Top 5 Investment Banks Want No Derivatives Controls At All

Wall Streets top 5 banking entities have been rescued by Bernanke and Uncle Sam and after recapitalizing themselves at the expense of the US public, they are back to their favorite work: using the Derivatives Beast to make themselves very rich!  They don’t want this market supervised or controlled because it is a splendid and useless way to milk $35 billion a year in fees and profits.  This disgusting market should be eliminated since it is obviously abusive and obviously dangerous.  And the top 5 investment banks should be broken up into much smaller entities.

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Wall Street Stealth Lobby Defends $35 Billion Derivatives Haul – Bloomberg.com

Wall Street is suiting up for a battle to protect one of its richest fiefdoms, the $592 trillion over-the-counter derivatives market that is facing the biggest overhaul since its creation 30 years ago. .

Five U.S. commercial banks, including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp., are on track to earn more than $35 billion this year trading unregulated derivatives contracts. At stake is how much of that business they and other dealers will be able to keep.

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“Business models of the larger dealers have such a paucity of opportunities for profit that they have to defend the last great frontier for double-digit, even triple-digit returns,” said Christopher Whalen, managing director of Torrance, California-based Institutional Risk Analytics, which analyzes banks for investors.

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And here it is!  The battle is over profits.  That is, the Derivatives Beast was supposedly created to protect bankers and investment houses from LOSSES.  Instead, they turned it into a glorious machine that creates PROFITS.  This deliberate misuse of the concept of derivatives goes to the very heart of the entire banking system today.  It is, incidentally, also the cause of the global financial collapse.  That is, once it ceased being used to protect entities from losses and became a vehicle for engineering great profits, it became the exact opposite of what it was in the first place.  And being totally opposite, it also was utterly devoid of any logic and therefore, could grow to infinity.

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Now, I notice that a number of readers of this blog have difficulty in understanding what I am and what I am trying to do here.  I am not here to make people richer.  I am not here to entertain.  I am also not here to massage various bizarre belief systems.  I am here to do system analysis.  The entire logic of system analysis is to notice something, set it into a logical ideological system and then to look at it from all angles and using scientific methods (thus,the endless number crunching, graphs, statistics, charts and references to past materials) and then to set it in a new ideological system which morphs all the time as incoming data changes things.

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I noticed over the years that people dislike morphing systems and prefer some sort of status quo.  Even an unhappy status quo is better than changing one’s mind.  This interior resistance to change is extremely powerful because this is how we evolved.  Our brains have a very powerful desire to get a status quo and then to hang on to it for all eternity.  This is also, incidentally, why we have revolutions. Things have to be very, very bad as a powerful status quo fails, for people to change. And they often over react.  For example, the Pol Pot people did this.  Like many science-deniers, they decided that anyone with an education was dangerous to their ideology so they brutally murdered anyone who had any education at all.  As a preemptive strike agains anyone who might dare argue with them.

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My own research here has been under heavy assault by people who cling to various belief systems that I find irrational or even malicious (the history of believers killing people is obvious, just look at Christianity, just for one very glaring example!).  The best way to win an argument is to kill someone. This is very ancient.  Even the Bible mentions this as an early form of human interaction. Even the Biblical god does this!  Repeatedly!

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Back to the Derivatives Beast: this is not a logical functional system.  It was launched in order to perform a function that was ‘good’ but quickly, the parties who created this monster realized it could be used to commit fraud.  That is, while pretending it is protecting all systems, it was actually used to LOOT all systems!  The $35 billion a year in PROFITS gained by gaming the system using this protective device is FRAUD.  Let’s look at this from another perspective: Say, we have police with guns.  They are supposed to protect the banks from robbers.  Instead, they learn they can use their guns to hold up the banks and keep all the money for themselves.  So they loot all the banks, the system collapses and there is chaos, destruction and a total collapse of society.

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This is why morals matter a great deal!  The police have moral obligations.  And so do the bankers!  Everyone has a moral obligation to defend, protect and help their society so civilization survives.  When the police, bankers, politicians, etc all decide the system exists to be looted, it collapses.  The bankers have collectively decided they love living in fancy mansions, owning fancy women (most of these guys are men) and using fast transportation.  They are addicted to living like princes and lords and want this to continue and get worse.  Like any aristocratic gang, they don’t care if the peasants are starving.  Let them eat cake!

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The entire derivatives market is being abused by bankers as a means for enriching themselves while producing nothing good.  Despite destroying the entire banking system, they still think they can leech out $35 billion a year, playing the rigged derivatives markets which has only one function: to create $35 billion a year in profits.  It has zero other functions.  We know this because just one event that triggered the swaps in this market led to the collapse of all of this market.  When the system failed in September, 2008 and AIG went down in flames, this signaled the end of the fiction that derivative swaps work.

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They don’t work at all.  So they should be terminated.  The quicker this termination, the shorter the pain.  And the big 5 banking entities that hold 98% of the derivatives can go bankrupt and we will not miss them at all.

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Mormons Become Victims in $50 Million Scam to Sell Gold Bullion – Bloomberg.com

Henry Jones delivered the good news in a conference call with Tri Energy Inc.’s investors: The gold deal the company had been working on for years was about to pay off. .

Jones, 55, a record producer in Marina del Rey, California, and his two partners had raised more than $50 million from 735 investors, which they said they were using to broker the sale to Arab buyers of 20,000 tons of gold owned by a group of Israelis. They promised to triple investors’ money — if only Tri Energy could overcome some last-minute glitches.

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Several things here: just like when I discuss vaccinations using logic and science, when I talk about gold using the same logic systems, I get yelled at by gold bugs who believe that all the news about gold has to push the ideology that gold is good and gold is going to go ‘up’.  I keep pointing out, if the goal in life is to get rich no matter what, one should join the derivatives market and play there. If the goal is to create a sane and healthy society, then we have to use all systems to balance all other systems and this means tossing out any ideology that depends on just one thing or another.

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Since the gold community is very deeply involved in emotional attachments, they are ripe for fraud.  Con artists love this sort of community because it is easy to get the confidence of the victims who then are ripped off.  The con artists in this particular story had a wicked sense of humor.  The idea that a group of Israeli Jews wanted to sell tons of gold to Arabs was the sort of storyline con artists love.  It is ILLOGICAL.  It is EMOTIONAL.  It is so outre, it can’t even be rationally discussed.  These con artists know that inside the Apocalyptic Christian community, there is a lot of credulous people who can’t think straight.  So they are ripe for harvesting.

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The fake business of Tri Energy is obvious: why should it be so difficult to sell Arabs gold?  Arabs have a very big gold market, just like India or China.  These markets have lots of formal and informal rules and regulations.  One major rule is, ‘Know your business dealers!’  That is, a web of marriages/social arrangements between clans has to be very solid.  The Hassidic community deals with diamonds this way.  Everyone knows everyone and can get at someone who tries to defraud the clans.

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On the other hand, outsiders are fair game!  Like the diamond markets, the official gold market is a web of relationships based on clan politics.  Outsiders enter this universe at their own risk. There is the overt, outside gold market where we know what the trading price is in the COMEX markets, for example, and recently I sold some gold this way and you look up the going price and make a deal while knowing the agent has to make a profit.

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People want super deals.  So these gullible Mormons were conned into believing that the Arabs who have been trading in gold for 2,000 years, don’t know gold markets and need Mormons and Jews to sell them gold in bizarre deals that end up with the Mormons and Jews getting greater profits than if they sold the gold in the open market!  HAHAHAHA.  Well, someone was set to make a profit: the Jewish guys conning the Mormons.  And this is definitely a ‘buyer beware’ story.

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I bet, with oodles of time on their hands in prison, the con men will figure out, they can go online and put up all sorts of stuff and expand on their con abilities this way.  It is quite common. Con artists live for the opportunity to ply their trade on the gullible public.  Which they can read like a book, of course.  Often, they are excellent analysts in a negative way.  That is, they are deliberately dishonest.

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China’s CIC wealth fund muscles up as markets recover | Reuters

BEIJING (Reuters) – China Investment Corp is investing as much overseas each month this year as it did in all of 2008, Lou Jiwei, the chairman of the $298 billion sovereign wealth fund, said on Saturday. .

CIC is counting on handsome returns this year and might one day ask the government to hand it more of the country’s record hoard of foreign reserves to manage, Lou, a former vice finance minister, said.

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When the US dollars were hoarded, they were not circulating or being used.  Eventually, they will reenter the markets and be used and this will change the value of the dollar and create inflation.  The Chinese are doing this slowly so they can retain maximum value of these IOU dollars before reintroducing them into circulation.  This also means, we no longer control our currency.  The Chinese control it.   And they hope to benefit from this control.  And we will not, of course.

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And the investment bankers who are abusing the $600 trillion derivatives market wish they also controlled this business.  And I wish we controlled the derivatives market.

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Mitsubishi, IHI to Join $21 Bln Space Solar Project (Update1) – Bloomberg.com

Sept. 1 (Bloomberg) — Mitsubishi Electric Corp. and IHI Corp. will join a 2 trillion yen ($21 billion) Japanese project intending to build a giant solar-power generator in space within three decades and beam electricity to earth. .

A research group representing 16 companies, including Mitsubishi Heavy Industries Ltd., will spend four years developing technology to send electricity without cables in the form of microwaves, according to a statement on the trade ministry’s Web site today. .

“It sounds like a science-fiction cartoon, but solar power generation in space may be a significant alternative energy source in the century ahead as fossil fuel disappears,” said Kensuke Kanekiyo, managing director of the Institute of Energy Economics, a government research body.

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This proposal was put before the US government and was rejected.  The US has basically decided to go backwards with our technology.  Like ancient Rome or Catholic Spain or a host of previous empires, we want the old status quo not new stuff.  The US space race has degenerated badly into simply focused on military applications that are focused on the Apocalypse (aka, WWIII). This is ideological: many millions of Americans think the Apocalypse will come.  They also ironically hope to protect themselves from it by controlling space with military operations that will prevent other nations from attacking us while we wipe them all out with our gigantic nuclear arsenals.

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As the rest of the civilized world works on new technology to deal with the looming Hubbert Oil Peak’s downslope, the US clings to the old system that assumes we will have endless energy to use to tool around in our cars and live in big houses, etc.  Note how our ruling elites live.  They need that $35 billion derivatives profits so they can live in this fashion.

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ENERGY: Pipeline Sabotage Blows Image of Stable Canada – IPS ipsnews.net

On Jul. 15, days after the most recent attack, the Dawson Creek Daily News received a handwritten letter, allegedly from the bomber, demanding that EnCana cease operations in area. .

“Return the land to what it was before you came every last bit of it… before things get a lot worse for you and your terrorist pals in the oil and gas business,” wrote the bomber. .

In a rare move, the Integrated National Security Enforcement Team (INSET), a mix of top law enforcement officials tasked with investigating the attacks, have posted the bomber’s handwritten letters on their website. .

At least 250 members of INSET – including masked men with high-powered machine guns and a sniper flown back directly from Afghanistan – have descended on the Peace River region of northeastern British Columbia.


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So, some people in Canada are the Taliban, so to speak?  The US and Canada and other G7 nations believe in killing peasants.  Pesky peasants protesting exploitation of their environment are to be ruthlessly hunted down.  They are to be KILLED.  Afghanistan exists as a training ground for government terrorists.  During the Irish Troubles, the British government used masked, armed men to terrorize the Irish people.  They even massacred demonstrators!  At the same time, if masked sharp shooters were to fan out all over Tibet and shoot anyone who was disturbing the exploitation of Tibetan resources, the US and UK and Canada would all be howling with rage.  How dare they do this!

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Well, all governments do this.  It is a function of the government.  Anyone who is using bombs to fix social problems is going to have to fight to the death.  If the general population supports this, we get an Afghanistan-type of situation.  The Chinese handle the Tibetans with gingerly care compared to the brute force we apply to the Afghanis because China is interested in holding onto Tibet, not turning it into a wasteland.

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In Canada, the native tribes that were brutally suppressed or killed during the 19th century and controlled in a nasty fashion during the 20th century, is still very rebellious.  And so the killing of the natives will resume.  Canada makes lots of money, selling this energy to the US.  If the government has to kill the people who live where these wells are in order to keep the profits flowing, it will.  All governments do this.  Any revolutionaries who take over, claiming to be doing this for the ‘people’ end up doing the exact same thing or worse.

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Indeed, since most mineral/energy prospecting tends to be in non-farming environments, this happens to also be where marginalized people are parked by governments or by habits.  And usually, exploiters and governments dislike sharing the wealth with mere peasants and primitive people who have no great political powers.  And nearly always, this exploitation is POPULAR with the majority of the public!  Whether it be a democracy or a dictatorship, the exploitation of mineral and energy reserves usually do not make the general population richer.  It often brings a great deal of misery.  This is one of the queer conditions of human systems.

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That is, the organizers and paper pushers are the ones who benefit.  The main place that the population can get a grip is in manufacturing/farming situations where LABOR matters the most.  And one is not isolated in distant, remote places.  So mass organization can flourish.

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61 Comments

Filed under .money matters

61 responses to “Top 5 Investment Banks Want No Derivatives Controls At All

  1. danL

    I don’t think that Bernanke was overly happy to recapitalize the banks. He hardly had a different option. Greenspan got his marching orders from Bush et al to keep the US public drunk on trinkets from China while they tried to secure US hegemony over oil supplies. If people really knew the true state of economy their reaction would change a depression into collapse. And don’t worry – the economy will grow again.

  2. CK

    Dan
    What will be the engine of this next economic growth?
    Financial services? ( outsourced to mumbai )
    Call centers? ( outsourced to hanoi )
    Tooling and engineering and design? (Bejing)
    New Gambling instruments ( Shanghai )
    Cheap energy ( ANWAR? North of the North Slope? Offshore Cuba )
    SUVs and Hummers
    Volts and Priuses
    Vespas and shoe leather
    Taking in each others used toys and used childrens clothes and reselling them on Craig’s list and Ebay?
    Houses for commuting immigrants?

  3. danL

    CK, yes at the moment it does look quite dismal. But people adapt – otherwise we’d still be in caves. I don’t agree with Elaine that tariffs or decoupling from international trade are the answer. Rather, I think a gradual change to some more sensible model will occur over the next 10 years. US has a mature economy. If I was a US policy maker, I would also try to suck the Middle Eastern oil as long as that option was reasonably cheap. By the same token – if China can make toys cheaper, let them do it. Eventually saturation will occur and things will rebalance. It’s not the end of the days.

  4. emsnews

    The plan to suck oil some more is a total failure. We can’t change over to a better system this way. This merely means we keep our present unsustainable status quo.

    We don’t have 10 years to fix trade. If we go back to ‘normal’ this means nearly a trillion a year in trade deficits! Ie; it will double the amount we already lost via free trade, that is, over $9 trillion in the red so far.

    No, we can’t fix trade slowly. This means bleeding to death. We can’t compete our way out of this mess unless we want to become a third world country. Already, great stretches of the US is now third world including the heart of a great number of our cities.

  5. tio

    “All government, of course, is against liberty. The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary. Most people want security in this world, not liberty.”

    “The most dangerous man to any government is the man who is able to think things out… without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable. It doesn’t take a majority to make a rebellion; it takes only a few determined leaders and a sound cause.”

    H.L. Mencken

  6. emsnews

    So, Mecken was a communist rebel? :)

  7. emsnews

    And what is ‘liberty’? In the US revolution, liberty was very bizarre. It meant, the right to oppress people and own slaves, just for one glaring example.

    All governments are dishonest. Which is why we have to periodically clean house just like we have to clean our own homes. Burning down the house and living in the street, on the other hand, is very stupid. Not to mention, painful.

    Having NO government means you get eaten by other governments who are more functional. The reason we have governments is to protect us from other governments, this should be rather obvious to anyone, I would think… on the other hand, there is a lot of people who live in safety who dream of ‘freedom’ who haven’t the faintest idea, what this is like.

    I have lived like that and know what it means. It is not fun.

  8. CK

    It’s not that China is making toys cheaper, also nails, screws, bolts, nuts, drill bits, and all the other small items that make an industrial production possible. It is that China and now India are making the high tech things that make tomorrow easier for those as has them. Not merely mid tech like plasma tv or mobos but the stuff that fusion is made from. And they are doing it in new plant. The age of the remaining american industrial plant is approaching old quickly.
    But on the good side, american public education is falling to equality with american healthcare. As much as I enjoy V for Vendetta, I fear that soon after I depart this vale of laughter, Idiocracy will become the profoundly accurate projection of the future. ( That is more along the lines of “Gee I sure hope it waits till after I am gone to come true.”, I suspect it is already true in certain pockets of the intertubes.)

  9. emsnews

    As you examine my cross examination of yourself, CK, you can see that your contempt for others is kind of misplaced.

    That is, you lack a mirror. You even deride ‘democracy’ on top of endorsing private execution vendettas involving torture, abuse, murder and blowing up public buildings.

    See how this operates in yourself? Now, you crawl under the ‘nihilism’ rock. While I endorse reforms and rational thinking. *ahem* :)

  10. danL

    Elaine, at least in the interim we have to suck some more oil out. I am not advocating that we continue with our wasteful ways. It’s just that US is like a big ocen going ship that even when it starts breaking needs 10 miles (years) to turn around.

    I worked in the oil industry for over 25 years. I know that oil companies and oil producing countries are all lying about how much oil is left. They have to. If you try to be honest others will take advantage of it. Oil is depleting quite rapidly and this will enforce change. 10 years is not too long. The trade deficits will diminish, I’m quite sure. Either Americans will become poorer and unable to buy imports or Chinese too expensive. Failing that the US still has the option, being almost a continent unto itself, to shut itself off and ride it out alone. Even in this scenario, drastic adjustments will have to be made. Still, India and China are hugely inefficient and this will not change quickly enough. There is still time…

  11. w.c.

    dan L

    if China can make toys cheaper, let them do it.

    china has the luxury of owning 95% of all rear earths , they are buying oil. energy..

    you think toys .. china will soon be producing hi teck, autos, manufacturing , air,,

    the pent up demand internally will bring china to the top of the economic system.

  12. danL

    w.c. Yes, China will produce hi-tech, you can’t prevent it. Does it mean that US will just roll over and die? Don’t think so. As long as Bush-Obama-… can hang on to the oil fields of the Middle East for the next 40 yrs or so, guess who wins?

  13. CK

    “See how this operates in yourself? Now, you crawl under the ‘nihilism’ rock. While I endorse reforms and rational thinking. *ahem* ”
    Shit woman, come up with something better than name calling and self aggrandizement.

  14. w.c.

    Dan L

    As long as Bush-Obama-… can hang on to the oil fields of the Middle East for the next 40 yrs or so, guess who wins?

    fat chance in hell
    the usa is a debtor nation,, what will they use to payoff the crooks in those oil fields

    canada , mexico believe it or not are the largest exporters to usa ..see the depleation of the mexican oil production

    china just bought a ton of oil there

    the usa with the leadership of folks like bush obzma are toast..

    the usa is having trouble clinging on to afganistan. one move to many watch the suez,, close ,.

    apparently you think zillions of debt backed thingos and unfunded promises .. are a good thing just hang on for 40 years lol

  15. CK

    When the Mob ( organized crime ) does a silent takeover of a legitmate business, they borrow all the money they can, sell stuff under cost, run up debts like mad, and then for the big blowoff they walk away and leave the lenders and the suppliers holding a bunch of worthless IOUs.
    What works on the micro scale daily, might work on the macro scale once.

  16. emsnews

    CK, that is how all crooks operate. This is why there has to be government regulations preventing the piling on debts. The normal route is to raise interest rates so people can’t dump debt.

    But we chose the other road: easy credit, money whenever we wanted, no questions asked. Perhaps I might suggest the Chinese will be like the Mafia when you run up debts owed to them.

  17. CK

    One country will be Mafia like as it blows out its stolen wealth and the other country will be Mafia like as it collects on those debts even if it must use Shylock’s values.
    You make my point most wonderfully, the modern state and a gang of thugs is indifferentiatable except for their diets.

  18. emsnews

    And your solution is to blow it all up? And replace it all with….(crickets chirping here)?

  19. CK

    Yes.
    Humans can decide how to screw up the future from a clean palate. Why tell folks what to replace it with. Maybe this time folks will try a little anarchyness.

  20. emsnews

    You sound like the End of Times people who want to start it all over again. Um, I hope you have a dim idea how much destruction this might involve?

  21. nah

    It has zero other functions. We know this because just one event that triggered the swaps in this market led to the collapse of all of this market. When the system failed in September, 2008 and AIG went down in flames, this signaled the end of the fiction that derivative swaps work.
    .
    MEGA POST!!! derivitaves are nothing if not modern banking… hedging loans via insurance… so what are loans if not a over indexed insurance policy that in the end turns a favorable profit via fees and cheap captiol into a tidy volume based profit… derivitives are so complex that most people just bitch about them and the 8 flavors of needless over managed decadence that in the end ’35billion a year of profits’ turns into AIG, UBS, GE, GM, JPM, Lehman, Bear, GS, and 2 trillion in MBS securities… something i want to coin a modern term for, net loss to the taxpayer
    .
    Elaine, at least in the interim we have to suck some more oil out. I am not advocating that we continue with our wasteful ways. It’s just that US is like a big ocen going ship that even when it starts breaking needs 10 miles (years) to turn around.
    .
    I dont much care about turning around… cheap oil is a modern tool that creates high volume cheap valuable science yet early in humanity’s eternal years… if we subdue oil in the name of windmills and production does fail it could be a 30 yr turn around, or as they say in the world of a great many commodities ‘poor finite resource management’… we need to get reasonably priced transportation alternatives moderately prepared to carry on the eventual failure of oil management… that and all the chem agriculture/alchemy that oil as well gleans into modern economys of scale… oil is the only real alternative to oil
    .

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    boob tube

  22. nah

    http://www.vanityfair.com/politics/features/2009/10/henry-paulson200910
    Henry Paulson’s Longest Night
    .
    And with that Paulson ducked into the private bathroom adjoining his office, closed the big paneled door, and audibly, violently, and repeatedly threw up. He emerged a moment later as if nothing had happened, but in a few minutes he did the same thing all over again. I asked if he wouldn’t rather stop, and resume our conversation another time. “That’s O.K.,” he said. “I’m just going to go through this all. I won’t remember it. You know, I barely remember the details now.”
    ….
    ??????????
    ….
    omg were doomed

  23. nah

    August 31, 2009: The Fed’s Interesting Week
    http://www.house.gov/paul/
    .
    His lending policies have left big banks flush with newly created cash that covers up old mistakes and allows for new ones
    .
    ron paul shall! ron paul shall!
    .
    i havent listened to this guy in like 4weeks… talk about manhood… i want to grow up and be ron paul

  24. nah

    Bailed-out bankers to get options windfall: study
    http://www.reuters.com/article/newsOne/idUSTRE5810O320090902
    .
    NEW YORK (Reuters) – As shares of bailed-out banks bottomed out earlier this year, stock options were awarded to their top executives, setting them up for millions of dollars in profit as prices rebounded, according to a report released on Wednesday.
    .
    subsidized tomfoolery… seriously this kind of crap gets old… legal is as legal does… and bailouts for 20BILLION DOLLAR COMPANIES is modern economics… pay me more for taking a shit after lunch

  25. nah

    w.c.
    .
    the usa is having trouble clinging on to afganistan. one move to many watch the suez,, close ,.
    .
    now that iraq is in a better position as a world leader in the middle east… we just start droppin’ one liners on TV to git’ out of afghanistan in 3yrs or less, aint no oil in there… so we just soak up the 1st most screwed up country on earth and deliberately ghost ship the 8th…. or whatever…
    .
    this is not only a war about oil ‘see tanks, guns, chemical weapons, power mongering’… its a war about the new oil war… whos going to juice iraq and turn their back on afghanistan..
    .
    hell they actually attacked us via proxy…
    .
    if this is an empire we need to SERIOUSLY start listening to ron paul, synergy as a buzzword is fine… however in international politics it just means blunders

  26. nah

    NATO is all about europe

  27. criticalcontrarian

    @nah: here are two examples of why the individual States of the Union should secede:
    http://tinyurl.com/m59v5j &
    http://tinyurl.com/naf6cp

    If the yahoos running the show would focus the resources and brain power internally rather than externally (Iraq, Afghanistan, NATO, etc.) it would best serve the people of America. However, contrary to popular belief, the US is only a government “for the people and by the people” in illusion, not practice. Since they own your mass reasoning power through their mass media interests, the elections are just the icing on a very fascist cake.

    But take heart, all the buried tech is going to come out; India, China, Brazil, and many others are no longer towing the menatlly challenged inbreds who have brought us to this point. If they choose to continue with oil, they will drown in it alone. No great loss.

  28. shockuhzulu

    “The best way to win an argument is to kill someone. This is very ancient. Even the Bible mentions this as an early form of human interaction. Even the Biblical god does this! Repeatedly!”

    Elaine, there are 2 sides to every story. I don’t suppose God would be much of a God if he simply asked us to lay down and be slaughtered by murderers. The Biblical record makes clear why war is a necessary evil in a demonic world. But you already know this, I’m sure.

  29. w.c.

    as an aside

    that senator reid and congress women , Polisie,,, show that both men and women can be complete idiots,,

    Can you imagine working for a company that has a little more than 500 employees and has the following statistics:

    29 have been accused of spousal abuse
    7 have been arrested for fraud
    19 have been accused of writing bad checks
    117 have directly or indirectly bankrupted at least 2 businesses
    3 have done time for assault
    71 cannot get a credit card due to bad credit
    14 have been arrested on drug-related charges
    8 have been arrested for shoplifting
    21 are currently defendants in lawsuits
    84 have been arrested for drunk driving in the last year

    ΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: HAHAHA.. And they are representative of the populace, aren’t they? :)

  30. criticalcontrarian

    @w.c.: you forgot to mention the stats are from a company called the US Congress. :-)

  31. w.c.

    c.c.

    Congress Mortgage Company lol

  32. Tbill

    Is a subject like term limits in congress an applicable example of keeping government more honest??? What are the drawbacks of such a ‘radical’ representative democracy change? The greek city states did this on a random service basis. How off the radar screen is this? Moreover, would there be a greater opportunity for (via the semblence of a more level playing field via fairer competition, if at all possible) domestic growth and possibly honest international relations or is the lynchpin to peace are six-term senators and kissinger-like influence each and every decade. The idea to bring out an old war horse when needed is absurd. What’s more integral to honest gov’t…. Audit the fed bill or term limit ratification?

    ΩΩΩΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: I seem to recall how the Greeks lost their democracy for 2,000 years. I suggest you read about it.

  33. w.c.

    tbill

    Audit ( get rid of the fed )the fed bill and term limit ratification?]

    turn off goofy entitlements of office. let them keep insurance they already have.. pick up tab for the year or 6 in office… no separate retirement programs . talk abour a special socialist arrangement lol

    limit running for office time max two months ,,, funds come from own district all else banned . note promises made in campaign .. provide an automatic revote if a committee of hard working barber shop clients vote positive. take any active shop at random lol.

    if they are found to take a bribe shoot um ..

    all in my very humble opinion

    ΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: all good ideas. We have to reform elections.

  34. flipspiceland

    Government of all types has grown like a tumor. Why?

    The solution, never to be applied in my lifetime I am certain, is for more self-sufficiency.

    Many have become all too eager to go to the government to ask for money to be taken from others to pay, for example, for day care for your children. In fact if you cannot pay to raise your children, realize that you having them is creating an unwanted burden on other people. By what logic or any thing fair and just is that to be tolerated? It may be out of style, but be ashamed, embarrassed, mortified if you cannot provide a financial cushion to raise kids. If you cannot, then go without them. The same for food and shelter, health care, and other personal costs that you want to “Socialize”. I feel absolutely no obligation to you simply because you want some thing or some one in your life, that you can with your vote force me to pay for.

    This is not to say temporary help should be denied to you. But a one or two year period has now stretched to 5 years, 10 years and generations living on the fruits of others, and with it a monstrous government dividing and multiplying exponentially to support and encourage it.

    Elaine:

    Re the $35 annual billion Derivatives Beast that the 5 IBs want. Any suggestions we can implement to stop it? Aside from some C4 in the 5 banks executive offices?

    ΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: Stopping the derivatives beast is easy: tax the bastards!

    About daycare, etc: Japan experimented with zero government help for families. They have to send children to private schools or pay extra schooling costs, they have little to no welfare for mothers, etc. And the entire country is now literally dying due to lack of children! Do you want that?

  35. charlottemom

    Regard bank options windfall for top execs headline

    Not just top execs but 2nd and 3rd tier executives were all sitting on gobs of underwater options — not anymore. That ginned up rally allowed many to cash out options. And explains the tremendous insider selling that has been going on.

    Regarding Cerebus rumored implosion — doesn’t really matter. The names (of the companies) may change, but players stay the same. Cerebus moved into GMAC into Ally Bank (backstopped and funded by the US gov) and these guys live to fight another day!

    Lastly regarding Danl’s notion that Bernanke didn’t want to recapitalize the banks but “had” to. Fed exists to first serve its big member banks — this is his mandate. The fed we are lead to believe. DOES NOT exist to serve the US first – it is not a federal agency like Americans are lead to believe

  36. emsnews

    Correct, Charlottemom.

    And thanks for the Cerberus link, Tom. HAHAHA. Going under, I see. Good news.

  37. flipspiceland

    @Elaine

    What I want is for comparisons to countries like Japan, with a population less than two of our large states, to stop because they are meaningless and for policies directed at growing the population or manipulating it thru financial incentives or disincentives to stop.

    I don’t expect to get what I want, as I stated. Only a return to relative self-sufficiency is going to work in the long run. We can begin that journey now or have it thrust upon us when the producers are finally so encumbered that they can no longer sustain themselves and all the others with a simple vote to claim a share of the other’s efforts, and a government growing faster to enforce it.

    It is proving inevitable as deTocqueville said that once it is discovered that in a democratic form of government one can simply vote themselves whatever sustains them, that democracy will fail.

    Salvation now or damnation later. I know what I would choose.

    Japan will now experiment with leftist, socialist tinkerings and that will last for a number of years until the producers in that microcosm decide they have had it. Then what?

  38. illuminator

    “Flip” provides a typical example of this site’s commentators. US Media clowns–none of whom read Japanese–describe Japan’s DPJ as “socialist” or “left-wing”, so Flip who accepts diction and precepts unconsciously from the Media then repeats and thus provulgates the Media’s description. As I demonstrated with my recent exposing of JSmith, commentators here unconsciously and unhesitatingly accept any matter provided by the Media; these commentators then define and describe themselves as “independent thinkers” only by just reacting to the Media’s opinions by assuming the Media’s opposing position, but still the Media provide these cattle with all the matters and all the perceptions and all the diction. Independent cogitation requires discipline, labor, and capacity; humans have always been divided into those who cogitate independently and those who unconsciously accept all from the others, and humans have always been divided into masters and slaves.

  39. flipspiceland

    @illuminator.

    Sometimes independent thinkers use the media jargon, the linguistics of the media’s opinions in order to make their points understood to the reader.

    One could just be more specific. As I understand it, the people who elected the new government in Japan have decided they want more that they cannot get on their efforts to be given to them by their new government. They want to vote to themselves that which they have thus far been unable to earn.

    Perhaps in exposing us you now might relay what your cogitation has provided you re: the new government, sans labels, means for Japanese citizens. Specifically.

  40. emsnews

    Japan’s new government is certainly more socialist than the LDP which was pure corporate entity rule.

    As for comparing ourselves to Japan: Japan’s landmass is small but its population is about 1/3rd the size of the US which is pretty big. And it is the 3rd economy on earth. We are the same relative to China: 1/3rd of China’s population, actually less than one third!

    But we are still the #1 economy while China is #2. So we compare China, the US and Japan since the three share certain things in common beyond what other countries have. Ditto, the EU.

  41. illuminator

    Whatever any here define as “socialist” or “left wing” doesn’t pertain to either Japan’s foreign or domestic policies. EMS as usual depends on Media to provide matters and interprets these matters through a prism that includes an ineptly narrow spectrum. The matters that define Japan’s policies include Japan’s imperial position, its technology, consumer markets, commodity markets, trade routes; events now that manifest these interests include China’s replacing US as world’s largest consumer market, changing sources of crude as mature fields deplete and nascent ones are developed, among others. Whatever political party dominates the Diet doesn’t change Japan’s interests, world matters or events: prime minister Kaifu changed nothing in Japan as an opposition leader, and today’s DPJ is still run by a very conservative Ichiro Ozawa–certainly not a “socialist” or “left wing”. A Scandinavian commentator recently provided an opinion on the cause of US’ class-based healthcare system–an opinion not given by US Media: US healthcare differs from Scandinavia’s, as whites don’t want to pay for blacks’ healthcare. Scandinavia–while it doesn’t have an original civilization–like Japan developed without brutal occupations and consequent brutal oppressive class systems. Using the US Media’s “labels” such as “socialist” or “left wing” assists the Media in dominating the perceptions of cattle, but those labels don’t assist at all in comprehending what’s really occurring now.

  42. emsnews

    Who said Japan was socialist? One the narrow scale in Japan, the LDP is far right wing and the opposition party is the middle. But the COMMUNIST party in Japan is growing rapidly! Which I reported. I read a lot of Japanese news written by the Japanese as well as having readers there who email me periodically.

  43. criticalcontrarian

    Two very significant events have transpired with severe implications, this week.
    1. The State-owned Assets Supervision and Administration Commission of the State Council of China (SASAC), told Chinese companies they do not have to honor derivatives and commodity futures contracts made with Western financial institutions.

    2. Hong Kong has recalled all its physical bullion reserves from its London depository.

    These guys are now walking the talk. The body language clearly indicates a complete lack of trust in the Western financial system, not to mention a clear signal that the manipulation of commodities markets to pull one over the Chinese through derivatives trades has been detected. It’s getting real interesting real fast.

  44. w.c.

    three \

    ems is making us think lol

  45. criticalcontrarian

    w.c. you’re uncorrigible! lol.

  46. criticalcontrarian

    in in in incorrigible. heh. Oh and I would venture to say the DPJ sacking the LDP would be another. Lot’s of decoupling going on, eh?

  47. w.c.

    cc

    decoupling

    4) did you know that some wasps in fits of agony . ejaculates into the tongue orchid .. and thus been bamboozled by the lovely porn of the natural world,

  48. w.c.

    p.s. from latest national geographic

  49. w.c.

    cc

    the trouble is we think we think

    The Hound of Heaven by Francis Thompson

    I fled Him down the nights and down the days
    I fled Him down the arches of the years
    I fled Him down the labyrinthine ways
    Of my own mind, and in the midst of tears
    I hid from him, and under running laughter.
    Up vistaed hopes I sped and shot precipitated”.

    we pray but God prays in us

    part of the rosetta stone of understanding

    whom hath ears let them hear lol

  50. emsnews

    Thinking is a pain in the ass. Or done down there depending on the individual.

  51. CK

    @CC:
    http://www.marketwatch.com/story/hong-kong-recalls-gold-reserves-from-london-2009-09-03
    For the improved efficiency of the trading sector of course. Not even a hint that HK and other Asian players might be finding anything western a wee bit unhealthy.

  52. criticalcontrarian

    “I will leave on one side everything I can think, and choose for my love that thing which I cannot think! Why? Because he may well be loved but not thought. By love he can be caught and held but by thinking never.” ~ (The Cloud of Unknowing)

    Real knowledge is beyond mind and Maya. :-)

  53. criticalcontrarian

    @CK: how does that saying go? “Actions speak louder than words”. However, I found this interview with Marc Faber interesting. What do you think? He seems to think there is still a ways before implosion.

  54. w.c.

    Thinking is a pain in the ass

    yes a big pain .. see where all thinking has got us so far. lol

    and your thinking has got you where ?

    i think their for, “i think i think” ..

    wc … opens out a way for the inprisioned splender to escape ..(come into view) thinking is the mud lol

    into each life a little mud must flow

  55. CK

    He’s a little behind the curve on buying bank stocks ( and AIG ) for short term profits. The trick is knowing when to get back out of course.
    And if the government “don’t go bust” the next time around, they will go bust the time after that or the time after that time.
    Who on earth would have faith in the US administration? Good question. Bernanke a total joke, well of course, that is why he will be re-appointed instead of Ron Paul.
    Ok so buy a farm and a machine gun. Or learn gunsmithing and survive in style.
    Australia will be a chinese colony soon enough, after years of being an english colony. No great loss.
    Ok I listened to the whole thing. He is hedging because he is an economist. Economics is not a science, it is the realm of the three handed argufier. On the one hand but on the other hand … If you laid all the economists end to end you would never come to a conclusion. ( you would however end up with a decent approximation of the Worm Ourobouros ).
    I think the domestic US economy is strong in a few subdivisions, not so strong in most and risible in the rest. The only place in the USA where there is serious job growth is Washington DC. By definition, government jobs are not productive jobs.
    OH in another thread commented that he is seeing $3 a bushel for Iowa corn, yet Mexico is importing zillions of tons of Monsanto GM corn because of their drought, and everbody and his monkey wants to grow corn for ethanol for gasoline additive. Corn liquor is more profitable. EMS sees a potential for a bottom up revolution in Japan, I don’t see the numbers or the motivation among the non working non reproducing japanese for revolution. I read and accept that the vast rural population of China is advancing in its wealth. I suspect that China will eventually sing that old world war one/ Spanish flu song: How you gonna keep ‘em down on the farm, after they’ve seen Paree ( Bejing )?

  56. criticalcontrarian

    Actually I was a bit surprised at his 5-10 year timeline for total collapse/war. I felt he was soft pedaling it too much. But this guy is usually on the money. Something smells and its not Vacherin d’alpage.

    Bottom up revolution in Japan, hmmm, I’ll have to call that one in 3 months, lets see how the DPJ does in its first quarter. And you are right about their motivation. But I am watchful of their elite families now that they have declared their “independence”. Lets see where that goes. They are bringing in a lot of foreign students and allowing them work visas after they finish schooling. They will loosen up their immigration policies.

  57. CK

    CC says: “They are bringing in a lot of foreign students and allowing them work visas after they finish schooling. They will loosen up their immigration policies.”
    The one does not follow from the other. The japanese have some problems with the idea of immigration, they have lots of problems with integration, just ask the Ainu.
    Granted my exposure was long ago and limited, but if memory serves, the Japanese believe they are superior to the Koreans and the Chinese, and vastly superior to the rest of the nationalities/races. The Chinese believe they are superior to the rest of the Asiatics and vastly superior to the rest of the nations/races and have 4000 years of history to back up their conceit. The Koreans believe likewise as do the Vietnamese and the Khmer. And each of these nationalities has something that supports their conceits. I was surprised to find that their was a nasty outbreak of anti-black activity in Guangzhou ( China’s chocolate city ) just recently.
    http://www.mg.co.za/article/2009-08-24-out-of-africa-and-into-china-emigres-struggle

    http://www.chinatravel.net/forum/Guangzhou-Guangzhou-Chocolate-City-Africans-Seek-Their-Dreams-in-China/1499.html

    As for the 5-10 year timeline, if he is too early he is a “Chicken Little”, if he is too late he is “Just another guy riding the wave”. It’s tough being a prognosticator of economics. If it doesn’t happen however, he can go on being a famous economist. Being wrong loudly is a requirement to be a pundit.

  58. If you are not now a believer, I encourage you to explore this message. ,

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