Tuesday, September 28, 2010

Beyond The Point Of No Return

We live in an amazing world. Everybody has big budget deficits and big easy money but somehow the world as a whole cannot fully employ itself,” said former Fed chair Paul Volcker in Chris Whalen’s new book Inflated: How Money and Debt Built the American Dream.
“It is a serious question. We are no longer talking about a single country having a big depression but the entire world.”
 The US and Britain are debasing coinage to alleviate the pain of debt-busts, and to revive their export industries: China is debasing to off-load its manufacturing overcapacity on to the rest of the world, though it has a trade surplus with the US of $20bn (£12.6bn) a month.
Premier Wen Jiabao confesses that China’s ability to maintain social order depends on a suppressed currency. A 20pc revaluation would be unbearable. “I can’t imagine how many Chinese factories will go bankrupt, how many Chinese workers will lose their jobs,” he said. 

 We have a new world order where China and India are buying gold on every dip, where the West faces an ageing crisis, and where the sovereign states of the US, Japan, and most of Western Europe have public debt trajectories near or beyond the point of no return.
The managers of all four reserve currencies are playing fast and loose: the Fed is clipping the dollar; the Bank of England is clipping sterling; the European Central Bank is buying the bonds of EMU debtors to stave off insolvency, something it vowed never to do just months ago; and the Bank of Japan has just carried out two trillion yen of “unsterilized” intervention.
Of course, gold can go higher.  
More Here..


  1. we can be promised not to act stupid, no guns or hatred. If we can we'll be on the better track and returning to our usually stuff. Hoping this many would grow bitter, count on your goverment, it isnr evil. It is helping give it more time. We trust in them for helping, God bless them. Thank them when you can see them.

    - Sam

  2. Yes god bless America ,and the South is gonna rise again.

    Goodnight Sam!
    Goodnight Pa.

    Thank God ,Bush ,Obama,paulsen, Ben and Tim when you see them.
    And do not worry about Ben and Tim They will have a ticket out when things get really bad ,after the lights go out, one by one on the new Waltons Mac mansion housing asset value ,and the pension savings of the middle class are completely stuffed and pocketed by the International ruling elite.

    Purely as a class solidarity thing the elite looks after its own top agents well .

    Ben is currently making war against the value of the US dollar with his patented diabolical ,in- exhaustible ,perpetual motion, bailout printing press.Code name model TARP-STIMULUS - QE1

    The next model put to use will “truly Awesome man” ,to be designated or codename model LASTDITCH QE2, a flying helicopter model that is believed to have all the power of a nuclear economic bomb for raining money at the Elite and Wall st.

    Let us look at some history on this ?

    When “Ex”cia Bin Ladin got designated as the scapegoat stooge responsible for 9.11,
    even though the US was put into a complete air lockdown, a special arrangement was made to fly out members of the billionaire Bin laden family so as to avoid anti-semitic attacks on its members.
    Some of whom were business partners with the oilmen Bush family,Rumsfelt, and Cheney in Carlyle and other companies.

    Unknown mysteries.

    Mystery surrounds the identity or actual numbers of those rescued who boarded the Bin Laden plane for its secret flight.

    It is not known really for sure if the plane was supplied as a courtesy by the Presidents official plane wing ,or if was a Saudi airforce or commercial plane .

    FOI and Patriot acts prevent all that stuff from being public knowledge to those who for national security reasons have no need to know.

    Nor is it known if there was actually a section of the plane equipped with a dialysis machine and pretty nurses at the back .

    That is clearly just wild speculation

    As Mystery surrounds the real identity of some the 19 members of ‘Al Ciada’ hi-jackers ,especially some who it appears used the real identity of pilots of Saudi airlines , it is not known if the pilot of the special plane that flew the Bin laden family plane out was actually flown by a real pilots , using the same licence ID as the “hijackers” that flew into the twin towers.

    But That is clearly just wild speculation too .
    Anyway Ben and Tim surely have their passports ready for a quick trip to some country, if SHTF ,after QE2 , a country that does not have any treaty of return for the extradition of criminals back to the US.
    If such a friendly ,for them country ,actually exists?

  3. “Premier Wen Jiabao confesses that China’s ability to maintain social order depends on a suppressed currency.
    A 20pc revaluation would be unbearable.
    “I can’t imagine how many Chinese factories will go bankrupt, how many Chinese workers will lose their jobs,” he said.”

    And that’s the way the Great Ponzi worked under a successful dollar hegemony system in world finance and trade.
    The old manufacturing jobs of the First World were transferred by capital to the cheap labor Third World in order to make a profit.
    In high wages America this became no longer possible after the success of the civil rights movement cut into the profits of discrimination from low waged blacks.
    With more wages equality there was no profits to be got in American manufacturing.
    The Chinese had access to two markets, China and The first world for mass production of their goods because 40% or so of their product output was owned by multi-national companies who owned the factories and made the bulk of the profits from the cheap labor products by controlling the retail outlets in the shopping malls ,the distribution end, where profits are realized, when the commodity value is converted into cash.
    The Chinese controlled retail distribution in China itself as its own profit source.
    The still existing state owned sector in China ,steel etc ,was used as (non profitable) infrastructure simply to service the export of wealth sector supplying Wall Mart and the like with the raw materials cheap.
    The capitalist class in China using a ‘Communist” party label suppressed the value of wages of the Chinese working class to ensure they remained cheap labor -forever-?
    The trick was that the Chinese controlled the wages level in china by inflation of their own currency ,a tax on the wealth of all the Chinese people.
    Most “strong” currencies such as profits value in dollar form were extracted from the economy in exchange for their own printed paper Yuan.
    The dollars were then sent back to America and invested as vendor finance in US treasury and Fannie and Freddie bonds.

    Finance capital is now Chinas principal export.

    In the end America turned into a giant industrially hollowed out Ponzi .
    America could print money at little cost to buy things. the money was then shipped right back to America as low interest investments .
    For example Treasury bonds at one or two % this was cheap time payment for US consumption.

    The only thing the US paid for the use of the dollar it had used to buy things, was this low interest on treasury and other bonds.
    Such a Ponzi can only last as long as the interest payments can be paid and the principle –the horde of US dollars -held by China does not have to be repaid.

    But times up. The US consumer is maxed out on credit, appeals by Bush to get out and spend, spend and spend again didn’t work.
    Having turned the US industrial working class into services workers.
    The US economy is in deep shit.


  5. Most of us would love to see the ignorant knuckle draggers in the south secede. They spread hate and ignorance and offer little but always have a handout for welfare.

    The right wing is using religion to divide us. The middle class will be a casualty in their culture war. Our freedom will also be taken as part of their religous take over.


  7. What on easrth are you talking about? Those cities are where all the good jobs are and the core of the economy. The south is a financial drain on the rest of us. Basically people with high poverty rates, low education, over weight, and most discrimination of anywhere. I hope they fall in the ocean as they are worthless and an embarassment to the rest of us.

  8. 9:00 you are funny little troll always blaming the right wing for the destruction of the middle case. So, let's take a look at the Blue State and find out how well the narrow minded bigots from the far left wing are doing. You know people like you. California clearly the most liberal state in the union is bankrupted. Oh the liberal progressive have ran that state into the ground. Liberal Union Michigan look at Detroit a shining example of the far left wing liberals destroying a city. Yes, yes, please tell us how religion is going to kill America? You are so right the liberal progressive narrow-minded bigot like you have all the answers and plenty of examples of why you should never ever vote for the far left wing fringe of the liberal party. You Know like Obozo.

  9. 1000: Yes, 0900 is a litle troublemaking troll. He's posting the same garbage comments on other articles too.

  10. California is the 6th largest economy in the world. Alabama? Mississippi? Overweight bigots. LOL

  11. Currency wars are here! and it's a race to debase! To the bottom!, and beyond!
    Peru bought 150mil of US$ last week, water pistol to a war..brazil is on board debasing theirs and today GB announced discussion of new rounds of monetary easing meanwhile china is selling yuan and buying yen which is pissing japan off and EU..well they just sit back and let their banks melt which drives theirs down, now up, but down again soon...
    really something watching all these things playing out..
    should have listened to that dude and those dudes who said this stuff was going to happen and get worse and be better prepared..


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