ETF Markets Shoot Upwards Driving Up Commodity Prices

Economics is not a science.  It is history.  And like all history, is open to interpretations.  Science has the concept of blind testing of hypothesis.  Economics has only one test: does civilization survive?  Whenever a civilization collapses, we have to look at why this happens. Nearly always, it is due to political and economic factors that overwhelms a social system.  For example, there was no really good organic reason why Rome should have so utterly collapsed.  

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There was no massive drought of floods.  No volcanic events.  Not even any plagues.  Rome collapsed due to internal economic and political forces.  All the barbarian invasions were enabled by this very serious internal collapse.  The Roman status quo was unworkable as well socially destructive, yet all efforts of the social upper crust were aimed at keeping this non-working status quo.  In science, we use various tools like statistics, gathering data, comparative studies, etc, all combined with overall philosophical wrangling all designed to discover the ‘truth’.  In economics, it is usually all about maintaining some happy status quo.

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This is why the wrong information causes the banner carriers in the schools so much trouble.  That is, when systems don’t operate according to the dogma, they fight it off, not accept this information and then seek to understand the underlying forces at work.  For example, in the US since WWII, the university system wiped out nearly all proponents of Marxism.  This left a giant black hole in the fabric of economic thought.

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When I was in college, I had two minors (because I was bored with just one): music and philosophy.  This meant I could spend happy hours fighting the faculties of these two fields.  That is, both philosophy and music were in wretched condition due to the take over by ‘modernists’ who threw out all the good stuff.  In music, the most horrible and nihilistic form of composition was trumpeted as the greatest innovation in musical history: Schoenberg’s twelve tone system.

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All the professors told me, this was wonderful stuff and if only I could understand it, I would love it.  So, starting when I was 16 years old, I tried this.  It ended up in sometimes hideous battles whereby I would scream, ‘This is torture!  Stop the music!’  while the rest of the students would laugh and then agree with me after we left the building!  I would tell the professors, the students hated this stuff and they would deny this.  I then demanded we take an anonymous poll. I even designed a poll to use. The professors were furious and refused cooperation.

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On one occasion, when I played a recording of Schoenberg’s ‘Guerre Lieder’ which is extremely melodic, to prove to the other students that Schoenberg was capable of writing some of the most glorious music on earth, a professor sneered at me, ‘These are just TUNES!’  And I said, ‘Tunes are superior to chaos.’

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And this takes us back to the central concept of any sane civilization: Libra.  That is, any and all social or fashion extremes or any status quo can lead to destruction unless the pendulum is allowed to swing back.  We are in exactly such a state here today: the economic pendulum is swinging back.  Perforce.  The very rich don’t like this at all. They want it to eternally swing towards them being able to accumulate infinite wealth.  But it is not going to do that.

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Bernie Madoff’s buddy, Jeffry Picower drowns in Florida.  It would be satisfying to learn that he committed suicide.  Nonetheless, this particular greedy little gnome has finally gone too far into the Cave of Wealth and Death and now is dead.  And all his schemes and tricks and games proved worthless.  We suspect suicide due to the fact that the second in command at the Madoff Lipstick building was about to testify that Picower was in on the scam.

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Justice still has not swung her sword at the neck of the Goldman Sachs conspirators.  But if we want to survive as a civilization, we have to lop off the head of this hydra.  And if history is any guide, this will eventually happen.

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Nouriel Roubini, One on One: More Doom and Gloom — Seeking Alpha

Index Universe (IU.com): You’ve said that you’re worried we’re already sowing the seeds of the next crisis. Where do you see that most directly? .

Dr. Nouriel Roubini (Roubini): Well in commodities, I look at oil prices. They fell from $145 last summer, came down to $30 earlier this year and now they’re back close to $80. But if I look at the fundamentals of demand and supply, demand is down to 2005 levels, supply and inventories are at all-time highs. In my view, the movement in oil prices is not fully justified by the fundamentals. .

There are improving fundamentals. There is a global recovery. But that justifies oil going from $30 to maybe $50. I think the other $30 is all speculative demand feeding on it—speculators and herding behavior. Last year, when oil was at $145, that killed the global economy. I worry that oil is going to go up above $100 for reasons that have nothing to do with the fundamentals of supply and demand. Oil at $100 would have the same negative effects on the global economy as oil did at $145 last year. .

Last year, when oil was at $145, the global economy was still growing. Right now it has collapsed, and is recovering. Oil pushing above $100 would have nasty, negative real trade effects and real disposable-income effects on all importing countries: U.S., Europe, Japan, China, India; all the countries that were hit by the oil shock last year. So that’s an element that is in my view totally speculative, and dangerous to the global economy.

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When all the big international investment bankers went desperately hunting for a new game to play last year, they lit upon oil futures.  There is this immense sea of funny money that was magically created via the Japanese carry trade that had to be ‘invested’ in something and real estate in the US began to decline back at the beginning of 2006 which was the peak of the investment bubble.  So this flood of funny money suddenly shifted into commodities of all sorts. Gold began its long, long bull market (the slight decline last year has been overwhelmed by steady climbing) so there is this very unbalanced business going on.

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That is, this flood of funny money has to make more money so the gnomes can have very, very big bonuses and thus have lots of great sex with anorexic fashion models who can run backwards while yakking (yes, I am still chortling over that stupid story about the cheerleader).  The problem with commodities is obvious: we need these to survive.  We need energy, metals and food.  We don’t need gold to survive but gold lurks as the ghost in the shell game: that is, it is still stubbornly attached to the value of money.

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This is why the dollar going down seems to inevitably lead to gold going up as more and more people are scared of the dollar collapsing entirely. And I don’t blame anyone for thinking this way.  But a collapsed dollar will lead to a collapsed civilization and again: economics is all about history, not science.  And history tells us that civilizations can fall due entirely to economic mistakes.

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One economic mistake is to let all wealth slither to the very top leaving the majority of a population increasingly poor.  And letting commodity traders get filthy rich and pay few or no taxes while they merrily bid up the price of things we need to stay alive is suicidal for any civilization.  There has to be restrictions and one of the very best is to tax these gamblers so they don’t suck down all wealth this way.

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One of the great wonderful things about gold is, we really don’t need it for anything except markers for status.  We do use it in various other ways but this is not life and death, it is convenience.  So we can let ‘money’ flow into gold and not take on any social harm. That is, no one is going to starve to death due to gold prices.  Gold can even suck down excess money creation as we see today.  It sucks down a lot of paper money as people move their paper into metal.  But doing this with oil is like striking into the economic heart with a sharp blade.  It kills the entire economic system.

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Dollar Falls on Global Recovery; Copper Climbs to 13-Month High – Bloomberg.com

The dollar fell and metals rose, driving copper to a 13-month high, as South Korea’s fastest economic growth in seven years and profits that almost doubled at Electrolux AB signaled the global recovery is accelerating. .

The dollar declined against 13 of the 16 most-traded currencies tracked by Bloomberg as of 11:20 a.m. in London. Copper climbed as much as 1.2 percent to $6,728 a metric ton in London, while zinc rallied for a ninth day. South Korea’s Kospi Index advanced 1 percent and futures on the Standard & Poor’s 500 Index added 0.2 percent.

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So, like the yen from 1994-2007, the dollar is backed by ZIRP (zero interest rate program) and is falling like a rock which means, the carry trade is now in dollars as traders exchange dollars for yen or euros.  Both Japan and Europe are reeling from this shift which means they can’t export easily to the US.  China benefits.  So has South Korea.  And both are running around the planet, using US carry trade dollars to buy up all commodity systems.  And trailing behind them is this army of international banking gnomes.  They merrily bid up the price of commodities so that we now have the worst of all possible worlds: stagflation.

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That is, inflation in commodities is rising even as the value of all other assets are declining steeply.  Wages are also falling and workers are very exposed to the destructive forces of commodity inflation.  The civilizations that do best in this situation are ones where governments can control commodity prices (for example, have one price inside the Chinese manufacturing system and a separate, higher price to outsiders).  Free market systems will be hammered to death.  Ones that have the deadly troika, the fiat floating currency/free trade/tax cutting system are being torn apart by these forces.

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Approaching the First Trillion in Global ETF Assets — Seeking Alpha

In a feature on the IndexUniverse.com website a couple of days ago, Matt Hougan pointed out that US exchange-traded product assets under management reached a record US$705 billion at the end of September, according to data compiled by the National Stock Exchange.

.If we add to this figure the US$58 billion in Asian ETF assets reported in the latest version of Deutsche Bank’s ETF liquidity trends report (dated October 5, so I’m taking a few liberties with dates here) and the US$192 billion in European ETF assets taken from the same source, we get a global total of US$955 billion. .

If we then consider that in the month to date the MSCI world index is up a couple of percent in dollar terms, the S&P 500 is up 1.5%, the US dollar index is down a percent, and of course we’ve seen a great 6% rally in gold − not to mention the 140 tons of inflows (around 5 million ounces, worth over US$5 billion) to gold trackers this month − I’m guessing that we’re at least at the US$980 billion mark in ETP assets at this very moment.

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All these numbers are paltry next to the real problem here: the Derivatives Beast.  And this growth in ETFs is connected with the Derivatives Beast.  So, even as many countries continue to see contractions in GDP, we see these deals grow in size and number.  This strikes me very strongly.  For after two years of banking collapses during the Great Depression, the ETF-sort of games played back in 1929 were outlawed.  In the present case, we see a powerful international investment banking consortium successfully preventing any reforms.  So they have resumed the game playing and the immense accumulation of personal wealth.

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Exchange-traded fund – Wikipedia, the free encyclopedia

An exchange-traded fund (or ETF) is an investment vehicle traded on stock exchanges, much like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.. ….An ETF combines the valuation feature of a mutual fund or unit investment trust, which can be bought or sold at the end of each trading day for its net asset value, with the tradability feature of a closed-end fund, which trades throughout the trading day at prices that may be more or less than its net asset value. Closed-end funds are not considered to be exchange-traded funds, even though they are funds and are traded on an exchange. ETFs have been available in the US since 1993 and in Europe since 1999. ETFs traditionally have been index funds, but in 2008 the U.S. Securities and Exchange Commission began to authorize the creation of actively-managed ETFs…..

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In 2005, Rydex Investments launched the first ever currency ETF called the Euro Currency Trust (NYSE: FXE) in New York. Since then Rydex has launched a series of funds tracking all major currencies under their brand CurrencyShares. In 2007 Deutsche Bank’s db x-trackers launched EONIA Total Return Index ETF in Frankfurt tracking the euro, and later in 2008 the Sterling Money Market ETF (LSE: XGBP) and US Dollar Money Market ETF (LSE: XUSD) in London….

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…Most ETFs have a lower expense ratio than comparable mutual funds. Not only does an ETF have lower shareholder-related expenses, but because it does not have to invest cash contributions or fund cash redemptions, an ETF does not have to maintain a cash reserve for redemptions and saves on brokerage expenses

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ETFs are ideal for funny money games that are very destructive.  First, they use less capital.  Secondly, they encourage using debt for gambling games.  Third, they are shadow markets, not primary markets.  And they are all connected in various ways to the immense, dark shadow of the Derivatives Beast which is mysterious, bigger than the entire globe’s economies put together and dwarfs all other systems in size and destructive potential.  The fall of AIG exposed for one brief night in September, 2008, the potential power of this monster.  That is, if AIG went down, the entire banking system of the entire planet (except perhaps, China) would have totally vanished in a flash.

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Instead of killing this creature, it was PROTECTED and so it is again, growing even more dangerous.  Which is why Roubini is probably gloomy about the future.  True, we escaped total destruction this time around.  But nothing was fixed.  Instead, we simply got the status quo back just like Rome managed to do over and over again for 350 years before vanishing for a thousand years, going into ruin.

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EH.Net Encyclopedia: The 1929 Stock Market Crash

By 1929, investment trusts were very popular with investors. These trusts were the 1929 version of closed-end mutual funds. In recent years seasoned closed-end mutual funds sell at a discount to their fundamental value. The fundamental value is the sum of the market values of the fund’s components (securities in the portfolio). In 1929, the investment trusts sold at a premium — i.e. higher than the value of the underlying stocks. Malkiel concludes (p. 51) that this “provides clinching evidence of wide-scale stock-market irrationality during the 1920s.” However, Malkiel also notes (p. 442) “as of the mid-1990’s, Berkshire Hathaway shares were selling at a hefty premium over the value of assets it owned.” Warren Buffett is the guiding force behind Berkshire Hathaway’s great success as an investor. If we were to conclude that rational investors would currently pay a premium for Warren Buffet’s expertise, then we should reject a conclusion that the 1929 market was obviously irrational. We have current evidence that rational investors will pay a premium for what they consider to be superior money management skills. .

There were $1 billion of investment trusts sold to investors in the first eight months of 1929 compared to $400 million in the entire 1928. the Economist reported that this was important (October 12, 1929, p. 665). “Much of the recent increase is to be accounted for by the extraordinary burst of investment trust financing.” In September alone $643 million was invested in investment trusts (Financial Times, October 21, p. 3). While the two sets of numbers (from the Economist and the Financial Times) are not exactly comparable, both sets of numbers indicate that investment trusts had become very popular by October 1929. .

The common stocks of trusts that had used debt or preferred stock leverage were particularly vulnerable to the stock price declines. For example, the Goldman Sachs Trading Corporation was highly levered with preferred stock and the value of its common stock fell from $104 a share to less than $3 in 1933. Many of the trusts were levered, but the leverage of choice was not debt but rather preferred stock.

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And here it is!  Goldman Sachs leveraged itself nearly into annihilation in 1929.  And did it a second time, last year!  HAHAHA.  And why was this possible?  Well, all the reforms put in place to stop GS from growing this way were removed by 2002.  As each restriction and control was removed, GS got richer and more powerful and each time, we made one more step closer to the Great Depression II.  And now, we are in the middle of it and no reforms are visible.  GS is getting even richer today than in 2007.  And is very happy to see the status quo that caused the collapse resume!

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This is insanity.  Unlike science, economics is like music: it is an art.  And therefore, we have to listen carefully to the music.  Is it conducted and written so it is organized and creates greatness or it is a moronic 12 tone piece of chaos?  This is all about the art of civilization, not ‘what is in this for me?’  All great civilizations had strong bases that are cultural and economic.  And a political system that enables peace, not creating destructive wars.  And all great civilizations produce amazing music and art.  And both music and art today are inferior to these things in other periods in history.

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We hang onto the edge of a cultural abyss by our fingertips.  Our entertainment is increasingly bloody and small minded.  And filled with unthinking hatred or fears.  And the visual arts were totally trashed after WWII, too.  Future historians will marvel about all this.  And shake their heads.

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35 Comments

Filed under .money matters

35 responses to “ETF Markets Shoot Upwards Driving Up Commodity Prices

  1. ralph

    Elaine you shock me: ” But a collapsed dollar will lead to a collapsed civilization and again: economics is all about history, not science.”

    If economics is all about history as you suggest. Why don’t you write about Americas TREMENDOUS prosperity under the Gold standard from 1792-1971!!!

    A collapsed dollar is the greatest thing that could ever happen for the world. A return to sound money and sound economics. Sound banking??? That would bring prosperity not collapse. The initial reaction to a totally collapsed dollar would be chaos, but order would come in no time, and a return to a real economy producing wealth instead of redistributing it would ensue. LIBRA is all about balance and justice. Gold brings with it equality and justice. We must have the paper fiat dollar collapse and Americas horrendous empire collapse along with it.

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    ELAINE: During the gold era, we had terrible depressions. We were not ‘tremendously rich’. But one thing we DID have from 1792-1971 was TRADE BARRIERS. This, we lost.

  2. @Elaine: “One economic mistake is to let all wealth slither to the very top leaving the majority of a population increasingly poor.”

    Interesting. That means wealth really is (are) a bunch of slithering snakes that like to congregate together and bite the people who attracted them there in the first place, not a mass quantity of water that leaks out of sieves at the top to trickle down on the masses below.

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    ELAINE: They are water snakes. That is, water moccasins which are very nasty rattlers who swim. 🙂

  3. @ralph: Unfortunately, the imperialists would do anything not to let the Evil Empire collapse; once it does, though, look out! The worst time will be upon us, between the economic collapse and the collapse and disappearance of the imperial government. For the imperialists will lash out at… someone. Probably China.

  4. Joseppi

    “a collapsed dollar will lead to a collapsed civilization”
    The dollar system is not synonymous with civilization.
    A dollar based financial system supports civilization, which is always in transition and is resilient.
    Civilization will go through awkward and painful changes with the collapse of the dollar system. With this inevitable implosion of an unsustainable currency monopoly, civilization will transform and transmigrate and not collapse.

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    ELAINE: During the inflation/stagnation years I watched a big hunk of NYC burn in just one night due to looters and rioters. And I was IN THE MIDDLE OF THIS. On the roof, with a hose, trying to keep my house from burning, too.

    Destruction can be swift and terrible.

  5. charlottemom

    elaine writes about pickower: “And all his schemes and tricks and games proved worthless. ” Worthless to him now that he’s dead, yes. But not to that someone(s) who will keep these monies. I’d suggest waiting to see what happens to his “profits” and who gets them before you declare these schemes worthless. What happens to Pickower Foundation now that its not issuing grants anymore. No money or funds being distributed/diversified?

    “We suspect suicide due to the fact that the second in command at the Madoff Lipstick building was about to testify that Picower was in on the scam.”

    really…not so sure about this either. Will widow inherit money. A la Ken Lay. Are there others benefiting? The money tracing trail goes cold now and that’s an awefully strong motive for foul play.

    I’d wait and see and not make the early call.

  6. CK

    The trail of the Madoff/Merkin/Pickower money leads to Bank Leumi and disappears into the bank secrecy of Israel.

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    ELAINE: Probably correct.

  7. CK

    And Elaine showing much compassion sayeth: “… thus have lots of great sex with anorexic fashion models who can run backwards while yakking (yes, I am still chortling over that stupid story about the cheerleader).” But it’s for the children elaine, won’t you think of all the slaughtered children elaine? Nobody shags the boney ones anymore, the heroin chic is passé. In bad economic times, a woman with some stored fat is an asset.

  8. charlottemom

    More on pickower —

    Father and son Zabel on both sides of the pickower/madoff criminal investigation….ya right…standard operating procedure. Son just recused himself from the case and then pickower dies of heartattack.

    This sounds like it could be a nice cozy way to work the evidence. Either that or a massive shortage of available lawyers for this case.

    http://www.mainjustice.com/2009/10/26/sdny-criminal-chiefs-father-had-close-ties-to-madoff-investor/
    Two weeks ago Richard Zabel, the new criminal chief of the Southern District of New York U.S. Attorney’s office, recused himself from the Bernard Madoff investigation because his father represented an investor accused of being the biggest beneficiary of the $65 billion fraud.

    On Sunday, William D. Zabel’s client was found dead at the bottom of his pool at his mansion in Palm Beach, Fla. The Palm Beach Police Department said it was conducting an investigation of the death of investor Jeffry Picower, who was 67, as is “standard operating procedure in any drowning.”

  9. PLovering

    Latest numbers:

    One is 5x more likely to die of seasonal flu than swine flu.

    There have been 14 confirmed swine flu fatalities world-wide in the last 4 days.

    The Copenhagen Treaty is a Lizard Plot to further cripple the American economy.

    Fortunately, our friends in China and India have refused to sign the Copenhagen Treaty.

    Footnotes:

    The Lizards may delete the word “efficiency” from the latest Wacki Dictionary.

    The Lizards feel “greed” is better.

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    ELAINE: You are beyond stupid. The ‘normal flu’ deaths are the ELDERLY who are at death’s front door, knocking to get in. The swine flu deaths are healthy young people. But I figure you can’t figure this simple fact out because you like to lie all the time.

  10. Niels

    I’m happy to see you write something about ETF’s. The market letter I get, Weiss’s Safe Money Report, has good things to say about ETF’s, so I’m happy to get an alternative view. Thanks.

  11. norcalkid

    I couldn’t stand Schoenberg either. And don’t get me started on matrix composition. Bleh.

    World civilization may not collapse, but it certainly will be quite different. Many things we take for granted will become very expensive or not available. So for many, it may as well be termed a collapse. See Kunstler’s rants, Chris Marteson’s Crash Course, and Demitri Orlav’s writings, among others. We have all of our eggs in one basket: petroleum. This is never a good idea.

  12. @Joseppi: You are mostly right. Outside of the United States, civilisation will not collapse, but transform itself. Inside the United States, however, civilisation has already collapsed, and been replaced with the “free market.”

  13. Don

    Elaine: it impresses me that you have all of these facts concerning the financial industry. I know its easy being a Monday morning quarter and how GS has its mathematical software for loss and profit intentions, but I have to say the education process continues. Please dont go to Chicken Pox….excellent post………………..

  14. domingo

    LoL some dork thinks that the “Rich ‘may evolve into separate species'”

    http://www.telegraph.co.uk/science/evolution/6432628/Rich-may-evolve-into-separate-species.html

  15. nah

    This is why the wrong information causes the banner carriers in the schools so much trouble. That is, when systems don’t operate according to the dogma, they fight it off, not accept this information and then seek to understand the underlying forces at work
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    pragmatic civilization does not need renewal… but greed builds worlds of information that would have us feed warlords and fear mongers to live in ‘modern security’ by their side… war is important for we need to win, banking is important for we must pay… but the easy glide tword incompetent leadership is satisfying for status quo… as they can pervert our intentions right out of the box with no historical right in to a ‘brave new world’ of inconsiquence for hopes sake…
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    fact is somebody has to pay or its all 2 cheep… and someone has to loose or we should not fight
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    money itself does not dictate the history of civilization so kindly… the military should wake up to keep education ‘worth something’
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    oculous of greed

  16. nah

    win 7 is fast… but boxy… i paid $150 for it… i wouldnt do it again… lots of clunk left in the peices

  17. nah

    fact
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    http://nyinvestingmeetup.blogspot.com/2009/10/in-for-penny-in-for-pound.html
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    The third quarter GDP figures for Great Britain were released last night and GDP fell 0.4%. I particular liked the headline “UK Still in Recession After Surprise Contraction” announcing the drop. This was the sixth quarter in a row that GDP was down in the UK. So who exactly was surprised by this? Probably just mainstream economists and anyone who reads the drivel published in their reports. One survey indicated that 100% of economic analysts had predicted that British GDP would go up this quarter

  18. nah

    man the more i read about market intervention the more i am convinced the govenrnment thinks war is cheap…. ‘its immensely more expencive than ever’…. with banks playing for big bucks the only winner will be uhhhhh…. gold??? and oil??? and pork??? and cotton??? equities will eat their looses ‘losses’ and inflation is almost a sure bet anymore…. cost containment would screw the banks

  19. payAttention

    I have stated very clearly in the past that all ETF’s must be delisted immediately. ETF’s have futures, which have derivatives – prices are a toy for anyone able to lever up a thousand fold with taxpayer guaranteed money. You are in a particularly clownish mood today. Last time you called for John Mack to be prosecuted, not knowing that the Senate judiciary committee was protecting him. This time you want your Libra to get Goldman, and October is gone. If she was going to do it, this was the time. Do you expect our Secretary of the Treasury to be prosecuted now? Bwahahaha.

    While the OIL etf has done plenty of damage, which I had also forewarned months before, especially the parking of filled tankers by Goldman, Morgan, Deutsche Bank and UBS – you have again missed the grander malfeasance. UNG etf has run up the price of natural gas twofold in two months, with no pickup in industrial demand. This was actually an ace up our sleeve in global competition, since we have an abundance of nat gas and we are very good at extracting it. Although you do not know this, nat gas is the industrial commodity of highest importance. Not only is it the input for most industrial chemicals, it is also the energy input to drive the conversions.

    I take it back – between your non linear geometry, quantum chem, astrophysics and neurobiology classes you probably did pick up on what nat gas does.

    ΩΩΩΩΩΩΩΩΩ

    ELAINE: Reading comprehension is better than making up stuff. That is, you should read me before accusing me of not saying something.

  20. domingo

    about the swine flu vaccination:

    there is an intranasal vaccine but it uses live virus while the injected uses the dead virus.

    apparently the fear is based on the intranasal version using “live” viruses.

    I’m still waiting for the pill version because i don’t find spraying crap in my nose any easier than getting a shot.
    http://www.wired.com/magazine/2009/10/ff_waronscience_h1n1myths

    I’m still hoping for the mythical pill that will solve all my problems 🙂

    ΩΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: There are no flu shots for kids who have asthma. My son has asthma and I am very worried about this. I could use the nasal spray method but not my son. This is a major problem for us.

  21. Matheus

    Elaine and all, when China will no longer want to buy commodities in dollars ? After oil hit 140 again and all economic US base be vanished ?

    ΩΩΩΩΩΩΩΩΩ

    ELAINE: When the US ceases to buy Chinese goods, they will spend their FOREX money on buying up international commodities. If the money is made worthless, this won’t bother the Chinese, it is their master plan. They know the world will need a fiat currency by then and if the euro is also dead (it will die the same time the dollar dies) then this leaves the yuan as the fiat currency. End of story.

  22. DrKrbyLuv

    NYS Halts Mandatory Vaccines As Goldman Sachs Connection Exposed

    Albany, NY – Oct 23, 2009. NYS State Health Commisioner Dr. Richard Daines has suspended the controversial mandatory influenza immunization requirement for New York health care workers, citing a shortage of vaccine supplies as the main reason. The halt in the regulation also comes a day after popular upstate NY WGY radio personality Al Roney exposed the connection of Linda Daines, Commissioner Daines’s wife, as a manager of private client services of Wall Street finance firm Goldman Sachs.

    Goldman Sachs was the largest shareholder and brokered a 2007 $15 billion sale of the vaccine giant MedImmune. Roney called upon his listeners to contact NY State Attorney General Andrew Cuomo to open an investigation of a potential conflict of interest between the mandatory vaccine regulation for over 500,000 NY healthcare workers and potential profit for Goldman Sachs.

    “It is absolutely a legitimate question for the NY Attorney General to consider whether Commissioner Daines should have recuse himself on this decision, considering the possible conflict of interest and the massive profits to be generated by Goldman Sachs with such a decision, whether the regulation was done for the best intentions or not” said WGY’s Al Roney.

    http://www.campaignforliberty.com/blog.php?view=26793

    ΩΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: l live in NY. My son can’t get vaccinated because THERE ARE NO SHOTS AVAILABLE!!! End of story. This, incidentally, is why the thing was dropped.

  23. DrKrbyLuv

    ralph wrote:

    If economics is all about history as you suggest. Why don’t you write about Americas TREMENDOUS prosperity under the Gold standard from 1792-1971!!!
    ____________________________

    ralph,

    This is not quite true as history shows that the gold standard, started in 1900, failed in the U.S. in 1933. Most of our gold was taken as a result and FDR stole private gold from americans.

    The gold standard had already failed in GB, France and other european countries in 1930-1931.

    The problem has always been that there isn’t enough gold to back a currency.

    The U.S. has at most, around 3,100 metric tonnes of gold which would be valued at around $100 billion dollars ($1,000 troy oz). Our money supply (M3) is around $15 trillion. How do you back $15 trillion dollars with $100 billion in gold?

    The species of money isn’t the problem, the problem is that we have a debt based money system.

    All money is debt – if we had no debt, we’d have no money. Money is created through loans – the principal is created but the interest required to pay the loans is not. There will always be more debt than money in this system.

    Our money supply must perpetually grow through continuous debt to pay past loans. Perpetual growth cannot be sustained – sooner or later there won’t be enough wanting and worthy borrowers.

    This has already happened and the government has stepped in and are acting as the borrower of last resort in an attempt to keep the system going.

    Think about this…

    The U.S. has a money supply of around $15 trillion but our private and public debt is around $50 trillion (not including future entitlements). If we had to pay up now, we’d be $35 trillion short.

    We don’t have to pay the debt now but we will sooner or later. There is only one way to get more money into the system, that’s through borrowing. So, we will have to eventually borrow $35 trillion which will come with more debt.

    This creates a perpetual loop with the interest growing as an exponential function. That’s why we’re going bankrupt again.

  24. if

    After the Billionaires Plundered Alabama Town, Troops Were Called in … Illegally
    By Mark Ames, AlterNet. Posted October 24, 2009.
    “We have to tolerate the inequality as a way to achieve greater prosperity and opportunity for all,” says one Goldman Sachs adviser. But tell that to the people of Samson, Ala.
    http://tinyurl.com/yjefan6

    ΩΩΩΩΩΩΩΩΩΩ

    ELAINE: Troops are called in all the time in the past but you didn’t notice this. Good gods, in the sixties, the troops would SHOOT at us!

  25. DeVaul

    Well said, Dr. Kirby. You are right.

    As for ralph’s claim of tremendous prosperity under the gold standard, he obviously has not read much about the living standards of 90% of Americans under the gold standard between 1790 and 1913.

    Perhaps he meant tremendous prosperity for the owners of the Standard Oil Company, or JP Morgan, or the J. Stewart Company, or any of the other countless robber barons of the late 1800’s and early 1900’s. Most workers and farmers lost everything and became cannon fodder for european battlefields. Or hobos.

    Here is a good book to read for those who believe in the “Golden (guilded?) Age”:

    “The Good Old Days: They were Terrible!”

    by Otto Bettman, I think. The photos are shocking and the newspaper clippings from the time say it all. I am glad I live now.

    ΩΩΩΩΩΩΩΩΩΩ

    ELAINE: True, life at the bottom was terrible. This was due to lack of SOCIALISM.

  26. DrKrbyLuv

    Hello DeVaul et al,

    Thanks for the kind words. Funny stuff “The Good Old Days: They were Terrible!”

  27. nah

    I said i would think twice before buying windows 7….
    .
    I must bow down… its fast
    .
    parts are missing but if you want more its very engaging and clean
    .
    it is better than xp for 64bit extentions
    AND
    just plain efficient instructions
    its fast, i can enjoy it alot more
    .
    Way to go Windows 7 Team
    .
    I LOVE YOU BILL GATES

    ΩΩΩΩΩΩΩΩΩ

    ELAINE: I only use Apple. And the stuff you get from Microsoft is what I got from Apple about 5 years ago. We have a much better system today.

  28. nah

    Ultramon is this killer app for dual monitors
    .
    check this out… theres a hotkey to switch screens for the window your in… IS THAT NOT LIKE TOTALLY SIC… bound alt+w… n’ i dont know what look people like on their PCz… but i gots this sic classic feel in win7 so it is totally possible if your into it
    .
    need ultramon to do it right tho so i can open multiple windows from the same taskbar icon ‘windows7 doesnt allow it natively as i could find’
    .
    but wow…. with ultramon on top of win7 with a lil’ thunderbird…. me looking whiskey

  29. nah

    n’ firefox…. goes without saying rite

  30. PLovering

    EPA is holding hearings next week re: colloidal silver (silver nanoparticles) with view to take this product off the market.

    Colloidal silver is a “universal antibiotic” which kills all viruses and harmful bacteria in the mammalian body. Health professionals are prohibited from recommending, or even discussing the merits of, colloidal silver. The fact that all burn centers in the country use colloidal silver dressings to heal wounds fastest, notwithstanding.

    Big Pharma can kill by vaccine or by silence, which ever is most profitable.

    ΩΩΩΩΩΩΩΩΩΩ

    ELAINE: Usually, things are taken off the market if there is something really bad with them. And we use drugs or things for years before accumulating data forces changes. There is this constant debate about restricting or changing meds. Which is better than alternative meds which tend to be based mostly on fantasy or heresay evidence and resists changes.

  31. Wu Wei

    @DrKrbyLuv, EMS always fails to mention this. This financial system is corrupt to the core, it has to die.

    EMS’s agenda is TOP SECRET.

  32. emsnews

    My agenda: I work for Libra. She likes to balance things. Being born under Her Sign, I sympathize with Her.

    She also carries a sword.

  33. ralph

    ALL OF YOU, INCLUDING ELAINE, are ECONOMIC MORONS. Im too old to type the facts. You people need education so go to http://www.mises.org and read Murray Rothbards books, and teachings. Get a clue please. Trade barriers are a form of war. Elaine likes to pretend she is pro-peace. She is a war mongoring fool, who should be drawing cartoons for childrens books instead of attempting to teach economics and monetary history.

  34. justiceatsqualor

    @ralph

    step to me.

  35. DeVaul

    I have said this before and I will say it again: Austrian economics is just a theory. It has never been used and never will be used. There is no money in it. Ask any rich person if he wants to work hard all his life and then have some extra savings (capital) at the end of his life. Hell no. They want everything now. Always have, always will.

    No government will ever use Austrian economics, just as no government will ever actually enforce the basic human rights of its citizens with justice and fairness. There is no concentration of power and influence in such a system, so it does not appeal to the power hungry psychos who always gravitate to the top of any political system.

    Stop living in other people’s dreams, ralph.

    Try to do what you can do, in the here and now, without having to change the opinions of 300 million people or even 6 billion. It just isn’t going to happen. Accept it and go on. You can still achieve much in life, and that goes for all of the Austrian Economics Fanatics out there.

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