Empires Must Regulate Trade And Finances

I keep harping on the trade deficit issue since all of the other messes revolve around this misbalance.  Just as when one wants to run any machine, if there is an imbalance in weights or forces, the machine rattles and rocks and eventually falls apart.  If you don’t balance tires, the ride is very rough.  Balance is a key component in any smooth running system.  The restless search for a means of having anything suddenly explode in value or volume is very dangerous if there is no other countervailing forces that keeps things from suddenly erupting to infinity.

Workers in France protest against loss of social services.

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ΩΩThis is a philosophical matter.  That is, if we view any system going to infinity as good for an individual investor or nation or corporation, then there is no need for any restraints or controls.  But we have been delivered a stark and important lesson that balance is better than seeking infinite wealth via various tricks, plans, evasions or secret deals or…trade.

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ΩΩNow for a fact about trade: nations pursing trade imbalance by flooding others with VALUE ADDED exports do this for their advantage.  It always is the responsibility of the nation sucking down these exports to constrain this and prevent it from getting out of hand. The export power has no internal need to stop.  But the nation sucking down the flood of imports has many reasons to stop and it is up to them to stop, not the exporting power.  A reader sent me an old story about trade imbalances written by a very foolish young man.  He claims, trade deficits don’t matter so there is no reason to regulate or control trade at all:

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The Trade Deficit | The Freeman | Ideas On Liberty

November 1987

The U.S. trade deficit, which has increased dramatically since 1983 and was a record $170 billion in 1986, is a leading concern of our nation’s politicians, labor leaders, businessmen, and media. We are solemnly warned that jobs are being lost as we are invaded with “cheap” foreign goods, American industry is losing a “trade war” and is threatened with extinction, and America is becoming a debtor nation. To sit by and do nothing about the trade deficit, according to a growing opinion, is tantamount to national suicide.

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Correct: one very nasty side effect of the Reagan Revolution was a total surrender in trade.  Cutting taxes dramatically while increasing government spending flooded the nation with easy money which was easy pickings for foreign export powers.  These powers PREVENTED INFLATION by sucking out excess dollars created by excess federal and consumer debts.  Reagan and his gang even boasted that importing goods prevented ‘inflation’.

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But this cure for inflation is like losing weight via getting cancer: you die.  To this day, the #1 reason why our government is totally inept at balancing trade is due to the need to prevent ‘inflation’.

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It is most often suggested that the solution to this “trade gap” is a policy of increased protectionism. Elaine: Do note that protectionism has always been the #1 tool for preventing trade deficits. To those who value liberty this is a serious threat on at least two accounts.

  • First, import restrictions directly lessen the individual’s freedom to exchange, and correspondingly increase the government’s power over the affairs of its citizens.
  • Second, and perhaps more importantly, individual freedom may be further attenuated because the impoverishment accompanying trade restrictions will likely cause people to invest more power in the civil authority….
  • …..Two erroneous ideas pervaded mercantilist thought. First, trade was mistakenly seen as a contest in which one party inevitably bested the other. In each exchange there was a winner and a loser, and a nation “won” at trade if it exported more goods than it imported.
  • A second fundamental flaw in mercantilist thinking was its holistic approach to economic analysis. The nation was considered to be an entity in and of itself, separate from and more important than its individual citizens. Thus international trade was not analyzed from the perspective of the individual participants, but rather from the perspective of the nation, or more accurately, the state….

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I see this philosophy all the time: the individual trumps the state. This notion is OK if one doesn’t mind ending up as someone’s slave. The concept of individuals binding themselves together for mutual strength is extremely ancient: it is the basis of all human societies! From the very first tribe, the ability to build larger human cooperation units has been the quest of humanity.

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Always, the best ideal has been a HUGE organization of individuals into what we call ’empires’. There have always been empires since the dawn of agriculture. Empires are by far and away, the best of the best when it comes to organizations. Individual freedom usually flourishes best in empires. People who never lived in small nations that are isolated have any idea how constricting and unindividualistic these nations are! They restrict nearly everything one wishes to do and often, quite severely.

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Throughout history, the more expansive an empire, the freer the individual. Even in slave-based empires, this is true. Rome had many slaves and the empire’s rulers struggled to control how people thought or talked but this was far freer than what replaced Rome: disconnected tribal groups who fought each other and who were very intolerant of change or freedom of thought. All thinking people gravitated towards the Church because it, at least, was an empire that transcended all the tribal groups.

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The only literate people were all inside of the Church by 650 AD. Before that, most literate people were outside of the Church. The Church had to take over the role of clerk for the tribal leaders because of the high level of ignorance.

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…Adam Smith and following classical economists, notably David Ricardo, refined the case for free trade and exploded other mercantilistic myths. The holistic approach to economic analysis was soundly rejected since, as Smith wrote, “What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom.”[1] The nation was seen as the sum of its citizens and thus “national gain” was simply the total of all individual gains. Furthermore each trade did not have a winner and a loser, but rather was a mutually advantageous exchange, undertaken only because each individual believed himself to be gaining. And if each individual gained in each trade, how could the nation suffer from a trade deficit?

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ΩΩThis sort of infantile thinking process is typical of right wing libertarians: sorry, guys, the mental model here is seriously flawed.  When people do stupid things that make themselves richer, they will do this.  If these stupid things that make these individuals richer kills the state itself, then the state and the individual are in conflict.  This is due to a simple fact: the state is EVERYONE while an individual is ONE PERSON.

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ΩΩThis is incredibly important to understand: killing EVERYONE so ONE PERSON can get richer or live a nicer life is STUPID.  The ‘everyone’ side of the scale must deal with the ‘one person’ side or die.  So it is imperative to act in concert as a group to prevent individuals from destroying the COMMON GOOD in order to make themselves richer at EVERYONE ELSE’S EXPENSE.  How simple is this to understand?

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ΩΩThe ‘Me, Myself, and I’ ethos is self-centered, childish and foolish.  It comes out of living inside a major empire.  The individual puffs up him or herself and decides, thanks to being fairly free inside of this empire, that the empire is stupid and doesn’t need to be coaxed, nurtured or controlled.  Instead, various individuals work day and night to evade taxes that support the imperial superstructure.  They bribe politicians to allow looting of the purse via inflated war costs, corruption in buying services, tweaking laws so they channel all collective wealth into a few individual pockets, etc.

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ΩΩThe anti-all for one and one for all belief is a cancer eating away at the very heart of our empire.  While the empire spends like crazy, tax collection is falling far behind spending.  Thanks to self centered ruthless policies, we not only tolerated a trade deficit, we passively let it grow to amazing proportions.  This, in turn, is steadily killing our entire empire as well as our nation which is the core of our empire.

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St. Louis Fed: Series: MULT, M1 Money Multiplier

ΩΩThe M1 money multiplier is generally a mirror image of our trade deficit.  As we see in the graph below, trade was generally balanced until the US killed its inflation surge thanks to Volcker raising interest rates very high.  Immediately, the ‘fix’ was apparent: trade flowed one way to the US.  This so alarmed everyone, measures were tried such as the Plaza Accords to make the yen and deutsche mark much stronger.  This slightly reduced the trade deficit but more tax cuts coupled with the emergence of the Japanese carry trade flooding the US with easy credit at fairly low interest rates led to hyper trade deficits.

ΩΩThe US cannot spend its way to economic health because the ‘money multiplier’ system is nearly totally wrecked due to too much debt from too big a trade deficit!  It once had a multiplier of 3.5 back when that idealistic libertarian wrote his odious ode to trade deficits.  Now, it is below 1 and falling rapidly, very rapidly to zero.  I keep warning about the dual dangers of infinity and zero.  ZIRP banking is evil just like hyperinflation is evil.  Avoiding both means governments must strive to balance everything at once.  Not just one item but ALL things.

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ΩΩJust as an empire shouldn’t expand wars to infinity, neither should they expand international trade.  Throughout history, empires seeking to maintain themselves have constricted trade with others if this is unbalancing things.  For example, they prevent the buying of luxury goods if this ruins the State’s finances.  So ancient Rome had laws against importing silk from China, for example.  The Chinese didn’t want any goods from Rome, they wanted silver.

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ΩΩThis drained Rome’s coffers so Rome sought various ways of preventing this trade.  One way worked in the end: in 522 AD, this fixed the export problem.  If ancient empires figured out, trade deficits are dangerous, why can’t we?  I lose readers whenever I talk openly about the BENEFITS of empire.  But we have to be realistic here: there ARE benefits, a lot of benefits.  And pretending otherwise is dangerous.  Now, to illustrate my own thesis, let’s go to the news:

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asahi.com(朝日新聞社):Toshiba, Bill Gates hold reactor talks – English

A startup involving Microsoft Corp. founder Bill Gates has sought technological cooperation from Toshiba Corp. in developing a nuclear power reactor capable of operating for 100 years without refueling, Toshiba said Tuesday. Toshiba and TerraPower, an energy-related venture in which Gates holds a stake, are examining their respective technologies before deciding whether to enter into a formal alliance.

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ΩΩThis ‘alliance’ is basically one way: Gates made oodles of money internationally and wants to make more in other ways since his business model is floundering (I almost never use Microsoft products, they are clumsy and irritating to use) he is forming an alliance with the Japanese.  He will provide capital for them and they will increase their manufacturing power.  The US has no nuclear power industry while Japan, like France, has a considerable nuclear industry.

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ΩΩA nuclear power plant that doesn’t need expensive nuclear fuel is an amazing thing.  And is being developed mainly by our trade rivals.  And we will pay dearly to get this technology when it is available.  Bill Gates doesn’t care if the US is even weaker due to this.  He will be richer.  Bravo for him and hell for the rest of us.  The ultimate end of our trade deficit is the collapse of our entire society.  We won’t be a land of happy individuals who can do as we please.  We will be tearing at each other’s throats and gaining little security or wealth.

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China CEOs Join Obama in Supporting Yuan Appreciation (Update2) – Bloomberg.com

Yang Yuanqing, chief executive officer of Beijing-based computer maker Lenovo Group Ltd., said gains would boost consumers’ purchasing power. Qin Xiao, chairman of China Merchants Bank Co., said an end to the yuan’s 20-month peg to the dollar would let lenders set market-based interest rates. Chen Daifu, chairman of Hunan Lengshuijiang Iron & Steel Group Co., said a stronger currency would cut import costs.

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Export powers that do production are torn between two needs: cheaper commodity imports versus bigger profits from exports.  Manufacturers are poor regulators when it comes to setting policies.  The US has been run by ‘businessmen’ for many years and they have utterly destroyed our financial and trade business and now we are collectively very deep in the red and going deeper.  The businessmen fix NOTHING at all.  One should listen to them but then, not do what they want all the time.

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The remarks are significant because it’s the first time so many executives at state-controlled enterprises have spoken publicly in favor of appreciation since China pegged the yuan at 6.8 per dollar in July 2008 to protect exporters, said Lee Boon Keng, deputy chief investment officer at Bank Julius Baer & Co. in Singapore. The comments are at odds with Premier Wen, who said criticizing the peg amounts to “protectionism,” in a March 14 response to sanction demands from U.S. lawmakers.

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ΩΩHAHAHA.  The Chinese peg is protectionism…for the Chinese empire.  It may be irritating for various entities but it protects all of China.  The US theology of free trade is hinged on the concept that a floating fiat currency fixes trade imbalances.  But this proved to be a false model since no nation has a truly free floating currency.  Gold used to regulate trade and before it was dumped, trade was balanced, more or less.  Once the floating currency was launched, trade imbalances proliferated like crazy.

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China, Afghanistan forge closer economic ties as new agreements are signed

China and Afghanistan took new steps Wednesday to further strengthen economic and trade links as new agreements were inked regarding aid, tax reduction and training. Chinese President Hu Jintao and visiting Afghan President Hamid Karzai witnessed the signing of three documents on economic and technological cooperation, favorable tariffs for Afghan exports to China and training programs.

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ΩΩThe government can use diplomacy to have mutually beneficial deals.  The government of China isn’t doing this on behalf of corporations but in order to pursue greater imperial goals such as undermining US power in Afghanistan.  The US hoped to surround China with US troops and thus, constrain Chinese imperial expansion.  But this is an expensive failure.  Only if we had a trade surplus, like China, while paying for our military without peddling our debts to China, could we win anything in Afghanistan.

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ΩΩInstead, our very expensive war there is draining our national coffers and putting us in debt to the Chinese who are expertly exploiting our war for their own profits.  Our own Congress is busy looting the public purse to pay for these wars while China has no drain whatsoever from international wars on the other side of the planet.

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China, Russia pledge closer cooperation

Visiting Chinese Vice President Xi Jinping has met with Russian Prime Minister Vladimir Putin. The two leaders agreed to enhance ties between their countries and their ruling parties….

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…He said Sino-Russian relations have always been a priority of China’s foreign policy. And boosting a sound development of their partnership is an established guideline of the Chinese government. Xi Jinping said China stands ready to step up mutual support on issues concerning both sides’ core interests, exploit complementary advantages, jointly promote a multi-polar world and elevate bilateral ties to a new stage.

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ΩΩSelf-centered businesses and individuals want ‘globalism’ while using the US as the military enforcer of this while at the same time, these same ‘globalists’ refuse to pay taxes to support the US military.  They should be kicked out and their wealth confiscated to pay for our military.  But we are helpless when it comes to this action due to everyone being told, we are individuals!  Rich people are NOT individuals: they are part of a group such as the Bilderberg group.

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ΩΩThe rich individuals are competing ruthlessly with each other but they all strive to free themselves of national controls so they can get super-duper rich with no restraints based on national interests.  This folly is supported by ideological beliefs encouraged by the super-rich.  One of the stupidest things I see in the debates about the ‘elites’ is this insane idea, the elites are ‘socialists’ or even ‘communists’.  They are….in Germany or China!

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ΩΩBut not in the US or UK.  Or lots of other places like say, Mexico.  Even in the case of Germany or China, the socialists and communists are not the industrialists but rather, are the POLITICAL leaders who keep the social balance on behalf of the working classes.  Not always successfully.  The Chinese communists often get all entangled with the industrial elites and are corrupted and take sides against the working classes.  This causes social and political tensions.

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ΩΩIn the US, on the other hand, people here have virtually no idea about collective actions and fighting off individuals who are looting our systems ruthlessly for personal gain.  We have been brainwashed into thinking, this is a great way to do things.  Individuals trump the state!  Evading taxes is great!  To fix tax evasion: eliminate even the rudimentary social services provided by the state!

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ΩΩBelow is an editorial from Japan.  The sentence I highlight shows how stupid ‘experts’ can be:  asahi.com(朝日新聞社):Global reserve could prevent future calamity – English

A global reserve system should be created to allow countries to spend more money in a productive and efficient way, instead of accumulating reserves for use in a possible financial crisis, Nobel Prize-winning economist Joseph Stiglitz, a former senior vice president and chief economist of the World Bank, said in a recent interview with The Asahi Shimbun in Tokyo.

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Stiglitz is a Bilderberg internationalist.  He would dearly love to see an international FOREX holding that would allow the INDIVIDUALS who benefit from unbalanced trade to do whatever they please with NO political or social controls from ANY nation.  We have no elections for internationalist organizations.  We have zero political control over these things.  And internationalists don’t care if we all die.

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The people that love this system are individuals who use pirate islands for their financial safe zones.  They want a system utterly divorced from any state controls so they can control this while flitting about the planet, from place to place, mostly keeping multiple residences in small city-states like Monaco or Dubai or Bermuda.

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He embraces the proposed creation of a European version of the International Monetary Fund as a way to stabilize the euro, while advocating the need for Asian nations to step up their regional cooperation for currency stability.

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Asia is already doing this, revolving around the emerging Chinese Empire.  Someone has to be strong enough to regulate a system and China isn’t strong enough to regulate the entire planet but wills soon be strong enough to regulate Asia.

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Regarding the state of the Japanese economy, the Columbia University professor said that monetary authorities should guide the yen’s value to a lower level, even resorting to market intervention if necessary, to help Japanese businesses become more internationally competitive.

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ΩΩNote how Stiglitz wants to have a cheaper yen so Japan can export more Toyotas to the US!  HAHAHA.  We should stop this flood of cars, not encourage it.  Japan has a trade surplus, the US is the one with a trade deficit.  So the dollar should weaken, not the yen.  But Stiglitz is a very dishonest man.  He doesn’t draw this conclusion because the internationalists like himself still think it is OK for the US to run infinite trade deficits.

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Senior Chinese official says appreciation of RMB not good recipe for U.S.-China trade deficit

A senior Chinese trade official said on Wednesday that the appreciation of renminbi, the Chinese currency, is not “a good recipe” for solving U.S.-China trade deficit. “U.S.-China trade deficit is caused by the shift in international division of labor and of industries against the backdrop of globalization,” said Chinese Vice Commerce Minister Zhong Shan in a speech at the U.S. Chamber of Commerce.

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ΩΩNote how aggressive the Chinese government is in this  matter.  And he does correctly point out that ‘globalization’ is all about shifting labor costs.  Stiglitz agrees.

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Asia’s regional currency swap plan comes into effect

A currency swap agreement between China, Japan, the Republic of Korea (ROK) and the 10-member Association of Southeast Asian Nations (ASEAN) came into effect Wednesday. The currency swap agreement, or the Chiang Mai Initiative Multilateralization (CMIM) agreement, totaled 120 billion U.S. dollars, said a statement posted Wednesday on the website of the People’s Bank of China, China’s central bank.

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$120 billion is a mere drop in the FOREX bucket. A lot less than 10% of Asia’s FOREX dollar hoard which is nearly $3 trillion.

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…China and Japan contributed 38.4 billion U.S. dollars each to the liquidity pool and the ROK offered 19.2 billion U.S. dollars. The 10 ASEAN nations provided a combined 24 billion U.S. dollars, according to the statement.

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ΩΩChina is now on parity with Japan.  The merging of Japanese and Chinese interests and deals is increasing greatly.  The US is very interested in the Google/China fight.  Google is doomed to lose this fight because the Chinese government has zero interest in pushing forwards the benefits of individuals but is very aggressive about pushing forwards the benefits to the empire.  So Google will lose in the end.

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ΩΩGoogle can’t afford to lose the entire Chinese online market!  Google’s profits come from selling ads and no Google in China=no Google profits.  Someone else will get this money.  So Google will, after trying to get around the Chinese government, be forced to kow tow to Beijing’s desires.  Meanwhile, the Israelis slap around our US President and AIPAC parades Obama’s own party in front of him with the Democrats swearing allegiance to Israel and declaring themselves open renegades against their own leader, telling him to go to hell, they want to have Israel run our foreign affairs!  WOW.  And don’t imagine the Chinese dragon notices this!  Or Japan, for that matter.

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ΩΩMeanwhile, our ally in Britain is in trouble with the voters.  The last pathetic remains of the British empire are rapidly being dumped into history’s garbage can.  The Telegraph has demanded freedom of information about the Darling gold sales:   Explain why you sold Britain’s gold, Gordon Brown told – Telegraph

The decision to sell the gold – taken by Mr Brown when he was Chancellor – is regarded as one of the Treasury’s worst financial mistakes and has cost taxpayers almost £7 billion. Mr Brown and the Treasury have repeatedly refused to disclose information about the gold sale amid allegations that warnings were ignored. .

Following a series of freedom of information requests from The Daily Telegraph over the past four years, the Information Commissioner has ordered the Treasury to release some details. The Treasury must publish the information demanded within 35 calendar days – by the end of April. The sale is expected to be become a major election issue, casting light on Mr Brown’s decisions while at the Treasury.

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ΩΩIt will be most interesting to see this information.  Switzerland, following the instructions from previous Davos and Bilderberg meetings, also sold off its own gold.  This is going to be a disaster in the future if gold is again required to settle international accounts due to trade imbalances!

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Six arrested in FSA’s ‘biggest ever’ swoop on insider dealers – Business News, Business – The Independent

The Financial Services Authority yesterday stepped up its crackdown on insider trading with a series of dawn raids around London and the Home Counties that led to six arrests. It emerged last night that at least one of those arrested worked at Deutsche Bank with another employed at the hedge fund Moore Capital. The FSA said it believed the six City professionals had passed inside information to traders, either directly or via middlemen. The traders then used the information to inform their trading decisions and net “significant profits” according to the watchdog.

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ΩΩThe number of arrests of criminals who wrecked our economic system has barely begun.  Urgency for this has faded at the top but the populace below, as they are increasingly squeezed and as beloved social systems fail and fall off and vanish into the darkness, rage is rising.  It is still no way explosive but will be over time.  Collectively, the pain is hurting more and more.  Schools are closing, medical care is being denied.  Police are vanishing from the streets and things are falling apart.

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Massive strikes disrupt France | Radio Netherlands Worldwide

The French Interior Ministry says 380,000 civil servants and teachers stopped work; union representatives say the number was double that. Train services were also severely disrupted, with almost half of all train journeys throughout the country cancelled. Demonstrations took place in around 200 French towns and cities.

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The protests were aimed at President Nicolas Sarkozy’s plans to cut government jobs and raise the pension age. Opposition to the plans cost Mr Sarkozy’s party many votes in last Sunday’s regional elections.

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The president responded by firing his Employment Minister Xavier Darcos, but observers doubt whether this will be enough to turn the situation around. France’s trade unions have already voiced their opposition to Mr Darcos’ successor, Bernard Thibault, who is known to favour rigorous cutbacks.

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ΩΩThe people are a collective.  If they are individuals, they will be eaten by internationalist wolves or other empires that are not individuals.  This is a harsh historical lesson: individuals eventually lose to organized groups.  The very first humans who banded together to be a bigger group than neighboring family groups, the ones who formed tribes, trounced all the others completely and physically eliminated them. We descended from tough, cruel fighters who ELIMINATED competition via fighting as a larger group.

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ΩΩThe larger group can and do make many mistakes.  But they move onwards in history while individuals don’t.  Embracing hyper-individualism is very dangerous. It can lead to the destruction of the entity that protects all individuals.  This is why ‘nationalism’ grew: tribalism means ipso facto, smaller groups whereas the concept of a ‘nation’ leads to tribal groups being put together into a greater entity and of course, imperialism overrides all tribes unless a tribe takes over the empire and drives it off the cliff.  As we see with Israel.

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20 Comments

Filed under .money matters, energy, Free Trade, gold, war and peace

20 responses to “Empires Must Regulate Trade And Finances

  1. isha

    Elaine:

    ” The US is very interested in the Google/China fight. Google is doomed to lose this fight because the Chinese government has zero interest in pushing forwards the benefits of individuals ”
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    Google might not the one who are pushing for “the benefits of individuals”… Please take a look at the google translation of a Chinese newspiece. It might or might not make any sense to you …
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    Chinese to English translationShow romanization
    In fact, the Valley at 3:00 on March 23, Google announced that the persons concerned, its original domain name in China jump to Hong Kong. From January 12 Google launched an attack and threatened to “withdraw from China”, the clamor of the two-month “Google showdown” event something of an explanation.

    Strictly speaking, Google does not “withdraw from China.” First, Google the domain name transferred to Hong Kong, while Hong Kong Special Administrative Region of China. Second, Google is likely to try to retain part of the business in Mainland China. March 23, open the Google’s search services, surprised to see “Welcome you to Google search in China’s new home,” the words, “out of China”, which is just a cover-up.

    On Google “to withdraw China’s” controversy, the American media done what the article, “Washington Post” was the most exaggerated, “the Chinese people, the loss of Google means that only a dark,” as if Google is the Chinese people’s spirit of上帝. India’s Zee News is right in saying that it is for the Chinese case, Google “search engine, but is just.” According to China’s World Wide Web survey, 84% of people in Google’s withdrawal “does not matter,” a lot of people are posing a threat to Google’s very repugnant.

    Yes, the Chinese people, Google is not God, even if it spared no political show or values show, it is not God. Google’s business operations in China, has not been a dominant monopoly position, “dead Zhang butcher, did not eat pork.” There German media that Google’s, took the lead after the commercial failure of a political show.

    In fact, Google is not “values Virgin.” Google and the U.S. intelligence and security sector cooperation and collaboration is well known, this has also triggered a dispute with Europe. Google’s a message if the “obstacle”, the departments concerned a directive must be deleted cover. Google’s information search data, is to “retain for future reference,” the. Google is a commercial entity, business, and adhere to business ethics is the right path, for example, Google should be properly resolved with the Chinese writer’s intellectual property disputes, not down a “theft” in the name. Google to enter China in a few years later, a sudden “political cachet,” people can not read. Google launched an attack, U.S. officials and the media swarmed, shouting echoed, this is a business event or a commercial act? People to ponder. Lenovo in the United States vigorously in recent years, network warfare initiatives, perhaps, this is a tentative skirmish?

    In the U.S., political and business between the saying goes “revolving door”, and Google executives on the American political involvement is relatively deep, and some people or into the career, perhaps Google is suddenly “politicization” of a cause. Google’s current “sudden politicization” completely misjudged the situation, it did not understand the Chinese people strongly object to external threats and blackmail. Google’s current “sudden politicization” is very irresponsible, it is to their Chinese employees and co-operation businesses enormous confusion and loss. “It will rain, mother to get married,” Google to go, others no stopping, but Google should properly handle the aftermath.

    Google to withdraw the storm will give us an extension of thinking. We want to guard against the hegemony of certain countries at the same time, we must guard against certain enterprises “monopoly desire”, both are the same shape things. Under the conditions of economic globalization can be “brought” of course good, but should not weaken their own creativity, to be a little bit our own things, otherwise people “take one.” In today’s online world, the United States is the largest holding, it is a reality. China at any time would be “take one”, which taste feel good. Whether China should have its own line of technological development and have their own root servers, this is a problem that should be considered.

  2. flipspiceland

    There is only one authentic EMPIRE.

    The Global Empire. And that has little to do with a nation like the unUnited States that began to become disintegrated beginning with FDR and continuing thru the raid the various members of Congress have made on the Social Security Fund to ‘pay for’ their further socialist movements, and right on thru the National Health Insurance debacle that has sealed our fate should it be enacted without severe redaction in the most grievous of its attacks on our producers.

    The Global Empiricists understand this and that vision overarches everything we here on the ground will experience as a result of the country drifting evermore to 3rd world status.

    Those who can, are already planning their departure for safer, freer havens, if they are not old enough to die before the worst of it hits. The children and especially the grand children will grow up in a vastly different world than we did (I don’t mean grow up in the sense of maturing, because our country as a whole has 150,000,000 people over the age of 40 who never got past the age of 13.

    The Global power mongers know all this and have planned accordingly for thei continues prosperity and dont’ give a hoot about what was a pretty damned good country until the people became wimps content to, “Amuse Themselves to Death”.

    ΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: Absolutely totally wrong, wrong, wrong. Anyone telling you this is pulling your leg, big time. There are most certainly rival empires. Russia is still an empire. Germany’s empire is the EU. And of course, China is an empire, big time. And far from being one and the same, they are all quite different have have different future plans, big time. And are in conflict.

    Japan and the EU and UK are not political rival empires…YET. But they are TRADE empires! That are dire rivals to our own. Global empiricists would love to have a separate empire they control but this isn’t what is happening at all. Power is rapidly draining away to places like China. And not one Chinese communist leader is part of the Bilderberg gang. Not one. And no Russians connected with Putin’s party in power, either.

  3. the fool on the hill

    These ‘free market’ types love to misrepresent Adam Smith. He was not an ‘economist’. He was a moral philosopher. He tried to break reality down and offer input on how to manage things effectively, offering insight based on practical experience to the best of his ability. There was no dogma.

    One thing these types never mention is that Smith was all for high taxes on luxuries. Also, he was keenly aware of the difference between debt and capital, and deficits and surpluses, and the attendant dangers. Indeed, his seminal ‘economics’ book was treatise on ‘The Wealth of Nations’, not ‘The Wealth of Individuals’.

    If he was around today to set the record straight we in the West would be less likely to be in the mess we are in now.

    ΩΩΩΩΩΩ

    ELAINE: You are 100% correct. Yes, yes, yes. And all wealth held by nations is most important for survival which is why no sane nation allows itself to be stripped of all of its industries, labor or commodities.

  4. adammateyko

    Money and the system that it operates under, is supposedly a means of promoting commerce and allocating rewards and capital, but under ZIRP and twisted rules has degenerated into an offtrack betting casino. Thats the common perception, but is it true?
    How many times can a degenerate system, degenerate even further? How low is low? I guess the lowest is extinction of a species, which means utter failure. But maybe it had a good long run before failure.

    We just seems to bounce along in unpredictable ways due to the complexity of human nature and how we organize things.
    Being extremely transient creatures, even our entire history is just a blip, so far.

    Maybe Markov chains as used in algos determine our future from now on. See
    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1138782

    Whatever happened to the “quants” anyway?

  5. flipspiceland

    @isha

    What, on earth, are you talking about???

  6. Rob P

    Isha’s article repost makes perfect sense if you account for it being translated from the original Chinese by a Google computer.

    Let me give you the short version in English.

    1. Google was never the biggest player in China and overestimated its power.

    2. Americans see Google as fighting for freedom, but Chinese see just a routine power struggle.

    3. Google is no saint or “values virgin.” The Google execs are in bed with politicians as is normal in the US.

    4. Google has lots of computing expertise, but this can be developed by China as well.

    All in all, a very pro-China piece, just as you would expect from a Chinese news outlet. FYI, I don’t speak Chinese, but I have a gift that most Americans don’t: I can understand you if you think you’re speaking English.

  7. emsnews

    I’m so sorry, I didn’t fully explain the quaint quants!

    Click to access advice.pdf

    ON BECOMING A QUANT
    MARK JOSHI

    1. What does a quant do? A quant designs and implements mathematical models for the pricing
    of derivatives, assessment of risk, or predicting market movements.
    2. What sorts of quant are there?
    (1) Front office/desk quant

    (2) Model validating quant

    (3) Research quant

    (4) Quant developer

    (5) Statistical arbitrage quant (6) Capital quant

    A desk quant implements pricing models directly used by traders. Main plusses close to the money and opportunities to move into trading. Minuses can be stressful and depending on the outfit may not involve much research.

    A model validation quant independently implements pricing models in order to check that front office models are correct. Plusses more relaxed, less stressful. Minusses model validation teams can be unin- spired and far from the money.
    Research quant tries to invent new pricing approaches and sometimes carries out blue-sky research. Plusses it’s interesting and you learn a lot more. Minusses sometimes hard to justify your existence.

    Quant developer – a glorified programmer but well-paid and easier to find a job. This sort of job can vary a lot. It could be coding scripts quickly all the time, or working on a large system debugging someone else’s code.

    One of my neighbors happens to be a Goldman Sachs Quant.

  8. CTCT05

    Wonderful article. I recall that America’s trade deficit is about $30b each month & this has been adding up since 1987. This only cheapens the UD$ & yes, it is up to the country importing to control itself, not the exporting company, but that is all you can find at Walmart so we have little choice but to buy imports from China.

  9. if

    ECU Group’s Philip Manduca “We Are At A Tipping Point” And The Only Thing That May Save The Euro Is A Collapse Of The US
    http://tinyurl.com/yd3rs3g

  10. justiceatsqualor

    @emsnews: “The US is very interested in the Google/China fight. . . . . . So Google will, after trying to get around the Chinese government, be forced to kow tow to Beijing’s desires.”

    Rather that the US, I’d suggest it is the zionist owned press who are anxious about the Google/China fight. It’s hard to remember a more relentless puppet show of day by day reporting of no news at all. Whole articles that ask and then don’t answer the questions: Will China do this? or Will Google lift up its skirt? I for one could care less whether Google gets into China. If the Chinese have half a brain they’ll keep them out entirely. Who wants a dominant online search engine that blurs out satellite imagery of Israel but gives a close up 360 degree photo of your own house, complete with the license plates on your car? That’s fishy, even if Google claims to do no evil.

  11. Elaine, OT but I would like for you to do an article about Christianity, the Catholic Church, sexuality and the Death Gods since our favorite kinder-kuchen-kirchen outlaw, Pope Ratzinger is in the news again this time covering up the sexual abuse of 200, yes, TWO HUNDRED, deaf teenage boys by ONE paedophile priest. To ‘cure’ them of their ‘rampant’ homosexuality (well whaddya ‘xpect when they can’t have access to girls their age?).

    http://www.nytimes.com/2010/03/25/world/europe/25vatican.html

    Well back a few months ago I counted myself as a Jesus Contactee cause I was finally able to no longer loathe myself due to a different interpretation of the bible on gay sexuality… well I decided to prove all things like the Book of Acts said about the Bereans… imagine my chagrin when I found out that the church fathers, in all likelihood, invented Jesus out of whole cloth? At least that’s how it is or seems to be according to all nonbiblical historical and archaeological evidence. You have always railed about people making humans into gods… how about making death gods into humans?

  12. Pingback: Anonymous

  13. Steve Murgaski

    “Throughout history, the more expansive an empire, the freer the individual.”

    I’m trying to come to terms with your ideas here.

    In downtown Toronto I can wear pretty much whatever I like and nobody will question it. I could cover myself in tattoos and piercings and be openly gay and nobody would pay much attention. In a small town that wouldn’t be true.

    Is that the sort of thing you’re driving at?

    ΩΩΩΩΩΩΩΩ

    ELAINE: You are very much a part of the US/UK empire. The Queen still ultimately rules Canada, you know.

  14. JSmith

    The first article you quoted (The Freeman, 1987) said, “…import restrictions directly lessen the individual’s freedom to exchange…”, and that is correct.

    In an article a while back you made mention of Canon and noted parenthetically, “there is no US camera industry”, to which I’d add there never was a US industry for cameras other than the “snapshot” kind: if you wanted a really good camera you bought German (Hasselblad, Rollei, etc.) or, much later, Japanese. (The only truly great American camera was the press photographer’s Speed Graphic from the ’30s and ’40s.)

    I personally have handed a fair amount of cash to Canon over the years and I’ve been completely pleased with the products I got.

    ΩΩΩΩΩΩΩΩΩΩ

    ELAINE: Yes, having uncontrolled trade is great fun…for individuals. Fatal for nations.

  15. isha

    flipspiceland
    March 25, 2010 at 9:43 pm
    @isha

    What, on earth, are you talking about???
    =============================
    isha
    March 25, 2010 at 7:12 pm
    Elaine:

    ” The US is very interested in the Google/China fight. Google is doomed to lose this fight because the Chinese government has zero interest in pushing forwards the benefits of individuals”
    =============================
    Due to my limited command of English language , I can’t always express myself as well as well as I wish, not to say I can’t always make up my mind, as I am always trying to keep an open mind.

    I guess my point was: even though I am a avid reader of Elaine’s posts to balance out the “mainstream media” and sometimes I take issues with her. For example, Elaine often mention ” US”, “US empire”, but I sometimes got confused. Who is “US”? Who is ” US empire”?
    To my limited understanding, the middle class living within the boundaries of the United States have no bone, no fight with China in the interest of Goggle. “if they have half of a brain”, they should fight their own fight with Google ( if google is a corporate person, to whom do you believe he has pledged his allligence??????) in influencing, controlling their political system, influencing and corrupting their cultural identity and intelltural capacities.

    IMHO, Google’s fight with China is a international issue, as the most effective speaker for Google ISN’t even a U.S. citizen.

    Question: Who is Ian Buruma? To whose interest does he serve?
    ———————————————–
    In the Wall Street Journal, Ian Buruma writes about Google vs. China and the history of information control in China:

    Thought control, in terms of imposing an official orthodoxy, is a very old tradition. The official glue that has long been applied to hold Chinese society together is a kind of state dogma, loosely known as Confucianism, which is moral as well as political, stressing obedience to authority. This is what officials like to call Chinese culture.

    One can take a more cynical view, of course, and see culture as a mere fig leaf meant to hide the machinations of political power. The latest Chinese salvo against the U.S., blaming the Americans for instigating rebellion in Iran through the Internet, reveals that the current spat has a hard (and opportunistic) political core. And the assumption that Google, as a Chinese editorial put it, is a “political pawn” of the U.S. government, is a clear case of projection.

    In any case, instilling the belief that obedience to authority is not just a way to keep order, but an essential part of being Chinese, is highly convenient for those who wield authority, whether they be fathers of a family or rulers of the state. That is why in their efforts to promote democracy after World War I, Chinese intellectuals denounced Confucianism, with its rigid social hierarchy, as an outmoded orthodoxy which had to be eradicated.

    For another historical perspective on the Google issue and the fight for Internet freedom, see this essay by Geremie R. Barmé.
    ======================
    How to Talk About Israel
    The Jewish Problem pops up in the strangest places. In the winter of 1991, at the height of the first gulf war, I asked a right-wing Japanese politician who still wields considerable power in the ruling Liberal Democratic Party to explain the Japanese role in the Middle Eastern conflict. After clearing his throat with some perfunctory remarks about oil supplies and United States-Japan relations, he suddenly stopped midsentence, gave me a shrewd look and said: ”Look, we Japanese aren’t stupid. We saw Henry Kissinger on TV. We know how America operates. We’re perfectly well aware that this war is not about Kuwait. It’s about Jewish interests. It’s all about Israel.

  16. isha

    In my deeply biased opinion, Google is a planted tool in China to promote ” color revolution” and ” regime change” and the Chinese authority know it all along.

    (”Look, we Japanese aren’t stupid.
    http://www.nytimes.com/2003/08/31/magazine/31ANTISEMITISM.html?pagewanted=all)
    They might catch them died rather than protest to a devoted zionist that ” look, we Chinese aren’t stupid … because then it only get these Zionists excited and works even harder to prove that the Chinese are stupid…))… they always have to win, right? as their Jacob had to claim that he win against G…O…D !

  17. Wu Wei

    I agree isha, the (Zionist) status quo are trying to break down sovereign nation China using all sorts of methods: Tibet/C.I.A. agent Dalai Lama, sponsoring Islam groups in Xinjiang, messing with China’s oil in Iran and now trying to use Google to bring about a “revolution” in the Chinese people’s way of thinking.

    Futile.

  18. Steve Murgaski

    Isha, thanks for that Ian Buruma article.

  19. Steve Murgaski

    Elaine, your comment on my earlier post makes me think maybe you interpreted it as sarcasm. But I wasn’t being sarcastic. I’m trying to understand the link you see between empires and freedom, which is counterintuitive to me.

    An empire might be no more than a particular trade relationship imposed by one country on the subject countries. It’s about coercing the subject countries into exporting raw materials to the dominant country, where they’re processed into more valuable commodities.

    I can see how your idea that empires are the best political units might fit with your ideas about trade, if you accept that concept of what an empire is. I.E., the US could impose protections on manufactured goods, and only import raw materials. But the other component of the system is that the subject countries aren’t allowed to do the same. They must offer themselves as markets for American manufactured goods, and go on selling the raw materials cheaply. It takes violence to maintain that system.

    I don’t see you wanting the aspect of empire where foreign markets are forced open to American exports?

  20. emsnews

    Mostly, throughout history, the freest people have been the CITIZENS of an empire (NOT the victims being oppressed by the empire). Free nations exist only in the shadows of an empire. That is, as Iceland discovered, quickly ends when in trouble.

    This is why growing and preserving empires is more important than pretending to be an individual who has no ties to anything. Seriously, when major empires fall, the ability to roam the planet at will vanishes pretty fast.

    Of course, invading people and rivals grow. This is why, when the British empire began to go bankrupt, Germans didn’t roam the planet as individuals…THEY ROAMED AS INVADERS. See?

    This is a harsh concept but closer to reality than people’s desire to be ‘individuals’.

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