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Blunt Force Trauma

A couple news stories for your morning coffee...

China to give soft loan of $1.5 billion to Pakistan


Was It Deliberate?



I think a global currency under the control of a global body may be in the cards.

A more stable yardstick than the ability of supercomputers to churn out zeroes may also be used to standardise the global currency value.

The past year has been so interesting! First it was a game of trades, then a game of finance, now a game of economies. Next stop is a game of politics.

May you live in interesting times.

Elaine Meinel Supkis

Don't forget the Whine-a-thon Olympic Games!

Elaine Meinel Supkis

And Typepad just changed our posting system for the worse! It is a royal, utterly annoying pain in the ass for me now! I use code directly and they have this simplified system that is a piece of garbage for me because it destroys my templates!!!!!

GAH!!!! Progress is not always so hot.


Russia is doing well because Putin told the Russian zi juus Oligarchs to stay out of policy and politics and they could keep their wealth.

America should be so lucky.

PK Scott

Russia is a resource exporter and doesn't have a trade deficit or a HUMONGOUS national debt.


You cannot consume more than you produce indefinately.

Debt is not wealth.


But as much as we might want to hate the Fed/Treasury, I feel that credit must be given where credit is due.

That guy under Clinton, Rubin watshisname... to further strengthen and entrench the USD as the world's reserve currency, then to break down global barriers to capital flows...

A work of genius. Twisted, but so very well thought out.

Buffalo Ken

Here is a "depression-sort-of" new idea (but probably not really new).

Anyhow, I won't go into the details now but my idea entails a group of residents, high-quality low-cost small-scale planned housing (essentially owned from the get go by the residents), one or more folks leasing some land (for profit and relief from property taxes), and in the end enhancements made to the property. Probably will require a 50-year renewable lease type arranement or something like that as well as community by-laws from the get-go.

This could be done. It could be small-scale and appropriate. And these homes although small would have great common space, necessary goods within walking distance, and minimal debt from the get go. I'm going to work towards this goal.

I think I want to develop much more detailed plans. In the end, the choice is free - thats the beauty of it. But this could be win-win in reality.


Elaine Meinel Supkis

Ever live in a condominium, Ken?

That is what you are talking about.

Buffalo Ken

Its funny you say that because that is the same thing a friend of mine said - and condos - are one possibility, but I think it could be done in many ways. Honestly, I think I could come up with a plan for a "pleasant abode" with sufficient space for two for about $30,000 for supplies and labor. Maybe 500 square feet or something like that, 1 bathroom, 1 bedroom. Assuming it was done as part of a community and I also think the community needs some open land for community farming and at least a general store for basic supplies. Some pleasant walkways and simple open areas (like an outdoor auditorium) would be nice too.

And yes, I did own and live in a condo. Rancho Palos Verdes (I think that was the name) in the LA area. The condo had 2 levels (maybe it was a townhome) and about 800 square feet if I remember correctly. After 10 months I got real lucky and sold it for a $40,000 profit which financed my graduate degree! I haven't been so lucky since then.


Buffalo Ken

And I can't resist saying this. When I went to college (NC State and UNC-Chapel Hill), the public universities in North Carolina were about the absolute best bang you could get for you buck. Personally I think all education should be so FREE. If someone wants to learn, let them - its good for everyone. Nowadays I think its much harder even for those with the ambition - what a shame. It shouldn't be this way and just about all of us know it.

The gnomes are going to have to get some humility if they have any hope of coming out of this unscathed physically. Just that seems that way to me. You know the 60's happened and then some lessons were learned. Well - here we are now.


Buffalo Ken

I'll acknowledge this - some communities will work out long-term and some will fail. There is always risk, but the concept here is to minimize risk for a "set" community with fairly clear-cut defined boundaries. This is a better way to reduce risk than them goofy old derivatives, but maybe, we needed the derivative's "potential energy" to get to realization of this possibility? Who knows - not me.

You never know unless you try and of course, it takes 2 to tango! Damn, I wish I had some Irish Meade just now! Oh well, the Oktoberfest batch is going flawlessly so far, so that will due when it is ready. Incidently, my wife's birthday is tomorrow. Please wish your husband a happy birthday from me.




I've got an idea for a great graphic in your next article. When you play Microsoft hearts against the CPU, doesn't it always feel like the CPUs are teaming against you?

1) rename the computer opponents as: "Hedge funds", "the treasury" and "investment banks"

2) rename your side as "joe 6-pack"

3) Capture the game screen, and use an image editor to write on the capture: "the toxic debt hearts game, where US INSTITUTIONS transfer our losses, and deal the most toxic cards to YOU THE PEOPLE BWAHAHAHA

Paul S

Elaine: loved your last paragraph about Joe the (non-licensed) Plumber. It is, IMHO, exactly how the Republicans feel. The Dems aren't too far behind though. How candidates can keep spouting this obvious lie AND get away with it is a total mystery to me. These guys go on the campaign trail and talk about all the jobs they are going to create and that they are for the little guy, aka Middle America. THEN, when they are in Congress (or the White House), they fight raising the minimum wage tooth,fang and claw! Our Fed govt can get a check for $700+ billion to Wall Street in a weeks time though only ONE raise to the minimum wage in NINE years.


Over on the Silver Bear Cafe, Mike Whitney referred to the U.S. as the world's largest creditor nation. I stopped reading after that. My time is valuable.

As for middle America, I have been driving through it recently looking for a good deer run. I see signs everywhere on farms that say: "SARAH!"

I am not kidding. There is some illigible writing below it, but all you can see from the road is "Sarah!".

In my opinion, this election is really between Palin, who represents the oil barons, and Biden, who represents the banking cartels. McCain will die of cancer and Obama will be shot, so these two powerful entities are fighting for the right to rule America via their proxies, Palin and Biden.

Again, that's just my opinion.


The 700 billion Congress gave to a few bankers amounts to about 25,000 per American. That would have paid off all my debts and changed my life, and I am betting it would have done the same for millions of other Americans.


When the factories stop turning (depression) the factories owners start looking for another buyer of their machinery.

Someone with good credit and a never-ending demand for machinery.

Uh, yah, that would be War.

The Derivative Beast eats all the money then the War Beast eats all the people.

Then the elite go back to hunting and fishing on their enormous estates.


"One of the most jaw-dropping news items I saw this week was the announcement by Volvo, the world's second largest truckmaker, that it had "won just 115 European orders in the third quarter, down from 41,970 a year earlier," according to a Bloomberg report, "Volvo, Scania Miss Profit Estimates, Cut Truck Output."

In my mind, that extraordinary 99.7 percent drop makes a clear statement about the suddenly precarious state of the global economy."


Elaine-- Great article but you are way off-base associating the beliefs of Ayn Rand as a justification of what the Banksters have been doing to this country. Greenspan was in Rand's circle until she threw him out for being a poser. Ayn Rand would correctly recognize what is happening today as an attack on the lifeblood of our (or any) economic system, namely, money. You can bet she would be opposed 100%.

I'm not a huge Ayn Rand fan, she oversimplified some things and overdramatized others, but she was pretty much right on when it comes to ideas regarding the integrity of economic systems.


"The Derivative Beast eats all the money then the War Beast eats all the people."

The trust funds of the 30's ate all the money and then WWII ate most of the people, so yeah, that does sound familiar.


Here is my deduction on the rising of the dollar and yen.

The contract around the world are base in dollars. Since the dollars will soon be toast. The entity who receive the payment side of the contract demand the payment in advance before the fall of the dollars. Since the bank could not or do not lend any more dollars, the entity who must pay in dollars need to find someone who hold lot of dollar. That someone is the japanese government. So the entity who need to pay in dollars is asking other to pay him in yen instead of dollars. With the yen he receive, he go to the japanese bank and demand they exchange the yen for the dollars so he can complete the contract base on the dollars. That demonstrate that the yen is rising because more enity are using yen to fullfill their payment in dollars. And the dollars is rising because a lot of entity want to quickly end their contract in dollars.

The end.


The Fed has one directive. Save the Banks.

The whole 'manage inflation' or 'manage the economy' or whatever is just cover.

This is why the $700 B went to Them not us endentured serfs to the Fed.


" The play challenges conventional notions of property as well as those of theatre. It asks the central and highly political question, "Who is the bigger criminal: he who robs a bank or he who founds one?"

Here is why we have Zionist 1 and Zionist 2 running as VP. To prevent Nuremberg Laws like this:


Elaine Meinel Supkis

GK, you are right. And thanks for the news item.

Buckaroo Banzai...loved the anime.

But you are wrong about Greenspan being thrown out by Ayn, Namely, she was like the Troskyites: she was always trying to refine her inner circle down to the last nubbin and idiot and succeeded. But her previous pets ran off to do even more mischief inspired by her insipid beliefs.


"And the dollars is rising because a lot of entity want to quickly end their contract in dollars."

I think this is really what's going on right now, at least on the international scene. This is the only explanation for the recent rise in the dollar that makes sense to me. I think it will be short lived.

As Elaine has pointed out many times, you cannot have a strong currency based upon a nation wallowing in ahistorical epic debt.


Um... Why does not Ralph Nader or Cynthia McKinney promise to gig EACH AMERICAN $25,000???

Why the hell not!!!


We may get it very soon!

There is about 3 trillion of dollars and US T-bonds out there that must return to the US or be repudiated by our government.

I see one more hyperinflationary tsunami washing over us before it finally ends.


Okay folks! MY presidential campaign is now up and running!!! EVERYBODY gets $25,000.00!!!

Vote the blues party!!!


A post please on China's plans for Bretton Woods III!

Check out discussion on Naked Capitalism blog, like
Managing Down "Bretton Woods" Expectations and China Launches Salvo Against Dollar Hegemony (Updated), especially the comments of Richard Kline, like this one:
Bretton Woods I wasn't negotiated at Bretton Woods; it was the result of a series of US-UK bilateral accords followed by a lengthy negotiation between the two on a bilateral framework. This was then presented to an audience who, in the midst of a desperate war that had rendered most of them functionally insolvent, were invited to join where not joining meant ruin. Yes, yes, there were negotiations in those three weeks, but really those were jots and tittles on the prepared program. So it will be with the next regime. It will materialize suddenly out of a process underway for some time.

---Which may well be called 'the Beijing Consensus,' regarding which thanks Matt D. for the tip on the EU-Asian conference. It is extremely telling that this meeting of the last two days has received _zero_ notable comment in the US MSM. I'm not saying that any final accord was struck there, but again most of the action would have been offstage in private multi-lateral consultations. The fact that it was held at all indicates that there had been much backstage preparation. This is happening so quickly, but that's no surprise. China's leadership has been very careful to take not provocative actions, very cautious on intervening anywhere. They have been ostractized and indeed beseiged by the world community within the not too distant past. No country has done more to prepare in case such a squeeze were to be put on them again, financially, diplomatically, or militarily. They would rather negotiate their way in though, clearly, and have done a damn good job of biding their time. They didn't even offer to dollar fund Korea---a US possession---in the last few weeks when the US did nothing there....


I was wondering about this summit, too. It is all over Chinese News, but nothing here.

Maybe Elaine can analyse it for us and let us know what she thinks they are up to.

It's interesting that we were not invited.


It looks to me as if this is simply a consolidation of central bank. Each having seized control of their respective host government and commerce. A new omnipotent central bank (BIS?) with tentacles through-out the world, the new world order.

They will break all competitors and resistance through financial terrorism - play by our new rules or go broke, entirely. It is already well on the way.

Gold/silver backed currencies would be such a great alternative but alas, the central bankers hold 2/3 of global gold. Fort Knox holds spider webs in their empty vaults. The gold was long ago stolen - or so I read.

My personal opinion is that the key lies in the US abolishing the federal reserve. This alone may just bring bankruptcy as it would require the co-operation of other countries to recognize US backed notes in order to facilitate international trade.

The US has the might to invoke other measures. For example, we have the RICO Act which was written for ongoing criminal organizations. RICO allows the confiscation of even remotely gained assets that may have been gained by criminal activity.

For example, confiscation of the personal assets of the criminal perpetrators. Yes, seize all their gold, real estate, investments and other businesses like large private banks.

People have not yet been hurt bad enough to motivate them to such extremes. The status quo is strong and the people still seem weak. I keep waiting for the outrage that never seems to come. But the only force strong enough to stop the tide is the combined will of the people.


I am not a believer in the one world order or currency. I seriously doubt that China or Russia or India or a host of other nations will want to play along with another Norman/Anglo-Saxon aristocratic controlled central bank.

The fact that both China and Russia have publicly stated that they oppose a unipolar world lends support to my belief that the old aristocrats are dreaming if they think they can control the world with a bankrupt system that they alone will create and run. I believe that plan is DOA.


DeVaul: The plan may well be DOA.

The Russians, Chinese, Arabs and some OPECers are working on an alternative financial system ... one based on gold.

Fiat systems won't work with zi juus around.

PK Scott

WELL, there are the gold ETFs which, if I am not mistaken, hold billions in gold bullion. There is a nice fat juicy pile of gold for the government to confiscate. Mighty convenient of them to pile it up like that.
Over two years ago I figured you had to be an idiot to "own" gold that was stored in the US. That was before the Liberty Mint got "confiscated" because they were minting Liberty "Dollars". Even the stoner hippies I knew that were printing their own barter currency knew to call it Armadillo HOURS, never, ever dollars or bucks.
The way I figure it, the Chinese aren't idiots, they HAVE to know that eventually the dollar is toast. I think that there is a carefull calibration being made of just WHEN to start buying up (once again, boys and girls) raw materials and the means of production (and probably precious metals)with a vengance. That will be when everything hits rock bottom prices, and that ain't yet.

My other question is what is going to happen to the "repatriated" dollars that are flowing like a wave back into the US right now?

PK Scott

Hey Ken,

Google A-bode. (I think it is www.a-bode.com) These guys are WAY ahead of you.

PK Scott

OOPS, my bad.


PK Scott

Or google "earthship". This guy has dedicated HIS LIFE to build the kind of communities you are talking about.


700,000,000,000 / 305,499,370 = 2,291.33

That's twenty three HUNDRED dollars per person, not twenty three thousand. A nice chunk, but perhaps not life changing for everybody.

Elaine Meinel Supkis

Oh, we are going to make a lovely trip to down the rabbit hole and deep into the Cave of Wealth and Death to talk some more about CDOs of various sorts. Really, the topic gives me a headache like the sort of migraine I get before lightning storms.

Indeed, it is very stormy outside and lightning is brewing, I can feel it.

So time to talk about some of the most insane money schemes ever cooked up by crooked gnomes.

Seven Star Hand

Hello Elaine,

Good article, that leads directly to my questions...

So, why should all of humanity be forced to suffer and struggle any longer now that the entire global financial system has been exposed as a mind-boggling deception within many other deceptions? No one in their right mind would continue to be enslaved by a proven deception, which is also proven to be undeniable slavery-by-proxy !!!

Understand clearly, that these leaders have, once again, been caught red-handed, with their pants down around their ankles, and their hands in the cookie-jar/till, colluding to exploit and deceive everyone and at a scale and scope that is absolutely mind-boggling. Furthermore, this model of civilization (money, politics, and religion) has repeatedly failed. Unlike past failures though, this one is global in scope and greatly compounded by massive international deception and rampant greed in the form of derivatives, other smoke and mirrors financial schemes (scams), and several layers of speculation. The same out-of-control "betting schemes" were also behind the skyrocketing oil prices of recent years.

Here is Wisdom...


OK, housing dreamers (as one of them), I hate to break it to you but the Debt Industrial complex is heavily dependent upon overly priced abodes that require massive loans to afford.

This is accomplished by byzantine zoning and building regulations, in coordination with insurance companies that will only insure what they have seen before, and finance companies that will only loan money to structures they have seen before.

As well as peer pressure from the media such as architectural magazines, newspaper ads and home decoration porn.

And the zoning is designed to increase demand for automobiles (garages) and petrol (sprawl).

But if we hold our hands and dream we will soon have sustainable straw bale communities were everyone can walk to work and spend 8 hours a day with their children carving sculptures instead of watching MTV CRIBS.


The most striking thing through all of this garbage is that NO ONE is kept accountable AT ALL! No one is resigning, no one is forced to resign, NO ONE! Not in USA, not in Iceland(?), not in Germany, not in UK... Every bank, every financial institution, every place have same people in charge that created this mess and fed the Derivatives Beast...

There is no accountability. None. When things go haywire next time, it's no wonder; no matter what happens, all executives gain their profits and share no risk at all. Even if they cheat everyone, hide true risks, and literally starve people to death. Even if they force companies bankrupt to buy them. Even if they STEAL your tax money AND share 10% of that 700 billion "rescue" package. And go party to add insult to injury.

BTW, when there was talk about freezing bonuses etc to executives, do you still remember when some bankers said "Oh, we might make it through without the bailout after all"? But then again, those voices mostly died down (except in Germany and here in Finland)... but no surprise, those gnomes are good at finding excuses WHY their pays cannot be touched.

Oh, I know already WHAT to do if you can't touch current executives pays: Fire them all and hire someone else to do their job. Come on, I can do it; I promise I need only 10% of the wage of your current banker boss. And while I may not have diploma to prove my knowledge, I sure know a cheating deal when I see one. If someone says: "Here is investment without any risk at all and high profits at all market times!", I laugh at them. Hard. Then I say: "Ok, deposit one billion in my bank as your guarantee for your promise, and I invest one billion for your fund without risk". But I guess they would not agree to such a deal...

Kick them out. Kick them all out. Faster the better. Take their property. Steal from the biggest thieves. Make them resign, throw them to jail. Oh, Elaine, I remember when the "rescue" bill first seemed to fail and you wrote how Paulson was sweating and seemed to be under extreme pressure. I was so happy for a second, I thought that gnomes party was seriously over. But no. Not yet.


"Even if they STEAL your tax money AND share 10% of that 700 billion "rescue" package. And go party to add insult to injury."

I mean, share that 70 billion in their next bonus program for excutives. I mean come on. When things like this comes out, ALL THAT MONEY should be drawn out from those institutions INSTANTLY. No wonder they wanted Paulson to have all the rights to the money with none accountability; Then it would not matter AT ALL if they needed it in the first place. They could just loot it, WHO CARES if the company goes bust, when the executives can have 70 billion!

Dutch Money Changer

YES! Raise taxes! By simply raising taxes that will be the end all cure all! (thats what I was tot!) Not to mention the giant corporations that you wish to tax will get a loophole in the same tax bill! Beam me up! I yield back the big oil and banking conglomerates in the democratic party! Joe Biden = ConocoPhillips and ALL credit cards! Rockefeller syndicate was first, (bush cheney=Exxon Mobil)Now its time for CHANGE, Obama Biden (Du Pont syndicate) Wonder how many these guys can kill?

Psssst. Could congress provide a loan for GM too? Its also owned by the same outfit as well as the paint industry and (GASP!) the largest manufacturer of gunpowder in the country!


The Dutchman

Sorry Duski, didnt you know? There are two kinds of people when it comes to elitist philosophy. The eaters and the eaten. And they are the only ones with a knife and fork!

Elaine Meinel Supkis

Ah, the dangers of being a predator!

I used to have oxen. They were one of the biggest pairs in America, weighed a ton and a half, EACH. They stood 7 fee tall at the shoulder and had a horn span of about 4'.

Once a bear bothered the boys. They lit after the poor thing and nearly hammered it with their horns.

They could go after very large predators. The coyotes and others left them alone. Their hides were so thick, when the vet had to use a needle on one of them, it bent!

Yes, they were grazers. And extremely dangerous and powerful grazers. Moral of this story is: the working class is the same.

ziff house

Duski , right on, same thing happened with Vietnam, no one was held accountable, so same mistakes later on.


Dr Luv said, "But the only force strong enough to stop the tide is the combined will of the people."

The people have spoken: We want more Britney Spears, more Dancing With the Stars, more Drugs, loose shoes, and tight pants. Any questions?

Elaine Meinel Supkis

How about more naked short selling on TV, too? Heh.


I know the elite wants only to eat and not share anything. But when things go too much unbalanced, we WILL have revolutions. NO ONE wants that, it's a bloody mess. I'd much rather see the elite share some before they really make masses too poor and angry for it all.

Even if it means everyone is poor then. That would save many lives at the end.


Actually, while I steam it off here, I happen to live in Finland. Our things are still ok, we have healthy middle class, good social services (you know, when someone is really poor and gets free money, all that money goes back to boost the economy), but a tad high taxes...

But things here too are going for the worse, richest 10% gets richer faster and lowest income work is already losing it's buying power. Eventually if nothing is changed, we'll be down the same drain.


While I'm at it...

Problem here is that every raise in wages is done in percents: When someone gets 5% raise, every worker union tries to get at least that much for their workers too! But this means, in the long run, that income differences between lowest and highest get higher and higher over time. Of course, this suits the richest 10% very well, but slowly erodes the lower wages buying power (inflation touches us all anyway).

Also when you are rich, you gain more income from owning shares etc. That's why our progressive taxing of wages fails hard to tax the very richest. It's a marvel, when your income is high enough, you are taxed less since you can arrange your income to those sources with solid and lower tax rate...

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