Here we go again: CIT will be allowed to fail since JPM and GS don’t have any finances involved in this bankruptcy, I am assuming. They miscalculated when they let their rival, Lehman Brothers, go down the tubes. To the shock of the two biggest private investment banks, AIG suddenly went under and note that that stupid organization was saved at tremendous cost. China’s economy is growing rapidly and China is now the world’s #2 economy, displacing both Germany and Japan.
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CIT Fails to Win U.S. Bailout as Bankruptcy Looms (Update2) – Bloomberg.com
CIT Group Inc., the 101-year-old commercial lender running short of cash, said the U.S. government would not rescue the company, fueling speculation that it may be forced to file for bankruptcy.
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Talks with regulators have broken off and “there is no appreciable likelihood of additional government support being provided over the near term,” the New York-based firm said yesterday in a statement. CIT, once the biggest independent commercial lender, may seek court protection if no U.S. aid emerges, Standard & Poor’s said this week. The company said it is “evaluating alternatives.”
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CIT Chief Executive Officer Jeffrey Peek failed to convince regulators that fallout from a collapse would threaten the rest of the financial system. Officials at the Treasury, Federal Reserve and Federal Deposit Insurance Corp. have resisted putting more taxpayer funds at risk, on top of the $2.33 billion granted to CIT in December, to keep the lender afloat.
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“The rest of the financial system’ is JPM and Goldman Sachs. We have to keep this in mind. I don’t know why the media talks about ‘the financial system’ when they are referring only to GS and JPM and maybe, Citigroup and a very tiny few indeed. These top 5 banking houses hold 90% of the derivatives market garbage and this is what overhangs all other systems.
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We see banks failing all over the place and nothing happens except the banks fold and insurance is paid and everyone goes home to sulk. But when the top 5 entities are threatened, all hell breaks loose. The government will risk total bankruptcy in order to haul these creeps out of bankruptcy! We take on trillions in obligations in order to recapitalize these crooks.
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CIT obviously has no connections to the Big 5. So it will go under. There will be no hearings about how we must save them or we will all die. But this will impact our economic system at the other levels, the ones where it impacts on the citizenry, not the gnomes. The flaccid response of our government to these events is very obvious. Our political parties are literally owned by or are embodied by the super rich. The mayor of NYC, for example, is a billionaire. Indeed, millionaires and billionaires populate our ‘democracy’ at many levels.
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They concentrate their energy on running parts critical for looting the rest of the nation which is why our red ink is so very out of control. The US economic system took on immense losses so the top banking powers could expand their power base, for example.
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Treasury Bets U.S. Financial System Can Weather CIT Collapse – Bloomberg.com
“I hate to say this, but it was probably expendable,” said Dennis Santiago, chief executive officer of Institutional Risk Analytics, a Torrance, California, research firm that studies systemic risk. “It may have just missed the boat” on federal rescues, Santiago said.
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Yesterday’s decision to forego a lifeline for CIT came 10 months after Lehman Brothers Holdings Inc. filed for bankruptcy. Lehman’s collapse ushered in the depths of the credit crisis to date, and resulted in the establishment of a $700 billion bailout fund; officials yesterday indicated programs created with that money would help fill any lending gap left by CIT.
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Anyone bank that neglected to infest all power positions with agents working on its behalf are ‘probably expendable’. Imagine GS being ‘expendable’! Anything that might reduce the profitability and power of the top 5 banks is labeled a ‘national crisis’ and everyone drops everything in order to save these banks. And we saw in the yesterday’s news that GS made record profits…I would suggest, by churning their own stock holdings and then charging clients for this ridiculous activity. Now, JPM announces the same thing:
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JPMorgan’s Profit Soars Despite Downturn – NYTimes.com
Even as it weathers the worst economic downturn in decades, JPMorgan Chase on Thursday announced a $2.7 billion second-quarter profit from stellar trading and investment banking results.
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The strong showing may put to rest some worries that the bank was allowed to pay back its $25 billion taxpayer investment too early, after it passed the Treasury Department’s stress test in May. But its quick resurgence in earnings, along with Goldman Sachs’s announcement of a $3.4 billion quarterly profit on Monday, is bound to raise fresh concerns about soaring pay levels and growing clout in Washington.
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JPMorgan is emerging with renewed confidence, taking advantage of the financial crisis to vault ahead of longtime rivals in investment banking and grab market share in mortgages and retail banking. Jamie Dimon, the chief executive, has cemented his status as one of America’s most powerful and outspoken bankers. And after acquiring the retail bank Washington Mutual last fall, revenue from its new branches is starting to pad its earnings.
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Mr. Dimon noted in a statement that the investment banking business had record first-half revenue, but he cautioned that the bank’s results “were negatively affected by the continued high levels of credit costs in consumer lending and card services, which we expect will remain elevated for the foreseeable future.”
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Pray tell, who is giving these banking gnomes free money? HAHAHA. The Federal Reserve dropped interest rates to nearly zero. The Japanese ZIRP system existed in order to capitalize industrial expansion. Japan’s industrial base across the planet grew until Japan overthrew the US as the world’s biggest auto makers. Japan used this free funny money to flood the world with easy credit which crippled rivals in the US and UK because this funny money was used for useless buy-out deals. Virtually none of this buy-out mania was inflicted on Japan.
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China used this flood of funny money pouring out of the Japanese carry trade to industrialize. And is winning the race to see who will be the world’s top industrial power. More about that below. First, some more news from the CIT bankruptcy:
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Treasuries Advance After CIT Says Bailout Unlikely (Correct) – Bloomberg.com
Treasuries rose for the first time in four days after CIT Group Inc. said it probably won’t receive a federal bailout, spurring demand for safer assets.
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The gains sent 10-year yields down from a three-week high before the Federal Reserve buys debt maturing between 2010 and 2032 today as part of efforts to keep down borrowing costs. Most Fed officials last month said the economy may suffer further shocks even as they rejected an expansion in asset purchases, minutes of their June 24 meeting released yesterday showed.
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A lot of the Japanese carry trade/US trade deficit wealth is sloshing around the planet. This is why interest rates can continue to be very low. We will not see an improvement in systems unless we first see all things finally come to a balance. That is, the world can’t resume the trade system that relies on the US sucking down infinite red ink. Not to say, the regulators and organizers of world trade won’t try very hard to resume this process. They are very dedicated to this goal! Now, to see where much of the money is really flowing, let’s go to China:
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China’s Foreign-Exchange Reserves Surge, Exceeding $2 Trillion – Bloomberg.com
China’s foreign-exchange reserves, the world’s biggest, topped $2 trillion for the first time as the nation’s economic recovery prompted overseas investors to pump money into stocks and property.
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The reserves rose a record $178 billion in the second quarter to $2.132 trillion, the People’s Bank of China said today on its Web site. That dwarfs a $7.7 billion gain in the previous three months.
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The Shanghai Composite Index, the world’s second-best performer, surged 75 percent this year as Premier Wen Jiabao’s stimulus package triggered unprecedented lending and surging investment. The increase in the reserves means China may buy more U.S. Treasuries as the Obama administration expands debt sales to fund a plan to revive growth.
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“Hot money is flowing back,” said Sherman Chan, an economist with Moody’s Economy.com in Sydney. “China has the strongest prospects out of all major economies.”
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Will all the Japanese carry trade money flow into China? I am betting, yes. The Chinese and Japanese even discussed this possibility back in August, 2007. This flow is causing the yen to strengthen against the dollar. It is now 93 yen to the dollar. The Japanese openly declared, their goal was to have the yen be 120 to the dollar by September, 2007. One of the major disruptions of the Japanese carry trade was the strengthening of the yen coupled with all the countries that sucked in this carry trade seeing their own interest rates fall to Japanese levels.
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The Chinese may be having social unrest and worker agitation but these are signs of strength, not weakness. Japan’s communist party is rising in power due to the flaccidity of the mainstream parties there. But there is little to no worker unrest in Japan. Lots of suicides and despair, instead. I can’t emphasize this enough: unrest is a sign of life. If the US is very quiet, this is because we are giving up. World wealth is moving rapidly to China. The US used to suck down most of the money flow. We no longer are able to do this unless we do things like raise interest rates. All the money being parked for the short term with the Federal Reserve is just aching to flow to somewhere more lucrative. Which means, to China.
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Pimco Says Improving Economy to Steepen Yield Curve (Update3) – Bloomberg.com
The difference between Treasury two- and 10-year yields may widen to record levels set last month as the U.S. economy recovers, according to Pacific Investment Management Co., which runs the world’s biggest bond fund.
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“Long-term rates will rise at a faster speed than short- term rates,” Pimco portfolio manager Tony Crescenzi wrote in a report distributed by e-mail early in the Asian trading day. “Market participants decided months ago that the Armageddon scenario was out and stabilization was in,” he said.
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The so-called yield curve steepened to as much as 2.62 percentage points today, the most in almost four weeks. It rose to a record 2.82 percentage points on June 5 as investors demanded greater compensation for the risk that growth will spark inflation. Just a week ago, investors said the curve would narrow on signs the global economic recovery was petering out.
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Just a week ago, there was talk that China would go under, too. But this week’s news is obviously at odds with that negative view. People gravely misunderstand the real meaning of the Chinese disorders. Japan hasn’t had street riots in decades. And Japan is dying. Aso has a popularity rating of 18%. And still clings to power. And no one is busting the LDP’s chops in the streets.
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The riots in China were like our own race riots in the past. And when we had race riots, this was an expression of US dynamic populations willing to run riot in the streets. The anemic situation in Japan is painfully obvious to cold eyed observers. By the way, the Pimco guy and his buddies may think that ’stabilization’ is now operational. It most certainly is not. Note the desire for a return to the status quo!
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But the world has changed, greatly. The balance of power has shifted very significantly. During the last decade, China built whole cities around various industrial or production bases while the US built suburbs in vacation spots like Florida, Southern California, Arizona and Nevada. We misallocated the Japanese carry trade loans by dumping them onto real estate and businesses, making both deep in debt and much weaker. While China allocated these funds towards opening factories and creating new businesses. It shows up in statistics:
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2009/07/16 14:46 – China Industrial Output Jumps Over 10% In June
(Nikkei)–China’s industrial production climbed 10.7% year on year in June, marking the first double-digit growth in nine months, according to data released Thursday by the National Bureau of Statistics.
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The robust production figure reflects the fact that inventory adjustments have run their course and demand is getting a boost from the 4 trillion yuan (55 trillion yen) stimulus package.
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The recovery in industrial output is the main reason China’s economy expanded 7.9% in the April-June quarter, considerably more than the 6.1% growth logged for the previous three months.
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In the US, our own President says, ‘Gee whiz, too bad about those industrial jobs. They won’t be returning so just live with it. Get new skills that we won’t offshore on you and maybe we can start new industries so you might get a job but hell…HAHAHA…those are going to be in China. Good luck, commuting to Shanghai!’ Yes, our President supports free trade, heart and soul. All our Presidents since Reagan, support this. All support offshoring our jobs. All of them help shift our economy from self-contained to one where we export like crazy, more and more and more, but fall further and further behind our rivals.
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This mess cannot be swept aside. We can’t export our way out of our trade deficit. China’s industrial expansion is aimed straight at our own industrial base. This is not accidental, this is deliberate, it is the 50 Year Plan’s main goal! Admitting this will work wonders in the US system except for one thing: all our top financial powerhouses are getting very, very rich, cooperating with the Chinese in sucking up our entire industrial base.
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Trade Protectionism Shadows Recession – Forbes.com
The World Trade Organization (WTO) is now forecasting a fall of 10% in the volume of world trade this year–a post-war record, and slightly worse than its previous 9% estimate. While developed countries’ exports are expected to be 14% lower than in 2008, the reduction in developing-country exports will probably be only 7%. Trade in cars and machinery, and primary and intermediate products, has dropped most sharply.
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Resistance to Protectionism
The WTO is now producing quarterly reports that track member countries’ tariff increases, new non-tariff and anti-dumping measures and financial measures that favor domestic goods and services over imports. Its April report found that governments had kept protectionist pressures under control throughout 2009, but “significant slippage” had occurred since the beginning of this year. The latest report, just issued, shows that “resort to high-intensity protectionist measures” (i.e., blatant breaches of WTO trade rules) has still been contained, but shows no improvement in the general picture.
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See how Forbes still pushes for ‘free trade’ and imagines it will be good for us? We now have nearly half a century of trade red ink to show that this isn’t working. As we see our own industrial base shrink, we better feel some alarm. Much of our base is now military related, no domestic markets. We import all our gee gaws and do dads while dedicating our industry for military stuff designed to oppress peasants in Afghanistan. This is beyond stupid.
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I went to Xinhua news to see what else the Chinese are doing and here is the latest news about the coming World Expo for 2010:
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Sun Valley in Shanghai Expo Site underway_English_Xinhua
China’s Market Value Overtakes Japan as World’s No. 2 (Update2) – Bloomberg.com
China overtook Japan as the world’s second-largest stock market by value for the first time in 18 months, after government stimulus spending and record bank lending boosted share prices this year.
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The Shanghai Composite Index rose 1.4 percent yesterday, sending the value of China’s domestic stock market to $3.21 trillion, compared with Japan’s $3.20 trillion, according to data compiled by Bloomberg. The Shanghai index has gained 75 percent this year, the best-performing major market, against a 5.5 percent advance in the Nikkei 225 Stock Average. The U.S. has the biggest equities market worth $10.8 trillion.
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China is now #2 and will be #1 in less than 20 years. Look at the incredible buildings they are erecting for this show! They put on an immense show for the Olympics. This is a sign of dynamism. Like the US from 1900 to 1970, China is putting on one big show after another. This is due to China being a creditor nation. The US has put on shows since 1970 but these were all money losing shows. Since our profits are being sucked down by leeches like GS and JPM while the public ledgers show nothing but seas of red ink, it is obvious that we are losing strength, power and our leaders are vampires. And our populace is silent.
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60 Comments
July 16, 2009 at 3:51 pm
We are silent because our water sytems have been flouridated since 1952. Stalin used this tactic to cut down on the number of prison guards needed at the gulags. Why have 8 guards needed per 100 inmates, when you could just fluoridate the water. Than you only need 4 guards. We have NON-stop media propoganda spewing free-trade keynsian stupidity. Our government controlled schools have brainwashed generations of kids. Social Security and deposit insurance has made the people numb to financial chaos, even after stock bubbles, housing bubbles, etc…
July 16, 2009 at 4:01 pm
The US continues to massage its production and employment numbers somewhat successfully. Yes, I know things are a whole lots worse in actuality. But do you acknowledge that China could be doing the same thing? What are the chances that China is not issuing its own economic propaganda?
Additionally, the construction of buildings can be viewed as a reflection of a dynamic economy — to a point. How dynamic is Dubai? Seems they’ve created Oz in the desert. Is this a flourishing economy? Don’t think so. Heck, how about all that construction in FL and CA . Just a few years ago we thought that was economic expansion that
full steam ahead.
I’m not debating your call on US economic collapse (minue GS and JPM of course), just wondering what future is truly lurking in China.
July 16, 2009 at 4:30 pm
ralph
July 16, 2009 at 3:51 pm
We are silent because our water sytems have been flouridated since 1952.
double bull shit. lol
some times one is silent at the pure bunk thrown into the mix .. sort of incredulous that a grown person would think this is the real reason.
How about the pure propaganda teckneques used since 1952.. the pavlovian bell ring.
even the 1991 war had parts stsged in a sound studio ,, wag the dog. but at least don’t blame the water he drank,
off for another cup of tap water. laced with arsnick (sp)
July 16, 2009 at 4:37 pm
“The Balance Begins to Tip Against Cheney ”
http://www.thenation.com/doc/20090720/nichols
Democrats attacking Cheney (finally…)? Am I dreaming?
July 16, 2009 at 4:42 pm
just wondering what future is truly lurking in China.
truly lurking lol .. lurking .. it looks like a full grown non-lurk ,, now #1 one producer of cars ,,which means roads , that means.. burma shave signs, the great american dream .. as goes motors goes america .. buying up the resource base of the world. they have labor, capital, savy.
stuff production and dreams are made of.
you see no sucking sounds in china .. the only sucking sounds is the B.S we hear on the pavlovian station in every sound studio in the great american consumer world. oh and yes the wind tunnels of sucking sounds as the productive quality of america .. runs east. at the one way borders .
fluoride LOL
July 16, 2009 at 5:55 pm
Guess those who dismiss fluoridation still brush with crest. You fucking fools. Read, Murder By Injection: the medical conspiracy against America by Eustace Mullins. Fluoridation is a key component to the control mechanism.
July 16, 2009 at 6:04 pm
@ wc
I see the aggregate economic numbers on China production just as you do. Please educate me on chinese consumption.
With the Americans (and Euros) no longer consuming as they did, is that Chinese consumer picking up the slack? China’s turbo economy cannibalized American production. So who’s buying?
“By lurking in the future” I ask, is there enough non- or reduced Western demand for those goods China is #1 at producing — cars, trinkets, clothing, etc? Is the chinese worker positioned to assume the American’s consumptive ways…now?
Spare the snark, just the facts. Thanks.
July 16, 2009 at 6:12 pm
“I can’t emphasize this enough: unrest is a sign of life. If the US is very quiet, this is because we are giving up.”
Nice point. I agree. I march in the streets when I want politicians to turn the ship of state in a direction that looks better. Not when it’s drifting towards the rocks and nobody’s at the helm.
July 16, 2009 at 6:42 pm
You fucking fools ralph cut of your right hand you would be out of business. lol
wacko , oh that has alredy been covered with right hand deal
July 16, 2009 at 7:00 pm
ralph
you stated categorically that floride was the culprit ,, starting in 1952 .
now you post a book that blaims ALL the troubles of the world on rocks a fellow.
one small part about floride, now crest. and i suppose the news, the propaganda , the wag the dog. had zip to do with it.
many live in the floride injested world and do just fine … what do you wear a face mask all day long to escape the dreaded fumes . or live in that little purple bubble. and wash the mouth out with Dr. Bonners Magic Soap.
July 16, 2009 at 7:06 pm
on china and lurking lol #2 post
charlottemom
July 16, 2009 at 4:01 pm
Have you seen many US or European media articles that have ever had a good word for China?
Bubbles are built when monetary stimulation grows in excess of consumptive BASE. You can have overall sales down with an expanding consumption base when you have billions of people in your population of which a significant growing amount are entering the consumer BASE on a continuing basis.
You can have a lower percentage year to year entering with the number of people still growing significantly.
Westerners do not understand the China/India formula that defuses or makes their bubbles quite ineffective.
That is why Asia is in the process of overtaking the West – for both my own and my kid’s lifetime.
You are reading xenophobic and/or MOPE articles, both quite popular in the US and Euroland.
sinclair .. who by the way just spent a week in china ,, making business happen ..
July 16, 2009 at 7:07 pm
JOE SCARBOROUGH: You also talked about the possibility of class conflict.
ZBIGNIEW BRZEZINSKI: I was worrying about it because we’re going to have millions and millions of unemployed, people really facing dire straits. And we’re going to be having that for some period of time before things hopefully improve. And at the same time there is public awareness of this extraordinary wealth that was transferred to a few individuals at levels without historical precedent in America . . . And you sort of say to yourself: what’s going to happen in this society when these people are without jobs, when their families hurt, when they lose their homes, and so forth?
We have the government trying to repair: repair the banking system, to bail the housing out. But what about the rich guys? Where is it? [What are they] doing?
It sort of struck me, that in 1907, when we had a massive banking crisis, when banks were beginning to collapse, there were going to be riots in the streets. Some financiers, led by J.P. Morgan, got together. He locked them in his library at one point. He wouldn’t let them out until 4:45 AM, until they all kicked in and gave some money to stabilize the banks: there was no Federal Reserve at the time.
Where is the monied class today? Why aren’t they doing something: the people who made billions, millions. I’m sort of thinking of Paulson, of Rubin. Why don’t they get together, and why don’t they organize a National Solidarity Fund in which they call on all of those who made these extraordinary amounts of money to kick some back in to [a] National Solidarity Fund?
BRZEZINSKI: And if we don’t get some sort of voluntary National Solidarity Fund, at some point there’ll be such political pressure that Congress will start getting in the act, there’s going to be growing conflict between the classes and if people are unemployed and really hurting, hell, there could be even riots
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… the real question is: is this all planned well beforehand by the people who are in the know?
Just check out the profile of this guy:Brzezinski
He is in all the major decisions after the WWII
http://en.wikipedia.org/wiki/Zbigniew_Brzezinski
Major policies
3.1 Afghanistan
3.2 Iran
3.3 China
3.4 Nuclear weapons
3.4.1 Nuclear strategy
3.5 Cambodia
3.5.1 Arms control
3.6 Arab-Israeli peace
3.7 Poland, the Pope, and Solidarity
3.8 Ending détente
http://en.wikipedia.org/wiki/Tr%C4%85by_coat_of_arms
July 16, 2009 at 7:18 pm
more on sinclair for a clear look at china . the melt down,
his father and his mentors were the our “gang guys” (see book) . the financiers that bandied together to start the financials centers in new york
Jim Sinclair’s Commentary
$12 trillion is spent on bailing out Wall Street and it results in billions of dollars in earnings for these firms even though everything was done to reduce the bonanza in public view.
Of course, you screw Main Street and the common man in the process. Then you dump CIT, ushering in phase two of the disaster – the death of the real economy.
If you are a sociopath you do not care at all. I know these Wall Street guys, and Dommer was more trustworthy
http://jsmineset.com/
keep taps with elaine , sinclair , midas,
in my humble opinion .. we
have been handed some good anti- floride antibodies lol and some others for all a person needs to know.. but just stop brushing teeth with floride
July 16, 2009 at 7:41 pm
http://maxkeiser.com/2009/07/16/video-max-keiser-takes-offense-to-goldman-sachs-oligarchy/
someone is offended….a lot
July 16, 2009 at 7:50 pm
Excellent commentary elaine. When I travel to China, it’s obvious why things are developing as they are. Economic policy is a factor, of course, but the difference in work ethic and mentality is startling to me. I try to explain this to american kids and they just stare off into space. I go to vietnam and see people panhandling for change then heading off to use for internet access to download MIT lectures on engineering. I really fear for the young people in this country but wonder how to communicate in a way that they will understand what is happening in the world.
July 16, 2009 at 7:53 pm
charlottemom
July 16, 2009 at 6:04 pm
facts on a snark board lol
read the sinclair site for up to the minute reports on china .. a billion folks consume .. stop truting the western propaganda… and brushing your teeh with floride lol
July 16, 2009 at 8:00 pm
charlottemom
July 16, 2009 at 6:04 pm
take a couple seconds read the posts .. you may find an answer already posted ,
about china
have you taken the time to review sinclair. .. his take on china ,, his experience ,, his understanding of china and their trisket, a trasket a blue and yellow basket economy
July 16, 2009 at 8:07 pm
as i say elaine , sinclair , and we uncover many hidden truths . a couple other sites
dennenger is a side trip, as is all bowls of mush from TV,, most of all the stuff many swill on .. is regurgitated wag the dog. propaganda.
find some one who tells the truth on what really happened . .. not mind games of trite poppy cock .
July 16, 2009 at 8:17 pm
The average person has nothing to fear from drinking water with fluoride. On the other hand, drinking SOFT DRINKS is very bad for the health on nearly every possible level. So if one has to choose which is worse, the answer is very obvious.
About fluoridation: all things have up and down sides. Losing all your teeth is a very definite downside.
July 16, 2009 at 8:29 pm
emsnews
July 16, 2009 at 8:17 pm
the real question is do you brush your teeth with crest lol or some cheap china knock off
July 16, 2009 at 8:40 pm
ems news
the soft drink industry . part of the rockerfellow power grab.. with sugar, aspretame.
the hidden way to destroy thinking . promote the dental industry. big pharma
may be the load whistling sound we hear, is that noise of the sound of air going out the mouth via big gaps in teeth
wow i see a new book coming lol
July 16, 2009 at 9:07 pm
Then there is beer guzzling….
July 16, 2009 at 9:13 pm
My gosh, maybe I should move to China!! I think they will be the #1 economy very soon, much sooner than people realize.
July 16, 2009 at 9:45 pm
willie another worth the time to read
http://news.goldseek.com/GoldenJackass/1247771829.php
any one who has left the country because of threats to life .. has uncovered something //
July 16, 2009 at 10:02 pm
China has some problems with Xinjiang province which seems to be changing their foreign policy regarding Afghanistan and Pakistan. Xinjiang has a Muslim majority and the Uyghurs have been opposing Chinese control for decades.
If jihad is successful in Afghanistan and Pakistan, China will have a major problem as the jihad would most likely spread, along with support, into Xinjiang. There is a a lot of border between these areas and it would be very difficult to secure.
AfPak (pipeline to supply Eurasian and Iranian energy into Europe) looked like it was history just a couple months ago. This looked like a big win for China and Russia as their preferred Pakistan-India (IPI) pipeline seemed to be in the bag.
That route would have provided more energy to China and Eurasia. Russia looked like they would sure up Europe as a captive energy customer.
China seems to be worried about jihadists more than a little more energy and the better interests of Russia. If this holds, and the AfPak pipeline is built, it will drive a wedge between Russia and China which is exactly what the U.S. and NATO want.
Larry
July 16, 2009 at 10:10 pm
DrKrbyLuv
July 16, 2009 at 10:02 pm
interesting insight. of future problems to come . thanks for that .
July 16, 2009 at 10:14 pm
Agreed Elaine.
The government have ’secured’ the system from the top down…however they have left the bottom up without any help at all…one wonders if the future crash will be due to revolt…I hope so.
For now we just seem to be see-sawing between pump and dump…inbetween treasury auctions.
July 16, 2009 at 10:23 pm
bringmethefinestwines
July 16, 2009 at 10:14 pm
Agreed Elaine.
The government have ’secured’ the system from the top down…
where has elaine said the government has secured the system from the top down? nothing has been secured.
where in this world has any think been secured. The government fed, has delayed the obvious.
the goverment shoe horned into the top layer, a sinking life raft for little longer float on air .. is all.
she may have indicated that the pump of fiat has gone to the top. And this is obvious .. but secure ?
the system is on air support top to bottom
July 17, 2009 at 12:17 am
DrKrbyLuv
If you happened to be interested in Xinjing…. is the following piece making sense to you?
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July 12 —After the tragic events of July 5 in Xinjiang Uyghur Autonomous Region in China, it would be useful to look more closely into the actual role of the US Government’s ”independent“ NGO, the National Endowment for Democracy (NED). All indications are that the US Government, once more acting through its “private” Non-Governmental Organization, the NED, is massively intervening into the internal politics of China.
The reasons for Washington’s intervention into Xinjiang affairs seems to have little to do with concerns over alleged human rights abuses by Beijing authorities against Uyghur people. It seems rather to have very much to do with the strategic geopolitical location of Xinjiang on the Eurasian landmass and its strategic importance for China’s future economic and energy cooperation with Russia, Kazakhastan and other Central Asia states of the Shanghai Cooperation Organization.
The major organization internationally calling for protests in front of Chinese embassies around the world is the Washington, D.C.-based World Uyghur Congress (WUC).
The WUC manages to finance a staff, a very fancy website in English, and has a very close relation to the US Congress-funded NED. According to published reports by the NED itself, the World Uyghur Congress receives $215,000.00 annually from the National Endowment for Democracy for “human rights research and advocacy projects.” The president of the WUC is an exile Uyghur who describes herself as a “laundress turned millionaire,” Rebiya Kadeer, who also serves as president of the Washington D.C.-based Uyghur American Association, another Uyghur human rights organization which receives significant funding from the US Government via the National Endowment for Democracy.
The NED was intimately involved in financial support to various organizations behind the Lhasa ”Crimson Revolution“ in March 2008, as well as the Saffron Revolution in Burma/Myanmar and virtually every regime change destabilization in eastern Europe over the past years from Serbia to Georgia to Ukraine to Kyrgystan to Teheran in the aftermath of the recent elections.
Allen Weinstein, who helped draft the legislation establishing NED, was quite candid when he said in a published interview in 1991: “A lot of what we do today was done covertly 25 years ago by the CIA.”
The NED is supposedly a private, non-government, non-profit foundation, but it receives a yearly appropriation for its international work from the US Congress. The NED money is channelled through four “core foundations”. These are the National Democratic Institute for International Affairs, linked to Obama’s Democratic Party; the International Republican Institute tied to the Republican Party; the American Center for International Labor Solidarity linked to the AFL-CIO US labor federation as well as the US State Department; and the Center for International Private Enterprise linked to the US Chamber of Commerce.
The salient question is what has the NED been actively doing that might have encouraged the unrest in Xinjiang Uyghur Autonomous Region, and what is the Obama Administration policy in terms of supporting or denouncing such NED-financed intervention into sovereign politics of states which Washington deems a target for pressure? The answers must be found soon, but one major step to help clarify Washington policy under the new Obama Administration would be for a full disclosure by the NED, the US State Department and NGO’s linked to the US Government, of their involvement, if at all, in encouraging Uyghur separatism or unrest. Is it mere coincidence that the Uyghur riots take place only days following the historic meeting of the Shanghai Cooperation Organization?
Uyghur exile organizations, China and Geopolitics
On May 18 this year, the US-government’s in-house “private” NGO, the NED, according to the official WUC website, hosted a seminal human rights conference entitled East Turkestan: 60 Years under Communist Chinese Rule, along with a curious NGO with the name, the Unrepresented Nations and Peoples Organisation (UNPO).
The Honorary President and founder of the UNPO is one Erkin Alptekin, an exile Uyghur who founded UNPO while working for the US Information Agency’s official propaganda organization, Radio Free Europe/Radio Liberty as Director of their Uygur Division and Assistant Director of the Nationalities Services.
Alptekin also founded the World Uyghur Congress at the same time, in 1991, while he was with the US Information Agency. The official mission of the USIA when Alptekin founded the World Uyghur Congress in 1991 was “to understand, inform, and influence foreign publics in promotion of the [USA] national interest…” Alptekin was the first president of WUC, and, according to the official WUC website, is a “close friend of the Dalai Lama.”
Closer examination reveals that UNPO in turn to be an American geopolitical strategist’s dream organization. It was formed, as noted, in 1991 as the Soviet Union was collapsing and most of the land area of Eurasia was in political and economic chaos. Since 2002 its Director General has been Archduke Karl von Habsburg of Austria who lists his (unrecognized by Austria or Hungary) title as “Prince Imperial of Austria and Royal Prince of Hungary.”
Among the UNPO principles is the right to ‘self-determination’ for the 57 diverse population groups who, by some opaque process not made public, have been admitted as official UNPO members with their own distinct flags, with a total population of some 150 million peoples and headquarters in the Hague, Netherlands.
UNPO members range from Kosovo which “joined” when it was fully part of then Yugoslavia in 1991. It includes the “Aboriginals of Australia” who were listed as founding members along with Kosovo. It includes the Buffalo River Dene Nation indians of northern Canada.
The select UNPO members also include Tibet which is listed as a founding member. It also includes other explosive geopolitical areas as the Crimean Tartars, the Greek Minority in Romania, the Chechen Republic of Ichkeria (in Russia), the Democratic Movement of Burma, and the gulf enclave adjacent to Angola and the Democratic Republic of the Congo, and which just happens to hold rights to some of the world’s largest offshore oil fields leased to Condi Rice’s old firm, Chevron Oil. Further geopolitical hotspots which have been granted elite recognition by the UNPO membership include the large section of northern Iran which designates itself as Southern Azerbaijan, as well as something that calls itself Iranian Kurdistan.
In April 2008 according to the website of the UNPO, the US Congress’ NED sponsored a “leadership training” seminar for the World Uyghur Congress (WUC) together with the Unrepresented Nations and Peoples Organization. Over 50 Uyghurs from around the world together with prominent academics, government representatives and members of the civil society gathered in Berlin Germany to discuss “Self-Determination under International Law.” What they discussed privately is not known. Rebiya Kadeer gave the keynote address.
The suspicious timing of the Xinjiang riots
The current outbreak of riots and unrest in Urumqi, the capital of Xinjiang in the northwest part of China, exploded on July 5 local time.
According to the website of the World Uyghur Congress, the “trigger” for the riots was an alleged violent attack on June 26 in China’s southern Guangdong Province at a toy factory where the WUC alleges that Han Chinese workers attacked and beat to death two Uyghur workers for allegedly raping or sexually molesting two Han Chinese women workers in the factory. On July 1, the Munich arm of the WUC issued a worldwide call for protest demonstrations against Chinese embassies and consulates for the alleged Guangdong attack, despite the fact they admitted the details of the incident were unsubstantiated and filled with allegations and dubious reports.
According to a press release they issued, it was that June 26 alleged attack that gave the WUC the grounds to issue their worldwide call to action.
On July 5, a Sunday in Xinjiang but still the USA Independence Day, July 4, in Washington, the WUC in Washington claimed that Han Chinese armed soldiers seized any Uyghur they found on the streets and according to official Chinese news reports, widespread riots and burning of cars along the streets of Urumqi broke out resulting over the following three days in over 140 deaths.
China’s official Xinhua News Agency said that protesters from the Uighur Muslim ethnic minority group began attacking ethnic Han pedestrians, burning vehicles and attacking buses with batons and rocks. “They took to the street…carrying knives, wooden batons, bricks and stones,” they cited an eyewitness as saying. The French AFP news agency quoted Alim Seytoff, general secretary of the Uighur American Association in Washington, that according to his information, police had begun shooting “indiscriminately” at protesting crowds.
Two different versions of the same events: The Chinese government and pictures of the riots indicate it was Uyghur riot and attacks on Han Chinese residents that resulted in deaths and destruction. French official reports put the blame on Chinese police “shooting indiscriminately.” Significantly, the French AFP report relies on the NED-funded Uyghur American Association of Rebiya Kadeer for its information. The reader should judge if the AFP account might be motivated by a US geopolitical agenda, a deeper game from the Obama Administration towards China’s economic future.
Is it merely coincidence that the riots in Xinjiang by Uyghur organizations broke out only days after the meeting took place in Yakaterinburg, Russia of the member nations of the Shanghai Cooperation Organization, as well as Iran as official observer guest, represented by President Ahmadinejad?
Over the past few years, in the face of what is seen as an increasingly hostile and incalculable United States foreign policy, the major nations of Eurasia—China, Russia, Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan have increasingly sought ways of direct and more effective cooperation in economic as well as security areas. In addition, formal Observer status within SCO has been given to Iran, Pakistan, India and Mongolia. The SCO defense ministers are in regular and growing consultation on mutual defense needs, as NATO and the US military command continue provocatively to expand across the region wherever it can.
The Strategic Importance of Xinjiang for Eurasian Energy Infrastructure
There is another reason for the nations of the SCO, a vital national security element, to having peace and stability in China’s Xinjiang region. Some of China’s most important oil and gas pipeline routes pass directly through Xinjiang province. Energy relations between Kazkhstan and China are of enormous strategic importance for both countries, and allow China to become less dependent on oil supply sources that can be cut off by possible US interdiction should relations deteriorate to such a point.
Kazak President Nursultan Nazarbayev paid a State visit in April 2009 to Beijing. The talks concerned deepening economic cooperation, above all in the energy area, where Kazkhastan holds huge reserves of oil and likely as well of natural gas. After the talks in Beijing, Chinese media carried articles with such titles as “”Kazakhstani oil to fill in the Great Chinese pipe.”
The Atasu-Alashankou pipeline to be completed in 2009 will provide transportation of transit gas to China via Xinjiang. As well Chinese energy companies are involved in construction of a Zhanazholskiy gas processing plant, Pavlodar electrolyze plant and Moynakskaya hydro electric station in Kazakhstan.
According to the US Government’s Energy Information Administration, Kazakhstan’s Kashagan field is the largest oil field outside the Middle East and the fifth largest in the world in terms of reserves, located off the northern shore of the Caspian Sea, near the city of Atyrau. China has built a 613-mile-long pipeline from Atasu, in northwestern Kazakhstan, to Alashankou at the border of China’s Xinjiang region which is exporting Caspian oil to China. PetroChina’s ChinaOil is the exclusive buyer of the crude oil on the Chinese side. The pipeline is a joint venture of CNPC and Kaztransoil of Kazkhstan. Some 85,000 bbl/d of Kazakh crude oil flowed through the pipeline during 2007. China’s CNPC is also involved in other major energy projects with Kazkhstan. They all traverse China’s Xinjiang region.
In 2007 CNPC signed an agreement to invest more than $2 billion to construct a natural gas pipeline from Turkmenistan through Uzbekistan and Kazakhstan to China. That pipeline would start at Gedaim on the border of Turkmenistan and Uzbekistan and extend 1,100 miles through Uzbekistan and Kazakhstan to Khorgos in China’s Xinjiang region. Turkmenistan and China have signed a 30-year supply agreement for the gas that would fill the pipeline. CNPC has set up two entities to oversee the Turkmen upstream project and the development of a second pipeline that will cross China from the Xinjiang region to southeast China at a cost of some $7 billion.
As well, Russia and China are discussing major natural gas pipelines from eastern Siberia through Xinjiang into China. Eastern Siberia contains around 135 Trillion cubic feet of proven plus probable natural gas reserves. The Kovykta natural gas field could give China with natural gas in the next decade via a proposed pipeline.
During the current global economic crisis, Kazakhstan received a major credit from China of $10 billion, half of which is for oil and gas sector. The oil pipeline Atasu-Alashankou and the gas pipeline China-Central Asia, are an instrument of strategic ‘linkage’ of central Asian countries to the economy China. That Eurasian cohesion from Russia to China across Central Asian countries is the geopolitical cohesion Washington most fears. While they would never say so, growing instability in Xinjiang would be an ideal way for Washington to weaken that growing cohesion of the Shanghai Cooperation Organization nations.
July 17, 2009 at 4:00 am
news flash just in
Goldman Sachs in Talks to Acquire Treasury Department
Sister Entities to Share Employees, Money
In what some on Wall Street are calling the biggest blockbuster deal in the history of the financial sector, Goldman Sachs confirmed today that it was in talks to acquire the U.S. Department of the Treasury.
According to Goldman spokesperson Jonathan Hestron, the merger between Goldman and the Treasury Department is “a good fit” because “they’re in the business of printing money and so are we.”
The Goldman spokesman said that the merger would create efficiencies for both entities: “We already have so many employees and so much money flowing back and forth, this would just streamline things.”
Mr. Hestron said the only challenge facing Goldman in completing the merger “is trying to figure out which parts of the Treasury Dept. we don’t already own.”
Goldman recently celebrated record earnings by roasting a suckling pig over a bonfire of hundred-dollar bills.
Elsewhere, conspiracy theorists celebrated the 40th anniversary of NASA faking the moon landing.
And in South Carolina, Gov. Mark Sanford gave his wife a new diamond ring, while his wife gave him an electronic ankle bracelet.
July 17, 2009 at 4:10 am
riches sux
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oyeah FAT BOI LIMBA ive had 2 hernias 2… gargle gargle o im sofat i eat and fart money… just poking fun at republican majority LOL
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should leave me for dead *cry*
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anyways now that ive been over ‘that’
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i was glad if they juiced or destroyed CIT… i know its wierd, but if they juiced it like GS we could assume we were in for 5yrs of more irrelevant bailouts to help preserve if only minor opportunity… and if not we could just tell the banks next time you know what, you gave us our money back LIQUIDATE were done with this game and have let you succor on our peoples debt for nothing but vanity, our bad but weve decided WE LOVE THE MARKET HOMO GS
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http://video.google.com/videoplay?docid=-181259944046452879&q=iluminati&total=111&start=0&num=10&so=0&type=search&plindex=4
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GS a dumb bunch of homos who sucked up to government and gave people a bummer for ever after tricking them that 12 bucks was like 40, after which the government stumbled for more than a year figuring out that capitalism is not like ice cream and cake…
July 17, 2009 at 4:27 am
Correct. Keiser does not spare any words.
July 17, 2009 at 4:29 am
isha…
The NED was intimately involved in financial support to various organizations behind the Lhasa ”Crimson Revolution“ in March 2008, as well as the Saffron Revolution in Burma/Myanmar and virtually every regime change destabilization in eastern Europe over the past years from Serbia to Georgia to Ukraine to Kyrgystan to Teheran in the aftermath of the recent elections.
…
even if there is enough money and leadership… the idea that 3 million people would just pour into the street and go aghast at importunity is a total joke based on foreign influence on politics… in all honesty it is infact the 1st position occupied by the democratic ‘or complete bullshit democratic governments’ governments quasi democratic rule that ‘brings people into the streets… the US gets blame for every moron with a sport jacket, and every joule with a counter polarity… SO im pro US, we have enough morons to create our own velvet revolution ‘but we are VERY FUCKING RICH’ so it doesnt happen ‘RITE NOW BUT WE HAVE VERY RICH FRIENDS’… so if i were anti american i would have to get a grip, cuz its like political man
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http://www.youtube.com/watch?v=vOO5ofUk4xI&NR=1
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and on the 2nd day the Uighurs killed over 1o00 han chinese, and the han chinese were displeased with crazy morons with busses, homes and poverty which resembled if not mocked the han
July 17, 2009 at 4:29 am
2 mega posts i fail
July 17, 2009 at 4:40 am
payAttention
July 17, 2009 at 4:27 am
Correct. Keiser does not spare any words.
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Max keiser says yo’ GS… dude those guys are cons… the market is imbalanced due to policy of government? why let GS get rich on the back of sooper traders and ultra nano technology dude, we could need the money and maybe a better policy, maybe the banks are the bad guys! even treasonous mauraduers of our collective ’strategic’ positions as US citizens and such
July 17, 2009 at 4:51 am
Reassessing Hank Paulson
http://blogs.reuters.com/james-pethokoukis/2009/07/16/reassessing-hank-paulson/
Yet any errors must be placed in the context of a fast-evolving financial crisis. It would have taken a cool hand indeed (as well as a strong stomach) to have not attempted something like a $700 billion toxic asset buy. Hey, had that silver-bullet plan had enough time to be put into effect, Uncle Sam could be sitting on some potentially quite profitable assets today.
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700 B-B-B-B-BIllion is enough money to make alot of things look ok… and its almost COMELETELY GONE… hank is rite tho if it were not for the nearly xxx.xxx trillion we would be wishing the banks did not destroy the market and make the banks look like douche bag idiots who compromised everyone for a house a whore and a job… we mite be wishing so hard GS would be BROKE and ol’ hank would be IN JAIL for treason while we pawed through endless reams of paper
July 17, 2009 at 5:07 am
try this to shorten urls
http://tinyurl.com/
July 17, 2009 at 5:17 am
http://www.ft.com/cms/s/0/37725454-706c-11de-9717-00144feabdc0.html
Geithner promises to defend dollar
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Tim Geithner, US treasury secretary, sought to assure Gulf nations on Tuesday about their holdings of treasury bills when he told Saudi business leaders that his country “has a special responsibility to play” in defending the value of the dollar.
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AND the people of THE US if they dont know NEED YOU TO KEEP THE DOLLAR trade based POSITIVE smart boi jew worshiper ‘i threw that in to keep the dollar strong’ and the saudis are like with US ‘if not blame the jews’
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israel is bueatiful with geen gadens an shit
July 17, 2009 at 5:24 am
me forgot to explain US JEWS SHOULD BE AGAINST A POLICY THAT UNDERCUTS US POWER AND A INTERNATIONAL HOPE FOR PEACE… afrika is worthles they wont even get our president a swing at the pinata
July 17, 2009 at 5:38 am
trailin’ pete
July 16, 2009 at 7:50 pm
Excellent commentary elaine. When I travel to China, it’s obvious why things are developing as they are. Economic policy is a factor, of course, but the difference in work ethic and mentality is startling to me. I try to explain this to american kids and they just stare off into space. I go to vietnam and see people panhandling for change then heading off to use for internet access to download MIT lectures on engineering. I really fear for the young people in this country but wonder how to communicate in a way that they will understand what is happening in the world.
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just cuz Vietnam served us in war doesnt meen their people have immediate access to education ‘they lost the war’… so they get to beg for nickels to ‘read’ the internet for information on superconductivity ‘joke’… as a US citizen i dont know what US supremacy is worth, but as a self educated cyborg it must be at least 10x harder as a near illiterate
July 17, 2009 at 5:56 am
Talk about Evil Empire !!
http://www.russiatoday.com/Top_News/2009-07-16/Swine_flu_virus_began_life_in_a_lab.html
July 17, 2009 at 2:05 pm
I get it — US government manipulates its economic data and media publishes. Yet you believe that China doesn’t do the same? Is it a matter of degree?
Sounds like many believe that China can decouple from the global economic collapse. Or is it that China will weather better than US.
Are you saying that there is no economic bubble in China? Is it all “true growth?” Those millions of Chinese factory workers — they are all in a position to take the consumption banner from US?
Those failed debt auctions (3 of them) and riots mean nothing?
July 17, 2009 at 2:11 pm
Ahmadinejad: Iran will “bring down” Western foes
http://www.reuters.com/article/idUSDAH65258120090716
“But I have told the enemies … that this nation … will strike you in the face so hard you will lose your way home,” he said in comments translated by English-language Press TV.
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OK we get it, your nation of super badasses are having some sort of super badass contest ‘must be nice having no gay people’. So get your slappers out and start swinging you badass
July 17, 2009 at 2:57 pm
why the heck not try the url shortener .
to lazy LOL
July 17, 2009 at 3:12 pm
charlottemom
July 17, 2009 at 2:05 pm
sure china can fake numbers.. but the true fakers of data, out right fraud is the fed reserve the us govenment ,
The USA fake numbers and it destroys the world china may fake and it has no effect on you.
this is so egregioust hat the chinese and others are to the brink of their patience ,
do you read any thing but the western spin. and defend an emperial power in its constant lies of aggression,, both physically and monetarily
china now leads in autos , what did this do for ford and the usa.
p.s did you take a centila of time and read sinclairs take on china ,, .
so come on out .. you think china is a bubble will collaspe and they need american foolishness to keep buying their trinkets to survive .
elaine has a pretty good view and others.. does your china insite come for hands on experience, or western propagada?
balls of sting and sacks of mush
July 17, 2009 at 3:19 pm
charlottemom
Have you seen many US or European media articles that have ever had a good word for China?
Bubbles are built when monetary stimulation grows in excess of consumptive BASE. You can have overall sales down with an expanding consumption base when you have billions of people in your population of which a significant growing amount are entering the consumer BASE on a continuing basis.
You can have a lower percentage year to year entering with the number of people still growing significantly.
Westerners do not understand the China/India formula that defuses or makes their bubbles quite ineffective.
That is why Asia is in the process of overtaking the West – for both my own and my kid’s lifetime.
You are reading xenophobic and/or MOPE articles, both quite popular in the US and Euroland.
Jim
July 17, 2009 at 3:25 pm
isha,
- thanks for the post, it looks as though the U.S. is working to destabilize Xinjiang. If so, this is a dangerous game but that has never stopped us before.
Just look at the history of Iran to see how ruthless and effective the clandestine arm of U.S. might has been.
Iran wins regardless of which pipeline is built – AfPak or IPI (India, Pakistan, Iran). Russia loses with AfPak as this line will run to European markets ending Gazprom’s near monopoly.
Are the Israeli threats of military strikes and war games acting as an incentive for Iran to reach out to Europe? If AfPak happens, Europe would have a vested interest to avoid confrontation with Iran.
I don’t see why the U.S. is taking such risks and spending so much capital in helping Europe secure more energy – oh, wait, the U.S., like Europe, is run by the Bilderberg group along with the BIS.
Larry
July 17, 2009 at 3:27 pm
From Paul Roberts, former Asst Secy Treasury under Raygun….www.counterpunch.org
There is no economy left to recover. The US manufacturing economy was lost to offshoring and free trade ideology. It was replaced by a mythical “New Economy.”
The “New Economy” was based on services. Its artificial life was fed by the Federal Reserve’s artificially low interest rates, which produced a real estate bubble, and by “free market” financial deregulation, which unleashed financial gangsters to new heights of debt leverage and fraudulent financial products.
The real economy was traded away for a make-believe economy. When the make-believe economy collapsed, Americans’ wealth in their real estate, pensions, and savings collapsed dramatically while their jobs disappeared.
The debt economy caused Americans to leverage their assets. They refinanced their homes and spent the equity. They maxed out numerous credit cards. They worked as many jobs as they could find. Debt expansion and multiple family incomes kept the economy going.
And now suddenly Americans can’t borrow in order to spend. They are over their heads in debt. Jobs are disappearing. America’s consumer economy, approximately 70% of GDP, is dead. Those Americans who still have jobs are saving against the prospect of job loss. Millions are homeless. Some have moved in with family and friends; others are living in tent cities.
Meanwhile the US government’s budget deficit has jumped from $455 billion in 2008 to $2,000 billion this year, with another $2,000 billion on the books for 2010. And President Obama has intensified America’s expensive war of aggression in Afghanistan and initiated a new war in Pakistan.
There is no way for these deficits to be financed except by printing money or by further collapse in stock markets that would drive people out of equity into bonds.
The US government’s budget is 50% in the red. That means half of every dollar the federal government spends must be borrowed or printed. Because of the worldwide debacle caused by Wall Street’s financial gangsterism, the world needs its own money and hasn’t $2 trillion annually to lend to Washington.
As dollars are printed, the growing supply adds to the pressure on the dollar’s role as reserve currency. Already America’s largest creditor, China, is admonishing Washington to protect China’s investment in US debt and lobbying for a new reserve currency to replace the dollar before it collapses. According to various reports, China is spending down its holdings of US dollars by acquiring gold and stocks of raw materials and energy.
The price of one ounce gold coins is $1,000 despite efforts of the US government to hold down the gold price. How high will this price jump when the rest of the world decides that the bankruptcy of “the world’s only superpower” is at hand?
And what will happen to America’s ability to import not only oil, but also the manufactured goods on which it is import-dependent?
When the over-supplied US dollar loses the reserve currency role, the US will no longer be able to pay for its massive imports of real goods and services with pieces of paper. Overnight, shortages will appear and Americans will be poorer.
Nothing in Presidents Bush and Obama’s economic policy addresses the real issues. Instead, Goldman Sachs was bailed out, more than once. As Eliot Spitzer said, the banks made a “bloody fortune” with US aid.
It was not the millions of now homeless homeowners who were bailed out. It was not the scant remains of American manufacturing–General Motors and Chrysler–that were bailed out. It was the Wall Street Banks.
According to Bloomberg.com, Goldman Sachs’ current record earnings from their free or low cost capital supplied by broke American taxpayers has led the firm to decide to boost compensation and benefits by 33 percent. On an annual basis, this comes to compensation of $773,000 per employee.
This should tell even the most dimwitted patriot who “their” government represents.
The worst of the economic crisis has not yet hit. I don’t mean the rest of the real estate crisis that is waiting in the wings. Home prices will fall further when the foreclosed properties currently held off the market are dumped. Store and office closings are adversely impacting the ability of owners of shopping malls and office buildings to make their mortgage payments. Commercial real estate loans were also securitized and turned into derivatives.
The real crisis awaits us. It is the crisis of high unemployment, of stagnant and declining real wages confronted with rising prices from the printing of money to pay the government’s bills and from the dollar’s loss of exchange value. Suddenly, Wal-Mart prices will look like Nieman Marcus prices.
July 17, 2009 at 3:29 pm
payAttention,
I loved that video, Max Keiser is a refreshing voice of dissension.
How did you inbed the video? Could you provide a link with instructions to format wordpress?
Larry
July 17, 2009 at 4:09 pm
charlottemom
those three debt auctions mean nothing ) this means they may have to sell some of the two trillion of treasurys on the market . pushing the buck down faster , so really that debt market is western spin
riots ,, a land of 1 billion may have a riot or two.. inteernal stuff more western spin ..
whilst the riots here in america ,, are off camera
tow big balls of string and sacks of mush
July 17, 2009 at 4:55 pm
Read the Tract: “Plea for a New World Economic Order.”, which explains the nature and causes of economic depressions and proposes a plausible alternative solution.
July 17, 2009 at 5:30 pm
shalom P. Hamou
why this insistance to find the cure… when the cure is before our eyes ..
yes we can point out some flaws, some things that need tweeking ,, but why not try the very basis of of human action.
read all 980 pages of Reismans capitalism…
http://tinyurl.com/m63h8h
when we get to the point that the real nature of freedom is explained laws upheld ,,
no use trying to find a new utopia in my opinion we have a foundation already ,, just never practiced ,,
July 17, 2009 at 6:00 pm
All things must start on the foundation of solid understanding //
much of the wholesale mush we hear,,
Religion, economics, human relationships, being grounded in our own lttle reality,, gives expression of ..as w c terms it balls of string and sacks of mush.
like a shot out of a 12 gaugeshot gun scattering pellets of unknowing every where. in my very humble personal opinion. hitting knats with with a blast of hot air,
July 18, 2009 at 2:31 am
Elaine seem to “get it” whereas most others here do not.
The sign of strength is very clear, during the roaring 20s here there were no worker’s rights, riots and the economy was BOOMING
The problem with Xinjiang is simply the same with Tibet: it is simply too strategically important to be upset by a few million nomads. What do you do when nomads upset the rest of the civilization: yes you Exterminate them.
The fact that this has not happened means the problem is way LESS severe than the media make it out to be.
July 18, 2009 at 2:32 am
Again the difference between cultures
Here the squeaky wheel gets the oil, in the East it gets a bullet in the head
July 24, 2009 at 4:05 pm
Why are all these companies considered to ‘big’ to fail?
That would mean twitter and facebook are to big to ‘fail’ too considering how many users they have.
July 24, 2009 at 4:13 pm
Personal opinion here and I could give a flip if you care, but this is an open blog and all can post to their heart’s content.
A bunch of things that think they are “too big to fall” are about to get a commupance.
Up your ASS.
Got that Ms. Speaker. Hope so.
July 24, 2009 at 4:13 pm
@Florida Waterfront:
Had they been allowed to fail, much of the money that flows into the owned politicians re-election coffers would have dried up. Currently owned politicians would have had to find new benefactors abroad and at home. They were too big too fail, except for Lehman and BS who were the last semi-competitors to goldman sucks.
It’s all good now.
July 24, 2009 at 4:14 pm
And just to be ridiculously clear, I mean the non-speaker bitch from CA.
She is a chocolate drinker of lore.
This is WAR.
July 24, 2009 at 4:15 pm
“It’s all good now”
I doubt that, but time will tell.