Greenspan Chuckles About Bubbles In 2005

The FOMC meeting minutes from the end of June, 2005 were released this week. In it we see an insane, childish and stupid debate about whether or not there was a housing bubble!  Back then, I was writing ferocious editorials about the obvious housing bubble and explained how this was very connected to free trade and the decline in prices in imported goods coupled with a sudden hike in oil prices…all of which showed that the destruction of the US industrial base didn’t kill inflation, it merely shifted it from manufactured goods into commodity goods and housing which is classic.  No surprise to anyone who understands basic economics.  Though this is totally obscured by modern US economic theology which ignores reality.  I have proof, the top economic pundits deliberately ignored reality in favor of free trade and free funny money.

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ΩΩFirst, the minutes from the meeting back then when Alan Greenspan, the worst Fed chief ever, was yucking it up with Geithner, laughing about bubbles:  http://www.federalreserve.gov/monetarypolicy/files/FOMC20050630meeting.pdf

 

  • June 29-30, 2005
  • A second comment I wanted to make concerns the relationship of creative finance to the housing market. One view that I think is very prevalent is that the use of credit in the form of piggyback loans, interest-only mortgages, option ARMs [adjustable-rate mortgages], and so forth, involves financial innovations that are feeding a kind of unsustainable bubble. But an alternative perspective on that is that high house prices, in fact, are curtailing effective demand for housing at this point and that house appreciation probably is poised to slow. So the increasing use of creative financing could be a sign of the final gasps of house-price appreciation at the pace we’ve seen and an indication that a slowing is at hand. Previously, lenders applied very rigid constraints on loan-to- value ratios, but essentially those constraints are now being eased at the margin through these creative financing techniques. And that’s providing some elasticity to what was a firm roof. It may slightly diminish the price elasticity of the demand for housing, but the fact that it is blossoming now basically suggests that we really are at the ceiling where it’s binding and will ultimately constrain appreciation.

 

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ΩΩGood lord!  The debate about the housing bubble raged from 2003-2005.  I predicted that this would happen when Greenspan dropped interest rates at the same time Bush declared war on Islam after 9/11 and cut taxes.  This triple whammy: wild war spending, cutting taxes and dropping interest rates really low leads directly to national bankruptcy.  History is crystal clear about this.

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ΩΩWhat is even more interesting about this goofy meeting of the mindless is, Greenspan and Geithner were both studiously denying there even was a housing bubble back in June, 2005!  Thus, the secrecy of this meeting!  HAHAHA.  Greenspan did mumble something in public about how housing was rather ‘exuberant’ but he didn’t show alarm at the extent of this bubble. Nay, he thought it would reach a natural breaking point and then go bust.  HAHAHA…again!  This is due to the concept that bubbles are OK and a wonderful thing and can’t hurt anyone and don’t look at Japan!

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ΩΩBack in 2005, top economists who still debated in public (they don’t anymore) sniffed at me that talking about Japan was pure silliness since we are not like Japan.  That is, we had no Japanese-style housing and stock market bubbles.  I kept warning that we were copying Japan’s mistakes and we would be stuck in a 20 year depression if we do this.

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ΩΩOf course, ALL bubbles pop the same way just as they grow the same way!  The key here is the government: if it runs everything in the red, we get bubbles.  If the money suddenly accelerates in value against a top trade partner, you get a housing bubble as extra credit floods markets, seeking a way of making more money via lending.  A government MUST regulate trade and the inflow of foreign funds or there is a dangerous credit bubble.  Today, I see online and in the pundit realm, cries for more credit, cheap credit and someone please print much more funny money based on whatever so we can…spend more money on things!  Not improve production, just improve buying.

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ΩΩBack to the FOMC meeting:

 

  • Finally, with those two comments, a question. It concerns the presentation by Andreas and the numbers cited on loan-to-value ratios at origination. One of the things we’re seeing in California and elsewhere in our District—and maybe this is true nationwide—is a growing use of piggyback loans. Loan-to-value ratios of 90 to 95 percent are common in California, and we’ve even seen combination loan-to-value ratios and piggyback loans going up to 125 percent. I guess that means two things, one of which is that the traditional first mortgage looks utterly conventional. Those mortgages have an 80 percent loan-to-value ratio and I suppose they are being sold off to Fannie and Freddie. The other thing is that with such conventional mortgages being sold to Fannie and Freddie, there’s no need for private mortgage insurance. So Fannie’s and Freddie’s books may look better in some sense—less risky—than they really are because of all of the second mortgages going up to possibly 125 percent.

 

  • CHAIRMAN GREENSPAN. It sounds like a CDO [collateralized debt obligation]. That’s what it is, isn’t it?

 

  • MS. YELLEN. Yes. So I wondered if that was something that you’re aware of and something that is included in the numbers.

 

  • MR. LEHNERT. Yes. The data that you see on my first exhibit in principle include second liens, closed-end second liens. And in particular in the graph that you cite I use the newly available 2004 data from HMDA which for the first time has collected data on whether or not the HMDA loan is a junior or a first lien. So the picture that you see there should reflect the growth of piggyback loans….

 

  • CHAIRMAN GREENSPAN. The argument for the rapid rise in land prices in 1837 was that land was fixed in quantity. [Laughter] So, new ideas are very rare. Vice Chair.

 

  • VICE CHAIRMAN GEITHNER. I remember that bubble! [Laughter]

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ΩΩI am so laughing, too.  HAHAHA.  Yup.  How droll.  The bankers deliberately created ‘normal’ looking mortgages in order to offload them as quick as possible into the semi-government entities which then meant NO INSURANCE since the insurance costs are actually borne by the US taxpayers, not the bankers.  No one needed any capital to cover default loans because all losses would devolve onto the general public and be added to our massive national debt.  This meant the bankers could then issue a second loan to home speculators that covered the ‘downpayment’ costs!  This, in turn, meant buying a house was ‘free’ in that the buyer put down no savings at all.  So the buyer had little incentive to protect their own loan promises since they had no money from themselves in the game.

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ΩΩThis meant, walking away from a property that is below its purchase price is super-easy.  We don’t have debtor’s prisons anymore so the only onus suffered by people who walk away from honoring debts is a slight discomfort, one is unable to access credit markets for a short while!  This forgiving system allowed creeps like Donald Trump, a serial real estate bankruptee, to continue merrily onwards, wrecking his financial supporters but thriving, himself.

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ΩΩThere a was absolutely no debate that Greenspan and Bush Jr created a massive bubble.  Nor was there any debate that the Bush tax cuts were sending US government finances off the cliff.  Nor was there any debate that much of the bubble housing debt was being shoved into the lap of the government with no capital backing it, either.  Greenspan knew he had to raise interest rates because the price of oil was shooting upwards thanks to too much US trade money sloshing around the world and the war against Iraq and the boycott of Iran’s oil.

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ΩΩMy analysis of what was going on was totally correct back then and proof lies in my own blog:  Culture of Life News II: June 2005.  Here are a few tidbits showing how easy it was to foresee what was happening next and who was screwing up back then.

 

Culture of Life Financial News: FRIEDMAN CELEBRATES JOB LOSSES

  • Instead, they seem more interested in servicing other people. Why does China has to have “a more flexible currency”? Japan doesn’t have one. Seldom does the yen budge from the magic 105-109 yen per dollar set in stone after Bretton Woods II. We have a huge trade deficit with them. So why would “freeing” the Chinese yuan do anything at all? Note how Greenspan considers any measures to protect American jobe “futile” and “misguided”? Can I have his job? I could use the money and power. It would make my life much easier and certainly do more to help my fellow Americans facing economic annihilation. Heck, my good old father-in-law, formerly a staunch Republican, he could do tons better. In fact, any patriot would do.

 

  • Why do we suffer to allow these traitors to run our nation? When all those real estate/home building jobs melt away when the present bubble bursts as it is doomed to burst, what on earth are all those millions of people going to do? Move to India?

 

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ΩΩIn this video from PBS, FRONTLINE: Flying Cheaper – Frontline examines how all our airlines are now outsourcing jobs and OFFSHORING repairs.  Our jet fleet is being fixed in foreign countries including China.  The few facilities left in the US are all in the deep south where cheap slave wages reign supreme and even then, around half of the workers are H1 and barely understand English and can’t communicate well with each other or the bosses.  The bosses demand speed at all costs so paperwork is forged, lies are told and corners are cut.  Despite this, we had few plane crashes but this system has been in place for only a short while and most jets are fairly new thanks to the credit bubble.  But this is doomed to suddenly deteriorate as our ability to access easy credit falls in the future.

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ΩΩHere is another story from June, 2005 which shows us that the elites were quite aware there was this massive bubble:  Culture of Life Financial News: SNAKE EYES

 

  • More and more economic writers are wringing hands over the housing bubble. They all understand this is due to low interest rates. When the super low rates first came about after 9/11, I was puzzled. The economic and banking matrix didn’t suddenly change for the better allowing us the luxury of low interest rates thanks to money pouring into banks in savings. With a huge kitty of savings, of course, banks must put the money to work thus the low interest rates.

 

  • This didn’t happen. Right after the funeral orations, Bush said, “Go shopping!” “Go to Disneyworld!” and to insure this, the Feds dropped interest rates even as Bush also ominously said, “Go to war!”

 

  • Taxes were immediately cut, too. Everyone was yelling about spending and the Fed fed this via incredible interest rates which we all knew were below the rate of inflation thus were funny money made up for us to party with and party we did. Relentlessly. Each time it looked like sensiblilty was going to rear its party pooper head, the Fed dropped rates more. People took out money from their new Home ATMs and poured it into a host of things and everyone became richer, seemingly. The monthly payments for homes dropped even as prices shot up, a certain sign that money was valued below its true value.

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ΩΩNote my last statement: money was being devalued lower than its international trade value which is its true value.  Thanks to this, we could borrow huge amounts and at lower and lower rates.  The reason money was valued high overseas was due to everyone running trade surpluses with the US piling this money into FOREX holdings which shot up in size very rapidly from 2003-2009.  The depression in price of all imported goods meant we had no seeming inflation so interest rates could drop to near zero…but our red ink in trade is like bleeding to death.  That is,the ability to take on more and more and more debt so we could buy more and more trade goods meant we would take on way too much principal debt!

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ΩΩPrincipal debt was ignored by the Fed and most economists who concentrated on short-term debt overhead costs. I see this all the time!  Many people who chide me for being stupid explain to me various tricky and silly ways to create MORE credit and MORE debt and assure me, these won’t cause inflation!  Oh my!  Inflation isn’t the problem.  Too much principal debt is the problem. Japan has zero interest on loans for years and years and what is growing like weeds there?  Jobs?  Nope.  DEBT is growing!  To a massive size, the biggest per capita on earth.  And the US is racing to catch up!

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ΩΩYou have to pay down principal debt over time.  If one never does this but simply piles on more and more and more, it ends updecapitalizing the system and this leads to bankruptcy.  It may not bankrupt everyone but it certainly bankrupts all of society!  That is, the country itself.  Only a child thinks there are no limits. Why do these limits even exist?  Ah, that is the question few people dare think about.

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ΩΩI warn people, if we had no limits on anything at all, we would destroy ourselves.  The laws of the entire universe dictate ‘never can anything go to infinity’.  Astronomers struggle with this iron law which is why the theology that the universe will expand to infinity was first launched.  Infinity happens to be an absolute which cannot exist in the physical realm by definition.  All things must adhere to some invisible but uncrossable limit on expansion.  This can be detected via a nifty tool called ‘the hockey stick graph.’

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ΩΩMy hand has a nifty hockey stick graph which terminates at the top of the palm.  This is my ‘life line’ and an old gypsy woman in New Jersey read my palm once after I saved her when she fell into a snowbank.  She said, as a joke, ‘You will live forever’ due to this nifty hockey stick line in my palm going all the way to the very top.  Of course, I won’t live forever.  The gypsy woman died 22 years ago (I was invited to her funeral because I saved her!) and I am alive today but may not be, tomorrow.

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ΩΩThis is why infinite piles of principal debt can’t go on forever!  This is because people die, estates collapse, governments are killed off by enraged peasants, foreign powers buy up all the principal debt due and then suddenly demand a full repayment or concession of various ports and territory, etc.  It is literally the road to ruin.  ZIRP lending rates doesn’t stop this, it accelerates this process of bankruptcy!  This is why all systems promising cheap loans are traps, not rescues.

 

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ΩΩHere is another story from the same week Greenspan and Geithner were chuckling about real estate bubbles:  Culture of Life Financial News:  BUBBLE BUBBLE TOIL AND TROUBLE

 

  • Surrounded by mountains of billowing white froth, Greenspan peers owlishly through his lookinglasses and sees “many local bubbles”. We suppose when these bubbles cover the landscape he might note, “There are bubbles everywhere”. But then, he might not. We can only guess at what goes through his brain.

 

  • Last month, Greenspan told real estate buyers to use adjustable mortgages. He said:  “But it’s not hard to see that there are a lot of local bubbles,” he said Friday, without specifying these local markets. Greenspan said price surges might “simmer down” as housing became less affordable. “It’s pretty clear that it’s an unsustainable underlying pattern,” the Fed chief said. “People are reaching to be able to pay the prices to be able to move into a home.” The central banker went beyond his comments in February by describing how he saw “very significant acceleration” in the turnover of U.S. homes, partly because of purchases of second homes. He said speculation in both the housing and mortgage markets had accelerated. Greenspan said buyers were using riskier financing techniques, such as “interest only” loans, to squeeze into houses. Adjustable-rate and interest-only mortgages accounted for nearly two-thirds of new loans in the second half of 2004, according to the Mortgage Bankers Assn.

 

  • Now he tells us! Using all sorts of tricks to lower the monthly payments is suddenly a no no! Knock me over with a check book!

 

  • Fueling the state’s sizzling market has been relatively low mortgage rates. Even as the Fed has pushed up short-term borrowing costs in the last year, long-term rates — those to which most mortgages are tied — have remained near 40-year lows.

 

  • A sharp rise in mortgage rates could pop these local bubbles, some experts say. Homeowners with adjustable-rate loans will see their payments jump when long-term rates rise.

 

  • What is uncertain, experts say, is just when these bubbles might burst. The stock market didn’t crash until 2000, four years after Greenspan’s “irrational exuberance” comment. Perhaps these chuckleheads running things here will figure out the concept of “time lag”. It affects all kinds of things, it is a natural property of kinetic energy systems. But of course, people aren’t supposed to understand simple scientific rules which govern reality. No fun in that.

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ΩΩI have marveled in the past how ‘money’ acts like liquids, solids and other real things.  This isn’t because money is ‘real’ but rather, the rules that govern all physical things happens to run all nonphysical things, too.  It is a queer business!  But the reason money acts like real things is simple to understand: it is used to control, trade or value physical or real things.  The areas where it goes crazy the most are where there are few obvious physical restraints: government spending, printing of money by adding zeros, the derivatives futures markets (the future is less real than the present or past!) and other nebulous systems.  Yet all of these end up hitting some sort of growth limit, some ceiling that is invisible except via one thing: the hockey stick growth graph.  There, we can actually see when the ‘it can’t double in size anymore’ business occurs.

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ΩΩJust for the record, here are some of my comments from June, 2005, about free trade and how it is causing a bubble here:  Culture of Life Financial News: MYOPTIC CONGRESS TRIES TO FOCUS ON CHINA

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ΩΩThe cartoon says it all: Friedman of the NYT, a huge free trade flat earth maniac, is happy with the dreadful status quo of huge US trade deficits.  Note the corporate jet flying away.  This was my comment about how all our jobs are being offshored even as foreign workers who have cheaper wages flood into our job markets.

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ΩΩIt was obvious back then, how South Korea, Japan and China were going to utterly destroy Detroit.  The US auto worker’s unions have been utterly broken and so wages are dropping very rapidly there but never faster than wages are falling via offshoring.  Japan is now, this year, moving the last of its own auto industries into cheaper labor markets since Japanese workers can’t be squeezed any further.  The big fish here is China: eventually, Chinese cars will swamp all others and depress profits of all others and flood world markets.

 

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ΩΩHere is my story written the same week Greenspan was chuckling about bubbles:  Culture of Life Financial News: CHINA WILL NOW DESTROY DETROIT


  • World’s biggest container ship built in South Korea and heading towards the USA.

  • As our native auto industry sinks in the ocean of oil woes, weighted down by high labor costs/poor gas mileage dinosaurs, just as I have predicted, China steps into the world auto market, delivering the final blow. The Japanese, despite their leader trying to poke China repeatedly in the eye, is heavily investing in automobile factories in China…Note how the spending shot up for three years after Bretton Woods II until the money was all used up from that windfall. Note also, the Japanese then started to buy
    • American bonds to keep our deficits afloat, foreign purchases of our gov. bonds shot up from 1986 to today whereby foreign governments buy over 85% of these bonds!

     

     

  • The yen no longer floats against the dollar. When we were heroically trying to depress the dollar, the euro shot up but the yen stayed exactly pegged at the 105-110 range it has sat at for the last 15 years despite everything. We have now given up on trying to ditch the Chinese via depressing the dollar and are back at threatening them. Yet are silent about the Japanese.

 

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ΩΩThe Chinese broke the Japanese cheap money system.  Japan has been printing money like crazy via loans to the government but the ability of the people to pay down loans and then take on more loans has collapsed due entirely to a collapse in wages in Japan.  The Japanese people are getting poorer and poorer.  The government is toying nervously with draconian sales tax hikes which will destroy whatever remains of worker buying power.  This is exactly what is being planned for US workers.

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ΩΩJapan had a huge buying spree in the US before its own bubble burst.  China has been on an even bigger buying spree but unlike Japan, has rising, not falling, working wages and the government pressures foreign corporations to raise wages, not pressure workers to have wage cuts.  This is in very stark contrast with the US and Japan both of which have governments run by the very rich and their sole aim is to cut wages over and over again!

 

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ΩΩHere is yet another story from the same week as the FOMC meeting where I talk about how clueless our media and economics pros are when it comes to energy issues:   Culture of Life Energy News: CHINA WANTS ENERGY

  • Redistribution of oil resources is picking up despite the high price of oil, indeed, this is the chief cause of high oil prices. America’s oil barons are using taxpayer money to buy oil and store it and then they pretend there isn’t enough oil and the high prices is not their fault.

 

  • Every news story I read in America blubbers about how the high price of fuel has zero effect on the economy which is all lies. It is having a giant effect: it is driving everyone into debt! I would call that very bad news, indeed. People on fixed incomes are suffering terribly now.

 

  • Anyway, the race to get as much oil as possible is on. All nations without oil reserves will be creating them…if they can. This leaves out much of Europe except for the few places with deep salt mines which is the ideal storage place aside from limestone caverns.

 

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ΩΩI was obviously right back then. Energy overhead costs directly translate into inflation in food, etc and drops in housing values.  From June, 2005:  Culture of Life Energy News: TANGLED WEB WEAVING

 

  • The Chinese newspaper quoted Li Yang, a senior economist at the Chinese Academy of Social Sciences and a former member of the monetary policy committee under the central bank, as saying the plan to use foreign exchange reserves to build up strategic oil reserves is reasonable.

 

  • But Li said the biggest obstacle to the plan is coordinating the actions of various government ministries and departments.

 

  • China had foreign exchange reserves of $659 million (sic) as of the end of March. Some economists have recommended that China diversify its reserves, which are still heavily weighted in U.S. dollars.

 

  • The reserves, by the way, are $659 billion not million. This is the mystery money that matches the USA trade deficit, the budget deficit, the Pentagon budget/war amounts. Isn’t that peculiar? I would suggest the Fed created an extra trillion dollars which is why they quietly voted to raise the debt ceiling to $8 trillion last month in Congress. This phantom money sloshes around the globe and it is directly impacting on global oil prices. On top of this, the desire to spend money subsidizing American appetites is fading in China. The peculiar attacks on China by Japan has alarmed and annoyed the Chinese who know a cat’s paw when they see one.

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ΩΩHAHAHA…back in 2005, the Chinese FOREX holdings were one quarter of what it is today.  The insane derivatives market has only one goal: to drive up commodity prices.  The immense international top investment banks have only one goal: to drive up the value of all derivative contracts and thus, all commodities to infinity.  The more this rises, the richer they are.  They desire above all things to have an infinite hockey stick graph of wealth for themselves.  They move heaven and earth to have this insane and impossible thing and they won’t stop unless someone stops them from creating free credit from thin air.  All debts must be capitalized and all debts must have a realistic pay off schedule!  And the very rich don’t want this because they use this free funny money to buy stuffl

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ΩΩThis topic is of interest to me because of rising hysteria causing even smart people to wish for insane solutions to our problem of way, way, way too much private and public debt.  Here is a sad example of this sort of thinking:  Dean Baker: The Economists Forgive Themselves

 

  • There is an important limitation in the Reinhardt and Rogoff analysis. Most of the crises they examine were in the distant past, before the development of modern economics and its bag of tools. If the thousands of economists gathered in Denver know anything more about economics than those not educated in the field, then it would be reasonable to expect better outcomes than in prior centuries….The methods for generating demand are not a mystery. It basically amounts to the government spending more money until the private sector is again in a position to fuel demand. The fears of deficits and debt that the pessimists promote stem from a misunderstanding of basic economics.

 

  • Deficits can be a problem when they crowd out private economic activity. In a severe slump like the current one, this crowding out is not a realistic fear; there are vast amounts of idle resources. Furthermore, there is no reason that the debt needs to pose an interest burden on taxpayers in the future. The Fed and other central banks can simply buy and hold the debt, refunding the interest payments to the government.

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ΩΩUS businesses are sitting on record amounts of cash.  So are the huge international investment banks.  Many of these are sitting on literal tons of gold, too.  Economic activity is being crowded out by debts, big time.  Example: student loan debts.  This mountain has grown from a molehill 35 years ago into a trillion dollar financial hole that prevents young people from buying homes or building families.  I love how now Dean Baker joins the lunatics in assuring us that piling a huge, gigantic mountain of debt for our grandchildren is no big deal. Good grief!  Anyone glancing at the history of any countries on earth can see that piles of debt on grandchildren=economic and social collapse!  Period.  No debate at all about this.  None.  Nada.

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ΩΩRefunding the interest on this huge mountain of debt will NOT REDUCE THE PRINCIPAL at all!  It encourages infinite piling on of principal debt because no one has to pay it off, seemingly. Suddenly, that invisible barrier which is seen in hockey stick graphs suddenly comes quite visible and the entire mess comes to a screeching halt.  This is inevitable.  Pretending that it won’t happen is insane.  And infuriating.  But boy, do fools fall for this insane idea!  Easy credit to infinity!  Yup.  Some other generation gets to deal with the mountain of debts.

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ΩΩWe see this in today’s dire news from deep in debt, dying Japan:  Japan must plug over Y20 tril hole to meet FY 2020 austerity goal › Japan Today:

 

  • In a ‘‘conservative scenario,’’ the Cabinet Office said the country will need to secure about 23.2 trillion yen in order to realize a primary balance surplus in fiscal 2020 as pledged by the government in June, when it forecast that the shortfall could be around 21.7 trillion yen.

 

  • The new estimate was released at a time when Prime Minister Naoto Kan is widely seen as leaning toward raising the consumption tax to help finance the nation’s swelling social security costs. If the government is to cover the shortfall only with revenues from the politically sensitive sales tax, then its rate would have to rise to around 14% from the current 5%…..

 

 

  • …Japan’s deficit in the primary balance is expected to amount to 6.5% of its nominal gross domestic product in fiscal 2010, which ends in March. Under the fiscal rehabilitation plans set in June, the government aims to halve the deficit-to-GDP ratio by fiscal 2015 and achieve a surplus in fiscal 2020.

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ΩΩJapan has brushed up against the destructive ceiling whereby they can’t pile on more and more government debts.  They did this for 20 long years while cutting taxes on the rich and the trickled down, free trade, floating fiat currency regime so beloved of so many Western economists which is coupled with falling wages for workers has finally begun to utterly destroy Japan’s society, Japan’s children and grandchildren (the few that will exist in future years) and will eventually lead to Japan being colonized by China.

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ΩΩEmpires that go deep into debt usually die.  Nay, always die.  Sometimes, they die step by step like the Roman and then Byzantine empires or they collapse rather suddenly like the British Empire or the Spanish Empire.  There is one thing that is certain: they will collapse.  Infinite debt is dangerous.  Thinking we can fix a debt bubble with more debt bubbles is poison.  Fixing credit means working very, very hard and saving as much money as possible and not consuming so much.  This is harsh which is why our ancestors fretted about bubbles and worried about setting up mechanisms that would prevent credit bubbles.   This is why they  invented the concept of the hockey stick graph over 100 years ago.  Good lord!  Time enough for us to see that this concept of limitation of credit is a good thing and why tracking debts this way is smart.  We do this in order to stop bubbles!  Period.

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22 Comments

Filed under .money matters, Free Trade

22 responses to “Greenspan Chuckles About Bubbles In 2005

  1. leavingtheoffice

    Elaine, it looks like you were right about China being well past the point where they can be menaced with saber rattling….
    “China Builds Underground ‘Great Wall’ Against Nuke Attack”
    http://english.chosun.com/site/data/html_dir/2009/12/14/2009121400292.html

    What do you think about growing intolerance the world over as downward mobility hits a huge swath of the middle class in developed countries. This story sounds about right.

    “British politician says prejudice against Muslims is now socially acceptable and that country is becoming less tolerant.” http://english.aljazeera.net//news/europe/2011/01/201112012212165903.html

  2. nah

    self sufficiency, ownership, material contemplation and mans view of liberty are being reduced by this overpriced entertainment
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    people are preparing for bankrupt megacorporations with 20th century crony management
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    BY PAYING TAXES ? ? ? dude that is cruel
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    we are litteraly erroding US power to reward bad global corporate management… people dont pay for things anymore they are just given away
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    like the USA
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    we subsidize israel, CHINA, BofA, Citi, Healthcare, COPS, police states, EU, food, Big pharma, NEWSPAPERS, afghanistan
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    to further the US policy of not having to answer to US citizens
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    there is no reason, only Zuul

  3. the fool on the hill

    I have almost that exact pattern on my hand.

    ΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: Hahaha…this means we will both live a long, long time, eh? What a bore! 🙂

  4. Billibaldi

    In regard to the Aljazeera article about Baroness Sayeeda Warsi, Minister without Portfolio, if you apply old-fashioned Pravda-type analysis-

    The honour of Baroness is normally given to reward large donations to the political party. The cabinet position, minister without portfolio means that Baroness Warsi is too powerful to be ignored but cannot be trusted as in keep your friends close but your enemies closer.

    Baroness Warsi’s statement can be interpreted as a warning to the right-wing Conservative party that Muslims are now more important to the party than Jews. Considering that the Conservatives hold power in an unstable coalition government, who would have thought that the risk came from the Conservatives?

    While British politics is to put it politely of marginal interest to the rest of the world, this may be the political tipping point that Israel has long worried about. Access to the markets of the EU is critical to Israel.

  5. Billibaldi

    Character assessment of Bibi Netanyahu by British Officials (for a smile).

    http://www.haaretz.com/news/diplomacy-defense/ex-blair-aide-u-k-believed-netanyahu-was-untrustworthy-1.338223

    I believe they were trying to say that Bibi could very economical with the truth but the Poms could not call his bluff.

  6. JimmyJ

    Apparently we need $100 trillion more credit! We can do this “responsibly, sustainably – and with fewer crises” according to the World Economic Forum. Sounds like very addict I’ve ever known. More, more, more (and more is never enough).

    http://goo.gl/pbwzw

    ΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: Hahahaha…correct. Why not add a few zeros with a pen to all the bills we have in our wallets? Bingo: we become billionaires in a flash. I keep pointing out, by the way, that the Japanese yen used to exactly equal one dollar back in 1880. Note where it is today.

  7. nah


    .
    what is more perfect right…. circles or cubes man…
    .
    im thinking cubes

  8. larry, dfh

    There most definitely ARE debtors’ prisons in the U.S. Did Mr. Levy owe you money after your divorce? If so, you could have had the county get a court order requiring payment, and if he didn’t pay, he could be locked up for contempt of court. For 18 months, while payments get more and more in arrears. And once in ‘custody’ one has fewer rights, including being stripped of the right of protection from slavery. This shit happens all the time. I think that populating the prisons with ‘dead-beat dads’ was a great intentional boost to the private-prison-industrial complex. That’s what family courts are often all about. That is without a doubt what Clinton had in mind.

  9. nah

    larry, dfh
    January 22, 2011 at 7:22 pm
    This shit happens all the time. I think that populating the prisons with ‘dead-beat dads’ was a great intentional boost
    .
    love is prison
    money is debt
    globalism is good for jobs/labor
    Thomas Friedman On China And America
    http://www.zerohedge.com/article/thomas-friedman-china-and-america

  10. nah

    http://www.zerohedge.com/article/seven-men-nine-days-one-new-monetary-cartel-pt-1
    In other words, big business was moving away from dealing with the banks. This was a huge issue for the Anglo-American banking giants as I shall explain.
    .
    internationalist faggots… how you run the world they said, corporate profits they said, value added jobs they said, government charter they said
    .
    The banks failed… i dont care about taxes anymore i want these bastards swabbed off the floor of dignity

  11. nah

    http://news.yahoo.com/s/fwd/20110122/en_fashion_fwd/givenchyrottweilergrungedandies
    German cattle breeding dog growled from black T-shirts, leapt across to-the-knee shorts or fought it out on silk bomber jackets with Tisci’s now signature Romanesque trim.
    .
    hated it

  12. nah

    http://www.amazon.com/Genesis-through-Revelation-Thru-Bible/dp/0840749570/ref=sr_1_1?ie=UTF8&qid=1295742097&sr=8-1
    he spent his time boiling down abstract ideas and doctrines by illustrating them through solid biblical theology in narrative tone that brings the Bible to life so that the reader can easily grasp and apply biblical themes in their own walk with the Lord.
    .
    a little more than emptily spartan…. entertainment

  13. nah

    wheres my news girl im all bout to post a drinking VDO chop chop

  14. nah

    http://market-ticker.org/akcs-www?post=178000
    Social Security and Medicare are not. Nor are farm subsidies, Department of Education meddling, and, incidentally, while your salary Timmy is for work you’ve already done, Congress can de-fund your position and reduce your salary for future work to one penny.
    .
    im with it see… old folks have the money SS Medicare and all… look if we are going to get a revolution they are going to have to get involved with the pracitice of PAYING FOR SHIT THEY WANTED…
    .
    genius smack dab ticker bullshit i love it
    .
    someone has to go down… not necessarily old folks… hell doctors take vows to heal… its time to figure out what the USA is about 1 dollar at a time

  15. RobG

    Jeff Immelt’s ‘job creation’ record at GE (hint 31,000 jobs lost): Link

  16. emsnews

    Correct, Rob. They grandly announce they are adding 1,000 jobs over the next three years! I want that guy arrested, not in the White House. Arrest everyone involved with the trade deficit and the offshoring of our jobs. Charge them with treason.

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  18. igneous

    What most of these economists fail to understand is that wealth is the actual physical stuff and services that people use and need. Money is a proxy for wealth a method of exchange. I wouldnt be surprised if they learnt this in their first economics lecture and thought it was boring and uncool.

    Here’s a thought if you want stuff why dont you actually manufacture it.

    One good thing Ford are manufacturing their 2012 Ford Focus in a Wayne, Michigan and I think in a truck factory in Detroit.
    http://www.ford.com/cars/focus/2012/

  19. Paul S

    I’ve said it before; Greenspan was no muddle headed intellectual with goofy ideas about financial markets or the economy in general. Greenspan, sometimes referred to as “Mr. Dynamite”, was merely a lackey for the Big Banks, whose objectives were and are to create financial crises so big the taxpayer is forced to bail them out. And the current crisis isn’t Greenspan’s first go-round with sticking it to the taxpayer for the profit of Wall Street. In the 90’s Mr. Dynamite was intimately involved with Long Term Capital Management–and the accompanying $250 billion bailout. No, Greenspan is a silk suited thief, nothing more or less.

  20. emsnews

    He is an ideological infant who believes in various silly things. He, personally, is not becoming a multibillionaire. He did assist in this process because he thinks it is a wonderful and good thing if there are a tiny handful of very, very rich people running this planet.

    The idea that Greenspan wanted a full collapse is false. He and his buddies NEVER want this, they want infinite money creation pouring into a few pockets forever and ever. Collapses are TERRIBLE which is why these clowns struggled to pull out of it and barely succeeded only by looting whole nations of their credit lines.

    They KNOW this endangers their infinite wealth games because this means nations can’t service the masses who are left to die and this causes riots, insurrections, revolutions and wars. Very rich people are killed during these sorts of events. So why in hell would they WANT these credit collapses? No sense at all.

    They want a happy bubble status quo! Always, always, always, always. Never the reverse.

  21. Paul S

    Elaine: I don’t know. I think Greenspan knew early on that the “irrational exuberance” markets were showing was doomed to fail. I think either from the very beginning or very early on, Greenspan and his cronies/masters at GS and JPirate Morgan KNEW that the last step in their master plan was always a taxpayer funded bailout. They knew they were wrecking the economy; and they didn’t care. The banksters squeezed the blood out of their golden goose–and then laid their thinly disguised blackmail plan on their lackeys in Congress. “Bail us out or the whole economy goes down with us.”, the banksters said to Cngress. Remember that secret meeting Congress had? One can guess what they talked about behind closed doors. And: Greenspan has a history here. The current financial scandal was preceeded by Long Term Capital Management (LTCM)in the 90’s–and its taxpayer bailout. Greenspan was an “advisor” to the frauds running LTCM. And in the 80’s we had the S&L scandal–and its taxpayer bailout. I think the banksters–and Greenspan–always figured they could destroy as much of the economy as possible and when they couldn’t do any more damage, they run to Congress for a bailout. They figure–correctly I am sad to say–that they own Congress, so they will ALWAYS get bailed out. They have been right so far. When the banksters start going to prison for long terms, I’ll believe thay thought their plundering would go on forever. Greenspan? I think he imagines himself a modern day J. P. Morgan, financial Master of The Universe. That’s how he gets his rocks off. Money isn’t as important to Mr. Dynamite as is presitge. A powerful position. Advisor to Presidents, etc. This is what drives Alan Greenspan.

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