Paul Mason, BBC Economics editor spoke at LSE tonight

I was at a talk by Mr Mason, who was publicising his new book. It was a good frank review about the causes of the crisis, and the so-called third phase, which we are no in.
He was quite informative about the macro-economic philosophies that held then , and in the Crash of 1929, and also about the choices ahead of us. By 'us', I mean our overlords, who don't listen to us.
I understand that big guys have to decide the macro stuff, but those bastards don't have a single clue about what makes anything work, other than how to get their own million-dollar paycheques.
He answered a question from the audience by saying that he essentially agreed that: over-regulating banks will take the dynamism and creativity out of the markets.
Right.... the markets that are on life-support, because they're greedy bastards,

playing with our money! brilliant.

The only thing that he would not do was talk about what the average person was supposed to do about this situation.

"Protest will go nowhere because it doesn't present a plan",
"real wages have fallen since the 1970s",
"Banks just going back to what they're supposed to do is not going to happen"
were about the only things that he said about the workers present,
like me.
Are we just supposed to grin and take it?
Wait for our fate to trickle down to us?
like the trickle-down corruption we're seeing?

So, I'd like to make like a philosopher and quote
English philosopher Thomas Hobbes, it is
“war of every man against every man”.

Other Costick67 solution are:
1. don't listen to those Western economist bastards,
their corruption is just indicative of a system on the skids,
with nowhere else to turn, but to gamble away people's savings.
I'll answer to Mason about what banks are NOT supposed to be doing:
they're not supposed to be gambling away our life savings [although, to his credit, he did mention credit unions and their benefit to local economies].
But, in his non-response, he basically proved the thing which he
dared not say:
any money put in the banks is a gamble.

2. All workers in a globalised market should follow the money.
that means going to China,
wherever China is investing in,
whatever China needs, provide it.
I think they might know the value of highly-educated workers.
The West sure doesn't.
They're just the pirates on the high seas of international trade.
You should help China crash Western economies.
then maybe there'll be a shortage of employees in the West,
causing a rise in wages.

3. don't invest in banks or stocks, or any Western bullshit.
deposit your cash at a credit union, not a bank.
buy gold.
build a home with your own hands.
plant your own food.
every person or 'household' for him/itself.

4.Globalisation and Western politics are designed to screw workers.
don't buy anything that you don't absolutely need.
buy used stuff.
repair or make things yourself.
take a college course in solar energy.
take your house off the grid.
Start a very small business,
because the banks will not invest in main street.

The wildest thing he said was that if globalisation stops, war will soon begin. How's that for fearmongering.

-Costick67 ~(8^P

Mervyn is swervin right again

When it comes to insulting the lightweight loafers of Cameron and Osbourne, the chief of the Bank of England is right on the money.
When it comes to divulging how guilty Gordon Brown and Tony Blair are regarding their role in promoting the 'end of boom and bust' by letting the banks run wild, he's right on target. In fact, he was one of the few people warning the government a couple of years before the crash in '08. [check my story of the FT journalist who was given the 'doomsday file', who then sat on the news.]

so, I was thinking he was alright.
However, when it comes to wages for the average Joe/Jane
he's a f^&**king bastard economist.
I have no faith in economic dogma
with regards to the pay of the average stiff/stiffette.
They've let real wages fall by 50% and they've
never warned anybody, or hardly told us why
this is the case. Of course,
if they had asked a Sociologist,
they would have told Mr. Economytheorybullshitter that this
would mean the end of the middle class, but the middle class
is the basis of any strong economy.
And, when you couple that with the record pay of bosses,
because no politician cares about workers or unions,
in all vibrant sectors of the economy,
the Sociologist would have told you that this is plutocracy,
the Political Scientist would say that it wouldn't take long for the rich
and their businesses to take over the government;
OLIGARCHY.
& SO HERE WE ARE!
Now every average person is working (if employed)
full-tilt, and most with 2 jobs,
and still, they can't pay the bills.
Anyway, we'll figure out a way to get wages back up
by refusing to work
and working to rule
and working slowly.
No extra overtime gifts, unless you pay 1.5 X hourly wage.
I don't need an economist to tell me
that this will increase real wages. It just takes bravery to do so
because, if your bosses take a break from counting their money
they'll realise that you're a lazy bastarda and fire you.
It's called managerial blackmail. There are literally
10 guys waiting to take every sh*t job out there.

[see my old story 'no more mr nice employee']

-Costick67 ~(8^P

checkitout:

BBC website
...
Indeed, the Bank governor noted that UK wages were stagnant, and - coupled with high inflation - this had led to the longest decline in the real value of take-home pay in the UK since the 1920s.
Nonetheless, Mr King claimed that hard times for UK wage-earners were, one way or another, inevitable.
If the Bank had tried to counteract the rising prices by raising interest rates, he said it would simply have led to falling wages - and therefore the same loss in purchasing power - but at the expense of an even deeper recession.
"Monetary policy can affect the inflation rate at which these adjustments take place," he said.
"But it cannot alter the fact that, one way or another, the squeeze in living standards is the inevitable price to pay for the financial crisis and subsequent rebalancing of the world and UK economies."
...

the money's on fire, let the motherbankers burn

I couldn't have dreamt it up myself. It's so perfect.
What do you call the economic sector that

provides little of value
and yet has the power to rule governments
and destroy everyone else's economy?

THE FIRE ECONOMY

oh yes!

LET THE MOTHERBANKERS BURN!
let the whole system burn to the ground
and we'll go back to our caves for few years
and grub for berries and squirrels.

They still need you to surrender your savings to them
so that they can make them evaporate.
So, in order to make it more convincing,
they get the Financial Times to encourage
people to put their money into the stock market [i.e. bubble]
more bodies onto the pyre.

-Costick67 ~(8^P

they want to throw some more BODIES on the FIRE: [Sex Pistols-Bodies]


checkitout: 2 things
1
Daniel Schechter
...
The architects of the FIRE economy (structured around Finance, Insurance and Real Estate), operated in the shadow of bent rules and apathetic regulators. They built a huge infrastructure of collaborators and henchmen called "financial service professionals."
...
2

Costick67 may be a prophet, part 7

About 2 years ago, I had written an article about how the banking crisis shoulda meant
free houses for everybody, but that the governments in the world were intent upon

keeping us enslaved.
AND THAT's why they bailed out the banks.
TO keep us down.

Well, that's pretty much correct, but you can't control every
judge in such a big country as the US, and there's one in Utah
who's giving out free houses.

This is happening because the rapist-bankers
were in such a hurry to fl%&7k us
that they forgot to wrap up the paperwork,
and as is known by everybody who makes their own cigarettes,
no papery, no smokery.
a mortgage without the paperwork = one free house.

Home, home on the range,
where the deer and the antelope
are on my dinner plate
and the head of a trophy-banker is on the wall.

[actually, it's Bush43, but who cares]

-Costick67 ~(8^P
checkitout:

THEDAILYBAIL.com
Mers free houses

Very interesting story, and not without ramifications for other states.
Walter Keane poses for a portrait at his office. Keane filed and recently won a lawsuit that resulted in several homeowners in Utah getting title to their property, even if they owed the full mortgage, all because of chaos introduced into the nation's property recording system by MERS.

The attorney for another man in Draper, Utah, says he has won two other cases this way, and another attorney in Utah got a default judgment giving title to borrowers who owed $417,000 on a home.
Utah Professor Chris Peterson weighs in on the significance of the rulings.
In Utah, missing paperwork means a lot; Borrowers gain title for free.
Sources
David Dayen at FDL
Salt Lake City Tribune
A Utah court case in which the owner of a Draper townhouse got clear title to the property, even though he still owed $132,000 on it, raises new legal and financial questions about a property-records database created by mortgage bankers.
The award of a title free of liens means that whoever owns the promissory note on the Draper property — likely a group of faraway investors — no longer has the right to foreclose to collect on a delinquent loan. Indeed, the townhouse owner has sold the property and kept the money. Those who own the promissory note probably don’t even know what occurred.
Decisions such as the one 3rd District Judge Glen Iwasaki handed down in the Draper case could have a big impact as the state wends its way through hundreds of lawsuits involving foreclosures, loans on properties for more than they’re worth and predatory lending practices that led Utahns to lose their homes as the real-estate bubble burst.
More from David Dayen...
This is all tied up with MERS, the online database that has stood in for the land records system in as many as 60% of the mortgages in America over the past decade or so. As we’ve seen, MERS is essentially a way for the largest banks to avoid recording fees, by naming them as the mortgagee on the original record and then transferring the mortgage and the note through their database. The problem is that MERS is named as an owner on loans in which it has no financial interest, and the judicial system doesn’t yet know how to manage that. This has confused the hell out of title insurance companies, who cannot determine who holds the note or even who can collect payments on it. As a result, in this case, the courts and the title company failed to figure any of that out, so they gave title back to the homeowner.
The attorney for the man in Draper, Utah, says he has won two other cases this way, and another attorney in Utah got a default judgment giving title to borrowers who owed $417,000 on a home.
The owners of the note could always go back and try to recoup this money, but as Christopher Peterson of the University of Utah says in the article, MERS calls into question their ability to succeed:
Under laws adopted by all 50 states, the owner of a “negotiable instrument” such as a promissory note must be in physical possession of the document, said Peterson. Otherwise it would be like someone trying to cash a photocopy of a check instead of the actual check. [HAhahaHAHAhahahhhaaa LOL-Costick67]
“One cannot be a holder of a note unless one is in physical possession of that note,” he said.
But Peterson said evidence is coming out in courts that shows the actual promissory notes or mortgages signed by buyers were not transferred as the notes made their way into the mortgage-backed securities investment pools.
That could mean in these cases that no one is in a position to try to collect because the actual notes are lost or destroyed, potentially making some promissory notes investors think they hold worthless. [PRAY FOR A FIRE in that edifice- Costick67]
Start watching at the 1-minute mark. Includes excellent testimony from foreclosure lawyer Thomas Cox, and Utah professor Dr. Chris Peterson. Detailed article on MERS inside.
Hearing took place Dec. 15, 2010.

i can see clearly now

Now everybody is singing the same song about the

CURRENCY WAR

that I was talking about last summer.

Feb14 : I just saw an old Max Keiser video that said, he had picked this war thing,
last year. Well, he is a Freaking Trade, Innit?
He did say, that 'it's me and some guy'. I wonder if I am that 'some guy'.
That's almost a complement.

-Costick67 ~(8^P

checkitout: 2 stories
1

http://www.thisislondon.co.uk/markets/article-23902037
Why the world faces a currencies war
Satyajit Das
29 Nov 2010 London Evening Standard

Volatility of currency exchange rates has increased markedly in recent months. To paraphrase Oscar Wilde, the US dollar has no enemies but is intensely disliked by its friends, especially key investors such as the Chinese.

The euro is now the “Drachmark” (a derisory combination of the former Greek drachma and German deutschemark).
Investors assumed that the euro would be a new Deutschemark, supported by German commitment to fiscal and monetary rectitude avoiding Gallic and Mediterranean extravagance.

Instead, they have been left holding a currency underpinned by unexpected German extravagance and Gallic and Mediterranean rectitude.

Despite sclerotic growth, public debt approaching 200% of GDP and a budget where borrowing is greater than tax revenues, the Japanese yen has risen to its highest level against the dollar in 15 years.
Fears about the value of any currency have seen a resurgent interest in gold. Traders are now reading their John Milton: “Time will run back and fetch the age of gold.”
On 27 September, Brazilian Finance Minister Guido Mantega stated the obvious, speaking of an “international currency war” as governments around the globe compete to lower their exchange rates to boost competitiveness. In the words of English philosopher Thomas Hobbes, it is “war of every man against every man”.
Since the end of the gold standard and Bretton Woods, currencies increasingly have become weapons of choice in trade and economic wars. In the German and Japanese model of economic development, an undervalued currency is a key mechanism for maintaining competitive costs and high levels of exports to drive growth.

Successive generations of emergent countries, most notably China, copied the model. The model is more problematic in a world of low growth.

As growth slows, maintenance of competitiveness requires businesses to manage costs brutally. Cheaper currency values assist in remaining competitive, avoiding the need to overtly cut costs by reducing wages or cutting benefits, explicitly lowering living standards.

During the global financial crisis, the repeated manoeuvring of China, Japan and Germany to maintain the low value of the renminbi, yen and euro against the dollar was designed to maintain export volumes to cushion the worst effects of the recession.

To a large extent, it reflects the underlying structure of economies heavily geared to exports.

Angela Merkel has repeatedly stated that she sees no change to the export-driven German economic model in the near term. For Japan, falling living standards combined with an aging, falling population means increasing dependence on exports. For China, increasing wages pressures and domestic inflation means that rising production costs must be offset by other means, including an undervalued currency.[and so on]

2 the opinion of the Brazilian Economic Minister about the

CURRENCY WAR that's becoming a trade war. from September, last year. AFTER my blog.
http://www.ibtimes.com/articles/66385/20100928/brazil-currency-imports-trade.htm
Brazil's finance minister warns of international 'currency war'
By Palash R. Ghosh | September 28, 2010 7:24 AM EDT

Brazil's finance minister Guido Mantega has warned that an "international currency war" is currently being waged.

Mantega's comments come on the heels of moves by various governments around the world -- including Japan, South Korea, and Taiwan --- that have intervened in order to weaken their currencies and improve exports.
These mutual moves at competitive devaluation, Mantega said in a speech in Sao Paulo, were tantamount to a new trade war.
"We're in the midst of an international currency war," he said. "This threatens us because it takes away our competitiveness. The advanced countries are seeking to devalue their currencies."

Brazil's own currency, the real, is presently at a 10-month high against the U.S. dollar (having appreciated 40 percent from its lows in early 2009) amidst comments that the real is among the world's most overvalued currencies. The real is extremely attractive to foreign investors due to Brazil's high interest rates and torrid pace of economic growth.

The historic $70-billion share offering by Brazil's state-owned oil company, Petrobras, prompted a further massive inflow of money into the country.

While Mantega did not specifically state Brazil would use intervention to lower the value of the real, he noted the country has an "arsenal" of tools available to weaken the real.
[and so on]

vampire squid are banker dopelgangers

[gonna get me-self stuck on Facebook]

vampire squid are similar to bankers for many reasons.

1) they can turn inside out
2) they're not what people say they are
3) they're blood-sucking killers

1

inside out

the vampire squid

In order to hide from predators, it takes its limbs and slips them over its head.

the vampire banker

he's a ruthless capitalist who will steal from his own mother. No thought to helping the poor that he steps over on the street.
'they have to get up and be a self-made man like me' they say.
They're all hookered up and coked up, the 911 in the garage...

Until they lose their shirts in the markets.

Then they become socialists,

crying about how they're so important to society

when the provide nothing, and shift papers around all day.

2

who am I? I don't know

the vampire squid

it's actually a cephalopod, not a squid.

the vampire banker

people say they are just providing a necessary function for society,

providing liquidity for the markets.

Actually, they exist to destroy democracy by taking all the money,

baiting the politicians with bribes and then telling them what to do

3

I vant your blood!

the vampire squid

well, you don't get called vampire for nothing

the vampire banker

now that they've destroyed the cash, bond, derivative, and most of the hedge

market, they're speculating on other stuff, because the governments of the world

keep giving them free money. Loans with 0.25% interest.

Governments are doing this because they've been told to do this.

If they don't give the banks free money, they'll collapse.

So, they speculate on oil, wheat, corn and now chocolate.

the chocolate mafia (see my other tasty story)

that's the paper price, on the futures markets.

So, in essence, they force up the real price of food

for the poor of the world, who spend most of their income

on keeping alive.

There have already been riots in several countries

Tunisia, India, South America.

-Costick67 ~(8^P

checkitout:

1 zerohedge.com

JP Morgan corners the market in chocolate

all they need is a civil war.

off we go to Ivory Coast

"Bond Recoveries Or Chocolate": Ivory Coast Issues Ultimatum With Cocoa Export Ban, As Chocolate Prices Set To Surge Monday

Submitted by Tyler Durden on Jan23/2011 14:43 -0500

When a week ago we observed the Onionesque reality of life in the Ivory Coast, where deposed president Gbagbo is threatening to wipe out bondholders of $2.3 billion in debt (Corporate Ticker: NUTZ) unless he becomes formally recognized, we made the following bold prediction: "we are sure that Blythe Masters and her team were recently in Yamoussoukro discussing the most effective way to corner the cocoa market (paper Cocoa ETF?), thus getting the price of the sweet powder up by a few trillion percent (in exchange for a nice 25% of all upside going to Jamie Dimon's firm of course)." Sure enough, when it comes to our track record of macabre predictions we continue to be near 100%. The FT has just reported that Alassane Ouattara, Laurent Gbagbo's opponent in the presidential election (and the man formally acknowledged by the UN as the country's president) has just imposed a one-month export ban of cocoa, ostensibly in an attempt to oust Laurent Gbagbo. In other words, the international community has to choose: bond recoveries or chocolate. That said, we are certain that it is none other than noted commodity market cornering expert JPM that can claim league table advisory credit for what according to the FT will be a 10% jump in the price of cocoa on opening Monday. The immediate retaliation by Gbagbo will most certainly be to force a technical default on the country's bonds which are already in their grace period, and start a localized mini liquidity (and solvency) crisis in Africa... As if the developed world did not have enough of those as is. And in the meantime, we sense a great disturbance in the inflationary Force, as if millions of fatty voices suddenly cried out in terror, and were suddenly silenced. Prepare for the next round of food inflation worldwide. [and so on] at:
http://www.zerohedge.com/article/bond-recoveries-or-chocolate-ivory-coast-issues-ultimatum-cocoa-export-ban-chocolate-prices-

2 from business insider
vampire squid on your face...book

Billionaire Jim Clark: "The Goldman-Facebook Deal Is Just Another Way For The Firm To Make Money From Its Clients"
Courtney Comstock | Jan. 24, 2011, 6:01 PM | 4,788 | comment 14
clark-hintzeAfter everything that's happened, Goldman Sachs probably wishes it had never pitched 70-year old billionaire Jim Clark (the founder of Netscape) on the firm's big Facebook deal.
The billionaire founder and investor told Bloomberg Markets Magazine that when he got the pitch email from Goldman, he was instantly "irked."
Now, he's going after Goldman for pitching him on Facebook with a bad price and high fees on top of it, just meant to rob him of more money. And he's spilling tons of details that Goldman probably doesn't want its investors to know -- including the fact that he received a better offer for Facebook elsewhere. And how his Goldman brokers called John Paulson a "bit player" in 2006.
Not surprisingly, the firm "declined to make Blankfein or any other executives available for comment for this story."
Clark definitely has a grudge. Goldman already lost him a lot of money, he says. In 2009, he "angrily" yanked most of the $400 million he had invested in GSAM, Goldman's asset management unit.

and 3 from zerohedge.com

http://www.zerohedge.com/article/guest-post-goldman-sachs-vampire-squid-facebook%E2%80%99s-face

Guest Post: Is Goldman Sachs A Vampire Squid On Facebook’s Face?

Submitted by Tyler Durden on 01/26/2011 12:47 -0500

Submitted by Wall St. Cheat Sheet

Is Goldman Sachs a Vampire Squid on Facebook’s Face?

There’s confidence, then there’s bravado.

Goldman Sachs (NYSE:GS) is acting more insecure than ever with an incredibly pompous payment structure for private placement shares of social networking site Facebook. According to Bloomberg Markets Magazine (via Business Insider), the investment banking deal doesn’t have only placement agent fees, it also includes a Vampire Squid Clause:

The firm would levy a 4% placement fee on clients, plus a .5% “expense reserve” fee. It would also require investors to surrender 5% of any profits, known as “carried interest,” according to a Goldman Sachs document.

Rule of law? I wanna PIZZA mutha**(^*ker

As it turns out, this is what the Federales want. The Federal Reserve, that is.

Apparently, they'll save Dominoes Pizza,

but not a single of the bankrupt cities or states of the US.

this is not the first society it's happened to. There was once a great society that had bad city planning and so created huge triangular structures
in the middle of the desert.
Ya, what a waste. They were soon gone, but
all that remains of that civilisation is
a lone pizzeria. That was the Egyptian Dynasty (no tv show).

their temples were even shaped like slices. Imagine the bellies their gods must have had.

[foundation of pizza temple c.2300BC]

-Costick67 ~(8^P

checkitout: 2 stories-
1 bailout, with a pizza shovel; 2- no bailout for civic duties
1
http://www.huffingtonpost.com/kerry-trueman/dominos-pizza-and-the-usd_b_780868.html

Kerry Trueman -Co-founder of EatingLiberally.org

Posted: November 9, 2010 09:26 AM

Domino's Pizza and the USDA: The Bailout you didn't hear about

Chalk up another victory for Stephen Colbert's gut. Back in January, the touter of all things truthy declared Domino's Pizza his "Alpha Dog of The Week" for a "game-changing ad campaign" to promote its new pizza recipe. Consumers had complained that the old formula tasted like ketchup-covered cardboard, a factor that presumably contributed to the company's sagging sales.

So, Domino's did two things: it reformulated its pizzas to contain nearly twice as much cheese; and launched an ad campaign which took the bold step of acknowledging just how awful its old pizzas were, while gushing about the "cheese, cheese, CHEESE!!!" that distinguishes the new recipe from the old one.

With the logos of Goldman Sachs, Citibank, Fannie Mae, Bank of America, and AIG on display behind him, Colbert applauded Domino's "for joining the great American corporate tradition of screwing your customers and then having the balls to ask them to come back for more."

Turns out that Domino's had something else in common with these ethically challenged entities, aside from the dubious products they dumped on unwitting dupes.

As Sunday's New York Times revealed, Domino's effort to rebrand itself and thereby revive its flagging fortunes was partly financed by a government handout, or, if you prefer, corporate welfare. According to the Times' Michael Moss, Domino's $12 million marketing campaign was created and financed by a USDA-funded organization called Dairy Management.

The free market had spoken, and its collective voice said "Yuck!" But instead of standing by and letting Domino's slide deeper into an apparently well-deserved decline, the government chose to intervene with an infusion of cash and a profusion of cheese.

And Dairy Management's efforts to get more milk fat on the menus at Domino's, Wendy's, Burger King, and Pizza Hut have been a huge success, boosting cheese sales by "nearly 30 million pounds," as Moss reports.

This is a great thing, if you are a dairy farmer saddled with surplus whole milk. For the rest of us, though, it raises some disturbing questions:

(1) Do we really need to eat more cheese, given that cheese consumption in the U.S. has already nearly tripled since 1970? Cheese is now the single greatest source of saturated fat in our diet. Is there no other use for all this excess milk fat? Given its artery-clogging capabilities, could it be used to fill the fractures in our ancient, decaying water mains, or the cracks in our highways?

Seriously. There's a guy in Vermont named Andrew Meyer who's figured out how to make an awesome, super durable, non-toxic floor and furniture varnish from another by-product of the cheese industry, whey. Why not use the USDA's resources to encourage this kind of innovation, instead of ladling more cheese onto every one-handed fast food item so that we can shovel even more saturated fat down our gullets like geese at a foie gras farm?

(2) Doesn't this totally conflict with the USDA's anti-obesity campaign? A spokesperson for the USDA gave Moss the department's boilerplate spiel: "When eaten in moderation and with attention to portion size, cheese can fit into a low-fat, healthy diet."

[and so on...]
2

http://online.wsj.com/article/SB10001424052748704739504576067602380461160.html
By JON HILSENRATH And NEIL KING JR.

Federal Reserve Chairman Ben Bernanke on Friday ruled out a central bank bailout of state and local governments strapped with big municipal debt burdens, saying the Fed had limited legal authority to help and little will to use that authority.
[They have a headache- why bend over for the little politicians when you've already taken it up the ying-yang from the big bankers.-Costick67]
"We have no expectation or intention to get involved in state and local finance," Mr. Bernanke said in testimony before the Senate Budget Committee. The states, he said later, "should not expect loans from the Fed."

The $2.9 trillion municipal-bond market [not big enough for BB, the wide-ass: Costick67] has been stung recently by worries that some cash-strapped cities or states won't be able to pay off or roll over debt. Costs have risen broadly for municipal borrowers. The market also faces challenges from the expiration of the Build America Bonds program, which helped cities and states borrow $165 billion at interest rates held down by federal subsidies.

Some analysts speculate the Fed could jump into the market by purchasing muni debt or lending to struggling borrowers.

The Fed only has legal authority to buy muni debt with maturities of six months or less that is directly backed by tax or other assured revenue, which makes up less than 2% of the overall market. The Dodd-Frank financial-regulation law enacted last year further tied the Fed's hands, Mr. Bernanke noted, by barring the central bank from lending to insolvent borrowers or pursuing bailouts of individual borrowers.[and so on]

nothing like a good war to end a depression

Why is it that all human endeavour works well when we're killing one another?
We thought the world had learned its lesson with the last massive financial crisis

between 1929-1939.

Ya, it lasted for a whole decade, until Roosevelt sorted out the economy,
but the real boost started when our

dogs of war started barking
in unision with the barking-mad Nazis.

[the genus Aardvark]

You'd think we'da learned something from the last world war, but anyway...
This time, the mess is bigger and the G7 governments are as corrupt as the bankers,
and they've sent all their manufacturing over to Asia, so there's no bouncing back for
the finance-based stock-market-casino cash economies of the West,

and the cash is toilet paper anyway.

When this casino (in Italiano, 'casino' means whorehouse)

comes crashing down like a... 'house of cards', baby!

they'll cut to the panic button. Gotta cover their tracks, and have a war!

So, I still think that the US has got the most to lose, and it doesn't like losing.

What are the methods of modern US warfare?:

1) spot the threat/opportunity: China, Iraq, Afghanistan

2) start the propaganda machine: weapons of MD, currency manipulation

3) use a pawn to gain entry: Allawi, South Korea

4) manipulate the pawn: wargames and leaks

5) start knocking on the country's door

6) prevent disaster: the destruction of the dollar

7) start the hot war

Parts 1:

Chinese whispers
It's already starting its plans for an escalation in the Korean peninsula, so that their army will
soon be knocking on China's door.

I known it's a crazy move, but the US hasn't got many moves left as world leader, unless it takes out the competition. That's what it's doing to the Euro, as we speak.

Let me explain. China has a lot of the US debt, because China thought that it would help sales of their crap. Unfortunately, the US has got drunk on the consumer lifestyle

and forgot that it has to pay the money back. But all the manufacturers left for China!

Now, China is leading the BRIC nations in a run away from US dollars and US debt investments. This is harming the US dollar, more than the US likes.

The US wants the dollar to be cheap, but they want it to still be the world reserve currency.

If China keeps going, the dollar will fall off a cliff, and so what will the US do with all those worthless trillions in QE money they're throwing around?

One thing only

They could use it to

buy arms (cheap) from their own manufacturers, so they can go to war.

Part 2:

KNOCK KNOCK KNOCKIN' ON CHINA'S DOOR
US wants to reign in China, and control its fiscal policy so that the circus caroussel

keeps going around some more.
The US is pushing SKorea (which wants unification) into

war propaganda vs North Korea.
- I just happened to hear the other side of the story (on Russia Today), regarding the NKorea bombing of a SK island. Apparently, the SKorean navy was in NK waters,

but you won't hear that part from the Murdoch-run media.

So, it's misinformation as war propaganda.
It just looks as if NK is crazy. That's all we hear.

Remember, the Wikileaks 'propaganda'?

China supposedly wants to get rid of their 'commie' buddies, NK.
The whole world wants the US to take out NK, right?

That's the effect of propaganda.
The US'll take the opportunity

when they have no other choice; I say within a couple of years.

Also, US warhead Robert Gates went to China and said their army is dangerous,

while his own army is in 30 countries, and getting beat up in two wars

against a bunch of hot-head irregulars. LOL 8^D

Why is the US interested in the Chinese army all of a sudden?

We know that China and the US are having a financial war regarding currency manipulation, on both sides, and other tricks, like gold investing as a hedge against the worthless US dollar.


-Costick67 ~(8^P

checkitout:

Knockin' on China's Door- GnR

[this is mercifully short and some guy is talking over most of it and lotsa drunkencamteknik]

Who's on first?

Apparently the leader of the world is going to meet with another country's leader
to discuss international trade and politics.
There'll be talk of human rights and currency exchange- rate manipulation.
It's gonna get ugly.

["and take your damn worthless dollars back!"]

Who is Obama going to meet with? Hu's that? Hu's the leader?

Now, Hu is first. Hu's the world leader.
And, as I said above, he's hopping mad with
the US and its f&*(king around in the markets.

Without going into a long explanation of baseball and 1940s humour,

[Hu's on first? That's right.]

Hu is not only first in the world, but
if US/China relations were a baseball game,
Hu would be on first, second and third,
continuously rounding the bases

[bases-loaded walk- celebrity wonder]

and at the plate being thrown joke pitches

[hey! you're grazing my nuts-NY Daily News]

by the Yankee lead pitcher, Obama the southpaw.

I can just picture the meeting:

Hu: Gwo lai, r [come here, you bozo!]
Obama: What a pleasure to see you again.

Hu: No yank-y my wank-y, Yankee.

Obama: Is that Confuscius you're citing?

Hu: Enough small talk.

Obama: Stop the currency manipulation.
Hu: Stop printing monopoly money, oh pot to my kettle who is black.
Obama: Let the markets take their course.
Hu: Well then, I guess youz are f&*(cked.
Obama: Buy more of our stuff.
Hu: what? those cheap trinkets? Save them for the Indians.
Obama: buddy, can you spare a dime?
Hu: Yuan a loan? HaaaHhaaaaa! LOL
You have too much loan.

Now you must pay the price!

[snaps fingers]
Cue the shaolin, stage left:

[shaolin]


This is where Hu opens, for Obama, the Doorway to Hell.
The Yankees won't fall in without a fight.
[SCTV- Ling Ye Tang]

-Costick67 ~(8^P

checkitout: 2 stories

1 explanation of why China and the US are going to divorce court:

Who Holds the Trump Cards in the China vs. US Poker Game?

Submitted by Phoenix Capital Research on 01/22/2011 15:08 -0500

In my last article, I outlined the current financial/ economic relationship between China and the US. In particular I focused on the manner in which China is diverting its money and resources away from the US Dollar and US economy.

Indeed, in my opinion, when push comes to shove it is China, NOT the US who holds the trump cards on the major issues. Here is a list of the trump cards I perceive. I’ve referenced this list previously in a report on the Fed’s Quantitative Easing Program 2, but I believe it bears reiteration:

1) Rare earths production (China controls 93% of global production).

2) US Treasuries ownership (a decision by the #1 holder to dump would start a global rush from the US Dollar)

3) Derivatives: China could simply tell its banks and firms to renege on all derivatives deals, not just the commodity ones (commodity derivatives only comprise 2% of global derivatives, interest rate-based derivatives, in contrast, comprise 80% or so of the $600 TRILLION derivative market.

4) Interest rates hikes: a series of interest rate hikes could greatly damage the US via its derivatives market (see #3 above) or the US Dollar, which currently pays next to nothing.
In contrast, the US’s primary strengths are its indebtedness (it could potentially renege on its debts to China, though this would likely kick off a systemic implosion too), its military (which is already stretched thin due to the wars in the Middle East), and its reserve currency (which China is already moving to confront).
In plain terms, China has the upper hand here. So be prepared to see any of the above cards played in the coming years depending on how things play out between the two countries.
In closing, I want to stress that none of my statements are meant to come across as US-bashing nor do I think the US is somehow “finished” from an economic standpoint. The history of this country has been one of continually re-inventing itself via conflict and I fully believe that it will successfully emerge from its current economic problems (though this process will take years).
Moreover, I do not wish to come across as a disciple of the “Chinese growth miracle” doctrine, which has saturated the financial community. The Chinese economy faces its own major issues particularly regarding inflation, over-capacity, loose monetary policies and infrastructure needs beyond the coast cities.[and so on]

2 The US wakes up to the new Chinese dynasty.Their reaction.Shitting of shorts.

http://www.bloomberg.com/news/2011-01-13/americans-figuring-out-who-is-world-s-no-1-commentary-by-william-pesek.html
Americans Figuring Out Who Is World's No. 1: William Pesek
By William Pesek - Jan 13, 2011 10:19 PM GMT Bloomberg Opinion

William Pesek
Nine percent of Americans think Japan is the world’s top economic power, and that raises an obvious question: Huh?

If we knew exactly who that current-events-challenged minority was, we could make a bundle sending them e-mails on how to redeem unclaimed fortunes in Nigerian banks. Thankfully, most Americans got it right in a Jan. 5-9 survey by the Pew Research Center for the People and the Press. It’s that China, not the U.S., is on top, reflecting a marked shift in attitudes after the global financial crisis.

Make that Asia in general. When John Calverley, global head of macroeconomic research at Standard Chartered Bank in New York, predicts annual world output will rise to $308 trillion by 2030 from $62 trillion today, Asia is a major reason why. Calverley expects China and India alone to account for 33 percent of gross domestic product, compared with 12 percent by the U.S. and 3 percent by Japan.

Here’s something both surprising and comforting: Fewer than one-quarter of the respondents view China as an adversary, and some 58 percent said it’s important to build stronger ties with China. Yet how realistic is that? Not very, in the short run.

China is America’s banker and it’s coming for dinner next week. President Barack Obama is rolling out the red carpet for his main financier, Chinese President Hu Jintao. The state visit, which begins Jan. 18, offers Obama a chance to ask China not to call its loans. China holds $907 billion of U.S Treasuries.

Group of Two

The financial relationship between the Group of Two is the long-term issue on which Obama and Hu will focus. A minefield of explosive short- to intermediate-term ones must be navigated before the U.S. and China come to grips with where they were 10 years ago and where they may be a decade from now.

Anyone who thinks all this will go smoothly is dreaming. Obvious flashpoints are currencies, trade, intellectual property rights, climate change, military spending, North Korea, scarce global resources and human rights.[they're fighting to see who's worse- Costick67] Markets will be whipsawed by any geopolitical hiccups.

The U.S. is only now realizing the extent to which China has made gains in all of these areas, often at the U.S.’s expense, over the last decade. Americans are also beginning to fathom a future in which they, like the Japanese, will be in something approaching a subordinate role.

‘Developing Nation’

That’s why many pundits are comparing Hu’s Washington visit to Deng Xiaoping’s in 1979. There’s a bit of hyperbole in this view, yet there’s no denying that with China using its $2.8 trillion of currency reserves to support Europe, the “developing nation” label no longer fits easily.

Yes, China is grappling with poverty and an immature financial system makes it hard for the central bank to control things. China is also keen on throwing its weight around without a commensurate increase in global responsibility. China’s corruption, coddling of North Korea and its support of rogue regimes in the name of resource procurement are cases in point.[and so on]