Both Obama and Romney want to strangle Iran’s oil markets which is also causing the price of oil to stay very high which pleases the Saudi royals but wrecks our economy and creates inflation. The London derivative interest rate swap scandal continues to broil while being nearly totally ignored by the US media and above all, US bankers. The scandal there is happening here only it is hidden from view. Also, the Queen and her brood get more public welfare while the Tories slash welfare for poor people. For their own good, mind you!
The US economy just began to pick up steam as gasoline and heating fuel prices fell. But this was a mirage. The US has spent nearly all of our diplomatic capital to force all our trade partners to stop using Iranian oil and instead, to enforce artificial inflationary price hikes in oil markets: Oil Surges Most in More Than a Year on European Agreement – Bloomberg
Prices also advanced because a European Union ban on the purchase, transport, financing and insurance of Iran’s oil starts in July…
“We’re seeing a massive return of risk appetite,” said Mike Wittner, head of oil market research at Societe Generale SA in New York. “The market was impressed by what the Europeans accomplished and there’s a feeling that the worst may be over.”
Oil for August delivery gained $7.27 to settle at $84.96 a barrel on the New York Mercantile Exchange.
The bankers just adore this boycott. They have spent a lot of money in bribes to insure this would happen. Israel wants this. Saudi Arabia wants this. But this is fatal for the rest of us. As the EU teeters on the edge of destruction and as US workers are squeezed mercilessly by high fuel prices, the leaders who control our fates talk about raising the prices because all of our leaders play in the oil futures markets in one way or another. This is how they get richer, after all.
Societies that have elites who deliberately raise the price of commodities needed for survival in order to get rich at everyone’s expense don’t last very long. Eventually the peasants revolt. There is a reason for keeping a lid on elite games of wealth. These lead to revolutions and or destruction of society that causes weakness leading to foreigners invading.
Now on to that dying empire, Britain: Cable: The City (London) is a massive cesspit – Business News – Business – The Independent
Even business leaders turned on the City and demanded a cull at the top of British banks, with some investors at Barclays agitating for a management change after its £290m fine for trying to fix Libor, the rate banks charge to borrow from each other.
The Bank of England Governor, Sir Mervyn King, launched a scathing attack on the banking industry and demanded a “real change in culture”.
Deliberately fixing the libor rates is the natural outcome of having just a dozen banks in the world holding 98% of all derivative interest rate swap contracts. 80% of all derivatives are these contracts. All banking things are human created. Because of this, the temptation to rig the game is overwhelming.
Actually, it is from day one a rigged game. Designing it so it is fair and avoids degrading the currency and causing social upheavals is all-important. A distant last is personal enrichment. When personal wealth is the goal, cheating expands greatly and the greater the greed, the more the cheating. This is why all banking must be heavily regulated.
In England, banking is regulated…except of in the part of London directly owned by the Queen and her many tiny islands which all operate as outlaw entities. The regulator of the banks is pretending to be angry about them: King orders banks: Stop hoarding and start lending
The UK’s financial regulators have urged banks to run down their £500bn liquidity buffers in order to keep lending flowing to households and businesses.
Interest rates are too low. Artificially kept below the real rate of inflation, banks have been kept running by allowing them to borrow from central banks at insanely low rates even as the price of oil has caused overall inflation to accelerate. Banks want low rates for themselves and high rates for customers. They want to pay savers nearly zero percent interest while charging high rates for loans.
Also, in all credit bubble contractions, banks must hold more cash to cover loan losses. This is why regulators after 1933 controlled this pendulum of boom/bust cycles. Cutting spending, reducing wages while depressing interest rates during contractions makes it worse. Flooding markets with easy credit terms during booms is bad. So, with bank deregulation and internationalization coupled with open floating fiat currency markets and free trade that is not controlled or regulated, we had a perfect set up for a massive global boom/bust cycle.
This is identical in shape, form and event horizon matrix as all those massive global booms and busts from 1600 to 1933. That is, we reverted to the model of business that is the ancient regime in banking and trade. I warned that it would resume these wild pendular swings back in the 1980’s and it has.
This headline is funny: Justin Cartwright: If banks have values, they are greed, hubris and sheer brass neck. Duh. In the US, unlike England, our elites openly celebrated this by claiming, ‘Greed is good!’ At the same time, religious fanatics echoed this with everyone praising ministers and churches who loot their flocks so they can live in palaces like the Pope.
Speaking of palaces, as the Brits argue about cutting financial support for the middle class and poor, Queen Elizabeth gets bumper 20% Raise. And then there is her useless son: Prince of Wales, and Spain, and Qatar… Charles’ budget is up 11% – Home News – UK – The Independent
Public funding for Clarence House climbed 11 per cent to £2.19m in 2011-12, an increase of £232,000 on the previous year, mostly due to the Prince and his immediate family undertaking more foreign tours, at the request of the Government…
A breakdown of staff numbers showed that Clarence House and Prince Charles’s country home in Gloucestershire, Highgrove, employed the equivalent of 135 staff, including 19 gardeners and estate workers, eight press officers, 10 housekeepers, three chauffeurs, two valets and a butler…
Overall, in the year to 31 March, the Prince’s income from his ancestral royal estate, the Duchy of Cornwall, rose 3 per cent to £18.2m. Of that, £12m went on official expenditure – including outfits and dresses for engagements – £4.4m on tax, and £2.6m on unofficial expenditure (the Prince’s private spending) which was not broken down. Defending the rise in public support, Clarence House said: “The increase was due to several factors, including, more overseas visits by the Prince and the Duchess, more overseas visits by the Duke and Duchess of Cambridge and by Prince Harry, longer distances travelled during those visits, and the inclusion in the latest financial year of part of the costs of a spring tour in 2011 to Portugal, Spain and Morocco.”
This is in stark contrast to the peasants supporting this monstrously overpaid family who live in palaces built on the backs of millions of colonial people: UK prime minister outlines massive cuts in welfare benefits
The response to Cameron’s proposals from the press was generally favourable, with the main complaint being that his plans were not harsh enough.
The Times specifically called for welfare spending on pensioners to be hit. It editorialised that protecting “pensioner benefits during this Parliament, to the next… would be a mistake”.
It continued, “While inflation and low interest rates have undoubtedly eaten into their savings, the elderly have been largely insulated from the financial pain of the young. There is scant economic justification for winter fuel allowance, free television licences, free bus travel or the Christmas bonus…”
Are there no workhouses? The political Tory Scrooges who up the pay of all the royal parasites who are basically high-end welfare molls want to see the undeserving poor thrown to the wolves. They are eating up finances that ought to go to people who merit it, that is, the royals and the bankers who they protect.
The hard-pressed middle class that has to live cheek and jowl with the undeserving poor hate them. They admire the royals who live wonderful fairytale lives of luxury and support this because they wish to be the same in some small way. So the royals go on massive passages around the planet being feted and the middle class goes on Virgin Air in cheap seats to stay in cheap hotels in cheap third world countries where the strong euro (thanks to Germany) makes it really cheap to pretend to be a princess royal having fun in the sun.
So they hate the poor and ape the rich. Only this dream is ending with the government now slashing THEIR goodies. While increasing the royal payouts way above inflation. That is, the middle class retirement dream is now on the chopping block. Many live overseas where it is cheaper and will see their condition deteriorate rapidly with hostile next door neighbors aching to invade their enclaves and loot them.
Due to global warming, taxes on energy were set to rise only this caused a revolt due to high oil prices: Reverse gear on petrol tax: As fuel duty is scrapped it’s great news for motorists… but another embarrassing U-turn for the Chancellor. Whitehall hears the rage of the burgesses.
Off to Japan that is now dying rapidly: Japan’s industrial production tumbles in May. They, in particular, can’t have high oil prices since they are importing oil to replace nuclear power. Pressure to restart the plants is high in industry but rage in the streets is finally rising with weekly mass demonstrations in front of the parliament and prime minister’s home.
The rightwing in Japan sits in power still with no left opposition yet. Comfort women photographer pleased by Japan court: a photo gallery exhibit sponsored by Nikon cameras was pulled by Nikon after rightwing nationalists attacked the corporation and scared the executives. So they censored the proof of Japanese military abuse. The photographer had to sue to show these pictures in Japan.
Because of this, S Korea delays signing of military pact with Japan. Japan’s elites still imagine they are pre-WWII lords. The US encouraged this and protects them. They have destroyed Japan a second time. The Japanese people are just beginning to wake up to this suicidal rule. Will the Brits wake up? Another scandal in England is how foreign students with lower grades and poorer scores on exams are given places in universities there over the heads of native Brits because they are paying cash to come to Britain and the country wants this profit. This is happening in the US, too.
One last item: First spray-on battery could change home electronics forever – and might even make solar power work properly. This is great news. Onwards with solar technology! We need more research in this as well as the great news about developing a vaccination for cancers.
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