Raft Of The Medusa World Economy


The lunacy of our media is easily seen when it talks about say, oil prices or the value of the dollar in international markets.  High gasoline prices in the US are due to many forces: the value of the dollar has been deliberately manipulated by our Federal Reserve to make it weaker vis a vis the euro and yen and this obviously makes it less valuable when buying oil, for example.  This, in turn, hits US consumers in food and fuel buying power.  Inflation rages in these areas here.  The media refuses to explain so people get mad at politicians, nearly all of whom work for AIPAC and thus, Israel, and therefore, don’t give a heck about the other problems we face.


This is true in all the budget debates: money spent on many wars against a billion Muslims is off the table as well as money for Israel while money for absolutely everything we need here is being cut.  People are unhappy and go after AIPAC politicians only to vote for more AIPAC politicians.  Ditto with Wall Street: no blame is placed there while Wall Street money bag men run for Congress except those who are the bribers like Romney.  We are stuck between a rock and a hard, hard place and we are not the only people stuck.  Our top allies are also doomed.


Voters blame president for gas prices, experts say not so fast – The Washington Post


Today’s oil prices are the product of years and decades of exploration, automobile design and ingrained consumer habits combined with political events in places such as Sudan and Libya, anxiety about possible conflict with Iran, and the energy aftershocks of last year’s earthquake in Japan. “This notion that a politician can wave a magic wand and impact the 90-million-barrel-a-day global oil market is preposterous,” said Paul Bledsoe, strategic adviser to the Bipartisan Policy Center and a former Clinton administration official.

The ‘political events’ are actually US wars.  The ‘event’ in Iran is the US-engineered boycott of oil from Iran.  The US has used up vast oceans of diplomatic capital strong arming many countries into destroying themselves by running this unfortunate boycott.  The Iranians laugh at us because they know if the boycott hurts them, it hurts us much more.  They are in a race with time: will the US finally blow up and attack Iran or will the US slide into bankruptcy like Russia did after 10 years of invading Afghanistan?


I would place my bets on the US violently attacking Iran illegally.  The US has become more and more a rogue nation as time passes.  We now assassinate even Americans.  We think unlawfully entering foreign countries to openly machine gun down families is heroic.  We think we can pick and choose who gets ‘whacked’ as the Mafia puts it.  We went from ‘whacking’ South and Central American elected governments to whacking murderous assassin groups on the other side of the planet who love playing Mafioso-style wars of attrition.  They practically invented this.


Due to economic woes here in the US brought about by the floating fiat currency system and free trade, the US public is becoming more defensive and angry at foreigners.  Only, this ire is often aimed at the wrong people and our media owners wish this to continue.  The media owners want all of Islam to be crushed so we want this.  Also, the ancient battles of the Christians versus the Jews versus the Muslims is being heated up in preparation for the Apocalypse.  All of this is bad, of course.  But addictive.  Easy to grasp, the End of Times hysteria is deeply embedded in human minds and leads to mindless violence.


Even La Belle France is going Madame Defarge as Sarkozy Delivers Ultimatum To EU On Schengen, “Buy European” – WSJ.com


French President Nicolas Sarkozy delivered a stern ultimatum to the European Union at an election rally Sunday, saying France will withdraw from the Schengen accords, which allow free circulation within most of the bloc’s borders, unless the E.U. hardens its immigration policy.


The incumbent president, who is trailing Socialist rival Francois Hollande in polls, also said that–if re-elected–he will demand its EU partners pass a “Buy European Act” similar to the “Buy American Act” adopted by the U.S., which required the government to prefer U.S.-made products in its purchases. Failing significant progress within the year, France will apply the rule unilaterally, he said.


Actually, this is happening all over Europe.  In England subjects were enraged with the news that of one million jobs created in the last two years, 90% of these went to foreigners.  The problem of immigration is big.  As it is in the US.  The left lost a lot of power with the main voting population due to support of illegal aliens, for example.  Just as the support for heavy energy taxes to stop global warming fell flat due to high energy costs suddenly shooting upwards at a mad rate.


Nationalism and protectionism always surges when there is an economic collapse caused by free trade and easy credit.  This is an iron rule of politics which a lot of people wish wasn’t a law but alas, it is.  Pretending it doesn’t happen leads to gross miscalculations by liberals.  Libertarians are at fault, too.  They love ‘free trade’ and can’t understand why masses would want protection from foreign competition.


Here is one example: Japanese Teachers Fight Flag Salute, National Anthem Enforcement.  Teachers who refuse to sing the anthem are punished.  In Israel, the Jews want to punish Palestinians who refuse to sing odes to the Jews-only state.  In Japan, fear of dissension is rising as the geiger counter numbers shoot upwards.  Distracting people from the problems of the collapse of democracy, the right wingers are going full-bore nationalist in an ugly way:  Oral exam: Osaka principal watched teachers’ lips in national anthem crackdown.


I remember during the Cold War when the government became very involved in forcing people to make empty patriotic gestures.  The US recently went through this after 9/11.  Questioning anything involved with our government’s focus on attacking Muslims was verboten.  People who talked about religion and war in a negative way were banned from mainstream online forums.  Our government imposed draconian laws that ripped up the Constitution without a peep from a corrupt and religiously unbalanced Supreme Court.


The banking system is collapsing still as assets vanish.  We saw this recently with banks holding Greek debt losing 60% of its value. This is a severe loss of assets.  Remember: debts held by banks are assets…for them.  Default leads to a credit crunch since they can’t use debts being paid as a basis for further lending.  The IMF that depends on Europe, Japan and the US for funding is collapsing due to all this, too.  So, the BRIC nations are reconsidering how things will work in the future:  A World Bank for a new world – Opinion – Al Jazeera English


The world is at a crossroads. Either the global community will join together to fight poverty, resource depletion and climate change, or it will face a generation of resource wars, political instability and environmental ruin.


The World Bank, if properly led, can play a key role in averting these threats and the risks that they imply. The global stakes are thus very high this spring as the Bank’s 187 member countries choose a new president to succeed Robert Zoellick, whose term ends in July.


There it is: the ‘liberal’ agenda.  Get rid of ‘poverty’ and resource depletion without forcing Chinese-levels of birth control on out of control nations, for example (Muslim and Catholic countries, for example).  The world is at a crossroads: liberal free markets are imploding and wars are exploding.  Here is from the future center of world banking, the creditor nation power, China:  Central Bank meets the press – Xinhua | English.news.cn

Slow recovery, Europe remain biggest uncertainty: China central banker

BEIJING, March 12 (Xinhua) — The governor of China’s central bank said Monday that a slow world recovery process and the unstable economic and financial situation in Europe will be the biggest uncertainty for China’s economy this year. Full story

Yuan’s exchange rate increasingly decided by market: PBOC governor

BEIJING, March 12 (Xinhua) — A trade deficit in the first two months this year and its impact on the exchange rate of Renminbi is “a good thing” for China, the governor of China’s central bank said Monday. Full story

Central bank says no plan to issue larger denomination banknotes

BEIJING, March 12 (Xinhua) — Hu Xiaolian, deputy governor of the People’s Bank of China, the central bank, said here Monday that the central bank is not planning to issue larger denomination banknotes in the short term. Full story

China to continue diversifying holdings of foreign bonds: SAFE head

BEIJING, March 12 (Xinhua) — China’s chief foreign exchange regulator said Monday China will continue to implement the principle of diversifying its investment in foreign bonds, saying its holdings of eurozone bonds did not register losses as a portfolio. Full story


Both China and Japan are now running trade deficits and this is mainly due to the catastrophes in Japan for China exports heavily to Japan.  The high price of oil is also responsible.  Commodities Drop on Chinese Trade Deficit this deficit being the biggest in 22 years.  And big is isn’t…compared to the US deficits that raged now for over 20 years.  US Trade Deficit Surged to 3-Year High in January is bad news for us and it is also due to high oil import costs.


The volume may be down but the price is up.  And this is entirely and totally the fault of our government.  The GOP yells about how this is Obama’s fault yet 99% of them support the boycott of Iran’s oil!  The US trade deficit for January was $52 billion. If this continues for 12 months, it would mean at least a quarter trillion this year.  YIKES.


Japan is desperate to export to the US so the BOJ boosts lending by Y2 tril; leaves rates unchanged.  Clinging to ZIRP, I see all the major economies being stuck on the The Raft of the Medusa.  Cut off from capital, the world economies all drift on the oceans as millions are killed or starve.  The elites sail onwards in their Medusa ship.  Medusa, by the way, is one of the denizens of the Cave of Wealth and Death.  To look at Her, you turn to stone.


Japan is playing several schizophrenic games, yelling at China, insulating China, begging China, threatening China with US troops and ships and in general, going insane.  But relentlessly, the Chinese communists continue to reel in the howling Japanese government, tugging at its line as it is reeled in:  Japan to buy Chinese gov’t bonds for first time


Under the deal, Beijing gave the nod for Tokyo to buy 65 billion yuan ($10.3 billion) in Chinese public debt, but completing the purchase “will take several months” because of administrative requirements, he said….


…China has already been investing in Japanese government debt in an apparent bid to diversify some of its currency reserves—the world’s biggest—into yen amid concerns about Europe’s debt crisis and prospects for the US dollar.


The December deal, following talks between the Japanese and Chinese premiers in Beijing, aimed to include “supporting sound development of the yen-denominated and the yuan-denominated bond markets.”


…The Asian economic powers also agreed to promote the use of their currencies in bilateral transactions—such as yuan-denominated foreign direct investment by Japanese companies in China—to reduce foreign exchange risks.


Despite frequent spats over animosities from Japan’s 1930s invasion of China and lingering territorial claims, China is Japan’s largest trading partner. But about 60% of their mutual trade is denominated in U.S. dollars.


Many countries are being encouraged by China to do this.  To reel in the world’s #3 economy in this way is a HUGE win for China and of course, this news is being ignored in the US and I fear, even readers of my blog might miss it if they don’t read all the stuff I spew here.  (Joking, of course!)


Both the US and Japanese elites play this game of using ‘charities’ as funding systems for getting richer:  Get rid of money-wasting foundations, ‘amakudari’ before hiking taxes ‹ Japan Today: Japan News and Discussion


Amakudari has two standard patterns. In the first, a bureaucrat accepts a post-retirement position with a private company falling within his or her official jurisdiction. It’s a win-win arrangement, with only the public losing – the company gains influence in official circles, the bureaucrat secures an enviable post-retirement income the prospect of which, critics say, is a perpetual temptation to selectively relax bureaucratic enforcement of regulations.


The second pattern involves an array of government-supported “foundations” whose raison d’etre is often murky and which exist, some observers argue, less for their ostensible functions than to provide retiring bureaucrats with a dignified job title and easy money.


Exhibit A in its case against the “zombies” is the Digital Broadcast Promotion Agency (DPA), established in 2007 to help smooth the path from analog to digital broadcasting. The total budget earmarked for this purpose in fiscal 2012, more than 80% of it covered by government subsidies, is 30.5 billion yen, with 20-odd billion yen going to DPA. These amounts are only a very little less than last year’s – which is odd, says Friday, given that the transition to digital broadcasting was completed last July.


…“It is true that digitalization is complete,” DPA board member Toshifumi Kitahara tells Friday. “But that doesn’t mean our work is done. There remain matters still to be settled, and it all takes money.” What those matters are either Kitahara or Friday does not say.

Like vampires, the game is to suck the system dry.  Japan is going bankrupt.  There are no reforms in sight any more than either party in the US intend to reform things here.  The game is to see how much debt can be piled on the people of Japan and the US (and UK, too) before the bankruptcy comes and forces these looters to then cut social services to the peasant masses.


Japan’s mountain of debt per capita is bigger than the US load and it runs at a higher rate so the end is neigh for Japan.  The Fukushima business is just one more nail in Japan’s coffin:  Retailers report surging demand for disaster and emergency goods.

Japan struggles to handle plutonium as fast-breeder reactor project becomes unrealistic while Concern over Americium-241 contamination of soy beans around Fukushima — Legumes easily absorb highly toxic product of Plutonium-241 and High radioiodine levels found in thyroids of Fukushima residents post-meltdown  so of course, Fukushima hit by M4.5 quake followed by M4.4 yesterday (MAPS).

There is no good news from Japan:  Gundersen on CTV: The country of Japan is contaminated — “Just routine checking an area here and there” in Tokyo found all samples to be radioactive waste (VIDEO)

Asahi: Serious concerns about whether depopulation now a reality — Entire mountainsides to be removed? Bleak hardly does justice to assessments of Fukushima Pref. future.  Chernobyl and Afghanistan destroyed the Soviet Union.


The US/Japan axis in Asia is being torn to bits the exact same way.  There is no easy fix for any of this.  The recent awful news from Afghanistan has caused Congress/Knesset to dig in their heels even as polls show Americans are finally weary of this war.  And egging us into a war with Iran and even Syria continues in the face of general refusal to demand wars despite the propaganda machine’s operations.

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

21 responses to “Raft Of The Medusa World Economy

  1. Peter

    Really stupid to use radioactive materials for boiling water.
    Really really stupid and idiotic to use them to heat sodium to liquid !!!!!!!!!!!
    Though i guess it doesn’t matter in the case of an accident because you won’t be able to fix it either way.

  2. Peter

    As well as using plutonium….of which the Japanese have collected 45 tons.
    45 tons!!!
    I wonder how many of Japan’s “experimental” reactors are still operating,breeding, and spilling molten sodium etc?

  3. Plove

    From 9/11 in NYC to 3/11 in Japan has been one big muscle show of high technology.

    The next false flag will have Aliens invading Planet Earth and using FEMA
    camps for mess halls.

  4. Joseppi

    Elaine – Your Raft of Medusa is a framable priceless work of art. Thanks.


    ELAINE: It isn’t mine, note the link. It was made by a Chinese artist!

  5. The peeking green gnome is hilarious! :p

  6. Being There

    Ah, Elaine

    Oh, the global institutional corruption –and there’s nowhere to go!

    You’ve described that wonderful neoliberal globalism I rant about all the time. Amazing to see how the followers of our global war against their own nations and middle class renders once great governments with social contracts totally useless in maintaining workable environments for their citizens.

    Now they are aligned only with their foreign agendas and are closer to the elite of other countries than to the people who reside in their own countries. as I often say, the people are always the last to know that they no longer live in a nation state.

    This ideology was our greatest export!

  7. JimmyJ

    The machiavelian thing to do would be to let Israel attack Iran first. Any response from Iran against Israel would then legitimize US involvement, removing the ethical burden from Obama and reassuring his re-election.

  8. Being There

    But the smart money in Israel is to leave it to us–the big guns. Maybe that will stop the whole disaster from happening–one can only hope

  9. ‘ In England subjects were enraged with the news that of one million jobs created in the last two years, 90% of these went to foreigners. The problem of immigration is big. As it is in the US. The left lost a lot of power with the main voting population due to support of illegal aliens, for example.’

    All reports from Brits and UK visitors that I get are that UK is in a dire depression.
    ‘The left lost a lot of power with the main voting population due to support of illegal aliens’
    The left in Europe or USA?
    Me, I wish the left would die a fast death! I see what its done to the USA!

  10. Being There

    Both the left and the right support illegal immigration in the US.
    Obviously the more populists types on both sides don’t like it.

    It would not be going on throughout all our administrations if that were not the case. The left has just been more honest about it and have a different rationale.

    Don’t be fooled by the rhetoric of the Rep party. The power core of the party like slave labor and don’t care about illegal immigration. It’s all about driving down the cost of labor anyway that can be achieved.

    They are eviscerating unions and are all for those H1 visas for higher end engineers from India. They’re willing to take less money and will even live in groups to share costs.

    The problem with the left on both sides of the Atlantic is that they have adopted the same global economic philosophy as the right and have lost their mooring. They barely appear to be the same party as we recall them to be.

  11. Alstradomus

    The master/ slave society has been the core of the ancient civilizations of the Ziomasons in the past. Recent excavations of workers’ graveyards in Egypt indicate willing workers who choose to enslave themselves, blinded by religion and nationism. These builders of stone cities matching stars will probably continue and come to full fruit as Polaris becomes the perfect North star sometime around 2070 and will end the season of the Draco/Leviathon as we precess into Cepheus, our next north star constellation. If Major John Jenkins math is correct 1998 was the perfect winter solstice/galactic center moment. Since one galactic day is 72 years and there are 7 hours and 20 minutes of time from midnight to sunrise on the first day of winter, one hour equals 3 years. So the sunrise on the first day of galactic winter will be in 2020 ( 7 and one third times 3 equals 22, 22 + 1998 is 2020). Since the north star will not be back on the celestial river Milky Way for another 6,300 years, paradise on earth is quite a ways off.The benben bird on the top of the pyramid is Cygnus as north star represents paradise.

  12. DeVaul

    I don’t believe in numerology. I do believe in craziness. Here’s some: according to the latest poll, a majority of Americans would support a war against Iran if it could be proven that they have a nuke. Good grief. How stupid are we? “Fool us many times, shame on you. Fool us yet again, then we want to be fooled.”

    Peak Oil has brought with it Peak Propaganda. When the electrical grid goes down, there will be immense suffering, but also a sudden silence as no one can hear the constant drumbeat of war anymore. Will Peak Oil prevent WW III? I don’t know, and I doubt Polaris knows either.

    Bibi has not given up. According to RT, he has a new dagger ready for Obama:


    I knew he would do this if Obama refused to go to war. I would like to think that a match-up between Obama and Ron Paul would leave the Jews no one to vote for, but then that is just wishful thinking.

    If the poll is true, then Americans appear to be choosing the German route, i.e. going berzerk rather than dealing with the myriad problems we face of our own making. Even Israeli citizens don’t want war with Iran, but feel they must follow Bibi straight into the abyss. Unbelievable.

  13. JT


    Many countries have nukes.
    What is so special about Iran?
    Pakistan, India, China, North Korea, Russia, Israel…

    Does everyone want to attack them too?

  14. JT


    I would be more worried about Pakistan than Iran btw.

  15. adam mateyko

    Don’t worry folks, the Dow is over 13 000 and the banks are flush with new money. The computers say so! The naysayers are always predicting that “the end is nigh” and that “the sky is falling”……… not so according to the prophetpriestmoneychangers…. oops… incoming asteroid spotted! Or is that a giant alien landing craft? Whatever, I will watch Gater Hunters in Swamps or the Hoggers of Texas, instead. Maybe the spinoff, Lady Hoggers. Its all feeling better now, isnt it?


    ELAINE: Yup, we just got to have us some Texas lady hoggers for dinner tonight! Yahoo.

  16. DeVau

    Nothing is special about Iran, and I could care less about Pakistan or North Korea and their radioactive puddle of goo they claim is a “nuke”.

    It is my fellow countrymen who believe whatever crap is served them on TV. I wish I could take over for just enough time to beat the war drums against Montenegro, claiming they have a nuke and if we don’t strike them NOW, all will be lost. A mass exodus of card sharks and yacht owners would be something worthy of filming.

    Alas, I don’t have superhuman powers.

  17. DeVaul

    Looks like Obama told a flat out lie to Karzai and Afghanistan:


    The psychopath was secretly flown out of the country to stand trial elsewhere (read America), probably on the same flight as Panetta.

    He butchered 10-12 children, some babies, while they slept, tried to burn them with chemicals, and then sneak back into base to brag about it. In the minds of many Americans, he is a hero. They tell each other this in private, especially swat teams, who now aim guns at children.

    This is what went on in Germany before WW II. The populace was terrorized by paramilitary thugs until there was no resistance left. Then, the Wehrmacht was set loose. I predict that all internal forms of dissent will be crushed before we attack Iran. They will manufacture “unity” on Iran through terror.

  18. Plove

    Massive corporate resignations in 1st Qt 2012.

    Whatever is coming, is coming soon.



  19. EC

    “Remember: debts held by banks are assets…for them. Default leads to a credit crunch since they can’t use debts being paid as a basis for further lending.”

    Actually when debts are repaid, the “money” just disappears. That’s part of what’s wrong with our system of money as debt. We need real, debt-free money.

  20. JT

    “K-mart meat specialist and the ad that made the sovjet union fall”

    This man died today at age 83.
    In Sovjet Estonia the official version was that he was a CIA agent.
    (they received finnish tv in Tallinn during Sovjet times)

    I think he was just as much responsible for the fall of the sovjet union as Reagan.

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