October 16, 2008
Elaine Meinel Supkis
The Big Bad Bank Bail Out didn't create any bubble. After a one day celebration, reality came roaring back and stocks fell back to where they came from: the cellar. The bear market continues despite all the money being tossed to the Derivatives Beast. Nothing has been fixed. But today, we take a break again and look to the past as well as examining GAAP [Generally Accepted Accounting Principles], SWF [Sovereign Wealth Funds] and the continuing moves by the Chinese to take over the important parts of international banking. Also, time to talk yet again about the treasonous lout running the Treasury and Goldman Sachs at the same time. Arrest Paulson!
Markets feel the chill from China
Share prices tumble amid fears that downturn is spreading east
The sell-off [yesterday] was prompted in part by warnings that China's economy, which has been expanding at breakneck speed for years, would "pause for breath". Guy Elliott, the finance director of Rio Tinto, the mining giant, said: "We are confident about the future in China, but at the moment there is a deceleration of demand that won't pick up again until next year."His comments caused panic in the commodity markets. The oil price dropped by 5 per cent to a 13-month low, and copper, aluminium and nickel all slumped. Only gold, seen as a safe haven in troubled times, stayed stable.
Economists are already cutting forecasts for China. The International Monetary Fund (IMF) last week predicted growth of 9.7 per cent this year and 9.3 per cent in 2009. The danger is that the health of China's economy is hard to measure, and Beijing's economic policy even harder to predict.
China's economic policies are NOT hard to predict. I wonder why this fabulous lie is constantly repeated? Is it supposed to make things mysterious so people reading the news can't see the future? I find the future tremendously easy to predict simply because I know some people's long range plans. These plans don't always work out exactly as expected so they shift gears periodically to steer things back to the original goal.
For example, I know that the ruling elites are constantly worried about their ability to produce heirs. This plagues all rich and powerful people. It seems that fertility declines with each generation of rulers. Every once and a while, there is a productive queen or king. So Victoria, for example, had many children. They spread across the planet, marrying other royals and their children were thus, very closely related to the other imperial thrones. Suddenly, we had a genetic mess where first cousins were TOO closely related and all of them married each other in quick succession.
The resulting children had a number of genetic weaknesses and diseases. The Islamic royals dealt with this problem of inbreeding by having harems drawn from the entire empire. But this floundered because they and the Byzantines preferred to be ruled by eunuchs who were men who destroyed their ability to have children. This happened to Manchu China, too. So the most able, sane and ambitious sons were all eliminated from the gene pool while the ones who wanted simply to breed mindlessly would have many children in their harems.
So the ruling elites who observed all of this formed genetic societies that would make a stronger genetic future by eliminating the weak, etc. This fused with Naziism and the whole business about the Aryan Race business. To this day, the conflict between people who want 'white Europeans' to breed and thus, are fighting abortion, etc, and the women of the ruling class who don't want to be tied down by child bearing, rages in the US. In Europe, they basically decided to simply cease child bearing to the point, the replacement rate has fallen.
Back to China: China has a goal. The Chinese are very leery of establishing a dynasty. The Maos failed to produce powerful children and Stalin, for example, literally murdered his wife and destroyed his own children. Hitler was hopelessly unable to breed at all. The Chinese hope to have a meritocracy whereby the best and brightest move to the top. In addition, they planned to 'be bank' long ago. They recognized that their loss of power in the past was due to their inability to keep up with changes in global finances such as when Spain flooded China will silver after conquering the New World.
This caused great distress in China as the value of the silver and gold holdings of the traders and the Dragon Throne suddenly began to drop, rapidly. This was stopped by the desperate move to close China to trade with Spain. This, in turn, started the European wars with China. The Chinese wish very much to understand the history of gold, silver and international trade so they can chart a course whereby this will never happen to them again. The flood of US dollars into China, for example, is a similar problem to the 1650 crisis.
The news from China is interesting today. They are changing direction. No question about this. The world banking system is still in crisis as bankers pretend they have infinite resources yet they must borrow from each other all over the place as they shift funds like mad trying to give the appearance of liquidity. The Federal Reserve has decided to inflict terrible inflationary losses on all savers as it tries to save the madcap 'consumer society' of reckless American spending.
From Xinhua:
China's top leader Hu Jintao has called for accelerating banking reform to push forward the sustainable and healthy development of the country's financial sector.
Hu, state president and general secretary of the Communist Party of China (CPC) Central Committee, made the call on Wednesday when presiding over a brainstorm of the Political Bureau of the CPC Central Committee.
Members of the Political Bureau attended and discussed the lectures by two banking experts, Ba Shusong, a researcher from the State Council Research Center for Development, and Li Fu'an, a senior economist from the China Banking Regulatory Commission.
Hu pledged in his speech to push forward banking reform in an all-around way, focusing on building a modern banking system and innovating organization, service and administration of the sector.
He stressed to accelerate the banking reform for the countryside, and push forward the healthy development of the financial market.
OK, I don't know what these reforms are but the fact that the Finance Minister was suddenly demoted and kicked out the door right after the Bank of China opened its vault holding Americans certificates of deposit only to discover these were frauds, China has decided suddenly and unilaterally to change direction. We will see the increasing gale force winds from this change in the next year. I predict, this will overturn our expectations of eternal cheap prices and easy loans. I suspect the third part of the Great Plan To Bankrupt America will be set into motion. This plan was but a gleam in Chinese leadership's eyes back in the mid 1980's. But it is the long range plan.
*snip* [A long series of statistics which all readers should examine]This is where the Chinese step in: they faithfully raised interest rates and the value of the yuan and Japan and the US have joined Europe in ganging up on China. Playing this game has earned them nothing at all. The Chinese are now having a brainstorm meeting to decide if it is time to change world banking systems. Already, we feel the effects of them withholding cheap loans to the US and sucking down US dollars in the form of FOREX reserves. The US rates dare not drop below Chinese rates. As I show here, the US rates are similar to the rates in China for 60 month CDs.
This is because we run in the red. We have to find buyers for our government bonds. Japan holds the world's biggest amount of US bonds. China is #2. The Chinese have ceased buying these. The US needs super-low interest rates so we can run up bigger debts but we can't do this if the world can buy higher-return rates in China! And China won't buy this from us if they make more money at home. Obviously. And if we are determined to have a trade war with China, then we will have to play the interest rate war, too. Chopping rates is not a great step forwards for the US. If the US imitates Japan even more and drived down inflation by crushing workers completely, this will not save us since this will cause Japan to collapse as buyers of goods in America vanish.
Already, the Chinese are beginning to bet that the free trade free ride of the US is pretty much over. They know that we can't borrow forever. In banking, if you run up too much in debt, banks and credit cards raise your interest rates because you become a risk for bankruptcy. This drives people into bankruptcy faster, of course, the snowball effect. But this is also true of nations. We can't stop spending suddenly. Yet our attempts at controlling our debts have failed. The 0% loans from Japan has wrecked our ability to control ourselves. This is super-free money when inflation is more than 5%! China has flooded us with goods only because they have cheap labor but China wants to improve the lot of the workers so they can be an internal economy. This sounds strange since we see many stories about the horrors of labor in China and the pollution, etc. This is true but then, this is typical of any nation that is industrializing. The US, Britain and Europe went through these same, exact stages. In Japan, anyone pointing out poisonous pollution was beaten or killed by goons working for the industrialists...in the 1970s! The pious chat about protecting workers is all garbage. After all, conditions here in America are so degraded, many citizens have been forced out of various jobs and replaced by illegal aliens working for less than former union wages.
Last year, China did a ruthless shift in authority. Here in the US, we just saw such a shift. Paulson took over Congress and the Presidency and now is the autocrat ruling our nation. For some stupid reason, people are being told that this gnome straight out of the Gollum Sachs black hole will save us. I am pleased to see that the majority of Americans are very suspicious of this little monster. But our elected representatives, for the most part, are quite pleased with the Paulson coup. If things continue to go bad, they can blame him, not look in the mirror at the true authors of this mess.
Not that Paulson isn't also responsible! More about him later. Back to my own musings in the past, here is another old story from last year, exactly one year ago, today:
October 16, 2007: Money Is Flowing AWAY From USA
The US has floated our Titanic Consumer Economy on a sea of money that poured into our pond. Now the money is draining out due to the weak dollar and even weaker banking situation here. Somehow, Wall Street mananged to heave upwards, the DOW for a few precious weeks, time enough for the Big Players to either sell out or to extricate themselves from their financial failures. The bad news now is so overwhelming even people who watch Cramer strut and fret are scratching their heads and saying, 'You know, maybe there is something wrong. Gold and oil are climbing faster than a mountain goat while my house dropped another $10,000 in value this week!'Most Americans pay no attention to the flow of money but everyone who ever watches or plays the FX markets knows that this is a very important thing to watch. The relative value of currencies, the financial health of countries are bound up in this matter. One day, money might be pouring into a country and all is well. Suddenly, the money doesn't just stop, it begins to flow outwards at sometimes astonishing speeds. Argentina might be the destination of all loose change one day and bankrupt a week later.
So this flow change is going to be felt by everyone if it continues. The US is far bigger than Argentina so flow changes don't hit us directly instantly, but it is an insidious force that can, over time, eat away at the foundations of our present economic system. Our system that is already in terrible arrears: nearly everything is running in the red!
Just one and a half months after the 'scary Hu speech' the world monetary flows shifted decisively. And are still flowing in the new channels opened by Hu. The effects have been most startling. And it is due to China deciding it is time to permanently change the direction, rate and type of flows in international trade. The days of China being the cheap labor repository for the West is ending. The era of China as the world's central bank is rising relentlessly. This happens to be exactly half way through the amazing 50 year plan cooked up 25 years ago. Let's take yet another look at Sovereign Wealth Funds and how China and the US are dealing with all this wealth creation.
Just last week, the IWG had a big meeting that wasn't covered much in the mainstream media. Indeed, few people outside of the esoteric circle of gnomes, pirates and noisy online commentators of a certain stripe like myself, the SWF managers met and finalized the Santiago Principles. Here is one of several press releases:
Statement by the Finance Minister of Singapore on the Santiago Principles
October 11, 2008
At the Ministerial Meeting of the International Working Group of Sovereign Wealth Funds (IWG), held on October 11, 2008, Mr. Tharman Shanmugaratnam, Finance Minister of Singapore, made the following statement on the Santiago Principles:
"The IWG has produced a meaningful and credible set of principles and practices for the Sovereign Wealth Funds (SWF), which most would want to follow. Concerns over SWFs' due to their being government-owned are prospective in nature, rather than reflecting their actual conduct in global financial markets to date. However, it is important for SWFs to continue building trust with investment recipient countries. The GAPP is a major milestone in this respect."Singapore supports the GAPP principles in full. The Government of Singapore Investment Corporation (GIC) and Temasek Holdings adhere to these principles and practices, and will continue to do so in the future.
"A key component of the GAPP, involving the need for adequate public disclosures, will enhance understanding of their roles as financially-orientated players whose investments are aimed at maximising risk-adjusted returns. Such disclosures have to be shaped by the SWF's characteristics as long-term investors, with the ability to take risks distinct from the global market benchmarks and to ride out cycles.A short-term focus in financial disclosures would be inconsistent with such strategies, and would not shed light on the right areas. In this regard, the GAPP strikes an appropriate balance in the level and type of public disclosures. It also makes clear that public disclosures complement the more detailed reporting by SWFs on their operations, financials and performance to their owners, to whom they are accountable.
"The complementary effort by the OECD in developing a set of principles for inward investment regimes of recipient countries is equally important. Investment recipient countries should maintain an open investment regime towards SWFs and not discriminate against them."
This all sounds so boring, doesn't it? But then, the whole business of Sovereign Wealth Funds have roiled the Ancient Regime of Europe and the US. All of these funds were launched ONLY after the Floating Currency Regime was launched. Like all the many investment systems set into motion with the death of the gold standard, these instruments are repositories for floods of money during incremental waves of inflation. We live in an inflationary system that has gone off the cliff and is now requiring literally infinite infusions of money to keep running.
The SWF, on the other hand, are the repositories of all this money. They expect to expand for the simple reason that the US and Europe have decided to flood the world with dollars. Since all parties from top to bottom all want a strong dollar, this is a quandary. The meeting to strengthen these holding pools for US dollar inflation is a sign that the various parties doing this are now coordinating themselves so they can establish a SWF status quo.
This is the NEW WORLD ORDER. It is not exactly like the one envisioned by the rulers in the old NATO alliance. For the parties who will be wielding the global power in this new system will be the Chinese, not the US.
Notice what Singapore says in this news release: RECIPIENTS of SWF money must cooperate or else! They must be OPEN to these funds so the funds can BUY UP the systems, commodities and industries of the recipient countries. Which is, far and above all, the US itself! The OECD
'brings together the governments of countries committed to democracy and the market economy from around the world to:
• Support sustainable economic growth
• Boost employment
• Raise living standards
• Maintain financial stability
• Assist other countries' economic development
• Contribute to growth in world trade'
Like all international organizations, the OECD is a total failure. It was founded in 1960 to collect information. Information is power. Over the years, it has grown in size and power as it, like the central banks, the IMF, etc, ends up trying to 'drive' the economy rather than collect information. These many international systems like the one set in motion upon the death of the great European Empires after the Great Depression began like the BIS in Basel, has used internationalist expansion of powers to take over nationalist levers of control of global trade and finances. But there has been a huge flaw in all this: note how the OECD likes to yap about 'democracy and freedom' but are not either.
We have been steadily losing our POLITICAL freedoms and our democracies in Europe as well as the US have been in steep decline as international systems take over former nationalist systems. Yet the real winner who is taking over all of these international systems is not Jews, nor is it the Ancient Regime's left overs in Europe, nor is it brash Americans....it is nationalist China! The Chinese and the very nationalist Japanese are the counter parties to all these international systems. Both play these international games but keep very powerful control over their own nationalist bases.
There are quite a number of international readers of Culture of Life News. I try to examine things from a perspective that includes the concept of nationalist strengths are the basis of power of ALL nations. Any nation that resigns this power loses power. And this loss is a loss of SOVEREIGNTY. We go back to the amazing words that describe the true creditor funds on earth: SOVEREIGN wealth funds! Ah! And when any nation from Norway, Iceland, Australia, Russia or China, when any nation has to attract SWF money to keep in business, when the US has to strive hard to entice SWF money into the US, this is a sign of weakness. When China or Saudi Arabia builds up and uses SWFs, they are more powerful. And thus, can dictate terms to the debtor nations.
Not all of the US is a debtor entity. Alaska, for example, has an oil SWF. Note that Palin was an enthusiastic member of a sessionist group that wants to split from the US and become a Saudi Arabia of north oil. It is fitting that the GOP that has worked day and night to destroy US sovereignty is fired up by this flame throwing female! Let's visit a portal that collects information about all SWFs:
The Sovereign Wealth Fund Institute:
The Sovereign Wealth Fund Institute is an impartial organization designed to study Sovereign Wealth Funds and their impact on Global Economics, Politics, Financial Markets, Trade, and Public Policy.We provide specialized services such as research and consulting to various corporations, funds, and governments. We strive to be the leading resource regarding these funds.
What is a Sovereign Wealth Fund?
A Sovereign Wealth Fund (SWF) is a state-owned investment fund composed of financial assets such as stocks, bonds, real estate, or other financial instruments funded by foreign exchange assets. SWFs can be structured as a fund or as a reserve investment corporation. Some funds also invest indirectly in domestic state owned enterprises. In addition, they tend to prefer returns over liquidity, thus they have a higher risk tolerance than traditional foreign exchange reserves.
Since 2005, 12 SWFs have been created and the US Department of Treasury estimates they control around $2.5 trillion. As other countries grow their currency reserves they will seek greater returns. Their growth has also been skyrocketed by rising commodity prices especially oil & gas.
Funds may have their origin in:
Commodities - Created through commodity exports, either taxed or owned by the government.
Non Commodities - Usually created through transfers of assets from official foreign exchange reserves.
In other words, SWFs are risky. They are also subject to economic chaos. They are not safe. Smart nationalist rulers like the crew running China, don't put all their FOREX eggs in the SWF baskets! The Chinese, for example, put a very conservative amount in these risky funds. Alaska puts most of its money at risk. Iceland put all of its money and lost every krona of it. Iceland is now bankrupt and begging Russia to put its SWF into Iceland.
China and a very few other non-commodity/oil sovereigns move money from FOREX reserves into the more active SWF systems. This is to increase the value of their holdings and to FIGHT INFLATION. All of these systems are set up to either prop up the dollar or to protect themselves from a devaluing dollar. I would say that SWFs are the world's biggest true hedges.
Many hedges in the West were based on debts, not wealth. Many of the hedges were and still are set into motion to reduce 'risk' so lower interest rates can be charged. True sovereign wealth LOVES higher interest rates for this is all about SAVINGS and PROFITS, not piles of debt. It also must be mentioned here that the world stock markets that rose the most violently in this last bubble were virtually all those which had piles and piles of debts put on top of all systems.
Stocks soared when take over/buy outs were announced. Those organizations making the deals plus the victims of these deals all saw their stocks shoot up in value. But none of this was sovereign-wealth-creating systems. They were all either sucking up sovereign wealth which took over these systems or were trying to lure SWFs into buying into these or sponsoring these deals. The biggest bankers from Bears Stearns and Lehman Brothers to the remaining giants like Goldman Sachs and JP Morgan, all made lots of money funneling a stream of fees from these destructive deals.
The seeming strength of stocks was fake. The markets are now tanking badly....BECAUSE THESE DEALS ENDED LAST YEAR. The DOW is collapsing today because the SWFs of the commodity countries are now being hammered and the key ETFs are collapsing from 0 last year to -45 and dropping faster during September than during the entire last year put together. So both equities and commodities are collapsing. The DOW is now entering the 7,000 range. All stocks lose value in these sorts of markets.
The SWFs still have lots and lots of loot to throw into the game but like any smart investor over the long run, the Chinese are NOT throwing in their entire FOREX reserves. They have tapped only .2% or less of these massive reserves. These are being held for the obvious purpose of making China the global banking power. If the US throws away the dollar, we go bankrupt like poor little Iceland.
Is Iceland stronger today? Or is Iceland negotiating handing over power to Russia and turning its ports to Russian domination? SWFs love markets that go up, of course. They would dearly love a system with no depressions, no inflation. But since they don't control the printing of trade dollars, they have to set up systems that operate under the US Floating Currency Regime....until the Chinese terminate this. And they shall. The only question is, when? And this is where the 50 year plan comes in: we will be living in the new gold-based world order when I am 78 years old. Thanks. I can't wait....gah.
CDOs Imperiled by Collapse of Iceland Banks, S&P Says
(Bloomberg) -- Iceland's collapsed banks pose a ``substantial'' risk to collateralized debt obligations that made bets on corporate debt, according to Standard & Poor's.Kaupthing Bank hf, Landsbanki Islands hf and Glitnir Bank hf were included in 376 CDOs worldwide, S&P said. Another 297 made bets on two of the three banks. The CDOs packaged credit-default swaps that pay investors if there is a default, and the government's placement of the banks into receivership triggered a settlement of the contracts.
Because the so-called synthetic CDOs also bet on Lehman Brothers Holdings Inc., which filed for bankruptcy on Sept. 15, and Washington Mutual Inc., the bankrupt holding company of the largest U.S. lender to fail, the ``impact of these exposures is likely to be significant,'' S&P said in the statement yesterday.
KBC Group NV, Belgium's biggest financial-services company by market value, yesterday wrote down 1.6 billion euros ($2.15 billion) on its CDOs. Moody's Investors Service said Oct. 14 that it's reviewing 2.88 billion euros of the Brussels-based lenders' five CDOs linked to Icelandic banks.
Let's all thank Derivatives Beast. I notice across the net, writers are taking up the practice of calling this charming creature, 'Derivatives Beast.' Heh. A real fad here! Back to business; if the US continues this stupid course of trying to get more debt, we will be totally bankrupt just like Iceland. Here is a list of all the sovereign wealth funds tracked by the SWF news:
All the top funds are Arab OPEC oil rulers. They are absolute rulers and can dictate financial events at will. They are not as foolish as they were when they went through the first oil inflation cycles. Abu Dhabi is the biggest SWF but only because they stupidly put most of their FOREX savings into their fund. The Chinese, on the other hand, put in .2%.
I don't know why Australia was listed as 'non-commodity' on this list. For most of the SWF finances came from the sales of commodities to Asia. Ireland is in as much trouble as Iceland. The banks are going belly up, fast, and a huge 36% of their SWF is trapped in the general market meltdowns we see this last two months.
The press release from the Sovereign Wealth Nations also mentions GAAP. So let's take yet another look at the world's accountants, those people with the green eyeshades who are supposed to be hard nosed, hard number drones:
Generally Accepted Accounting Principles
Financial accounting information must be assembled and reported objectively. Third-parties who must rely on such information have a right to be assured that the data are free from bias and inconsistency, whether deliberate or not. For this reason, financial accounting relies on certain standards or guides that are called "Generally Accepted Accounting Principles" (GAAP).Principles derive from tradition, such as the concept of matching. In any report of financial statements (audit, compilation, review, etc.), the preparer/auditor must indicate to the reader whether or not the information contained within the statements complies with GAAP.
Principle of regularity: Regularity can be defined as conformity to enforced rules and laws. This principle is also known as the Principle of Consistency.
Principle of sincerity: According to this principle, the accounting unit should reflect in good faith the reality of the company's financial status.
Principle of the permanence of methods: This principle aims at allowing the coherence and comparison of the financial information published by the company.
Principle of non-compensation: One should show the full details of the financial information and not seek to compensate a debt with an asset, a revenue with an expense, etc.
Principle of prudence: This principle aims at showing the reality "as is" : one should not try to make things look prettier than they are. Typically, a revenue should be recorded only when it is certain and a provision should be entered for an expense which is probable.
Principle of continuity: When stating financial information, one should assume that the business will not be interrupted. This principle mitigates the principle of prudence: assets do not have to be accounted at their disposable value, but it is accepted that they are at their historical value (see depreciation).
Principle of periodicity: Each accounting entry should be allocated to a given period, and split accordingly if it covers several periods. If a client pre-pays a subscription (or lease, etc.), the given revenue should be split to the entire time-span and not counted for entirely on the date of the transaction.
Coherence? HAHAHA. World markets are now nearly totally incoherent due to the banking gnomes sleeping with the goddess of Inflation and then promising to raise her baby, the Derivatives Beast. They faithfully fed this monster who is now much bigger than all the world's wealth and thus, nearly totally indestructible. The SWF nations want to have sane accounting rules so they can protect their interests. But this is now impossible. Totally and utterly impossible.
Prudence: I call her 'Safety.' Speculators hate her, they live 'Risky' who is a frisky, cheeky prostitute of a girl goddess. Safety is an angel and thus, hated by all gnomes. Being creatures of the night, they love caves and death. As for recording revenues correctly: instead of stopping this mess after Enron and the collapse of that hedge fund run by math geniuses, all the things wrong were made worse, not better. This is what 'continuity' is all about and the GAAT people know this is BAD. They even say, it negates prudence!
But they accept this because the status quo is the status quo. Instead of reforms, all the reforms being proffered are hedged by lots of things requesting we keep the status quo! This is silly. This is childish. This is monumental wishful thinking. A crisis means, SOMETHING ISN'T WORKING. Ergo: the status quo must shift!
The last line about not pro-rating deals across time: how amazing that this even has to be mentioned! Of course, this is how we should do things. Bookkeepers going back to Marco Polo knew this! This is the fundamental basis of all bookkeeping! To break down deals and rate their effects over time. Say, if I raise a cow from a baby and then sell it, I have to go back over the time frame of raising and feeding it to calculate my profits. This includes putting in my labor. And the aging of the barn, the tractor aging, etc. Replacement costs over time must be part of all this. Otherwise we get a false sense of profit and wealth! Simple, isn't it?
Now, off to the Bank of China which is taking over all systems, systematically;
2008-09-18
Bank of China (“BOC”) and La Compagnie Financière Edmond de Rothschild (“LCFR”) have signed a long-term strategic investment and business cooperation agreement covering private banking and asset management businesses in their respective domestic markets and other strategic geographies. Pursuant to the agreement, BOC will acquire a 20% stake in LCFR. After this investment, the controlling shareholder, Benjamin de Rothschild, will hold 74.19% of LCFR, and BOC will become the second largest shareholder. This is the first strategic investment by a leading Chinese bank in a Eurozone bank.
The objective of this strategic agreement is to leverage both parties’ strengths and well established franchises in their respective markets;
HAHAHA. Yes, the Chinese don't give a fig about Jerusalem. They want the world, not that besotted place. The Rothschilds know they are finished in the West. The Chinese didn't want 2% of this power. They took a huge hunk. The Rothschilds imagine the Chinese are naive and won't take over. HAHAHA again. Gads. Never underestimate what people want to do. China has 500 years of revenge bottled up. The Chinese will allow the Rothschilds to make them richer and in return, the Rothschilds will get some of this SWF in the form of fees. But the end will be the Chinese taking over.
Right now, they need agents to do their business. They are much too big a target, by themselves. Now, back to the Goldman Sachs gnome community.
Goldman Sachs conspires to make themselves richer at the expense of the American economy. I collected a number of articles, most of which were sent by a group of wonderful readers who send me many links. Thank you! Goldman Sachs should be raided by the SEC and the Secret Service. Remember, the Secret Service was set up to go after counterfitters and fraudsters as well as tax cheats! And Goldman Sachs has taken over our entire economic and banking systems and are utterly destroying them and should be arrested and charged with treason. Alas, they have also taken over our election system via 'campaign contributions.'
*snip*
Goldman Sachs controls our Treasury and quite a few aspects of the banking system and has a huge influence on more than one country's central banks. A Goldman Sachs man took over the banking system of Canada this week, for example. Just last month, Bernanke had a lunch with Paulson, the Goldman Sachs head of the Treasury. This meeting was all about Goldman Sachs screaming at Bernanke, 'There is BLOOD in the streets!' Bernanke, impressed by the tearful wails that the world was coming unglued, assented to a huge interest rate cut via selling securities to itself, thus causing inflation to rise and the dollar to fall against the euro. Paulson's further meetings and phone calls that day are not known yet but before anyone supposedly knew of the big rate cut/inflation creation announcement, Goldman Sachs drove up the stock market from minus 400 pts to above 100 pts in only one hour.Goldman Sachs has always irritated me because they are the ultimate insider traders. This is why they spend so much bribing politicians as well as gaining access to the very innermost workings of the machinery of the banking and financial systems. They are not geniuses, they are conspirators.
When Goldman Sachs announced they had an amazingly profitable summer, I was astounded. Of course, their blasted stocks shot up in value upon this amazing announcement. How could there be blood in the streets if Goldman Sachs was doing just wonderfully? I was quite puzzled when they announced this so smugly. I decided, to cut to the chase, that they were lying. After all, these criminals lie all the time. They are such habitual liars that even if blood WAS running down Wall Street's gutters and they were standing in in their rubbers and umbrellas, I still won't believe them.
A reader sent me this link:
From Edgar Online: http://sec.edgar-online.com/2008/01/29/0000950123-08-000857/Section57.asp
And, look at this list of off-shore Goldman accounts in the Cayman Islands:Scadbury Funding Limited Cayman Islands
Scadbury II Assets Limited Cayman Islands
GS Killingholme Cayman Investments Ltd. Cayman Islands
GS Killingholme Cayman Investments II Ltd Cayman Islands
Forres Investments Limited Cayman Islands
GS Funding Management Limited (1) Cayman Islands
GS Capital Funding (Cayman) Limited Cayman Islands
Goldman Sachs Investments (Mauritius) I Limited Mauritius
Goldman Sachs LLC Mauritius
Tiger Strategic Investments LTD Mauritius
MLT Investments LTD. Mauritius
JLQ LLC Cayman Islands
Goldman Sachs (Japan) Ltd. British Virgin Islands
GSEM Bermuda Holdings, L.P. Bermuda
GS Equity Markets, L.P. Bermuda
Goldman Sachs (Cayman) Holding Company Cayman Islands
Linden Wood, LTD. Cayman Islands
Goldman Sachs Credit Partners L.P. Bermuda
Goldman Sachs Specialty Lending CLO-I, LTD. Cayman Islands
Amagansett Funding Limited Cayman Islands
Amagansett II Assets Limited Cayman Islands
GS European Funding I LTD. Cayman Islands
GS Funding Europe II Ltd. Cayman Islands
Click here for the Goldman Sachs site.
As I keep saying, Goldman Sachs is a pirate operation that is evading taxes, undermining America and Paulson has a huge, huge conflict of interest here. He should be arrested, not feted. The fact that his trillions of bail outs of his buddies has not stopped the general collapse of our banking systems and our stock markets means maybe he will be arrested! I would at least ride him out of DC on a rail.
Zurich Bank's Vault Is `Full to the Top' With Gold
(Bloomberg) -- Zuercher Kantonalbank, the Swiss lender that manages about $107 billion, said its gold vault is full after a surge in demand from investors seeking a haven during the credit crunch.Assets in the Zurich-based bank's ZKB Gold ETF, backed by about 2.66 million ounces of the metal, have risen to a record for seven consecutive weeks. That amount of gold is worth about $2.25 billion at today's prices and equal to about 12 days of global production.
``Demand is so strong,'' Susanne Toren, a metals analyst at the bank, said by telephone from Zurich today. ``Our vaults are full right up to the top.''
Investors are buying gold coins and bars, and exchange- traded funds backed by physical metal, after banks including Lehman Brothers Holdings Inc. collapsed. Assets in SPDR Gold Trust, the largest ETF backed by bullion, advanced to a record 770.64 tons (24.78 million ounces) on Oct. 10.
Switzerland briefly joined the anti-gold party last year. The attempt was to simply spook the Russians, Chinese and Indians who were all hoarding gold. Now, the scramble for gold is intensifying. There is precious little real gold available! The gold ETFs have fallen with all the other ETFs but real gold is more, not less precious. As Gollum says over and over, while thinking about the golden Ring of Power, 'My Precccciousssss!'
Swiss wealth is based on loot which the Swiss mercenary free armies gained while looting cities in Europe during the religious wars of the Catholics against the heretics as well as the Pope against Italian free cities like Milan, etc. They took this gold and hid it in Switzerland and then lent against it, becoming bankers instead of looting mercenary hordes. They briefly lost their heads and a lot of loot lately but are returning to gold as I expected. So gold FUTURES are still falling, it is now in the $700 range. But physical gold is going up.
Just like interest rates are dropping to zero but MORTGAGES are shooting up! Over 100 basis points in the last two months alone! Here is a good read from Market Oracle:
How Central Banks Destabilized the World's Economies By: Gerard_Jackson
The crisis that America finds itself in is not political in origin nor can it be laid at the feet of any individual or party. The whole world, including Europe, is experiencing a massive monetary disruption. Moreover, it is not the first time that the world has been shaken by a financial crisis. It happened in 1824 and it happened again after WW I. What is depressing is that though these crises have but one single cause today' s central bankers and legions of economists find themselves utterly clueless, readily taking as a causes those data which are in fact symptoms of a very deep monetary disorder.
*snip*
If Fisher and his disciples had been correct he would not have lost his fortune and much of his reputation as an economist. During the 1920s the Fed almost doubled the money supply. So why didn' t this raise prices? It did. Commodities boomed as did the demand for capital goods. Because of the focus on consumer goods the prices of capital goods and land were ignored. What makes this observation of critical importance is that it blows away the theory that prices can be stabilised. They cannot.Changes in money streams will always change the price structure and hence the pattern of production. (Richard Cantillon, Essay on the Nature of Commerce in General , Transaction Publishers, 2001, written about 1734 and first published in 1752). These money streams are brought into existence by the central banks forcing down the rate of interest below its market rate. Consequently businesses take on more time-consuming projects, projects that are economically justifiable because the necessary capital is not available to complete them. What central banks are in effect doing is substituting credit for capital. In the mid-'20s it was observed that the tendency to substitute bank credit for real capital [capital goods] was looked upon as a very ominous tendency. The years 1924-29. . . abundantly justified these apprehensions. (Benjamin M. Anderson, Economics and the Public Welfare: A Financial and Economic History of the United States 1914-1946 , LibertyPress, 1979, p. 99).
The second fallacy is that recessions are caused by "deficient demand". This is probably the most dangerous economic fallacy around. Its adoption by the mass of economists and hence central banks is a curse for which we can thank Lord Keynes. This invites a simple question: Why is it that more and more monetary injections are needed to prevent recession?
It is a real pleasure to read a good, clear commentary! Enjoy!
OC, your on! Singapore it is. Or Manila. But hopefully for not the reason you mentioned. Based on what I have read even though Oz has taken a big hit with Bear, Lehman and others, it is uniquely positioned to survive. It just could not decouple in time. Now, just like Singapore they are telling the US & Britain, we have paid our dues, no mas! End of the line. Oz will be a part of Asia.
Posted by: carli | October 17, 2008 at 08:02 AM
Good analysis of the us pres candidates Bellicose John and Compromising Barack slouching toward Bethlehem, indeed
http://www.commondreams.org/view/2008/10/16-5
Posted by: D. F. Facti | October 17, 2008 at 08:56 AM
D.F. Facti, thanks for that link, while it gave a good analysis of the candidates, it also gave me a very different perspective on FDR.
[He (FDR) then lobbied hard for the US to seize the Philippines from the retreating Spanish. The islands were resource rich, and stood at the golden gateway to Asia. But the Filipinos wanted to rule themselves – so Roosevelt called for them to be crushed. The leading US general was asked what age they should start massacring Filipinos, and he said: "Anything over 10," adding: "I want no prisoners. I wish you to kill and burn: the more you kill and burn, the better it will please me." Three million people – overwhelmingly civilians – were slaughtered by soldiers who included McCain's grandfather. Roosevelt called it "the most glorious war in our nation's history".]
I always believed the number of Filipinos killed by Americans during the Fil-American war numbered 500,000, but that 3,000,000 figure is mind boggling. The population at that time was 12,000,000, so that translates to 25% of the population killed, and without nuclear weapons.
What no Halocaust memorial?
Posted by: carli | October 17, 2008 at 10:03 AM
Singapore began as a pirate cove just like Switzerland became an economic power via sending out mercenaries who brought back loot.
Namely, it didn't start off as an industrial base but rather, as a way of grabbing hold of something in transit. In this case, the monarchies of Asia all wanted to restrict trade! So the Portuguese, Spaniards, English and Dutch all took over ISLANDS and other points of interest and use them as BASES to invade the economies and even run actual invasions into the Asian kingdoms and empires.
This process quickly, over 300 years, reduced all of Asia into submission and even utter ruin. By 1900, only Japan survived this onslaught.
Singapore was a colony until very recently. And it survives as a 'free booter' city/state only because Malaysia is too weak to attack it and has come to terms with it living the way it does. But just like the Japanese easily overran it in the past, it can be overrun in the future by China or anyone who wants. It is far too small to survive any IMPERIAL attacks.
Posted by: Elaine Meinel Supkis | October 17, 2008 at 10:08 AM
FDR was not president back then, Carli. It was his uncle, the other Roosevelt.
Posted by: Elaine Meinel Supkis | October 17, 2008 at 10:09 AM
And the Philippines is an example of national weakness. The Spanish easily infiltrated and then colonized the islands. Then, the US had to work much harder to seize it. But the US couldn't defend it and it was fairly easy for Japan to take over.
Then, the US fought some very brutal battles with the cruel Japanese to retake it. Then, it took another 40 years for the Philippines to gain some national power. Which is always being threatened, by the way.
Posted by: Elaine Meinel Supkis | October 17, 2008 at 10:12 AM
Elaine, yes, Teddy Bear was the blood thirsty chap behind that massacre. I always mixed up the Roosevelt's. Not anymore.
You are right about the Philippines, but what to expect from a people who have forgotten their history, who had it erased and rewritten? The elite of our country are clones of yours, created gatekeepers of US interests. They are being decimated (decimated means 1 in 10, me thinks much more than this) economically as the US economy tanks. I am thinking that the positive outcome of this will be a change in our leadership structure. Too many inbred families running the show here. We are a facsimile of your system.
Posted by: carli | October 17, 2008 at 10:30 AM
Dear God, $596 TRILLION CDO's as of December 2007.
http://seekingalpha.com/article/99674-coming-soon-the-600-trillion-derivatives-emergency-meeting?source=email
http://www.bis.org/publ/qtrpdf/r_qa0809.pdf#page=108
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