Saturday, March 28, 2009
YOU ALL NEED TO READ THROUGH THIS VERY CAREFULLY
CREDIT TO CSPANJUNKIE FOR THIS LINK.
http://www.worldreports.org/news/203_wheels_coming_off_white_house_corruption_engine
I read this website occasionally and have grown to appreciate
the issues it brings to my attention LONG BEFORE other sites,
or the major media, ever get around to it by the time it is already
an unfixable disaster.
You don't have to believe everything that is on the internet,
BUT....
Some of these sites will bring your ATTENTION to issues you may
have never thought of as being important.
THIS WORLD IS NOW ON THE PRECIPICE OF THE DISASTER OF ALL TIMES FOR HUMANS,
MUCH AS THE DINOSAURS DIDN'T SEE THE ASTEROID COMING THAT WIPED THEM OUT.
Prepare for the VERY WORST...if you want to survive...and you will be able
cope with most of which is coming.
Put on your WARRIOR PERSONALITY and DON'T EVER GIVE IN TO AUTHORITIES who want to
push you around in a crisis. Their only priority is to have you crawl off into a dark place and die quietly so they and their masters will have more of what's left for themselves...
It has come down to a WAR between the HAVES and the HAVE MUCH LESSes.
Don't be a VOLUNTARY CORPSE!
KARL DENNINGER TELLS IT LIKE IT IS
CREDIT TO GEIST FOR THE LINK:
http://market-ticker.denninger.net/archives/910-Whats-Disturbing-About-The-Truth.html
Don't just watch the video, read what's underneath it.
If you are a young person and don't have much to lose,
GET OUT IN THE STREETS AND PROTEST.
For older persons who don't have the physical ability to
go out and protest, the internet is your tool.
So USE IT and send emails to your 'supposed' representatives in CONGRESS,
and to newspapers and network and cable companies protesting their
NON COVERAGE of what's REALLY HAPPENING.
The TRUTH IS... us older folks are going to die soon, so it really
doesn't matter if we die sooner in the pursuit of a noble goal...
That of DESTROYING this despicable bunch of criminals and hoodlums
who are rapidly constructing a MASSIVE DEATH SENTENCE through starvation
to the peoples of THE ENTIRE WORLD through economic collapse
which WILL NOT BE FIXED IN OUR REMAINING LIFETIME.
THE TRUTH IS WHAT IS.....
A lie is what ISN'T.
Thursday, March 26, 2009
JACOB HORNBERGER ON 'THE DRUG WAR'...FFF.ORG
Thursday, March 26, 2009
Hillary Clinton’s Drug-War Inanities
by Jacob G. Hornberger
Hillary Clinton’s comments on the violence along the U.S.-Mexico border are so inane that I feel compelled to write about two government programs: the war on drugs and public (i.e., government) schooling.
On her way to Mexico to discuss the ever-increasing drug-war violence along the U.S. Mexico-border, guess whom Clinton blamed the violence on: America’s drug users and gun sellers!
How inane is that?
Pardon me, Ms. Clinton, but isn’t there also an insatiable demand for booze here in the United States? Yet, I don’t see much booze-related violence along the border. But here’s my prediction: If you people made booze illegal again, I predict that there would be all kinds of booze-war related violence, not only along the border but also all across the United States. In fact, you’ll recall that that is precisely what Prohibition did — it produced lots of Al Capone-like violence, until booze was re-legalized, at which point the violence disappeared.
Why can’t Clinton simply acknowledge that the drug war is at the root of the violence along the border? Why can’t she simply be honest and say, “Look, we understand that the drug war is causing the violence, but that’s a cost we’re willing to pay to keep our 35-year-old war on drugs going”?
The reason is very simple: If people were to see the truth, Clinton and her statist cohorts would stand to lose what matters most to them in life — power and money. The reason that statists, both liberal and conservative, love the drug war is because it helps to satisfy their insatiable demand for more power over the lives of more human beings. After all, with the possible exception of U.S. foreign policy, it would be difficult to find a government program better at producing ever-increasing government power and budgets than the war on drugs.
Here’s how this power surge works. They first make it illegal to possess or distribute certain drugs, knowing that people are inevitably going to break the law. Then they engage in ever-increasing measures to deal with the ever-increasing crises associated with people’s refusal to comply with the law: warrantless searches and seizures, Soviet-style checkpoints on highways, confiscation (i.e., stealing) of people’s money and other assets, and harsh punishments.
Then they get Mexico go crack down on the drug cartels that the drug war itself has brought into existence, knowing that the result is going to be precisely the same as when the U.S. government cracked down on the booze organizations during Prohibition. Then, they cite all the resulting drug-war chaos and crises as the excuse for more intervention, including the militarization of the border and gun control.
So, what does public schooling have to do with all this? What else can possibly explain why the American people fall for all this inanity? Public schooling teaches children to memorize, conform, and accept. Critical thinking and challenging the system at a fundamental level bring Ritalan injections. So, you end up with a nation of sheep-like adults with mindsets that cause them to nod approvingly when people like Clinton inanely claim that the drug-war violence along the borders is all because of drug users and gun sellers in America.
No, Ms. Clinton, the solution to the drug-war violence along the border does not lie in trying to satisfy your insatiable demand for more power, money, gun control, and bigger government. It lies instead in the immediate end to your beloved war on drugs, a war that has brought nothing but death, destruction, suffering, and misery.
Jacob Hornberger is founder and president of The Future of Freedom Foundation.
Wednesday, March 25, 2009
JAMES GALBRAITH ARTICLE
Geithner, Obama Kowtowing to "Massively Corrupted" Banks, Galbraith Says:
Like it or not, many people seem to be resigned to the idea there's no alternative to the public-private investment fund scheme Treasury Secretary Geithner detailed this morning. That's hogwash, says University of Texas professor James Galbraith, author of The Predator State. Of course there's an alternative: FDIC receivership of insolvent banks.
http://snipurl.com/efy3g
PRISONER LIST AT GUANTANAMO...VERY INTERESTING
Guantánamo: The Definitive Prisoner List :
The following list is the culmination of a three-year project to record the stories of all the prisoners held at the US prison in Guantánamo Bay, Cuba.
http://www.andyworthington.co.uk/guantanamo-the-definitive-prisoner-list-part-1/
CINDY SHEEHAN STRIKES THE MAIN NERVE AGAIN
"We're All In This Together"
No we are not, that's the point.
By Cindy Sheehan
http://informationclearinghouse.info/article22296.htm
March 25, 2009 "ICH" -- President Obama basically said that we can't demonize every investor who earns a profit, because "we are all in this together." Sorry, but I am going to have to call a big fat "bull-shit" on this one.
When Obama said "we" did he have a mouse in his pocket? Obama, and his family have a very opulent, slave-built roof over their heads. He travels on the public nickel, his children attend an exclusive Washington, DC private school that has organic food on its menu, and has health care that covers everyone in his family from head to toe and side to side and inside out.
Even though he and every member of the administration, Congress and the Supreme Court are not hurting for anything, the bastard (sorry if your parents weren't married when you were conceived) Wall Street banksters are receiving billions of dollars of government welfare and are not so good about being in "this together" with us.
The only concrete steps the Treasury and Fed have taken are to buy "toxic" assets (if something is toxic can it still be an asset?) so companies like Goldman Sachs (via AIG) can have the public tit rescue them from their stupider than crap mistakes.
WE the ROBBED Class are in this together. THEY the ROBBER Class are in it for themselves. How many times does Obama have to demonstrate that his economic recovery is nothing but Reaganomics wrapped in a little bit of populist rhetoric to make it easier for the mis-informed Robbed Class to swallow. If anything transpires to alleviate the suffering in our Class at all, it will be because some of the prosperity got through the cracks in the deeply cancerous system and trickled ON us. Rest assured, this is just a mistake and the only time the Robber Class cares about us, is when the interests of the two classes collide.
I will feel like I am "in this" with the Obamas when I have a free house, free health care and if my children would not have to go into lifelong debt to pay for university.
I wonder if the wall to wall homeless population (it's growing at an alarming rate) here in San Francisco feels "in this together" with the Wall Street Robbers?
I wonder if the people standing waiting for hours in municipal Emergency Rooms waiting to get some, any medical attention feel "in this together" with Congress which has 110% medical coverage?
I wonder if the foot soldiers for the Empire feel "in this together" with the War Profiteer Robbers?
I wonder if the victims of the drug wars and street wars feel "in this together" with the children of the Robbers who ride to their schools in limos with bodyguards?
I wonder if our brothers and sisters living in tent cities with their children feel "in this together" with the Pelosis and Feinsteins of the world who live in their obscenely huge mansions in exclusive neighborhoods and fly back and forth from DC in private jets that suck down gas at an immoral rate?
I wonder if our brothers and sisters who just cashed a final unemployment check feels "in this together" with the Robbers who just cashed millions in bonuses?
I, myself, feel "in this together" with the homeless, hungry, sick, jobless, struggling, stressed, frightened, confused, yet resilient, brave and strong.
WE are in this together. WE need to step outside of the Robber Class system and start to build our own systems to help each other through this Robber Class/Goldman Sachs/Federal Reserve depression.
I STRONGLY SUGGEST YOU READ THIS ARTICLE AND ALL THE LINKS WITHIN IT.
GT sez: There is lots more info on this website, some of which you may think is
absolutely 'off the wall...crazy'.
Just keep reading and dismiss that which you don't believe or accept.
March 20, 2009
All Private Guns Will Be Confiscated By September 2009, US Tells Russia
By: Sorcha Faal
http://www.whatdoesitmean.com/index1216.htm
Scroll down to the article.
GT sez:
The purpose in reading Sorcha Faal articles is to make you aware of many of the
things that are NOT in the traditional media.
You don't have to agree with him/her on everything, but the bulk of what he/she
brings up WILL HAPPEN!
READ THIS ARTICLE FROM ROLLING STONE
http://www.rollingstone.com/politics/story/26793903/the_big_takeover/
The Big Takeover
The global economic crisis isn't about money - it's about power. How Wall Street insiders are using the bailout to stage a revolution
MATT TAIBBIPosted Mar 19, 2009 12:49 PM
Tuesday, March 24, 2009
LATEST MIKE WHITNEY ARTICLE
Bend Over and Say, "Uncle Sam"
By Mike Whitney
Here's what everyone needs to know: The US government (you) will provide up to 94 percent of the financing (low interest, of course) for dodgy mortgage-backed assets that no one in their right mind would ever buy so that wealthy and politically-connected banksters can scrub up to $1 trillion of red ink from their balance sheets. Ugh!
http://informationclearinghouse.info/article22289.htm
NOTICE- DAN NORCINI'S COMMENTS CAN BE FOUND EACH DAY ON JSMINESET.COM ON THE LEFT OF THE WEBSITE'S HOME PAGE WHERE THE LINK TO HIS COMMENTS IS FOUND
I appears that Dan Norcini's Daily Comments have not ALWAYS been posted on the Main Page of Jim Sinclair's Website.
You can't afford to miss Dan's comments each day. So, be sure to look for the link to his comments in the dark blue section, on the left side, of the Main Page of Sinclair's Home Page.
Hourly Action In Gold From Trader Dan
Posted: Mar 24 2009 By: Jim Sinclair Post Edited: March 24, 2009 at 2:54 pm
Filed under: Trader Dan Norcini
Dear CIGAs,
There wasn’t much in the way of supportive factors for gold in today’s trading session as the Dollar was higher, crude oil was lower and bonds were lower. Equities were a tad weaker but after yesterday’s monster rally, the thinking in many quarters is that global stock markets have bottomed out. That removed the safe haven flow into both bonds and gold and allowed gold shorts to push the market down into stops as weak-handed longs were driven out. Those sell stops were the property of the trading funds who once again were handed their heads by the bullion banks.
Failure by the bulls to push up and through the $960 area was the signal by shorter-term oriented traders to book profits if they were long and to add to shorts if they were short. The onus is now on the bulls to hold price above the $900 level. If they can do that, gold has a very good chance at consolidating its recent gains. If not, back down to near the $880 level we go once again. We had an $80 run higher in gold when the news hit that the Fed was embarking on a course of printing money to buy US Treasury and Agency debt. You might recall that news resulted in the single largest daily price drop in the Dollar in many a year. Gold shorts saw their lives pass in front of their eyes with a multitude of them who had gone short below the $900 level squeezed out. The problem for the bulls is that long liquidation tied to the stock market rally, overcame buying coming from those who are looking longer term at the implications of the Fed’s quantitative easing policy and its devastating effect on the Dollar.
Make no mistake about it – the Fed believes that it is wise enough and nimble enough to nip the inevitable inflationary aspects of its policies when those begin to occur –and occur they will. Their immediate concern however is deflation and they are apparently determined to avert that at all costs, even if it means giving further impetus to the growing movement among many in the international community to abandon the Dollar as the global reserve currency. As a matter of fact, both China and Russia are becoming quite vociferous about this issue.
This shift in sentiment away from the Dollar is momentous. It is the rare breed that is able to spot turning points in history while they are indeed occurring. It is generally only after the fact that the majority are able to point a finger at a particular occurrence and state; “history was made here”. Nonetheless, we are getting a ringside seat and observing the events transpire that will alter our way of life here in the United States forever. As citizens, we have reaped the benefits of the Dollar as the reserve currency, benefits which include a life-style for the average American that is leaps and bounds beyond that of the overwhelming majority of the world’s population. It encompasses everything from the size of our cars and of our homes all the way to the size of our military and our ability to project power around the globe. The loss of the Dollar’s reserve currency status would threaten all of this. That is why many of us are so deeply concerned about what is occurring in Washington with regard to its spending orgy and to the ruinous policies that the Fed’s short-sighted members are currently wedded to. There is still time to save the Dollar but one wonders just who is left in our nation’s capital to lead the charge.
Back to gold – I am concerned by gold’s inability to hold near the 700 level when priced in Euros and the 650 level when priced in terms of the British Pound. We also have gold backing down from its highs in terms of most of the other major currencies as well. That has taken some of the luster off of the metal in spite of the fact that reported holdings in the gold ETF, GLD, are still holding near recent record levels.
From my current vantage point it seems that while gold lacks sufficient impetus to push it through $960 and on up then to $1,000, it also should be well supported on any price dips given the medium to longer term implications of the Fed’s quantitative easing program. That portends that a range trade is the more likely outcome to look for over the near term with the metal waiting for some sort of signal to break it out either way. The current boundaries of this range are $960 on the top side and $885 - $880 on the down side. Official sector price capping has once again appeared, this time at the $960 level, (they can read the price charts as well), while value buying is coming in near the $900 level and on down. I am not sure what it will take to dislodge the bullion banks from the upper level but once again I would emphasize that hedge funds have it in their power to seriously threaten their death grip on the gold market if they will simply stand for delivery and force the issue. Next week begins that delivery process for the April contract so let’s see if any of them wise up between now and then.
The mining shares are weaker today with the paper gold price weakness undercutting efforts of the bulls to push further through the swing highs made back in February of this year.
Bonds have been rocked pretty hard today with traders’ focus back on the big supply coming this week. I should note here that bonds have surrendered half of the gains made following last week’s announcement of the Fed’s intent to purchase up to $300 billion in Treasuries. Given the huge surge in treasury buying on the heels of that news, the low of that day near the 123^23 level, takes on extreme technical significance. If that level is tested and fails to hold, bonds are in danger of facing a rapid collapse, especially if the thinking that the worst of the financial news is now behind us gains additional credibility. A lot of money that sought a safe haven in the bond market will flow out of bonds and into equities if investors become convinced that the stock market has bottomed and the economy is poised for a rebound later this year. Please keep in mind that I am not advocating such a view – I am merely stating what will happen if a sufficient number of investors adopt this view and move their funds accordingly.
Equities are now sneaking back into positive territory as I put the finishing touches on these comments here just before the pit session close in gold. That is pulling the euro off its lows and serving to push the Dollar back off of its session highs. The yen is especially weak today as “risk” is coming back into vogue a bit and this is serving to bring sellers back into the Japanese currency. It is down against not only the US Dollar, but against all the other majors as well. The Euro-yen cross, while it has lost some of its predictive aspect for risk, still remains a decent indicator so we will be monitoring that for possible clues to both the bonds and to gold.
Crude oil is lower today but remains above the $50 level with the quantitative easing play by the Fed proving to have been the catalyst to allow the bulls to shove it out of the range trade and put in a more definitive bottom. The peak gasoline demand season lies just ahead. Even natural gas looks like it too has bottomed out.
Monday, March 23, 2009
MOGAMBO GURU ON ALAN GREENSPAN'S 'GENIUS' 3/23/09
Greenspan Not Reserved About His Innocence
By The Mogambo Guru
Tampa Bay, Florida
Bloomberg.com had Alan Greenspan, disastrous former chairman of the Federal Reserve - who is the one person directly responsible for all of our economic woes with his bizarre monetary insanity Every Freaking Day (EFD) during his demented chairmanship of the Federal Reserve from 1987 to 2006, being indignant that he should be blamed for anything, and insists that nothing is his fault, except for maybe having too much faith and trust in his fellow man, which would explain the complete lack of regulatory scrutiny, or even a minimal due diligence attention, to any of the glaring excesses in the banking system, for which he was responsible.
He is reported to have said, "Given the decoupling of monetary policy from long-term mortgage rates, accelerating the path of monetary tightening that the Fed pursued in 2004-2005 could not have prevented the housing bubble." Hahahaha!
I was at first going to make sport of Mr. Greenspan and cast aspersions on both his intellect and degree of mental illness that would turn a former gold-bug into the monetary inflation monster that he became, but soon I realized the gem of a philosophy that we have here!
Hastily, I scheduled a meeting with my boss, who thinks that my poor job performance, the hostility of customers (morons) and mutiny among my employees (more morons) has something to do with my terrible cost- center numbers that were provided.
To the contrary, I plan to stress that these are mere statistical artifacts by a bunch of hateful accountants (pencil-neck geek morons) who are probably lying just to get me in trouble.
I know that my boss will laugh dismissively at my conspiracy theory, like she always does - but this time I have proof! It was provided by Alan Greenspan himself, lying former chairman of the Federal Reserve - which is itself a Big Fat Lie (BFL) because the Federal Reserve is not a part of government, but is, instead, just a name picked by the true owners of the Fed; shadowy figures creeping around in the shadows, which is why I called them "shadowy" in the first place...
"...Mr. Greenspan has now famously said, that not only is nothing my fault, but that the true culprits may be forces...at work, which are already sinisterly creating excess money and credit 'beyond the control of monetary policy'..."
I am not, as you would expect, going into a loud, Screaming Fit Of Outrage (SFOO) at the sheer, outlandish corruption of the banking system, Congress, government in general and everything it touches, or the unbelievable corruption and stupidity in everything else, both here in America and around the world.
Instead, I have been galvanized to action to, hopefully, to prevent being fired from my stupid job. Now, that task has been made easier after reading that Mr. Greenspan said, "If we are dealing with global forces beyond the control of domestic monetary policy makers, as I strongly suspect is the case, then we are facing a broader issue." Hahahaha! I can't believe my eyes at this unexpected bonanza!
Excitedly, I am planning to say to my boss, like Mr. Greenspan has now famously said, that not only is nothing my fault, but that the true culprits may be forces - perhaps strange, malevolent-yet-evil forces - at work, which are already sinisterly creating excess money and credit "beyond the control of monetary policy"; so it could also be controlling people's thoughts, probably with some kind of secret, super ray-gun, or some new chemicals that they put into the water so that the strange molecules get into our blood streams and go to our brains to make us think, "Don't pay attention to Austrian/classical economics, common sense, the entire history of economics for the last 4,500 years or the Lunatic Mogambo Loudmouth (LML)! And for crying out loud don't buy any gold, silver or oil, which is the only smart thing to do, with special emphasis on 'smart', especially since 'everything else is stupid and you will lose your butt, big time.'"
And speaking of losing one's butt, Agora Financial's 5-Minute Forecast reports, "The seldom-reported net long-term and total Treasury International Capital (TIC) flow came in way worse than expected."
Like most reports, this is complete gibberish to me, and I am soon fascinated with the idea of finding out if I can get a whole burrito in my mouth at one time, and I am halfway out of the office to grab an early lunch to test my new theory when I am stopped by their news that, "in English" for dummies like me, "foreigners - and not just the Chinese - are losing their taste for U.S. debt. Global investors sold $148 billion more U.S. debt than they bought", which I assume was for the year.
In response, I have written a blues song about it, and the four lines of lyrics go:
"Oh, I'm so blue because foreign devils are selling my debt.
"Oh, I don't know what to do.
"This comes at a particularly bad time since the Obama lunatics and the brain-damaged halfwits in Congress are committed to deficit-spending almost $2 trillion this year, a sum so staggering that it is not only eye-popping, head-spinning and/or heart-stopping, it is also more than 14% of GDP, and we desperately need these damned foreign devils to buy that new towering mountain of American Treasury debt to fund that suicidal, low-IQ orgy of deficit-spending, and not for them to sell the Treasury crap they already have.
"Baby, oh baby, I'm so blue, blue, blue."
Okay, I realize this is not my best work and it needs some polishing, so don't bother writing to me about the usual bad reviews ("He is stupid and so is his stupid song!" - Chicago Sun), but the sentiment is perfectly correct: Foreigners refusing to use the dollars they receive, as a result of America's $820 billion per year trade-deficit, to buy more Treasury debt is terrible news to a bunch of socialist/communist dirtbags like Obama and Congress; and the rest of us worthless morons around the world are apparently desperate and willing to sacrifice everything on a long-shot that for once, in all the times it has been tried in all of history, expanding a fiat money supply so that the government can buy its way out of bankruptcy will not, hopefully, end in inflationary tragedy like it always - with stress on the "always" - has before! Hahahaha! We're freaking doomed!
Until next time,
The Mogambo Guru
for The Daily Reckoning
P.S. So, as I explain to the kids, all of this is why I am always buying gold and am always on your nasty little butts to buy gold, too, when a government is acting as insanely as this. Whee! This investing stuff is easy!
FROM THE DAILY RECKONING 3/23/09
Get Set for a 15-Year Depression
By Bill Bonner
London, England
Our old friend Congressman Ron Paul says we're headed into a 15-year depression.
He's probably right. In the old days, "panics" and "depressions" ended fairly quickly...at least unemployment tended to be short-term. There were no elaborate social welfare systems then. No unemployment compensation. No food stamps or "independence" cards. People had to make do.
So, when a depression hit, wages fell quickly and people got back to work. They earned less, but the whole economy would adjust, with lower prices for everything.
There were no bailouts and no stimulus plans, either. Mistakes were corrected relatively quickly. Businesses went broke. Men were "ruined" and had to drink themselves to death.
Now, things are better. If their businesses go broke, they can go on almost as if nothing had happened... as long as they owe money to the right people. Heck, they might even get a bonus.
On Friday, the Dow dropped 122 points. What happened to the rally? Is it over already? We wait to find out.
Oil held steady at the end of the week, having risen over $50 to a high for the year. Oil's rise was entirely explained by the sinking dollar - down to $1.35 per euro on Friday.
"Dollar sell-off gathers momentum," explained one headline. "Gold soars," Bloomberg added.
Gold shot up nearly $70 an ounce on Thursday. It took a rest on Friday...but we don't think it will take a break from its epic run for long. Take advantage of this pause in the gold price and buy some now. You can still purchase the yellow metal for just a penny per ounce. Learn more here.
But back to the story of the 15-year depression...
Goldman says it wouldn't have lost much money if AIG had been allowed to go broke. So, don't think for a minute that it wanted the government to save AIG just so Goldman could get its $20 billion back.
The public and its paid representatives in Washington are up in arms. Reporters have been following the trail of the hundreds of billions of taxpayers' money handed over to Wall Street firms. They discovered that it went into various silk-lined pockets - notably, those of the aforementioned Goldman Sachs, foreign banks and the bankrupt firms' own executives. The politicians were shocked. Shocked! The public was outraged.
Whence cometh this outrage? Not from any matter of principle that we've been able to determine. The taxpayers don't mind robbing Peter. But they don't like it when the ill-gotten gains go into someone else. "Hey, my name is Paul and I've been out of a job for six months," they say. "Where's MY bonus?"
Congress sprang into action last week to set things right. But rather than give every Tom, Dick and Harry a big bonus, the House proposed a 90% tax on the AIG bonuses...and urged the states to take the other 10%.
The whole thing is a dangerous distraction, in our opinion. The bonus amounts are trivial in comparison to the huge amounts of the bailouts. And when the pols start taking money away from people our sympathy is with the takee, not the taker. Besides, it encourages a very bad idea: that politics, rather than a free market, should decide who gets what.
The next thing you know, they're going to be telling us which businesses succeed and which fail. Wait a minute...they're already doing that!
Which is why Ron Paul thinks we're going to have a depression that lasts longer than most marriages. When markets are allowed to work, they often make mistakes - especially when government is fixing interest rates. Periods of growth are punctuated by crises - including sharp breaks in business activity and bouts of 'creative destruction.' Like forest fires, these episodic conflagrations burn off the dead wood, permitting new growth.
But when government allocates capital and resources, it is almost always a soggy disaster from beginning to end. The dead wood never gets cleared away. Instead, it is protected...propped up...leaving the new shoots to struggle in the shade. Not much growth, in other words.
We repeat: there were only two examples of major depressions in the last century. Both came after a huge run-up in debt. And both were met with programs that economists should be ashamed of - bailouts, stimulus, loans, props, safety nets and hooks. In both cases - the '30s in the United States and the '90s in Japan - the depressions continued, on and off, for many years. WWII brought an end to the first one - 12 years after it began. The second one continues - nearly 20 years after the crash of the Tokyo stock market.
And now we have a third one...and this time the feds are determined to beat it. What's their strategy? More firepower! What's their secret weapon? QE, or quantitative easing, which is actual monetary inflation caused by buying debt directly from the government.
Will it work? Will Geithner/Bernanke succeed where others failed? Will economists finally master depressions...and find a way to get "creative" without the destruction?
Ah...we think we know the answer. But in the meantime, we're enjoying the show...
Sunday, March 22, 2009
THE FUTURE ISN'T HARD TO PREDICT IF YOU HAVE A WORKING 'CRAP DETECTOR'
World Faces 'Perfect Storm' of Problems by 2030, Chief Scientist to Warn
By Ian Sample, science correspondent
A "perfect storm" of food shortages, scarce water and insufficient energy resources threaten to unleash public unrest, cross-border conflicts and mass migration as people flee from the worst-affected regions, the UK government's chief scientist will warn tomorrow.
http://informationclearinghouse.info/article22272.htm
CINDY SHEEHAN ON THE ROBBER CLASS AND THE ROBBED CLASS
Myth America
By Cindy Sheehan
Since this country was founded, it has been governed, or controlled by the Robber Class. Some people call our "Lords," the Ruling Class, the Oligarchy, the Kleptocracy, or Plutocracy. Some call our system Cronyism, a Democratic Tyranny, Soft-core Fascist State, or if you are a member of the Robber Class or Blinded Robbed Class, you call it a Democracy, or Republic.
http://informationclearinghouse.info/article22269.htm
BE SURE TO GO TO THE LINK AT THE BOTTOM OF THE ARTICLE TO CINDY'S WEBSITE
READ THIS ARTICLE...IT'S LONG, BUT WORTH THE TIME SPENT
The Big Takeover
By MATT TAIBBI
The global economic crisis isn't about money - it's about power. How Wall Street insiders are using the bailout to stage a revolution.
http://informationclearinghouse.info/article22276.htm
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