, although their relative importance was less than was the case for the major currency pairs. Certainly algorithmic trading had a much smaller impact on Asian currencies than on internationalised currencies (Wright (2007)). Foreign investment both to and from Asia has increased sharply since 2002, in the process creating direct and indirect demand for foreign exchange. The IMF estimates that in 2007 inflows to the region totalled about $650 billion and outflows $500 billion, for a combined total of $1150 billion (Graph 1). By contrast, in 2004 inflows and outflows summed to less than $500 billion. In addition to foreign direct investment, portfolio investment increased, including purchases of local-currency debt
securities. Leveraged trades concentrated in IDR, INR and PHP, which were popular target currencies over this period (Gyntelberg and Remolona (2007)).
The importance of this chart is the Hong Kong factor: look at how much bigger it is compared to all the others. And the growth rate. It more than quadrupled in less than 3 years. Grew more than 6 times greater in just 6 years. Like all the charts and graphs tracking money and trade, it is shooting upwards. All systems are now so totally out of balance, the parts that are going into the red are plunging into the red at ever-faster rates and the parts growing like the Derivatives Beast, have shot upwards, straight upwards. This divergence is totally unstable and unsustainable. The games being played using currency and interest rate systems that grew out of the crash of the US gold/dollar dual system is getting more and more out of control.
Vast fortunes have been made out of thin air, playing these totally unnecessary and destructive monetary games. The Floating Currency is at fault here. The US experiment in having the world's biggest empire run on fake money has failed. The failure is great and growing worse by the hour. Until we give this notion up, the banking crisis will only worsen. Imagining a bit of tinkering and assistance from the World Bank and the International Monetary Fund coupled with the banks ravaging the US economy 'assisting' will fix this mess is PURE INSANITY.
Note how, in this last year, the Bank of Japan cannot sustain the US entirely by itself. Indeed, first China then Russia ended up funding our banking system. As well as OPEC. And they can't feed the monster further since the US decided this year to run thing totally out of control, in the red. Handing out tax cuts and rebates like so many candy canes.
The rapid growth of turnover and increase in intra-regional trade and investment flows has not lessened the pre-eminence of USD crosses in the trading of Asian currencies. USD was on one side of about 97% of all transactions involving Asian currencies in April 2007 (Table 4 and Graph 6). This share was unchanged from previous surveys. In short, turnover data give no indication of a decline in the use of USD as a vehicle currency among Asian currencies. A vehicle currency is an international medium of exchange. It is the currency through which transactions between other currencies are settled. Currencies which are used as a vehicle are typically those with the lowest transaction costs. Provided that transaction costs are a decreasing function of the volume of transactions, the cost of trading two currencies directly is likely to be greater than the cost of transacting indirectly through a large third currency market (Krugman (1980), Hartman (1998), Rey (2001)).15
Among Asian currencies, the proportion of transactions against currencies other than USD is small and stable. For all currencies except the major ones, turnover by currency pair is available only for onshore trading. To the extent that these data are representative of total turnover, they indicate that the importance of non-USD trades ranges from 7% of IDR and THB turnover to 1% of HKD and PHP turnover (Graph 6). By contrast, 28% of EUR trades, 21% of JPY trades and 10% of AUD trades are against currencies other than the USD. IDR, SGD and THB are the only Asian currencies to have seen the share of non-USD transactions increase perceptibly, from 2% in 2001 to around 7% in 2007.
The graphs are clear: this is yet another system in divergence. One part is 'normal' and not really growing all that much while other parts that are easier to manipulate are shooting upwards at an increasing speed. These sorts of charts are indications of great danger and future pain.
Note how New Zealand, in its attempt at stopping inflation, became a favorite vehicle of the Japanese Carry Trade juggernaut.
The system is fatally flawed. Redesigning this is never mentioned except at the furthest fringes of online, non-mainstream commentary. The childish hope is, this mess can simply roll onwards forever. This is a stupid belief. It is obviously not fixable in the present form. Whoever does fix this properly will be the next ruler of the planet. And it won't be Americans doing this, either.
It will be the communists.
el-erian of PIMCO correctly predicted a flight into low-yield asian currencies a month ago...
Posted by: whine and cheese | August 29, 2008 at 12:33 PM
Hi Elaine,
There has been much news about the unexpected GDP growth at 3.3%. Many sites discuss that the GDP deflator is artificially low, at 1.3%, when the average CPI is 4.4% and we know that inflation is closer to 9% using pre-Clinton techniques.
Some other sites say that this argument is flawed and the deflator doesn't relate very well to inflation and that armchair economists should stop second guessing the government numbers.
They use the following example.
In 2007 a country produces 500 coconuts and sells them at $1.
They need 1 barrel of oil which is imported for $100.
Since imports aren't included, the GDP for 2007 is $500.
In 2008 , through productivity enhancements 510 coconuts can be produced with the same barrel of oil, but now the oil costs $125. Thus oil inflation is 25% this year. The example usually states that they sell the coconuts for $1.01 this year. Thus the Nominal GDP 2008 = $515.10. Again oil is not included because it is imported.
So 2008 GDP Growth including inflation = (515/500 - 1)*100%= 3%
What if they charged the same for the coconuts as 2007. GDP still increases, but to a lesser extent.
2008 GDP Growth without inflation = (510/500 - 1)*100%= 2%
So the deflator to account for inflation is 1%.
The pro-government statistics argument is " see the 1% deflator doesn't having anything to do with oil inflation of 25%" so the lay economists are wrong.
The failure as I see it is that the 1% is non-import price inflation,
which relates inextricably to the price of raw materials to build the product ( which may or may not be imported).
Thus the deflator should be a representation of broad price inflation of both local and imported raw materials, or companies would go out of business by not passing along the price increases.
This is a hot subject on the internet, and your input would be valued.
Thanks
Posted by: InflationMan | August 29, 2008 at 12:57 PM
Hopefully, after the systemic collapse of the US and Western financial systems the citizens will seize the opportunity to replace the debt based system with an asset based system. Of course, those in power will also attempt to seize the moment by stripping away our remaining civil liberties and freedom to complete their implementation of a fascist totalitarian government.
It may seem very unlikely that the citizens will rise to the occasion given how well the main stream media has done in controlling the news and public opinion.
For example, the media has hidden the truth of 911 despite the fact that the evidence is overwhelming that it was an inside job. And, they have apparently "numbed" the morality of masses - last week for example, the US killed around 80 innocent Afghani citizens; mostly women and children. The story received little attention and surprisingly, there was no moral outcry for an investigation.
It has been clearly established that Georgia initiated the violence in attacking South Ossetia. The Russians knew they were coming and make quick business of crushing Georgia's attack. But yet, our media still presents Russia as the aggressor.
Perhaps the most sinister media misinformation ploy has been in hiding the fact that we have already passed the point of no return with our economy and currency. The government knows this and is preparing for martial law by years end and the final meltdown to take place next year.
911, a false flag operation, worked extremely well in rallying and solidifying support for a "war on terror" that has neither a defined enemy or ending - perpetual war. And now, we are being herded for a renewal of the "cold war" - another war with vague objectives and no defined ending (other than a nuclear nightmare).
I think the neocons and their masters; uber-wealthy plutocrats, have sorely over-played their hand and are ripe for a topple.
Just like financial bubbles suddenly pop so to will the disinformation bubbles - in a chain reaction that will leave the king naked - and 300 million Americans will see the truth.
Posted by: DrKrbyLuv | August 29, 2008 at 01:23 PM
Communists? What is with the name calling. And we do not have a state controlled economy? Our markets are planned every tick. Whom are you kidding.
Posted by: calvino | August 29, 2008 at 01:40 PM
Elaine, you are so right. (That's dumb; you know that already ;-) )
I won't bore you again with my engineered system analogy, but I suspect that one preferred solution is in the CFR/Ben Steil essay referred to by myself and others in the past. A single world currency rooted in some way in gold, which would act as a tether or dampener on the system.
Whine: did PIMCO include the very low yielding Swissie? 'Cos I just dumped a loada dosh out of a sterling savings account and into a ZERO yielding Franc account. All courtesy of the bloodsucking HSBC (Motto: "We never knowingly advise you of a better-yielding savings account we've started offering."). I'm too embarrassed to quote the exchange rate. Suffice it to say, I looked at the GBP/SFR chart and panicked.
Posted by: Bear of Little Brain | August 29, 2008 at 01:43 PM
Elaine.....if you have the time and inclination, your take on Mike Whitney's interview with Michael Hudson titled "How the Chicago Boys Wrecked the Economy" would be appreciated.
http://www.counterpunch.org
Posted by: Oops | August 29, 2008 at 01:46 PM
check out, "currency wars". it's a popular book in china:
http://www.chinastakes.com/story.aspx?id=177
Posted by: whine and cheese | August 29, 2008 at 01:50 PM
DrKbyLuv:
If you want a real freak-out, check George Ure's posting today (the Russian/Georgia bit)
http://www.urbansurvival.com/week.htm
He does say to take it with a pinch of salt.
Posted by: Bear of Little Brain | August 29, 2008 at 01:52 PM
As always, Mike Whitney is a very, very good interviewer. And as always, Mr. Hudson misses a few important boats. Like nearly everyone except for Moi, Miss Piggy herself, I don't think hardly a soul who is big on the net ever mentions Japan. Or the fact that Germany not only has been running surpluses with the US for 35 years but is also reassembling the Holy Roman Empire IV.
A fact Russia has noted with greatest fury.
Posted by: Elaine Meinel Supkis | August 29, 2008 at 02:15 PM
Well, Bear, I read just the same thing from the Russian Orthodox nuns of whatdoesitmean. In exactly the same words! Whoa!
I'll deliver my opinion as soon as I get verification over at conspiracyplanet. This should not take more than 24 hours.
Posted by: blues | August 29, 2008 at 03:02 PM
Holy Shit, Bear!!!
Just a little perfunctory fact-checking over at Conspiracy Planet and the big pieces all fall right together. It's much stranger than anyone could imagine. The "Israel" that we all know and love, is NOT the real Israel at all!!!
The real Israel is... be seated... Georgia.
Yup. I got it all right here, straight from Conspiracy Planet itself. Look:
http://www.conspiracyplanet.com
/channel.cfm?ChannelID=38
Posted by: blues | August 29, 2008 at 03:19 PM
You think that the Russian economy is centrally planned? Is that why you call them communists? Their bourse fell 30% this month. They have a free market. Medvedev did not print two hundred billion rubles and send checks around to keep up the market. He did not call in the banks and offer them limitless two percent loans so they could buy equities. So again, whom are you kidding. The USA is a free market?
Posted by: calvino | August 29, 2008 at 03:24 PM
Well of course, Calvino, "communist" and capitalist" were never anything more than "honorary" titles. Nobody makes money "the old fashioned way," since the has never been any "new fashioned way." (Old fashioned way = Gutenberg Method.)
And Bear! Get this look real close at that Conspiracy Planet map of the Real Israel!!! (Khazaria.) It sits directly atop the biggest fields of light sweet ever discovered!!!
Posted by: blues | August 29, 2008 at 03:33 PM
Well my house is almost paid for. Just used that line of credit i have from one instituion to transfer funds to another institution.
The transfer will occur in the near future assuming i have my spouse's blessing.
Hey Wachovia - I hope you are true to your logo and your heritage.
Peace,
Ken
Posted by: Buffalo Ken | August 29, 2008 at 03:54 PM
lets let the gnomes turn each other into nothing! Then the gnomes will be gnomes and the men will be men ----- and of course, there is no forgetting the women.
The women....well, there are no words.
Posted by: Buffalo Ken | August 29, 2008 at 03:55 PM
blues:
Excuse me, but my post was specifically addressed to DrKrbyLuv. Is there no privacy?
Posted by: Bear of Little Brain | August 29, 2008 at 04:08 PM
Sorry Bear. I come from a background of glass bead curtains. Stuff goes around, comes around, and I get dizzy. I should rest now.
Posted by: blues | August 29, 2008 at 04:14 PM
Hey, this is a skinny dipping hippie site! There is NO privacy. We strip in public, like at Woodstock.
Posted by: Elaine Meinel Supkis | August 29, 2008 at 04:38 PM
Any fig leaves available? Grape leaves? Hell, I'll take poison ivy! Modesty was always my greatest virtue. I have nearly no virtues left, so a little accommodation here would go a long way!!!
Posted by: blues | August 29, 2008 at 04:48 PM
blues:
Just joshing with you, Punky! ;-)
If I have to be serious, I seem to recall that Adolph intended to solve "the Jewish problem", as it was known by both Jews and gentiles, by deporting them to somewhere in eastern Europe/Asia, but providing them with a homeland there. Perhaps he was thinking of Khazaria (European Jewry being of Khazar decent, apparently). Instead the Zionists collaborated with the Nazis for Israel as the Jewish homeland (racial purity and a racial homeland was common ground for both parties). Then it all went downhill (New York Jews declaring economic war on Germany in, I think, 1933 didn't help). If anyone wants to debunk this history, you're welcome, BTW.
Anyway, what an irony, if true. Instead of going for Khazaria, which appears to have plenty of land, rivers, coastline and, you say, oil, they chose to plonk themselves down amidst the actual Semites in a land which strikes me as rather arid and lacking in almost everything except ill will. Maybe they're realising their mistake.
Oh, how the Gods mock us!
I think I had better retire to my bunker now, just in case, although no offense is intended to anyone. Just musing.
Posted by: Bear of Little Brain | August 29, 2008 at 05:00 PM
Heh, I've always thought of that Naked Emperor Bush and his followers as naked people strutting about waving figurative and rethorical figleafs to cover their moral nakedness.
These 'figleaves' are simply the lies and spin they reach for each time one of their schemes fall apart.
'Hey, look! I've got a FIG leaf! I'm not naked! Tralalalaaa! Wohoo, I've got a FIG leaf...
Bernanke, Bush, White House spokesperson, et al: The Economy/War/Whatever is doing Great - just look at this FIG leaf! And then the American people go - ooooh, look it is not naked (as in dead in the water) they have a FIG leaf...
The race for President is just so much waving of Fig leafs too...
I just wish more people would wake up and see these 'Figleaves' for what they are. Spin and propaganda and outright lies to cover the nakedness of the Empire.
Posted by: Christian W | August 29, 2008 at 05:45 PM
They are "special," alright. God is the ultimate ass-kicker. You want to be ANYTHING but "special" when God's in town! Don't just be careful what you ask for. Just run first, and NEVER ask for any damn thing! Just accept. I guarantee, it'll all be MUCH, MUCH simpler!!!
Posted by: blues | August 29, 2008 at 06:02 PM
blues:
What God wants, God gets:
http://www.youtube.com/watch?v=qefgOPS3rS8
Sing along?:
http://tinyurl.com/6cwpcn
have a great weekend!
Posted by: Bear of Little Brain | August 29, 2008 at 06:29 PM
Elaine:
I'm closing down for the long weekend.
Here's one for the hippy chick (no lyric sheet needed, I guess):
http://www.youtube.com/watch?v=6xhYk9PEmXA
Posted by: Bear of Little Brain | August 29, 2008 at 06:33 PM
Family showing up fast. Must cook for the troops. Many mouths to feed.
Mom time in spades.
Posted by: Elaine Meinel Supkis | August 29, 2008 at 06:57 PM
Sarah Chang playing the Vital Chaconne:
http://www.youtube.com/watch?v=AloBa9SPM7U
Posted by: Christian W | August 29, 2008 at 07:00 PM
*Vitali Chaconne*
Posted by: Christian W | August 29, 2008 at 07:01 PM
>> whine and cheese
Thanks for the link to the "currency wars" link. Here's another link "Chinese buy into conspiracy theory" that was run in the Financial Times around a year ago. the articles dismisses the book as being "over-arching conspiracy theory." Sone interesting things:
- single root cause of our problems: the control of money issuance through history by the Rothschild banking dynasty.
- “gnomes of Zurich” and Wall Street manipulate global finance
- the Fed is a privately owned and run bank
- focus on the Rothschilds and what the book depicts as their Jewish clannishness
But of course, the article emphasizes that these are conspiracy theories - not accurate.
http://www.ft.com/cms/s/0/70f2a23c
-6b83-11dc-863b-0000779fd2ac.html
___________________________________________
>> Bear of Little Brain
Thanks for the link, and yea, weapons-grade anthrax is freaky scary. The fact that we are counting the grains of salt in the story rather than simply dismissing it as too bizarre is scary in itself.
Posted by: DrKrbyLuv | August 29, 2008 at 08:15 PM
Does that BIS graph show USD being sold to purchase Asian currencies?
If it does, does that mean an unwinding of positions will result in strengthening of the USD versus Asian currencies?
Posted by: David | August 30, 2008 at 12:18 AM
Richard Cooke figured out why the Space Shuttle blew up, and figured out why the US financial system is imploding now.
http://www.informationclearinghouse.info/article20636.htm
A Master-Slave Society
Democrats in Denver Should Skip One of Their Parties and Read the American Monetary Act
By Richard C. Cook
28/08/08 "ICH" -- - How are things going at the Democratic Party National Convention in Denver this week?
Are they talking about the fact that the Western world is run by an international financial elite headquartered in London, the financial capitals of mainland Europe (such as Frankfurt, Hamburg, Amsterdam, Paris, and Milan), and, of course, New York City?
Are they mentioning at their cocktail parties that the financial elite exert control over the world’s population through the cartels that make up the world’s producing economies and through the civilian and military bureaucracies who work for the governments that kow-tow to them?
....
The second point is a call for a new monetary system, not one based solely on lending by the banks or on government borrowing. One organization that has developed a blueprint for such a system is the American Monetary Institute (AMI), headquartered in Chicago. The director of the AMI is Stephen Zarlenga, author of a massive, groundbreaking work: The Lost Science of Money (AMI, 2002). Zarlenga’s assistant is Jamie Walton, a monetary reformer from New Zealand.
AMI will be holding its fourth annual conference in Chicago on September 25-28. Expected as keynote speaker is Congressman Dennis Kucinich, whose wife Elizabeth once worked as an intern at AMI. Dr. Bob Blain will be a featured speaker.
On the AMI website at www.monetary.org is a remarkable document, the American Monetary Act. The product of several years of work by Zarlenga and his network, which now includes a number of local chapters around the country, the American Monetary Act would replace today’s debt-based monetary system with one where the government spends or loans money directly into circulation.
Under the Act, the Federal Reserve would be retained as a national financial clearinghouse but would no longer be a bank of issue. The system would be overseen by a Monetary Control Board within the U.S. Treasury Department. The Act also includes a provision for a citizens’ dividend, similar in some respects to the Alaska Permanent Fund, which would inject desperately needed purchasing power into the economy without additional government debt or taxation.
Also promoting a citizens’ dividend, by the way, is Stephen Shafarman in his important new book, Peaceful, Positive Revolution. (Tendril Press, 2008)
It’s the American Monetary Act the candidates and delegates in Denver should skip one of their parties to read, because it’s the only way any of their hopes for America can ever be realized. Says AMI’s Jamie Walton:
“This is a crucial time. Things are happening. We have got some key media people talking and writing about our kind of reforms. The inertia is starting to yield. Things are starting to roll. The worsening conditions in 2009 will give us a once-in-a-lifetime chance to be heard above the propaganda.”
Posted by: GK | August 30, 2008 at 07:42 AM
What's with NZ and the carry trade? Are they going to get wiped-out worse than the US when this thing finally unwinds? I guess I'll have to find another Plan B Country.
Posted by: Bartman | August 30, 2008 at 11:11 AM
Elaine, what do you think of Nouriel Roubin at RGE Monitor. There is striking similarity in your predictions, you just one step further and make losing the gold standard as the big bad apple (to which I totally agree - the gold standard assured there being something produced for the money spent, rather than something out of nothing as you have noted already).
Posted by: Bb | August 30, 2008 at 05:18 PM
one year of bad banking continues no doubt - but, it doesn't always have to be this way now does it?
August - the month of gusto!
Gusto and integrity go together like....well, you provide the analagy - or is it a metaphor.
Posted by: Buffalo Ken | August 30, 2008 at 05:20 PM
The sinews of war have always been profitable to the exploits of the banking cabal. Who else benefits from war?
Powerful ideas can never be met by powerful totalitarianism.
Posted by: DrKrbyLuv | August 30, 2008 at 09:57 PM
yeah shouldn't' we all be sick and tired of a bunch of pompous bankers profiting upon the suffering of innocence?
I am.
Posted by: Buffalo Ken | August 30, 2008 at 10:21 PM
a bit of late night rambling here, but....
ideas, unlike individual humans can "live on" forever....don't you think?
Regardless I'm sick of usury-loving bankers profiting on suffering, lawyers and other legal professionals perverting law, and especially all the slimy politicians in the made-up federal city of DC from both stinking parties - the People's representation is gone...this reminds me of the song "Bye, Bye Miss American Pie".
The music can't be killed but many musicians and artists have been I suspect. One way or the other. Many have been consciously killed. Many including Kennedy and many others. And to think, they thought they could always "cover it up". The truth wants out.
It is time for justified retribution. I can think of no other alternative or solution. Can you?
Posted by: Buffalo Ken | August 30, 2008 at 10:30 PM
Retribution is not the same as vengeance and when justified entails the discriminate conviction of those specific few individuals who insist on perpetuating large-scale suffering of innocence. These few individuals must be held accountable otherwise there is no justice.
As I say at one of my websites -
"If you have been an offender, I suggest you join the convictors. Otherwise, be prepared for justice that pulls you in forever. The time for justified retribution is upon us. The People Choose - Don't U think?"
Of course many of those who adamantly cling to the status quo may be unable to acknowledge their responsibility for the dire situation we now find ourselves and may also essentially have no empathy for others they consider "inferior". These individuals need to re-learn a lesson they should have learned in kindergarden; otherwise, all indications suggests humanity's days are numbered and the number is much smaller than you might think, and the demise will be indiscriminate.
Seems to me that "Mother Nature" has a way of taking care of life that fits in, but just now humanity does not. This can change, but the time is NOW. Time is of the essence.
Peace is what we need.
Ken
Posted by: Buffalo Ken | August 31, 2008 at 08:16 AM
I guess I have to say one last thing. Sorry.
Anyhow, if what I describe above happens I think there will be a time of transition, but then it could be so great for the rest of US!
Posted by: Buffalo Ken | August 31, 2008 at 08:25 AM
Enjoy labor day, Ken.
Posted by: Elaine Meinel Supkis | September 01, 2008 at 01:44 PM
Thanks very much Elaine. I had a great day and now I'm looking forward to a calm September!
Peace,
Ken
Posted by: Buffalo Ken | September 02, 2008 at 07:18 AM
Calm at least for me (goofy smiley face)
Posted by: Buffalo Ken | September 02, 2008 at 07:18 AM
Remember our banter about tractor factories? John Deere is closing its Canadian plant with loss of 800 Canadian jobs:
http://tinyurl.com/5syqoa
Is this the North American Prosperity Partnership (or whatever it's called) in action? And so it goes - not for the Canadians, though.
Posted by: Bear of Little Brain | September 02, 2008 at 04:13 PM
Ah yes, cash is king during deflation: HSBC says super-rich clients moving into cash
Posted by: RobG | September 02, 2008 at 04:34 PM
France captain Patrice Evra claims that coach Raymond Domenech dropped him from the squad for "no valid reason'' and denied him the chance to apologise to the French public by reading out the players' statement himself.
http://soccernet.espn.go.com/world-cup/story/_/id/800527/ce/uk/?cc=5739&ver=global
Posted by: ScouncAxoxy | June 22, 2010 at 04:54 PM
Precious things are very few in this world. That is the reason there is just one you.
Posted by: Canada Goose sale | December 30, 2011 at 08:55 AM