ΩΩI am under tornado watch today. Had to run around tying down stuff and preparing for high winds. My dying oak tree that is 1,000+ years old is like a great oak galleon in full sail as all the leaves are still on and there is a considerable crown to this mighty dying tree. And it is sailing along in the raging forest as high gusts of wind tear at it. Our economy is like this tree: the biggest on earth and it is sailing in high winds but these are tearing it apart and it is dying. And no one at the top is even slightly interested in fixing the riven hull where the water is pouring in.
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ΩΩChina and Japan have been at each other’s throats lately and this is no surprise: both are farming out the same pastures and both have the same tactics. Only, China has nukes whilst Japan has proxy nukes thanks to the US. China Wants Japan’s Apology After Boat Captain Freed (Update2) – Bloomberg.com
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ΩΩJapan blinked first so China upped the ante. Getting apologies from Japan is like pulling teeth, of course. It took half a century for Japan to apologize to a portion of various extreme war crimes. So this demand for an apology is a test to see how weak the Japanese really are. Japan rejects China’s call for apology, compensation over collision.
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ΩΩJapan seldom pays compensation for much of anything. The Chinese know this better than anyone since the biggest Japanese war reparation obligations is with China. Instead, the Chinese are forcing the Japanese to cling even harder to the US. The US stupidly thinks this is a great thing! Oh, goodie gum drops, everyone! A drowning first world nation suffering from more than one decade of depression is clinging to the US which is…ALSO DROWNING!
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ΩΩEver see a drowning person pull everyone else under? Usually, you have to take charge and force the drowning person to cease struggling and then they have to be passive while you swim safely to shore. But if the drowning person is busy knifing you in the back, and your trail of blood is attracting a million sharks and these sharks are all eating every limb from your body, this is called ‘a bad thing’.
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ΩΩChina also knows the US is drowning along with its good buddy, depression Japan. China’s GDP continues to climb at triple or more the rate of either the US and Japan. Put the GDP climb of depressed Japan and depressed USA together and you get about half of China’s GDP climb. Seeing clearly, thanks to learning about this (ahem, in my home in New Jersey 25 years ago!) the Chinese know that diplomatic and military power grows out of the barrel of a capitalist value-added, industrial production system. So, China tells U.S. to keep out of South China Sea dispute.
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ΩΩThe US stupidly thinks that China’s barking at us and Japan is a sign of weakness and not strength. We bark at Iran all the time, we bay to Iran’s moon and keep the neighbors from sleeping but this is because Iran is much weaker than the US. The US occasionally woofs at China and then gets slapped on the nose with a rolled up Xinhau newspaper. We then run to the Japanese and hope they will bite the Chinese but Japan is thoroughly cowed or rather, dogged. That is, every time they even make a soft growl towards China, the door to China slams shut and they know they are beggars, not rulers like they are in the US which they, along with the Israelis, pretty much run at their pleasure.
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ΩΩAnd here is more proof: China holding 4 Japanese for illegally filming military targets › Japan Today: the Japanese arrest a Chinese person for being in the wrong place so a bunch of Japanese tourists or even perhaps spies, we can’t tell, are also arrested. Russia loved playing this game with us and even today, will happily play it. It may amuse Langley folk and KGB refugees but it doesn’t do anything real. Our ‘security’ is like swiss cheese due mainly to foreign powers owning our darling corrupt congress and of course, being super-duper buddies with our darling international investors and bankers who are really pirates.
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ΩΩThe end of the fight over the disputed islands was Japan’s surrender to the bigger, stronger power: Japan bows to China’s pressure over isle row: foreign media and here is the Japanese take on all of this: China’s rise, Kan’s inexperience behind Beijing’s action on isles › Japan Today: Japan News and Discussion
China has ‘‘more cards in hand than the Japanese as their economy is largely dependent on China,’’ Zhou Yongsheng, a professor of Japanese studies at China Foreign Affairs University, was quoted as saying in the Monday issue of the China Daily. ‘‘China should take strong countermeasures.’‘
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ΩΩThe Japanese read the Chinese loud and clear because unlike 10 years ago, China now has great power over both the US and Japanese economies. You know, many ‘Japanese’ stuff we buy is made in China for Japanese corporations! This is why hitting China on exports is totally stupid since a lot of these happen to be US or Japanese corporation products! We have to strike at the head, not the foot! Japan is 100% against the US raising barriers even to Chinese goods since much of this is now Japanese products. And so Japan wants to clip China’s power by strengthening the currency and the US stupidly goes along with this scheme even though 50 years of trade show clearly, money values does nothing useful if this is pure paper since it is by definition, being manipulated outrageously, anyway.
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ΩΩThe US can weaken its own dollars by hyper-printing them and we did for a long time but not hyper-enough since we need to import oil and thus, need a strong dollar or our driving culture will ride off a cliff like that Segway Company Owner. By the way, that thing was supposed to be perfectly safe but it isn’t, obviously, if the person using it is a total idiot. And our own economy has many gyroscopes which suppose to keep it upright and it is ‘upright’ only it was also driven off a cliff, quite as stupidly.
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ΩΩHere is a cool list of deindustrializing facts: 19 Facts About The Deindustrialization Of America That Will Blow Your Mind. Instead of producing stuff we use, we went for producing debt we could use to buy this stuff made in China. As with ALL real estate debt bubbles, this was classic: most of the loans were made to ridiculous clients such as illegal aliens, people who were in prison, bored housewivesNew Proof Wall Street Knew Its Mortgage Securities Were Subpar: Clayton Execs Testify.
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ΩΩAll real estate bubbles require reckless bankers. Minus the bankers being reckless, no real estate bubble. The flood of ‘free money’ as ‘assets’ on bank ledgers is the principal cause of all of this: all these crummy, obviously demented loans were treated as great investments which would be paid back. But just as we learn as young adults to never lend money to a drunken or druggie friend, so must bankers be taught not to lend to obviously bad debtors!
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ΩΩThis emphatically includes the US. China and Japan have something huge in common: both hold oodles of our national debts as well as private debts and both are watching us discuss giving ourselves ever-greater tax cuts at a time when we can ill afford this and China has a very vested interest in not lending to us so we can expand our immense military! The social collapse ‘tax cutting’ has caused is immense: it is all due to inflation and a refusal to index inflation in taxes so the ‘representatives’ can index taxes via ‘tax cuts’ which makes them popular but none of this works if our expenditures expand faster than revenues: we go bankrupt.
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ΩΩThe EU is a failed confederation which is doomed to failure along the economic lines of all previous confederations: EU Set a Secret Group to Save the Euro – WSJ.com. Oh, can I guess who these secret people who created a secret group are? How about BILDERBERG groupies! Duh! Of course! And their obvious modus operandi is to be very secretive and their goal is to save themselves and their lust is for power, money and control of vast populations while being puppeteers who pick and choose ‘leaders’ of all countries while controlling the banking systems.
Forbes list: America’s super-rich get richer – Telegraph
With 83 people on the list California had the most billionaires of any state, followed by New York with 64 and Texas with 45.
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Most of those on the list generated their own fortunes, with 272 described as “self-made.” The finance and investment industries remained the most represented sector on the list with 109 billionaires.
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Only three billionaires were linked to the car industry and experts said it was further evidence of the decline of manufacturing.
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ΩΩMaking a fortune as a speculator, trader or banker is OK…IF this is tied to increasing production and manufacturing! When it happens in a vacuum or in the case of the US, a huge sucking sound removing jobs and destroying industry and commerce, this is called ‘looting’. The people doing this should be arrested.
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ΩΩThe usual desperate measures: Fed Prepared to Ease Further to Revive Economy (Update3) – Bloomberg.com. They love to talk about this over and over but make no moves to raise protective barriers and to punish international bankers who are looting us. Only when we figure out we are being looted, can we stop pirates from stealing everything. What we really want is ZIRP loans with a very slow payback schedule. This silly solution is the #1 solution next to destroying the currency so we can’t buy a stick of bubble gum.
Bloom Dumps Wall Street to Pursue ‘Worker Capitalism’ (Update1) – Bloomberg.com
“This ‘Made in America’ message is less an economic strategy and more a political strategy to shore up the base heading into the November elections,” said Griswold, who characterizes the move as protectionism doomed to backfire.
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“If we import less, there are fewer people who can buy our exports,” Griswold said. “You can’t double exports by closing markets….”
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…Bloom, who wore out a 1997 Ford Taurus (and replaced it with a 2003 Ford Mustang) making the 258-mile commute home to suburban Pittsburgh each weekend to spend time with his family, says he’s not trying to return to the good old days when manufacturing was king. “I’m happy that Americans have more time to go to the movies than they did 50 years ago,” he said. “Some of the decline in manufacturing is a good thing. But all of it is not a good thing, and some of it is a very bad thing.”
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ΩΩThis is a guy who is creating ‘worker capitalism’? HAHAHA. He should read Marx first. Once he understands how stupid he is, he can figure out how to learn how to not be so stupid. Manufacturing is the Golden Key to wealth and the only way workers can contest with capitalists to get a piece of the pie is to unionize and fight back, literally and quite viciously. They can’t do this unless they can enlist the government to do this via ‘protectionism’ which means labor can’t be offshored, outsourced or reduced to piecework. You can’t organize the world or control foreign governments but you better be ready to try to fight to control your own government.
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ΩΩSomething we seem woefully unable to do. The left wants to worry about everyone but the US manufacturing worker and the right outright hates the industrial workers and works hard to destroy their unions, ship out the jobs and in general, cut these guys down to size which is very, very small.
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ΩΩObama is fixing the Democratic base by attacking it over and over again: Obama Calls Out Democratic Apathy: ‘Inexcusable,’ Irresponsible’. I hope this apathy ends with a bang. It will. Why he is doing this is rather funny, who does he think we are, the Taliban?
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ΩΩHere is this man in his natural element, entertaining his bosses: Obama’s view of liberal criticisms: last night, Obama spoke at a $30,000 per plate DNC fundraising event:
“Democrats, just congenitally, tend to get — to see the glass as half empty. (Laughter.) If we get an historic health care bill passed — oh, well, the public option wasn’t there. If you get the financial reform bill passed — then, well, I don’t know about this particularly derivatives rule, I’m not sure that I’m satisfied with that. And gosh, we haven’t yet brought about world peace and — (laughter.) I thought that was going to happen quicker. (Laughter.) You know who you are. (Laughter.)
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ΩΩHe and his AIPAC handlers fixed the Derivatives Beast by saving it using US taxpayer funds. It is very much alive and is laughing its head off and it intends to eat us all up and destroy all banking, it nearly did when it was still under $60 trillion and when it reaches $120 trillion, we can all use our dollars to burn as fuel or buy a loaf of bread with a wheelbarrow load of paper money. Gold has been going up and up as the Derivatives Beast laughs.
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ΩΩU.S. financial bailout chief resigns and Rahm Emanuel, White House chief of staff, expected to resign is a sign that the ship of statist quo is sinking. AIPAC tore a huge hole in Obama and turned him into a raving warmonger and they got all they wanted which is a right to do whatever they want and they now have zero interference from any President in their running of Congress. But too many people are pissed off so they will now run out of all the exits they dug or chewed through walls and will be replaced with much lower level people who can’t stop the mess and who will be attacked relentlessly by the Zionist press and Obama will wonder why he is so unpopular as the media hammers him and he flails back at the reporters who are nearly all, now that they ditched Helen Thomas, all Zionists.
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ΩΩLarry Summers On The Economy: ‘People Aren’t Going To Live With Their Parents Forever’: this clown talks about the inevitable ‘cycles’ which happen to be ‘credit bubble/crash’ cycles and which the stupid Federal Reserve was supposed to stop and didn’t stop and he won’t stop and someone stop me before I tear out my hair. In Japan, kids are no longer leaving home because they can’t afford to leave home and this leads to a collapse in society and here we see the same thing at work: it is a crisis. Summers should be put on a melting iceberg and pushed to sea.
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ΩΩObama hired this heartless thug to run our economy on behalf of his Goldman Sachs buddies. We see a total political stalemate on both the right and the left and foreign powers own our political parties. And here is the result: Poll: Over half of voters dislike both Dems and GOP | Raw Story. No kidding! The right has their Tea Party which is a GOP clone and the left has…absolutely nothing. Worse than nothing, many of their leaders really don’t like the concept of ‘citizenship’ and are as anti-protectionist as any Wall Street billionaire and so we have no help in that quarter.
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ΩΩAnd here is Obama’s solution: Obama Announces New Approach To International Development At UN Summit. All he had to do was go there and yell, ‘ALL of you run trade surpluses with my nation! I am going to stop this NOW!’ That is, act like the Chinese. Take charge. Change something big. Stop the red ink. Stop the wars. Stop babysitting Israel. Stop NATO. Just stop it. Please. Time is running out. China plans to be three times bigger than our economy in 50 years. They won’t even have to bother growing to do this if we collapse.
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Culture of Life News 
When any subdivision of mankind builds something “Idiot Proof”, Mother Nature creates a better idiot. Just possibly, if some of mankind created stuff that took a smarter human, Mother Nature would create better humans.
Is there a proverb similar to our dutch proverb ( litterally translated) ‘the rats are leaving the sinking ship’ ?
some old stuff, very actual
http://www.atimes.com/atimes/others/trade-war.html
Here is an article that might scare you, Elaine, given that you want to avoid WWIII. It seems the super rich would rather have a war than give up some of their ill-gotten wealth. This seems to mesh with their behavior throughout history.
http://www.silverbearcafe.com/private/09.10/onecard.html
It’s sad that a tiny number of psychos can unleash so much destruction and suffering.
china is playing for the same team
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that were dumb enough to take the money that we give them
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if theres no integrity required of power dont hold your breath waiting for the next hitler… he already won the war in the name of the master race
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we can run forever
The US is the USSR, in that it is in a sclerotic “holding onto the past” pattern, but cannot change until there is a revolution to oust the old “apparatchiks” who cling to power. In the USSR it was the communist setup that was the power center; in the US it is the Wall St/ military complex. The US did not “outspend” the USSR to win the cold war. The USSR fell apart due to its internal rigidity. And yet this is exactly what the bail outs and so on are trying to do; to freeze in place the failed system of crony capitalism. It becomes clearer that this similar path will lead in a similar direction.
@ adamm
Re: …The USSR fell apart due to its internal rigidity. And yet this is exactly what the bail outs and so on are trying to do;…
I agree..its all self interest, lack of imagination, leadership and dogma.
The Chinese with their 3,000 years of recorded history still go thru the same civilisational boom-bust cycles.
I guess we can’t help ourselves…crazy stuff.
The WSJ today has a frontpage headline on the soaring price of gold, and the major headline on the “Money” section is “Currency Wars”. It is all about Asian countries trying to kill their currencies, but the only real villian is ….. China!!!!
You know, the Kaiser and Germany had no real interest in the assassination of the arch duke, but because of signed treaties (foreign intanglements), they were sucked into a war that ruined them. So were France and England and Russia.
Japan will suck us into a war with China. Their leaders do not care about the survival of the Japanese people and never did. They are merely peasants to be used and then tossed in the trash. They will start, or try to start, WW III before they truly kowtow to China, and we are the stupid empire that has no skin in this game.
Just finished reading the back pages of the WSJ. As Elaine has pointed out many times in the past, the 0% Japanese loans were not available to ordinary Japanese, instead, they were serviced by a corrupt banking cartel that charged interest rates as high as 29% or more. They are now declaring bankruptcy in order to avoid paying back the overcharged interest to those they defrauded after a 2006 Japanese Supreme Court ruling declaring their activities illegal.
The consumer lending industry in Japan went from a 10 trillion yen a year business to a four trillion a year business. Wow! A 60% drop in fees and interest payments. No more yachts and harems for the Samurai export bankers, and no repayment to those who were swindled.
Japan’s export overlords have run out of people to rob. China took away their lucrative carry trade scheme by buying yen and now their own court system prevents them from robbing their own citizens blind.
When rich people lose some of their immense wealth, they go nuts. They don’t care how many people die so long as everyone is punished for their financial losses. Japan’s elites are losing money just as fast as western elites, so I fully expect them to bang the drums of war.
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/29/AR2010092904734.html?hpid=topnews
House slaps China on currency policy, deepening trade dispute
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WOW… i know theres some pissed of chinese, but look either we all take some practical steps tword real trade… or just WING IT in the modern world
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im expecting inflation now tell you what, but this is overall a plus for US growth… if we want immigrants and not migrants, theres got to be an American Dream, and i see this as the first step away from the bottle of dependency
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next step is getting crooks in prison when they commit retail fraud
boy checking the web MASS chinese sympathy… like what gives
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its BAD if Americans screw the taxpayers and manipulate the DOLLAR…
but the chinese DESERVE to manipulate the DOLLAR and screw the US middle class because we are honorable???
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dude ITS CHINA!!! NOT ALASKA!!! you betcha’, why is anyone having a pitty party for our enemy during korea and vietnam when THEY ARE TRYING TO SCREW US…. TREASON!!!
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bet there all atheists too
I had to work very hard this last few days getting ready for winter.
Thanks for the stories. I had them on my computer but couldn’t sit down to type up my remarks. Yes, the typical depression wars are now commencing. And yes, this means empire versus empire. Not mere attacks on helpless midgets like Iraq or Iran.