Global markets plunge as Fed pulls plug on QE -Global stock, bond and commodities markets slump as investors take flight as Fed signals end to QE3 and China’s cash crisis deepens. This news doesn’t surprise me all that much. The Chinese said last year they would limit the growth of credit and they did. Japan greatly expanded credit but mainly only for export international corporate purposes. The Fed Reserve announced they, too, were going to reduce lending to rich bankers who, in turn, must take into account real inflation, something they don’t want to do right now. So, the value of gold hoards is also falling. Commodities of all sorts are falling. Ditto, stocks. Etc.
NOTHING IS IMMUNE TO PRICE FALLS. People playing commodity markets like gold are steaming due to this iron clad rule, ‘All things fall in value at some point.’ They want some sort of trick or conspiracy as the cause of this sort of inevitability. Ditto, housing speculators. Or stock buyers. Nothing in all creation ever grows to infinity, not even the universe.
Scientists still like to pretend the universe is expanding faster and faster when it is most likely already begun the process of being sucked into the vortex of the greatest black hole monster globular galaxies. The pint is, infinity is impossible except in places where there is no time, no past, present or future. Death, for example, is most likely quite infinite. Aside from that, everything else grows and crashes at various intervals.
The model used by economists since WWI has been predicated on this idea that if you have the right systems, they would always grow and grow and never crash and burn. Alas, History laughs at this odd notion and proves over and over again, this is a will-o-whisp concept that can never function in the Real World. There is another iron clad rule of HIstory: all empires collapse. Most of them fall apart due to too many wars that are very expensive due to the ruling elites being quite corrupt and lining their own pockets instead of protecting their home base.
Our corrupt Congress is in the middle of telling us, we don’t have any more money, no more wealth and can’t tax the very rich so we have to do without basic civil and social services and all have to have cuts…except when it comes to hideously expensive, ruinous and above all, USELESS wars. Then, wild spending is OK. Afghanistan has been a total waste of wealth and has made our lives worse so here we are, retreating like the Soviet Empire, frantically destroying the equipment there : U.S. to destroy $7B in gear sent to Afghanistan which is 20% of the stuff there.
Last month, the Kandahar yard produced 11 million pounds of scrap that was sold to Afghan contractors for a few cents per pound, said Morgan Gunn, a Defense Logistics Agency employee who runs the site. Afghans use the scrap mainly for construction and as makeshift spare parts.
“Gold dust is what they call it,” Gunn said.
“One might ask: Why not give it to the Afghans?” Stein said as he toured the Kandahar yard. “It’s such a fast-paced operation, and most of it is trash. We don’t want to leave this in the battlefield…Frankly, in a lot of ways, the Afghan economy and military can’t absorb some of the things the Iraqis did,” said Lt. Gen. Raymond V. Mason, the Army deputy chief of staff for logistics. “We don’t want to give [the Afghans] a lot of equipment that they can’t handle and could compound their challenges.”
They are scared that the triumphant Taliban will use all these things so we are paying to destroy our equipment. From May 2011: Afghanistan set to get huge supply of military gear – Checkpoint Washington – The Washington Post
Between now and next March, the U.S.-led coalition will deliver 22,000 vehicles, including 514 new four-wheeled “mobile strike force” armored vehicles yet to be used in Afghanistan, 44 airplanes and helicopters, 40,000 weapons, and tens of thousands of radios and other pieces of communications gear. “It’s an enormous amount of equipment, vehicles and weapons,” said one U.S. military official…
Ashraf Ghani, a top Karzai adviser, said recently that “in the next eight months, we are getting more equipment than we’ve gotten in the last eight years….and this time it’s not all discarded equipment, it’s brand new.”
While in our beloved ally, Saudi Arabia, the New virus may be more fatal than SARS, according to disease experts and the secretive Saudis who are like North Korea, are not cooperating :
Basic information about the disease, such as how patients are exposed to it, is still missing for most cases, despite Saudi Arabia’s obligations to share such details under international health regulations, the ECDC said in a report yesterday. That’s making it impossible to estimate accurately the threat posed by the bug, the Stockholm-based agency said.
The same year I said the US empire was on a death march in 2003, Professor Ferguson said the opposite: Harvard’s Grumpy Ferguson Says World Is Going to Hell – Bloomberg
Not too many years ago, in “Colossus” (2004), Ferguson was advocating that the U.S. face up to its Imperial destiny. And in “Civilization: The West and the Rest” (2011) he described how “six killer apps” made the West great.
No more Churchill’s sunny uplands for us, apparently, as “The Great Degeneration: How Institutions Decay and Economies Die,” makes clear. Ferguson writes, “My over-arching question is: What exactly has gone wrong in the Western world in our time?”
As I pointed out the other day about Harvard Professor Mankiw Makes Excuses For Super Rich: They Are Supposedly Genetically Superior, virtually all our economists teaching the art of running society are mainly, at this point, a bunch of crazed monkeys trying to get some bananas from the rich zoo keepers so they keep coming up with crap.
The main reason Ferguson is gloomy is due to Obama being in the White House. Ferguson had no problems with the huge Bush bubble. The ‘killer apps’ of the Derivatives Beast was lots of fun! Until it shot over the fence where Infinity and Zero exist and now it is frozen in place, mostly sitting there, not doubling in size anymore, propped up by the trillions and trillions in loans from the Federal Reserve, the Bank of England and the Bank of Japan.
What in hell went wrong? HAHAHA. Seeking infinity is what went wrong. Everyone wanted to have things grow continuously and this always ends very badly which is why Nature frowns on this. It is very much ‘verboten’. Ergo: seeking it is suicidal. Institutions can run a long, long time if they are kept within limits. If they are looting machines, they collapse like the Catholic Church collapsed when it sought endless wealth, this caused the Church to split apart.
Too much wealth leads to mental breakdown. Limits vanish and people then become Caligula and think they are gods and begin abusing everyone around themselves. Super rich people don’t create anymore, they become leeches. The more elites are cut off from the masses, the more useless they are and the more dysfunctional they become. Hiding in Ivory Towers controlled by rich people is just as delusional. Can Ferguson go into the slums and see for himself what is really going on? I doubt it. And none of our ‘leaders’ dare do this, either.
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