Paulson is back in the news to tell us that it is all the fault of the Chinese that we don’t save money and did you know that the Chinese, not the Federal Reserve idiots, determine our interest rates? And so, they forced us to go ZIRP ourselves because they refuse to spend money like we spend money? HAHAHA. And the Federal Reserve wonders when the bail outs will end! I say, when we hand over our nation to the Chinese leadership, I guess. After all, they control everything, don’t they? HAHAHA.

The Raw Story | Paulson ‘blames global imbalances for credit crisis’


Outgoing US Treasury Secretary Henry Paulson said that a failure to address the rise of emerging markets and resulting imbalances was partly to blame for the global financial crisis, according to an interview published Friday.

Paulson told the Financial Times that imbalances between fast-growing nations which save, such as China, and those who spent were at the root of the problem.

He said that in the years leading up to the crisis, savings from nations such as China and oil exporters — at a time of low inflation and booming trade and capital flows — exerted downward pressure on yields everywhere.

This pushed down interest rates and drove investors to riskier assets, sowing the seeds of a global credit bubble that extended beyond the US subprime or high-risk home loan market and eventually burst.


Paulson delivered this speech in his usual dead-panned way.  Like Greenspan, he can actually tell us what is real but not explain his role in all this reality nor his failures which made this reality a total hell.  Bush does this a lot, too.  I expect Obama to do the same stupid thing.  ‘I see dead people’, may be a start for people who are delusional.  But it does nothing about how these drivers of events creating dead people, are operating.  


So, according to the guy who is bailing out all his banking gnome buddies, one element of the fiscal meltdown is ‘the rise of emerging markets.’  HAHAHA.  Not free trade.  ‘Emerging markets’ didn’t unbalance US trade.  The US trade problem began some time back.  When China was embroiled in the Cultural Revolution, for example.  Back at the dawn of our deepening trade crisis, it was specifically Germany and Japan who were running ever-bigger trade surpluses in value-added manufactured goods beginning in 1968.


Paulson, of course, will not mention this history nor the fact that these two nations were some of the world’s biggest manufacturing giants of the first half of the 20th century.  In the second paragraph of this idiotic story, Paulson continuously attacks China.  Not Germany nor Japan.  Both Germany and Japan have had nearly continuous trade surpluses with the US since 1968.  China didn’t have one until after 1996.  Eh?  That is recent.  


Next, the criminal gnome blames China AGAIN…for saving too much.  And blames OPEC, while he is at it.  And, as always, does not mention the #1 saver, Japan, who was #1 until 2004 when China finally overtook Japan.  And only this year, did China beat Japan when it came to buying US government debts.  Next, Paulson goes totally off the cliff:


The Chinese caused our own interest rates to fall!  And that squeezed savers here so they had to be more ‘risky’!  HAHAHA.  My god.  Paulson says this with a straight face because an army of idiots running the media machines all bellow this sort of bilge.  Are they claiming that Greenspan dropped interest rates at the Fed from January, 2001- 2004 because China was saving money?  How bizarre is this?  


China never dropped their own interest rates to below 4%.  But Japan was at ZIRP during all this time!  And still are!  And when the US raised interest rates, our economy began to tank, rapidly.  And when the Japanese carry trade began to unwind in 2007, the Chinese were still saving money in their FOREX reserves and so were the Japanese.  But the yen became stronger vis a vis the dollar.


Paulson mentions none of this.  And hell’s bells, neither do 90% of US economics professors talk about Japan’s huge, bloated FOREX reserves and US debts as well as the damn carry trade business.  So in summary: Paulson’s entire take on why we are going into a global depression is utterly wrong, totally backwards and extremely irresponsible.  And what else is new?


Our leaders are set on this path that denies more than one vital reality. Including, the reality that we are bailing ourselves out of this debt mess by creating infinite debt.

Statue stolen from Madoff found with message –

Palm Beach police Sgt. Chris Proscia said the 4-foot-high statue was found Wednesday morning with a message attached to it reading: “Bernie the Swindler, Lesson: Return stolen property to rightful owners.”

Maybe I should steal the Statue of Liberty and then return it with a message attached: ‘Bernanke the Swindler, Lesson: Return stolen dollars to rightful owners’.  Heh.  Now, all I need is a really big helicopter…maybe Bernanke can let me borrow the one he is using to dump dollars into the Atlantic Ocean.


The Raw Story | US rescue averted ‘financial collapse’: Treasury


Massive rescue efforts by the US government and central bank in recent months helped avert a “financial collapse” and are working to stabilize the economy, a Treasury report said Wednesday.

The Treasury report to a congressional panel overseeing the 700-billion-dollar rescue plan passed in early October said the extraordinary actions probably averted deeper problems.

“Treasury, working with the Federal Reserve, the FDIC (Federal Deposit Insurance Corp.) and other regulators, has taken the necessary steps to prevent a financial collapse,” the report said.

“The most important evidence that our strategy is working is that Treasury’s actions, in combination with other actions, stemmed a series of financial institution failures. The financial system is fundamentally more stable than it was when Congress passed the legislation.”


As usual, I went off to the Treasury website to see what is going on. Here is all the news from this week, not in summary, but ALL the news:

2008-12-22-12-54-39-29105: Treasury Continuing Actions to Strengthen Economy


Nearly nothing, of course.  Just the usual swill.  Note that they ‘want to increase SPENDING.’  Not saving, spending.  And to do this, they and the Fed have worked hard as hell to…DROP INTEREST RATES!  Um, they should talk to Paulson but Paulson is head of the Treasury!  So what gives here?


Or rather, what are they giving away, here?  


Treasury Opens Door to Array of Companies, Industries to Help Automakers


(Bloomberg) — The U.S. Treasury threw the door open to taxpayer financing for a widening array of companies and industries by drafting broad guidelines on aid to the auto industry.

The Treasury’s guidelines, published yesterday, would let officials provide funds to any company they deem important to making or financing cars. That leaves room for the government to provide money from the Troubled Asset Relief Program beyond loans already committed to General Motors Corp.GMAC LLC andChrysler LLC.

“There are going to be other industries that are going to have just as good a case,” as the auto companies, former St. Louis Federal Reserve Bank President William Poole said in an interview on Bloomberg Television. “We don’t know what those other industries are going to be. Where does this process stop?”


The steel industry is demanding billions.  Everyone is demanding billions.  And billions are being handed out.  No one and I do mean, no one in the US system is saving anything except their own asses.  TARP is going to cover our entire economy.  And we are now officially in ZIRP territory here.  Are the thieves looting our nation blaming the Chinese for our ZIRPacious mess here?  


Of course!  The Chinese put a gun to our heads and told us to spend and not save.  And to have no return on savings, of course.  If so, who let the Chinese do this?  Now, we have to begin to arrest and maybe put a gun to the heads of all the lunatics who created this situation, eh?


HAHAHA.  No, they want us to have them stay in control, of course.  But even in their own narratives, they take no blame and blame the Chinese, totally.  So, this means the Chinese control the United State economy from top to bottom.  HAHAHA.  I hope the Chinese are happy.  Congratulations.  And we should cheer all the goofy idiots who enabled this.  Starting with Nixon.  Who negotiated Bretton Woods II in order to make the dollar cheaper against the yen and deutsche mark because both defeated imperial powers were flooding the US with their imports.


I like the last line here, Mr. Poole of the rapacious and stupid  Federal Reserve wonders ‘Where does this process [of bailing out absolutely everyone, using funny money] is going to end?’  HAHAHA.  It will end when the Chinese order us to end it.  Silly boy.  Remember: they run our nation.  We don’t.   Of course, we actually do sort of run this nation…into the ground.  We want infinite debt from Asia so we can buy and buy and not pay anyone any interest on these loans, of course.


While whining like babies.  Boo hoo hoo.  At this point, I think we will do better if we were run by the Chinese. The Chinese are not trying to take over Muslim lands in the Middle East. So they have no reason to start one war after another there.  So maybe we can be run by ruthless but efficient people who don’t care about complex tribal European ethnic politics.  Heh.  That will fix everything.


Look at China this week: the industrialists who let poisons into the food chain were put on trial, plead guilty and will pay the price!  And who is in jail here?  Madoff?  HAHAHA.  He would already have been dispatched in China.  Trade negotiators who are treasonous are shot, too.  I don’t see a parade of criminals being brought to trial here.  Arrest them all!


U.S. Stocks Post Steepest Yearly Decline Since Depression; Dow Plunges 34%

Citigroup Inc., Bank of America Corp. and Goldman Sachs Group Inc. retreated more than 60 percent as 80 out of the 84 financial institutions in the Standard & Poor’s 500 Index declined. Exxon Mobil Corp. and Freeport-McMoRan Copper & Gold Inc. fell as the Reuters/Jefferies CRB Index of 19 raw materials dropped a record 36 percent. Caterpillar Inc. sank 38 percent as the U.S., Europe and Japan experienced the first simultaneous contractions since World War II.

The G7 are going down in flames. What a shock. Not only that, none of them want to change anything at all. They want the status quo. The one whereby the US buys and buys and they all flood the US with high-end goods and we go deeper into debt and they hold our dollars in ever-bigger FOREX reserves and all would be fantastic!


Fixing this is impossible if people are insane. And we are insane, both when it comes to our support of ethnic cleansing regimes across the planet…our desire to see all religious groups break off from whatever countries they belong or our economic motives which depend on us growing only one thing: our mountain of debts. And these are all entangled: our wars are costing us an arm and a leg. And protecting the G7 nations so they can flood us with imports is bankrupting the US. And maybe we do need the Chinese to fix this!


After all, our own leaders think that China controls us. Talk about Manchurian chumps over here. Who programmed them? Madame Mao? HAHAHA. Back to Nixon and his visit to China…..




Filed under .money matters, Free Trade


  1. Charlie the jester

    The problem with China and Marxist politics in general is that things always seem to end up in a state where people have too great a tendency to disappear for things like questioning official policy; or for no reason at all.

    So I don’t think we need people that think like that fixing our problems.

  2. «It will end when the Chinese order us to end it. Silly boy. Remember: they run our nation. We don’t. Of course, we actually do sort of run this nation…into the ground. We want infinite debt from Asia so we can buy and buy and not pay anyone any interest on these loans, of course.»

    I think that your arguments that the Chinese or the Japanese or the Germans are more in control than the americans are not quite right.

    There are as I always remind people *two* types of americans (as seen from the above of course): the ballast, the losers, the worthless bottomost 80% of the population, and the Real Americans, the producers, the winners, the superior top 1%.

    The USA is becoming a plantation economy, a latin america hidalgos/peons society, even down to sdeeing the same family names in the most important political jobs repeating over the decades. In this kind of society keeping down the lurid masses of sheeple is an explicit policy goal (see Republican trying to scr*w over UWA workers in Michigan), and the goal is to maximize the welfare of the top 1%.

    The latter are doing well, and are working hard with their friends in China, India and Japan, to weaken the leverage and the compensation and the rights of the the 80% that does not contribute to Real America.

    The top 1% have been, for decades, making a lot of money and gain in power by pauperizing the bottomost 80% by exporting high value added USA jobs to China, India and Japan, funding that with ZIRP capital exports, and keeping the dollar high to make labor costs in China, India and Japan look even lower.

    Real America, the top 1%, for now is doing very well, going from strength to strength, from bubble to bailout, and they are in control, with their friends in China, India and Japan competing to serve their needs. They are in control, until the Chinese and Indian elites dump them.

  3. I was being rather sarcastic. Of course, China has absolutely no say in what idiotic interest rates Bernanke chooses to enforce. But they certainly are our creditors! And creditors are a power source and if they decide to cease being creditors [they have decided to cease being this] we are in deep trouble.
    The bail out money is nearly 100% funny money based on nothing at all. Serious problems loom in the near future.

  4. As a joke I tried posting on marker ticker, a line of reasoning that said if the dollar rises as they [MT] claim, then the Fed is exactly right, use the self reinforcing dollar hegemony system and print like hell. Ol KD didn’t like that very much.

  5. Bear of Little Brain

    I like to read KD. His patriotism, however, is his blind spot, IMO. Quite endearing, as long as he doesn’t enlist.
    There again, living in a town named Niceville would probably bring out the Clark Kent in all of us. 😉
    If ever gold hits $1600, I’ll make a point of sending him a postcard. Heh.

  6. Bear of Little Brain

    Streuth. Just checked the GBP against the Yen, for no particular reason. Down to almost half in eighteen months, and looks quite capable of going to one third. Looks like we’ll win the bid for the Burma Railroad contract again sometime soon.
    Was going to add: 😀
    Better make it a: 😦

  7. PLovering

    “Money is sacred … So then must be the hunger for it and the means we use to obtain it.
    Once a man is in debt he becomes a flesh and blood form of money, a walking investment.
    You can do what you like with him, you can work him to death or you can sell him.
    This cannot be called cruelty or greed because we are seeking only to recover our investment,
    and that is a sacred duty.”

  8. nah

    crazy how the japanese carry trade is such a clear debt source and these pros dont want to bring it to the nitely noose… like duh there must be a sence of perfection regarding thair decade of brilliance and in thair minds it will alway be there… the decadent economic geniuses who knew it all…
    vote your paycheck

  9. Bear ,boy are we on the same page! thanks

  10. jeremy/Nashville

    So I guess Paulson thinks saving is a bad thing…and out of control spending is good for the economy? These people are total idiots. If Americans would have been saving their money instead of pissing away every dime they have, going deep in dept, and living off of credit, I think our nation would be in much better shape than what we are facing at the moment. I don’t think people are learning their lessons as to why we are in this mess and they have yet to wake up to reality…and this is going to lead to more hardships.

  11. OC

    The following table was posted at The Lew Rockwell Blog on December 29, 2008 by Chris Brunner. This table lists the Texas Ratio for each of 8393 banks in the United States.

    Developed by Gerard Cassidy, the Texas Ratio is a measure of a bank’s credit troubles. Basically, the higher the ratio, the worse the situation is for that particular bank.

    Banks with a Texas Ratio of 100 and higher are in very serious danger of collapse, and banks with a ratio of 50 or higher are vulnerable.


  12. don

    I am still waiting to see what happen to the
    2 trillion and the 2nd list coming from the
    SEC. Sounds like another cover-up of who is
    on that list. Maybe Cox is. When the margin
    calls come into play for China, the whole world
    will go broke just like the sub-prime mess. Next
    in line: Options Arms and the Alt-A loans.

  13. emsnews

    Many of the loans during the Japanese Carry Trade decade will go belly-up.

  14. DeVaul

    You need to take a long, long look in the mirror for posting a shitload of lies and crap like that about a person of whom you know NOTHING other than that he “hates ceasar”.
    Ceasar annihilated entire Celtic communities, including murdering women and children so that they could not produce more warriors that would resist his tyranny. A clever idea, I guess.
    He razed entire forests to lay siege to cities that refused to submit to his own personal rule.
    When Celtic heros surrendered honorably in order to save the lives of their fellow countrymen, ceasar had them hauled off to Rome where they were publicly murdered many years later for the amusement of Roman mobs (er… I mean citizens).
    According to you, ceasar “mastered” Latin (his mother tongue — congrats!) and butchered countless “subhuman barbarians” who refused to speak or “master” Latin. A good thing, according to you. You really miss Latin, don’t you?
    He systematically killed off Celtic priests because they encouraged the people to rise up and resist his awful tyranny. He was brilliant (by your standards).
    He committed all of these horrible crimes against non-Roman, non-Latin subhumans so that he could increase his popularity in a far off city filled with scheming crooks and wannbe tyrants. (That’s called “history”, Cognitis).
    In your mind, all that matters is what happened in Rome — the Rubicon, Pompus, the Senate, etc. As for everyone else, they deserved to die for not being Roman, right Cognitis?
    I guess we cannot say: “I hate Hitler” or “I hate Stalin” or “I hate Bush” because we might be guilty of hating some other vicious war criminal who you think is a hero.
    I never said I wanted to commit any of the numerous crimes you mentioned above. It is easy to be a character assassin — no degree required, but not so easy to be the target of one.
    Perhaps your anger over me hating one person who committed so many awful crimes against humanity stems from your own failure to achieve the “status” and “power” of ceasar.
    Don’t worry. As a liar and character assassin, you are well on your way to becoming your own…”Hail Ceasar!”

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