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hokey pokey


As I was trying to explain all this banking and derivative stuff to otherwise intelligent friends and family, I've had quite a bit of trouble coming up with good metaphors. (none are receptive to mythological metaphors)

So I've settled on M.C. Escher's artwork and the example of a mobius loop as a Ponzi symbol.

Escher's piece of a hand drawing a second hand, in turn drawing the first hand.

Or the water continuously flowing 'downstream' around a sluice in a circle, forever.

Oddly, many people 'get it' when I've shown them Escher's drawing and a mobius loop.

Maybe they just needed 'visual' explainations or visual logic, turned inside out, to finally 'See the Light'.






Elaine, retail has been hit very hard. I have noticed an obvious decrease in sales since June. Do you think retailers will start going out of business soon?

hokey pokey

Denninger's latest video is smokin'




How charming to talk about this as if we have a chance to save the US from the criminals in charge.

FYI, have a quick look at your future with your new Chinese masters.

Using African Slave labor to put a man in space. How novel an idea. I wonder where the F*** they got that idea.


As for their general treatment of African workers, Lukwesa says he knows of cases where Chinese supervisors have kicked Zambians. He summed up their attitude like this: 'They are harsh to Zambians, and they don't get on well with them.'

Sata warns against the enormous loans and offers of help with transport, schools and health care with which Peking now sweetens its attempts to buy up Africa's mineral reserves.

Paul S

I watched the video. And I've watched the vids on his website. There is only one flaw in his logic. This Bailout bill is a done deal; the skids have already been greased. They are just playing charades right now. The "rebels" who are "opposed" to a bailout are being given some time to pose as representing the taxpayer. (Although a small few really ARE opposed to the bailout.) This way they have a shot at saving their seats next election by saying, "Hey I fought the bad guys. I tried." It also gives the more corrupt members of Congress, like Nancy Pelosi and Hillary Clinton, more time to shake down their patrons for more money. BTW: Nancy and Hillary: Great job girls! You two prove that a girl can be just as sleazy as a man. Talk about striking a blow for equality! We have a government that must do its work in the dark of night. That about says it all.


Hi Elaine,

Welcome back from Washington.

NYTimes reports a breakthrough ( 11 pm PST) in the giveaway bill.

The bill includes pay limits for SOME executives whose firms seek help, aides said. And it requires the government to use its new role as owner of distressed mortgage-backed securities to make more aggressive efforts to prevent home foreclosures. In SOME cases, the government would receive an equity stake in companies that seek aid, allowing taxpayers to profit should the rescue plan work and the private firms flourish in the months and years ahead.

The choice of "some executives" and "taking an equity stake in some companies" is very telling.

The small banks should be very worried, because they are about to be taken apart by $700 billion vultures.


Insightful commentary in original language. I wonder why the Sphinx flinched? A sphinx is supposed to be unflappable. There must be a serious chink in these elites armor.

Neon Vincent

Elaine, here is something that I stumbled across which is admittedly wacky (what is it you're always saying about disinformation campaigns to trap the unwary?) but which I enjoyed.


London, 27th September 2008:

Last week, the newly installed Washington-based sausage machine was primed by the Chief Sausage Makers, Messrs 'Paulson und Bernanke', to bring forth a splendidly flavoured batch of sausages with a long shelf-life, so that the manufacturers themselves could stock up with food for the winter months ahead, without having to worry about how to make ends meat (oops, meet).

Having primed this sausage machine, it cannot now be turned off until it has completed the cycle, so the manufacturers are lumbered with having to accept whatever flavour of sausage comes out.

Unfortunately, due to a strike, or several strikes, on the shop floor, the production line has, the manufacturers now contend, been sabotaged, to such a degree that unwanted ingredients have been inserted into the mix, which will now deliver sausages with a bitter taste from the purveyors' perspective. And since they cannot turn the machine off until it has completed its cycle, they are stuck with whatever flavour of sausage is delivered the other end.

This is very embarrassing, as the sausage manufacturers had informed their entire marketplace that the sausages in question will taste very nice, even though they will be the most expensive sausages ever made (costing an estimated $700 billion). Accordingly, since the entire marketplace is expecting sausages to be delivered (because they have been so advised), the manufacturers have no choice but to proclaim the success of their new recipe (even though when they come to sample the new sausages they may choke and regret that they ever started up the machine).

Much more at the link.

Then there is this rumor which was posted as a comment on Daily Kos. My skeptical reaction to it is immediately downthread. However, I'll post the interesting part of it and see what you think.

Rogoff is dead on when he says that there is plenty of money waiting in the wings, but many may never really understand why those funds a being held back. Presently, there is $14 trillion sitting in a set aside account at Citibank awaiting release and this fact was briefly mentioned by Bernanke when he testified in front of the Senate banking committee earlier this week. However the issue was dropped, there was no follow through. We can thank the Queen of England and the Chinese for their generous donations with strings. Get rid of the Federal Reserve.

Fact: during the last G-8 meeting in Germany I believe last March a date certain was set for the full implementation of the Basil II accords. That date being August the 29th just past. Elements within our own government fought this move tooth and nail and when that date passed, the US was given a 30 day extension which is up at 12:00 midnight this Tuesday.

What does this mean? If all US banks that did business with other banks around the world were not compliant meaning that all transactions were transparent and taxable, they would be precluded from doing any business with the rest of the world. The reason for the blow up at the White House? Members of the G-8 threatened to dump all of their T-bills as of the opening of the Asian markets Sunday evening which is the real reason why politicians were running around as if their heads were exploding along with Paulson and Bernanke stating that a bailout had to be in place prior to the Asian opening.

The fix is in place and the bottom line to all of this is that the US will survive and for the time being, the boy King will be allowed to take the credit for saving the entire world form financial ruin. The best part of the deal is the the Federal Reserve which has been an albatrose around the necks of us all for nearly 100 years will eventually disappear and be replaced by a new treasury banking system with dollars backed by real assets such as precious metals.

Everyone else thinks he misinterpreted what he read at crooksandliars.com and at the link from which the first excerpt above came. What do you and your readers think?


“Please do not call it a bailout,”“This is a bridge loan to take distressed assets off the books of financial institutions.” Stephen S. Roach, Chairman, Asia, Morgan Stanley, Hong Kong SAR
World Economic Forum, Tianjin 27 Sep 2008


So the bailout passed then.
350 billion.
The one thing that was not discussed at all in the hearings was which banks will get this money.
Well I guess Goldman and JPMorgan have all their bad papers ready to go and they will have their money the same day this thing opens and I´m sure they don´t have to give any stocks to the taxpayers.

My views:
a. this money lasts about 3-4 months (Paulson gets off the hook in 4 months).
b. housing will continue to go down for at least 2 more years (as Elaine says)
c. there will be NO cheap credit available for the public, no matter what was promised.
d. nothing will save the housing market
e. dollar will fall (and thats a good thing for the US)
f. inflation will hit as soon as the next president is in office, how bad depends on oil. There´s a good chance US will weather this if US manages to devalue the dollar and keep oil prices down at the same time. High oil prices = inflation will kill the economy in 2009.
g. banks have to be saved eventually (maybe one more trillion next year). This money just passed only saves GS, JPMorgan and all that gang. More is needed next year.

You shoud remember that US has one advantage over everyone else on this planet and that has enabled all the prosperity for decades; the Dollar.
You only owe dollars so you can devalue at will. Everyone elses debts increase if they devalue their currency (debts are in foreign currency).
Oil is the only problem. Oil causes inflation that US cannot export to everyone else, maybe the drop in demand will help this time.
There will be a recession but I think you will get through this, providing oil doesn´t go back up too much.

Elaine Meinel Supkis

OPEC is NOT going to get a huge haircut so the US can continue to import oodles of oil.

So that game is over. OPEC didn't act when prices fell after Russia suddenly entered global energy markets in the 1990s. Well, today, there is no Russia to come into markets so Saudi Arabia can raise the price of oil to keep their gigantic welfare state going.

In the 90s, when they couldn't do this, the government nearly fell. Bin Laden was very popular there back in those years. If welfare is cut, SA's king dies.


Yes, you´re right.
So far at least it seems when the dollar drops oil goes up, but maybe US can affect this (biggest customer), I don´t know.

You are so right that there is only one solution; up the interest rates to 5-6% and get the savings back to banks.
I´m afraid it will take more time and more bad news for this to sink in.
In my country the stock market dropped 42% in a year, but I see no effect in everyday life yet.
Everyone gets 4,7% interest for one month deposit from the bank here, it´s still too low but gives some protection from inflation.
Recession is not so bad, Ken and many of your readers will propably feel better about everything. It puts some sense back to life (hard work puts food on the table, not playing with the stock market or the value of your house).
Fear is the easiest way to rule people, if the DOW falls 2000 points, the rich loose money. Ordinary people are less affected. You are being pushed into this by fear.

But as you have pointed out, you need banks and some of them have to survive and be saved. And that takes a lot of money.
No good solutions, but US will soar again in ten years. You have so much enthusiasm for everything and you will get to work, I´m sure of that. You Elaine are a prime example of everything I love about the US.

People my country more safe, but at the same time a bit more paralized and hesitant to act.

"We musn’t underestimate American blundering."
- Blunt can google this ;) -

Bear of Little Brain

One down…
"A wealthy financier said to be overwhelmed by the current global banking crisis has died after throwing himself in front of a commuter train."


Barney Frank should be ashamed

blunt Force Trauma

Now it's to be Monday.....

I hope that it would be to scrap it. Unlikely. Lokks as though THEY"VE decided on how it should be worded and will now vote on that.

WASHINGTON (AP) - New Hampshire Senator Judd Gregg says everything has been worked out in the historic $700 billion Wall Street bailout.

Gregg is the chief Senate Republican in the negotiations over the bailout aimed at keeping credit flowing and saving the nation's shaky economy from collapsing.

Congressional leaders hop to have a House vote on the measure tomorrow, with a vote in the Senate coming later.

Under the plan, the federal government would purchase mortgage-backed securities and other bad debts held by banks and other investors. The money should help troubled lenders make new loans and keep credit lines open. The government would later try to sell the discounted loan packages at the best possible price.


Well, Elaine was right again, just found this news.

Rosneft wants to sell half its oil through Russia's online fuel exchange which opened on Tuesday. It’s hoped the bourse will drive down energy prices as buyers compare offers in real time. The latest rates on diesel and jet fuel are now available to anyone with internet.

Russia's energy supreme, First Deputy Prime Minister Igor Sechin, has been shown around the country's first online oil exchange.

“This is a key way to make oil price formation transparent,” Sechin said.

Rosneft says trading on the bourse will mean savings for consumers at the petrol station.

“This removes intermediaries and will bring down the price of oil. We hope 50% of our trade will eventually go through these exchanges,” Rosneft’s President Sergey Bogdanchikov said.

It's the world's first oil exchange not dollar-denominated.

Prime Minister Vladimir Putin calls this the starting step to make the ruble an international reserve currency.


Bear of Little Brain

The stench of corruption is overwhelming. Let it burn and start again. One meaning of a revolution is political; another is the return of a wheel to its starting point. The concept underlying both is the same.

Elaine mentions 6% p.a.. This is a doubling roughly every 12 years and is an example of the exponential function. Boring old maths, but:
When logic and proportion
Have fallen sloppy dead
And the White Knight is talking backwards
And the Red Queen's "off with her head!"
Remember what the dormouse said;

I've mentioned these videos before, and here's Part 1 of 8. Until we all understand the exponential function we're screwed, whatever happens in the near future. Please give it the eighty minutes or so needed. So, let's feed our heads:

Dr. Albert A. Bartlett's presentation on "Arithmetic, Population, and Energy. (The Exponential Function.)
Part 1

All the best everyone

Bear of Little Brain

That was interesting. Tried to post links to all eight parts, but hit a spam filter. Maybe Elaine can dig out the filtered version, but no big deal.


As I sift through the analytical numbers
and you tube resets, the answer was at
the grocery store right in front of my
face, The National Enquire-the end of
the world is coming, Who would have thought
this periodical could predict the financial
crisis. I was subscribing to the Wall
Street Journal and Transcripts combined paying for information I could have got
for 1.50 at the check out counter..........


Elaine: the history lessons are wonderful.
The correlation from one year to the present
and how the continuation of screw ups by
this administration and Wall Street keeps growing every day. Within a couple years,
I hope to read about the many who will be
serving time for corruption, and to see how
much debt is really on the lost scrolls of
Wall Street. As I have posted in the past,
we have so much history but we have learned
nothing: Finances and Wars ??????????????

Gary W

While we're doing quotes, let me remind you of this (attributed to Winston Churchill): "the Americans will always do the right thing, once they have exhausted all other options". But he was an imperialist warmonger too.

As for the bankster rescue, I don't think there's anything I could add that hasn't been said a thousand times already. Except, I haven't seen anyone tie this in with other social problems like climate change, industrial pollution, overpopulation, and resource depletion, especially in the form of peak oil. The powers-that-be will prop up business-as-usual at any cost. Things are going to get worse, much worse, before they get better. It's looking like the whole human species is bankrupt (except for people in the Third World who live in mud huts and spend their lives carrying water and hunting for firewood), and we need a jubilee for humanity.

Elaine Meinel Supkis

I once had a dream during the seventies hyperinflation years. I was shopping and soup was only 8 cents a can again. I was so happy.

Then I woke up to reality and had a wave of sadness. Today, I am inured to this. I expect inflation. Note that soup is well over a dollar a can.

Bear of Little Brain

Gary W:
"Except, I haven't seen anyone tie this in with other social problems like climate change, industrial pollution, overpopulation, and resource depletion, especially in the form of peak oil."
That's what Dr. Bartlett was doing in the 1990's (see post above for link).
Another Churchillian quote:
"History will be kind to me, for I intend to write it". Which he did, but in retrospect.

Aside: when Barney Frank stops reminding me of Deputy Dawg, I'll take him seriously!


Elaine, thanks for going to Washington and for your great insights, photos and art. Made me feel a more integral part of history.

Like our financial institutions, I think our congress is being overwhelmed. Our media adds to the hysteria by promoting the terrorism brought against the people - quickly do what we say or suffer the loss of jobs, pensions, savings, future generations, and on and on.

If the problems were simply economic, we could rally as a people and prevail. Unfortunately, the financial mess is just a symptom of a larger problem - the real problem being the tyranny and subjugation of the ruling elites.

The elites have seized our executive branch and made the CIA and the fed rogue operators to execute their goal of a new world disorder.

I don't see any sound solutions coming from Washington or wall street. The solution must come from main street via revolution. If we want freedom and prosperity returned, we must rise as a people.

"But what do we mean by the American Revolution? Do we mean the American war? The Revolution was effected before the war commenced. The Revolution was in the minds and hearts of the people. . . This radical change in the principles, opinions, sentiments, and affections of the people was the real American Revolution."

John Adams to Hezekiah Niles

Elaine Meinel Supkis

I am reading Ben Franklin's autobiography at night. Very interesting guy.


I will provide a summary of Ben Franklin for Retarded Americans:

"Neato experiment with kite and lightening!"

For anyone else not half asleep:

Ben Franklin = Freemason = Zionism

Here is a copy of a book he wrote in 1734!


This is an online electronic edition of the the first Masonic book printed in America, which was produced in Philadelphia by Benjamin Franklin in 1734, and was a reprint of a work by James Anderson (who is identified as the author in an appendix) printed in London in 1723.

This is the seminal work of American Masonry, edited and published by one of the founding fathers, and of great importance to the development of colonial society and the formation of the Republic.

The work contains a 40-page history of Masonry: from Adam to the reign of King George I, including, among others, Noah, Abraham, Moses, Solomon, Hiram Abif, Nebuchadnezzar, Augustus Caesar, Vitruvius, King Athelstan the Saxon, Inigo Jones, and James I of England. There are extended descriptions of the Seven Wonders of the World, viz. 1) the Great Pyramid, 2) Solomon’s Temple, 3) the City and Hanging-Gardens of Babylon, 4) the Mausoleum or Tomb of Mausolus, King of Caria, 5) the Lighthouse of Pharos at Alexandria, 6) Phidias’s statue of Jupiter Olympius in Achaia, and 7) the Colossus at Rhodes (although some maintain the 5th is the Obelisk of Semiramis). It is a celebration of the science of Geometry and the Royal Art of Architecture, as practiced from ancient times until the then-current revival of the Roman or Augustan Style. “The Charges of a Free- Mason” and the “General Regulations” concern rules of conduct for individuals and of governance for Lodges and their officers. The work also includes five songs to be sung at meetings, one of which—“A New Song”—appears in print for the first time and may have been composed by Franklin.

The document suggests that Masonry, in its modern Anglo-American form, was rooted in Old Testament exegesis (“So that the Israelites, at their leaving Egypt, were a whole Kingdom of Masons, … under the Conduct of their GRAND MASTER MOSES”) and in contemporary Protestant ideals of morality, merit, and political equality.


In some countries anti-Masonry is often related to anti-Semitism and anti-Zionism. For example, In 1980, the Iraqi legal and penal code was changed by Saddam Hussein's ruling Ba'ath Party, making it a felony to "promote or acclaim Zionist principles, including Freemasonry, or who associate [themselves] with Zionist organisations."[79] Professor Andrew Prescott, of the University of Sheffield, writes: "Since at least the time of the Protocols of the Elders of Zion, anti-semitism has gone hand in hand with anti-masonry, so it is not surprising that allegations that 11 September was a Zionist plot have been accompanied by suggestions that the attacks were inspired by a masonic world order.


The financial crisis widens with the bailout plan passing the congress.
Meanwhile, Germany and France accuse Wall Street of 'contagion'



I think the sign here is the wider schism between US/UK and the other developed nations, Germany/France/Japan/Europe/Australia . Both are trying to benefit from other's bailout actions without spending their own reserves.

America is also not very subtly stirring up conflict in Europe using Georgia and trying to do the same in Asia with Pakistan.

For if Europe falls back to cold-war relation with Russia and the Indo-Pakistan conflict flares via Kashmir the world would have no choice but continue the cheap lendings to US.
Pakistan allows China to bypass the Malacca straits into the Persian Gulf which is controlled by Singapore ie US

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