Global 0% Deflation Grips Banking Systems

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The US has been split, first by the slavery/no slavery issue which led to the biggest, deadliest war we ever had. 

Then, after the Civil War, Jim Crow was imposed upon the former slaves and this racist system spread like wildfire until the entire United States exercised this rule across the entire nation. The struggle of the economic victims of racist apartheid is called ‘the Civil Rights Movement’ and many other, less brutally discriminated groups like Asian or Jewish communities, joined in this epic battle to become full citizens. The Republican Party was founded by abolitionists. The Democratic Party was founded by slave owners. Now, over the last 50 years, the composition of these two parties have switched with the GOP becoming the Southern Party and the Democrats, the Northern Party.

 

 

Elaine Meinel Supkis

emeinel@fairpoint.net

Miz Japan killing the yen

Miz Japan killing the yen

 

 

 

 

 

 

 

 

 

 

 

 

I have to rush out of the house today to deal with medical issues within the family. So I am posting, with little commentary, today’s news. Will add to this later when I come home.

Zero Rate World May Lie Ahead as King, Trichet Cut

(Bloomberg) — The age of free money may be at hand. 

As major central banks slash interest rates with unexpected speed, benchmark borrowing costs are now below core inflation for the first time since the early 1980s, and policy makers are signaling they will go deeper.

Yesterday’s cuts by the Bank of England and European Central Bank, which came with the Federal Reserve and Bank of Japan on the cusp of zero rates, are a bid to shock life back into their recessionary economies and strained money markets. It may be an uphill battle as consumers and businesses show greater interest in saving than spending, and banks hoard capital rather than lend it.

 

 

 

 

 

 

This is what I feared: the Japanese system sucking down all other systems. The existence of a zero percent top central banking mode is a great black hole that now is driving everyone into the same pit. This system cannot exist for very long as is. The articles all talk about people ‘saving’ money.

 

They are not.  Money is vanishing.  Not being saved at all.

 

 

 

The central bankers struggle with this downwards force.  I keep saying, the Derivatives Beast will consume all banking wealth that is denominated in digits.  Numbers are magical entities and the Derivatives Beast has all the inner characteristics of all demonic creatures from the Outer Darkness.  It is advertised as being safe even though it is now painfully obvious, this thing is exceedingly dangerous.

 

Attempts at explaining away the devouring nature of this hungry, hungry beast has not soothed investors.  This is simple: investors clearly see their money vanishing.  It is not being transfered to other places.  It is simply vanishing.  Since all fiat money is made out of thin air and waving of magic wands in dark crypts, it can vanish the instant all the exterior forces cause the flow of money from working people to falter or even cease.

 

This is also why I keep saying, the fundamental basis of all monetary systems is human labor.

 

BOJ Helpless as Yen Rises on Carry, UBS, Barclays Say

(Bloomberg) — The Bank of Japan may be powerless to prevent the yen from rising to a 13-year high, according to the world’s biggest foreign-exchange traders.Deutsche Bank AG, UBS AG and Barclays Plc predict the yen will recover from its steepest weekly decline since 1999 as investors reduce carry trades that fund purchases of higher- yielding assets by borrowing in Japan. The currency will appreciate to 90 per dollar from 97.74 today in Tokyo even if the Bank of Japan intervenes to stem the biggest annual gain since 1998, they said.

 

This is a total catastrophe for Japan.  I have explained this in the past and since time is pressing today, here is earlier remarks I made exactly one year ago:

 

More Wizards Of Finance Fall Off Cliff

Starting in 2000 with the super-duper cheap Fed Reserve loans via Greenspan, the big financial houses like Goldman Sachs and Merrill Lynch and Citigroup all rushed into the Alt-A, etc mortgage/CDO markets. This chart clearly shows they put all their eggs into these mortgage baskets and they enjoyed record profits during this time span. This isn’t a situation where a leader made a ‘mistake’. This is a classic case of someone at the Central Bank opening the vault and letting looters inside. Now the vault is empty and all the former geniuses who were toasted as great financial wizards are stuck there with money stuffed in their pockets but no exit. 

Miz Japan tries to kill the yen yet again.

Miz Japan tries to kill the yen yet again.

So the ritual slaughter of these bulls commences. We will see all the heads of all the great financial houses roll. But the next step must be to arrest them for fraud and other crimes and put them in prison. But if we step even further back to look a the global financial picture, we see clearly who should be arrested: the heads of the governments doing all this, the heads of the international banks, the very people at the very apex of this massive pyramid scheme that was set up to loot the world by imposing an amazing amount of unpayable debts on top of the economic system.
*snip*

Year*USA CD Rate*Bank of Japan’s Rates
US Japan
1970…..7-8%……5-6% (Note that they are high but close)
1971…..5-3%……5.25%
1972…..3-6%……4.25%
1973…..5-9%……5-7%
1974…..9-12%….7-9%
1975…..7-6%……8-6%
1976…..5-4%……6-4%
1977…..4-6%……6-4%
1978…..4-9%……3%
1979…..9-13 %…4%
1980…..13-19%..7-9%
1981…..17-13%..6-5%
1982…..13-8%….5%
1983…..8-9%……5%
1984…..9-11%….5%
1985…..8-7%……5%
1986…..7-5%……4-3%
1987…..3-7%……2%
1988…..6-9%……2%
1989…..9-8%……3-4%
1990…..8-7%……5-6%
1991…..7-4%……5-6%
1992…..3%………5-4%
1993…..3%………3%
1994…..3-6%……2%
1995…..5-6%……1%
1996…..5%………0%
1997…..5%………0% (Note: The Asian Banking Crisis began)
1998…..5%………0%
1999…..4-6%……0% (Asian Banking Crisis Ends)
2000…..5-6%……0%
2001…..5-1%……0% (Note: 9/11)
2002…..1%………0%
2003…..1%………0%
2004…..1-2%……0%
2005…..2-4%……0%
2006…..4-5%……0%
2007…..5%………0% 

 

We just went through one of the worst global inflationary waves I have ever seen.  It was an absolute tsunami caused directly by speculators of all those hell hound hedge funds seeking desperately to make profits in the teeth of the Derivatives Beast rearing his ugly, massive head.  

 

The US government allowed the US people to be looted for one year.  This is very much like a typical medieval king allowing troops three days of looting when taking a city.  Then order is restored but the people have been utterly devastated.  The people who pay our politicians huge sums to do their bidding were allowed this wonderful boon.

 

This failed completely.  The Derivatives Beast ate every penny gained by this massive commodities bubble.

 

The privateering funds failed.  After destroying the savings of nearly everyone on earth, they are now defeated by the very nature of the creatures that inhabit the Cave of Wealth and Death.  The goddess of Inflation was released to do her worst.  She slew everyone in her path.  Now, as I expected, the goddess of Depression is rising from her throne and picking up her own sword, is destroying jobs.  

 

She reads Marx’s ‘Das Kapital’ in German during her idle hours.  She knows very well that jobs in the manufacturing value-added industrial base is the basis of the growth of wealth.  So now, she stalks the planet, killing off manufacturing jobs.

Here is another story at Culture of LIfe News from half a year ago:The Japanese Markets Drop Like Rock

 

The yen continues to defy all efforts of not only the Bank of Japan but also all the Japanese carry traders, rising again and again against the dollar and even the euro.

 

Dollar Declines Against Yen for Third Day on Drop in U.S. Jobs

(Bloomberg) The dollar dropped 0.5 percent to 97.28 yen at 8:51 a.m. in New York, from 97.75 yesterday. The U.S. currency depreciated 0.8 percent to $1.2813 per euro from $1.2715. The 15-nation euro increased 0.3 percent to 124.60 yen from 124.29. 

U.S. employers eliminated 240,000 jobs last month after shedding a revised 284,000 positions in September, the Labor Department reported today. The median forecast of 78 economists surveyed by Bloomberg News was for a decline of 200,000 in October. The unemployment rate increased to 6.5 percent.

The number of Americans receiving unemployment benefits surged to the highest level since 1983, the Labor Department reported yesterday. A total of 3.843 million workers got unemployment-insurance checks in the week ended Oct. 25, up 122,000 from the prior week.

 

The goddess of Depression hates workman’s compensation and unemployment insurance.  I must warn everyone of this: any politician who claims we don’t need this or Social Security is someone in love with this dire goddess!  And trust me, there are many such people stalking the land.  They don’t care if everyone falls off the cliff.  For some people do very well in depressions.  

 

Labor is cheap and money becomes increasingly valuable.  And debts, harder to pay off.  We see this with the negative equity business in housing.  If inflation leads to hysteria, deflation leads to suicide and despair.  Inflation leads to war and depression leads to revolutions, I might suggest.

 

Here is some statistics from the Bank of Japan for October:

 

Sources of Changes in Current Account Balances at the Bank of Japan and Market Operations
(preliminary figures for October 2008

 

Banknotes 1 -11,185 406
Treasury funds and others 2 -39,045 -26,294

 

 

Surplus/shortage of funds 3 -50,230 -25,888
BOJ loans and market operations 14,860 -5,055

 

 

Net change in current account balances -35,370 -30,943
  Net change in reserve balances -32,380 7,675
Amount outstanding                     

Banknotes, end of month
(Average)
BOJ loans, end of month4
766,115
(756,035)
9,610
755,892
(749,865)
0

 

Increasingly in the red.

 
Bank of Japan: Outlook for Economic Activity and Prices
(October 2008)

Economic activity in Japan has become increasingly sluggish due to the effects of earlier increases in energy and materials prices and the leveling-off of exports. Compared with the interim assessment conducted in July, both exports and domestic private demand in the first half of fiscal 2008 seem to have been weaker, against the backdrop of a slowdown in overseas economies and a decline in real purchasing power reflecting deterioration in the terms of trade.The Bank’s projection from the second half of fiscal 2008 through fiscal 2010 is that increased sluggishness in economic activity will likely remain until around the middle official 2009. During this period, domestic private demand is likely to be relatively weak due mainly to the earlier deterioration in the terms of trade. Exports are also expected to weaken somewhat against the backdrop of the slowdown in overseas economies and the appreciation of the yen.

Thereafter, the growth rate is expected to pick up gradually, as the effects of earlier increases in energy and materials prices abate and overseas economies move out of their deceleration phase, although the timing is likely to be sometime after the middle of fiscal 2009.

The rates of real GDP growth for fiscal 2008 and fiscal 2009 are likely to be around 0 percent and around 0.5 percent, respectively, and the growth rate for fiscal 2010 is expected to be around the potential growth rate.

 Forecasts of the Majority of Policy Board Members:

  • —————-Real GDP —-Domestic CGPI —- CPI (excluding fresh food) 
  • Fiscal 2008:……… +0.1 to +0.2…. +4.3 to +4.8……….  +1.5 to +1.6 
  • Fiscal 2009:………..+0.3 to +0.7 …-1.4 to -0.4……….. -0.2 to +0.2 
  • Fiscal 2010:………..+1.5 to +1.9….-0.3 to +0.5……….+0.1 to +0.5

     

 

The Japanese see little growth in their economy in the future.  They are one of the top 4 economies of the world.  Their bizarre economic system is now undermining the entire planetary system.

 

It is not all their own fault, either.  It is the fault of the US playing this role of passive consumer of global trade goods.  We want to be consumers, not producers.  We imagine we can run huge trade deficits to the trillions with no downside.  The dynamics of all this is now running into a wall.  This wall is the inability of the US consumers to take on more debts.

 

We hit this wall full tilt last year.  As the speculators drove up all commodities, this wiped out the finances of the mass of consumers.  Many Americans used up all their available future credit, paying for things we need to run our society.  Food, fuel and other necessities ate up all discretionary incomes and drove many people straight into bankruptcy.  Bankruptcies, when they get severe enough, are trademark indications that the goddess of Depression is at work.

 

Strong Yen To Erase Y690bn From Toyota’s Profit


Toyota’s profits are devastated by the strong yen:

NAGOYA (Nikkei)–The yen’s sharp gains against the dollar and the euro are expected to erode Toyota Motor Corp.’s (7203) operating profit by 690 billion yen for the year ending March 31, dealing a heavy blow to an automaker already squeezed by lackluster demand and sky-high materials prices. 
Toyota Continues Bold R&D Push Despite Earnings Slide

NAGOYA (Nikkei)–The leading carmaker is determined to keep investing heavily in R&D, tapping its ample cash on hand, even though it expects group operating profit for the current year to plummet 74%.

Stock crash hits luxury spending

Want Rolex, cheap? Lots of Tokyoites trying to unload their bling and things 

 The effect is noticeable in the Roppongi district of Tokyo – a bastion of nightlife for the high-rollers who toil in finance and information technology as well as for entrepreneurs and other members of Tokyo’s nouveau riche. Foot traffic is falling off.

 

Il Mulino New York, an Italian restaurant in Roppongi Hills, a landmark commercial complex where the Japanese unit of Lehman Brothers Holdings Inc. was headquartered, has experienced a sharp drop in the number of diners who apparently work in the financial sector. WDI Corp., which operates Il Mulino as well as other restaurants, suffered a 4.7% year-on-year fall in same-store sales in September.

A former Lehman Brothers Japan Inc. employee in his 30s offered an anecdote that helps to explain the falloff. “I don’t eat out in the evening as often as I did while I was at Lehman and had to wait around for midnight video conferences with officials in New York,” he said.

 

 

Japan had a fake depression last year.  Now, it has become quite real.  The collapse of interest rates in the world is not a good thing.  Nor will it restart lending. Why lend money when people simply use it to go bankrupt?  It is impossible!  So lending collapses in depressions.  

 

US Treasury wants to borrow record 550 bln dlrs

The fourth-quarter borrowing estimate was substantially higher than the 408 billion dollars announced in July, and is a record high for quarterly estimates, a Treasury official said. 

“The increase in borrowing is primarily due to higher outlays related to economic assistance programs, lower receipts, and lower net issuances of state and local government series securities,” the Treasury said in a statement.

The Treasury said the federal government had borrowed 530 billion dollars from the markets in the third quarter. Of that amount, 300 billion dollars was borrowed for the Federal Reserve’s Supplementary Financing Program, launched in mid-September in a bid to support the ailing economy.

 

I got an email today about the collapse in the growth of global reserve funds.  During the last commodities inflation surge, we saw these things grow like mad in all the OPEC countries as well as countries selling all sorts of raw materials.  Now that manufacturing is collapsing, this is ending.  China built up its gigantic reserves because they knew that they had to have this as a cushion for the inevitable manufacturing contractions that seem to come every 8 years or so.  They are prepared, unlike the US which held less and less in reserves over the last 35 years.

 

Since China and Japan are no longer plowing vast trade profits into buying US debts, the US government is lending to itself.  Peter is lending to Paul who is the banker for Peter and who has decided that debt is money and Peter has no intention of paying any of this future debt which is why it is piling up.  Still!  

 

The excuse here is simple: during bad times, governments should spend to restart things.  But the reality is equally simple: the US refused to pay its own bills when the economy was booming.  Taxes were continuing to be cut while spending shot upwards.  So during the last bubbles under Bush, our national debt doubled.  

 

This was deliberate.  The architects of all this wonderful mess said openly, they hoped to use up all our joint credit so they could ‘drown government social programs in the bathtub.’  And so it is!  They are drowning us deliberately and with full malice.

 

U.S. Carmakers Said to Seek $50 Billion in U.S. Loans

(Bloomberg) — General Motors Corp., Ford Motor Co. and Chrysler LLC, strapped for cash as sales plunge, are seeking $50 billion in federal loans to help them weather the worst auto market in 25 years, a person familiar with the matter said.The package would be $25 billion for health-care spending and $25 billion for general liquidity that could be delivered in different ways, including short-term borrowing from the Federal Reserve, said the person, who asked not to be identified because the plan isn’t public. In return, the companies would be willing to take steps such as granting stock warrants, the person said.

 

Toyota’s profits are falling like a rock.  But they are still solvent. Our own industries are not solvent at all.  Note how they are asking Congress to bankroll the health care benefits of auto workers!   Insane.  Time for national health care.

 

Ford Has $2.98 Billion Operating Loss as Sales Plunge

(Bloomberg) — Ford Motor Co., with U.S. sales shredded by the worst financial crisis since the Great Depression, posted a third-quarter operating loss of $2.98 billion and said it used up $7.7 billion in cash. 

The per-share operating loss of $1.31 was wider than the 93-cent average of 10 analyst estimates compiled by Bloomberg. Ford said it would trim more salaried jobs by January, deepen its fourth-quarter production cuts and shrink capital spending by as much as 17 percent.

 

No system can run in the red forever. No government can run in the red forever. No trade deficit can run forever. No system can run on 0% interest. The new government in DC has to wrestle with this while trying to deal with the Derivatives Beast. Cox, the head of the SEC, is going to be removed from office as soon as possible. And Paulson will also be kicked to the curb. We can only hope that more people are removed.

 

 

 

 
But fixing this mess will be painful, not happy. We are now in the embrace of the very deadly goddess of Depression. Inflation is easy to control: raise interest rates. Depression is slippery and nearly impossible to kill. Not if she is allied with the Derivatives Beast.

29 Comments

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29 responses to “Global 0% Deflation Grips Banking Systems

  1. Pingback: insurancesitesfind » Blog Archive » Global 0% Deflation Grips Banking Systems

  2. nah

    one hell of an operation’

    http://www.cahrecords.com

    vote your paycheck

  3. Didn’t Biden say something about all this publically on the Senate floor? I think he did. Perhaps this bodes well….perhaps not.

    Nah – what the hell are you advertising?

    Peace,
    Ken

  4. Hey Elaine – do you really think miss goddess depression is allied with the big-bad, falsely created, calculus-foolishness, derivatives beast? This beast has no ally. This beast just follows the rules, and that is why life will prevail – hopefully human life, but of course, time will tell.

    Peace,
    Ken

  5. Blunt Force Trauma

    Emanuel Was Director Of Freddie Mac During Scandal (ABC News)

    http://abcnews.go.com/Blotter/story?id=6201900&page=1

  6. Yep, my recollection is that Emanuel was in the midst of much. Much involing not defending the Constitution. Thats just my recollection.

    Peace,
    Ken

  7. drkrbyluv

    GM looks to be hopelessly gone regardless of attempts to prop them up.

    “GM’s estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business. Looking into the first two quarters of 2009, even with its planned actions, the company’s estimated liquidity will fall significantly short of that amount”

    Press Release –
    http://biz.yahoo.com/prnews/081107/clf042.html?.v=101

    *~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~

    “The strange case of falling international reserves”

    “As of August 2008, as you can see from the graph, according to Alex Tanzi International Reserves were growing at the explosive annual rate of 26.5%. Suddenly, since August, Reserves have stopped growing.”

    “In August, they were just under $7 trillion expressed in dollars, though “paper” Reserves are made up not only of dollars, but also euros, British pounds, Japanese Yen and a smaller quantity of some other currencies.”

    “It seems to me that when a huge number such as $7 trillion suddenly stops growing, it must indicate that something very serious is going on.”

    “I’ll leave you with this question: what is the significance of the drastic change in the growth-trend of International Reserves, from explosive growth, to the sudden beginning of a contraction?”

    http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?fiidarticulo=89

    *~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~

    I think we are fast approaching the end game. The architects of the global banking system have been well aware for quite some time – that simply cannot be questioned.

    The bigger question is why have they chosen to hide the truth?

    Their intent is to position themselves so that when the crash comes, we not them, are caught holding the bag for a massive fiscal failure that they created.

    Their liabilities are quickly becoming our liabilities and our assets are becoming theirs theirs.

  8. Course I suppose he’s been a “representative” of Chicago. So this begs the question. What is it? Chicago or Israel? I suppose it doesn’t have to be one or the other, but I know what I think should be the priority. Plus, all this duel-citizenship bullshit is getting boring.

    Peace,
    Ken

  9. I was in the Chicago area a few year ago (another family reunion). Zion I think was the name of the place. Most interesting. Beautiful coast and a community with much potential in my humble opinion.

    Hey, do you believe NC vote Obama – who’da thunk? US NC folk got some spunk.

    Peace,
    Ken

  10. Blunt Force Trauma

    The New Trough (by Naomi Klein as appears in Rolling Stone)

    http://www.rollingstone.com/politics/story/24012700/the_new_trough

  11. Blunt Force Trauma

    I may have to change my prediction that GM won’t see 2010. Unless they go hat-in-hand to the Fed and get some casino toilet paper. But even that will be a temporary measure.

    GM loses $2.5 billion in 3rd quarter; cash reserves getting critically low (freep.com)

    ‘General Motors Corp., teetering on the brink of insolvency, reported a net loss of $2.5 billion and burned through $6.9 billion in cash in the three-month period ended Sept. 30.’

    Full article:

    http://www.freep.com/article/20081107/BUSINESS01/81107028/1210/BUSINESS

  12. Blunt Force Trauma

    Ford Has $2.98 Billion Operating Loss as Sales Plunge (Bloomberg)

    ‘Ford Motor Co., with U.S. sales shredded by the worst financial crisis since the Great Depression, posted a third-quarter operating loss of $2.98 billion and said it used up $7.7 billion in cash.’

    I wonder how much both Ford and GM have used up since the 30th of Sept. until now?

    Full article:

    http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aysNwuvCVmpw

  13. Blunt Force Trauma

    Last, but not least….

    RPT-Chrysler cash drains away as crisis deepens – sources (Reuters)

    Reuters felt that this was an important enough story to have re-posted it to today.

    ‘Chrysler LLC is rapidly burning through cash and being driven to prepare for a possible break-up if it can’t clinch a merger with General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) or get government funding needed to ride out the economic crisis, people with knowledge of the situation said.’

    No. You will go bankrupt, streamline and if that doesn’t work; shut it down. Your time has ended.

    http://www.reuters.com/article/etfNews/idUSN0641626220081107?sp=true

  14. DeVaul

    Nice website, but I had just gotten used to the old one. Not your fault. I still don’t know what happened to cause you to change servers.

    I found an industrial sized calculator to figure up the future tax burden on our children from the bailout and the attached pork.

    First, I subtracted 84 million “baby boomers” plus about 16 million “happy days” generation type people from the population since they will mostly die before the bill comes due.

    That leaves about 200 million: our children and young adults who will face the full force and fury of the bailout and the dark money handouts.

    700 billion divided by 200 million comes to 3,500 dollars for each man, woman, and child.

    If we use 2.5 trillion, the real amount, it comes to 12,500 per person not including interest, which I assume will be around 5%.

    This is what our government and 50 million Americans who voted for McCain are dumping on our children.

    Each child born today is automatically 12,500 in-the-hole — at least. They will not be able to start repaying their debt burden until they are at least 12 years old. By then, the compound interest on their debt will have made it mushroom to something far beyond their reach.

    When children are born into a system such as this, they are born as slaves, in my opinion.

  15. I’m starting to think they timed this meltdown to drive us babyboomers into an early grave from worry and stress. This whole thing is nightmarish. Did you see the jobless numbers today? Yikes! I have enough inner resources to cope but I fear that many people are going to have a tough time ahead, psychologically as well as financially.
    Hope all is well with your family, Elaine.
    Buffalo Ken, nice avatar!

  16. Blunt Force Trauma

    Krzcat said:

    “Did you see the jobless numbers today?”

    Abysmal and depressing aren’t they? Want to know how those numbers are worse? The way they come up with those numbers has nothing to do with accuracy. They are based on surveys. or samplings. If anything, the ‘reported’ numbers of jobless are much, much higher. Sort of like inflation. ‘They’ say 6%. It’s closer to 14% since ‘they’ don’t factor in food and fuel costs.

    From Bureau of Labor Statistics:

    ‘The Current Population Survey (CPS) is a monthly survey of households conducted by the Bureau of Census for the Bureau of Labor Statistics. It provides a comprehensive body of data on the: labor force, employment, unemployment and persons not in the labor force.’

    http://www.bls.gov/cps/

  17. Blunt Force Trauma

    Senor Hopey Changey Unicorn Man went to the Fairy Dust store for a new supply.

    Obama Vows Quick Action on Economy Upon Taking Office (Bloomberg)

    ‘President-elect Barack Obama vowed to confront the faltering economy “immediately after” taking office in January, and called on Congress to pass economic stimulus legislation including help for small businesses and an extension of unemployment insurance.’

    Thats cryptically general and sounds to me like he’s going to honour any and all corporate welfare requests and anyone else that needs welfare assistance. Hmm, how to pay for it all. If there is anything left to give out in three months, that is.

    -snip-

    ‘ He urged Congress to pass an economic stimulus package during a “lame-duck” session between now and the end of the year. If lawmakers don’t act, it will be the “first thing” he gets done after his inauguration on Jan. 20.

    “We are going to need to see a stimulus package passed either before or after the inauguration,” he said.’

    Yeah. Good idea, because the last one for $700 billion (the banking bailout bill and which was redacted) that you pushed for and voted ‘yes’ on back in September worked out oh so well, huh?

    Full article:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=ahCjmEsfIPto&refer=home

  18. criticalcontrarian

    Now even the gamblers are taking a hit! That is a huge service industry, more layoffs on the horizon. http://tinyurl.com/5jqjty

  19. criticalcontrarian

    More on Obama’s pick for Chief of Staff:
    http://www.opensecrets.org/politicians/summary.php?cid=N00024813

    and, Obama’s Chief of Staff Pick Took Campaign Contributions from Wall Street
    http://tinyurl.com/6p5vr5

  20. Pingback: Global 0% Deflation Grips Banking Systems « Culture of Life News

  21. Pingback: Global 0% Deflation Grips Banking Systems « Culture of Life News

  22. emsnews

    Sorry about all the changes here. Am experimenting with the systems.

  23. Blunt Force Trauma

    Can’t say I trust Emanuel’s motives either, C.C. Emanuel also wants kids/youth to engage in mandatory gov’t service. Whatever that is or means. Launch of the Brown Shirts?

    Here is something similar to which I posted earlier today that outlines his directorship over at Freddie Mac, which I find most amusing that Mr. O(we) is surrounding himself with problematic people. Emanuel has been described as a ‘Zionist war monger’ on almost every other site I’ve read today.

    Rahm Emanuel Hall of Shame * Open Thread (No Quarter)

    http://www.noquarterusa.net/blog/2008/11/07/rahm-emanuel-hall-of-shame-open-thread/

    Obama’s chief of staff choice favors compulsory universal service

    Rep. Rahm Emanuel of Illinois, President-Elect Barack Obama’s choice for chief of staff in his incoming administration, is co-author of a book, The Plan: Big Ideas for America, that calls for, among other things, compulsory service for all Americans ages 18 to 25. The following excerpt is from pages 61-62 of the 2006 book:

    “It’s time for a real Patriot Act that brings out the patriot in all of us. We propose universal civilian service for every young American. Under this plan, All Americans between the ages of eighteen and twenty-five will be asked to serve their country by going through three months of basic training, civil defense preparation and community service. …

    Here’s how it would work. Young people will know that between the ages of eighteen and twenty-five, the nation will enlist them for three months of civilian service. They’ll be asked to report for three months of basic civil defense training in their state or community, where they will learn what to do in the event of biochemical, nuclear or conventional attack; how to assist others in an evacuation; how to respond when a levee breaks or we’re hit by a natural disaster. These young people will be available to address their communities’ most pressing needs.”

    Or they’ll simply be used against you to force you to comply if you don’t submit!

  24. emsnews

    testing this particular design. Please be patient with me.

    I didn’t like the typeface of some of the designs I used before. The last design had a TERRIBLE comment section type style that was literally unreadable.

    I don’t like the yellow quote boxes and hope to alter that somehow.

    Anyone who wishes to give me feedback on all this, feel free. I am on the phone with a reader who is checking this out for me, too.

  25. criticalcontrarian

    Hey Blunt Force how goes it? Are you enjoying the bumpy ride? It’s going to get a lot bumpier, check out these vids:

    Max Keiser – Comex default in december, $2000 gold in a day

    Medvedev speech – 061108

  26. dffacti

    I know people – small time Democrats, but devoted party loyalists and contributors, nonetheless – who have met Rahm Emanuel. He is a jerk, but he doesn’t pretend to be anything but a jerk. He is completely ruthless and pragmatic. Taking a look at the OpenSecrets link provided by criticalcontrarian, I see that his biggest financial sugardaddies are investment firms and banks. Oh, what I could say here … Suffice it to say that Ritchie Daley – whom I used to like – is a turncoat laissez faire neoliberal Plutocrat – or lover of same – and Rahm Emanuel is the exemplar. Money buys power, however, and perhaps Obama will use some of his power to aid the people of the United States and not just the corporations and his wealthy backers. I hope to God he sees that the ‘centrist’ approach – in other words, standing for absolutely nothing – is what doomed the Democratic party. The Republicans stand for something – whether we agree or disagree. If Obama blows this chance, he’ll be a one term curiosity and the D’s will get creamed in the mid term elections.

    David Brooks was saying last night that this election was a validation of so-called conservative values. Amazing but true. No, this election was an assertion of liberal values. The people hammered by this economy and the Darwinian social order aren’t going to cotton to Robert Rubin/Hank Paulson Wall Street protectionism. This is no longer an intellectual debate, but a gory war.

    And the sight of the Clinton leftovers makes me ill. They inspire me not one iota.

    Ugh.

  27. emsnews

    This was NOT a revolution. The status quo still stands. Expecting a revolution when the effects of a massive collapse barely have manifested themselves is just not possible.

    We shall see if the Obama/DNC team can stop this disaster. Time is running against everyone. If things go badly, this will be after Year Three of any great downturn. Remember: in the Great Depression, people were not nearly so agitated in 1931 as they were by 1933. We are still in 1931, basically.

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