Nation By Nation (23Mar09)

19-23Feb09 -- Highlighting the Good-riddance-you-beast sentiment ringing from every corner of our planet as delivered in every news today at exponential rate; after it's been disinfected from the west rabid mindrape, that is. (Mouseover flags for info)

A R G E N T I N A Argentina - Liberates an aircraft firm from the USA harrowing claws that was grabbed by USA in the 90s.

A U S T R A L I A Australia - "Keep Australia Australian" screams Canberra as China goes shopping in the prolapsed west offering 14B GBP for Australian mining. Yes, let's keep Australia Australian! So move back to your UK drizzly island.

C A N A D A Canada - USA bent governance gleefully welcomes USA plan to "bailout" auto supply industry and said: "we already have a similar programme going here". So Canada has been in the west active prints of cash for over a year now, pumping 3.2B CAD into its auto industry way before USA did it. No part of west is spared its collapse.

C H I N A China - Despite USA concessions, slows down investment in USA. Time to rather quickly cede more territory and factories to Beijing, Washington guys!
- Taiwan sidles up to China for help on its prolapsing west econ and army. Not only USA is losing another potential war proxy but this means that USA arms (some 9B USD worth of arms were peddled to Taiwain under Bush II reign) will end up in Chinese hands.
- Taiwan cuts military by 20%. Sidenote: The USA wetdream of siccing Taiwan on China dates back to 1950 when USA unveiled the brilliant war plan of attacking China via South Korea peninsula while having Taiwan hit if from southeast. Of course, USA dropped the sci-fi plan and booted the gen'l. If USA couldn't attack China in 1950, consider the idea now with China commanding 3M troops and over 1000 missiles pointed specifically on this small USA-controlled island. The ultimately strange thing here is that up till now USA was really delusional enough to think Taiwan's gonna be their war proxy against China one day.
- Tells USA Cocacola firm to take a hike with their 1.2B USD bid to buy Huiyuan Juice Group. Venezuela doesn't want the USA fizz crap, now China, and Yankistan can't afford it. What now?
- Creates special fund for west shopping spree. Buys up Australian iron core, zinc, and aluminium producers. Buys Canadian energy. Angry west screams foul and demands China also buy the prolapsed west mfg has-beens but China's going only after good stuff like energy and resources paying no attention to the west sore-loser mutter. What's particularly amusing is how west laments it's being "taken advantage of".

C Z E C H Czech - PM calls off the long awaited "USA nuke trench" vote. Why? Cuz he'd lose the vote, he admits. What's important here is the illustration of west "democracy". If you can't win the vote, don't have it. If they vote wrong, make them vote again like the Irish.

E C U A D O R Ecuador - Amasses more troops on Colombian (USA stooge) border. Yes, USA needs a war and badly! Anywhere, anyhow. The last days of west are going to be the most dangerous for the planet.

E U EU - Going to Ukraine to probably take over the 13.5K km pipeline to make certain the EU umbilical cord to mother Russia isn't jeopardised by the Ukraine's looming econ death.

F R A N C E France - Shootout at a nursery school. (None killed!) Is France planning tighter gun laws too?
- Revolt is on as planned and scheduled. 3M in 200+ protests march across France against the west abomination. Paris alone saw 5hr march to freedom. Clashes with tear gas NWO state bullies not avoided. But Sarkozy avails no concessions to the NWO-raped people. 75%+ of France backs the revolt.

Viva La France! NWO may run France but they've lost the mind and heart of the nation. Any sane dictator would abdicate but then again no part of west could be accused of even traces of sanity.

- While France in revolt is given nothing, Paris is doubling arms spending. Why? To quash the demonstrators?
- Rejoins with the pretty NATO war org.

G E R M A N Y Germany - Nationalising Hypo Realty.

G R E E C E Greece - Revolt on. Bomb near Police HQ shakes Athens on 19Mar.
- NWO governance freezes public wages. Yes, that oughtta help the revolt right along.

I S R A E L Isreal - Beginning to suffer isolation for violations against humanity. Israel team met with hostilities in Sweden.
- Mauritania boots Israeli embassy out.
- Turkey urges war crimes investigation.
- "Israel Apartheid Week" grows 100% since '08, now observed by 54 cities around the waking planet.
- UN envoy admits Israel has committed war crimes in Gaza. Isn't the UN castrate paid to do something about war crimes instead of blogging about it?
- Threatens to begin punishing captives to get Israeli war criminal soldiers released. That's another war crime UN can jot down.
- Arrested Palestinian gov't to blackmail opposition. And another one, UN!
- Holds 11.5K Palestinians including children and women in its concentration camps. And another 11500 crimes against humanity!

You've seen USA camps and prisoners kneeling in front of the self-proclaimed "peace-loving", "democratic", and "civilised" USA. This is an Israeli concentration camp. Quite strikingly similar in the mindless brutality meted out by these bully nations.

How's this make you feel? This is USA at work. Yes, same criminals, same crimes. Make no mistake, there is no difference twixt Israel, USA, UK, or any other part of the fiendish west.

J A P A N Japan - Threatens local sanctions on N Korea, if it lifts satellite on April 4-8.
- Unveils a brilliant plan to stop littering streets with unemployed by printing up 1.5T JPY.

M A D A G A S C A R Madagascar - USA retaliates against the people of Madagascar for having toppled another USA dictator stooge by halting all aid.

R U S S I A Russia - Whiplashes west yet again. After telling west Iran is dangerous, it says no sign of military objective in Iran now.
- Planes buzz USA mil boats parading in Sea of Japan.
- After the increasingly desperate USA begged for 80% relief on arm spending, Russia launched a Topol mobile battalion, 2nd S-300 Triumf defence system, and is expanding nuke arsenal.
- So Kissinger goes back to Moscow to beg some more. This time he's bringing Baker with him, the very architect of the papa Bush pretext for war on Iraq in 1990. What's the USA tact? Alaska? How about threats with non-existent nukes again. At least that Obama int'l embarrassment was funny.
- THE MOTHER OF ALL NEWS: After the 2006 masterful nuking of petrodollar, setting the end of times scenario for the west into motion, Moscow has moved, as foreshadowed by Putin at Davos, to the ultimate coup de grace -- perhaps the most expected event in history of mankind. Russia sets out to dump dollar. China and UN backs it! India and Brazil seen in meetings. No need to ask where Venezuela, the rest of South Am with the possible exception of Colombia, Africa, and Asia stands. Yes, the dollar and thus west dominance is at last over!
- Suspends USA poultry imports.

S P A I N Spain - Students clash with state cops.
- Much to USA chagrin, pulling out all 630 troops from west-occupied Kosovo.

S W I T Z E R L A N D Switzerland - West unhinging is down to vulgarities now. Compromised economy by west bank account pillage results in Swiss calling German Nazis. Big wheel bank guy got involved calling for end of vulgarities. Nice seeing them go at each other's throats.

T U R K S  &  C A I C O S Turks And Caicos - Calls for help to stop the UK lizard takeover attack. Sidenote: TAC got independence in 1982. Today, UK has toppled TAC government, destroyed the islands' constitution, and taken over administration. Watch USA build a prison and nuke base there now to try answer Russia's takeover of USA backyard. Who's next? Aruba?

U K UK - Housing shrivels 40%. UK says that's "unprecedented" but be reassured that's quite normal for a typical nationwide prolapse.
- Deficit swells to 75B GBP. Quick, print cash, chaps!
- Factory orders at 17 yr low.
- Unemployment at 2M. That's also still modest and on track with the prolapse.
- Public borrowing at 90B/yr and 2009 looks like 200B will be needed. Wait! How's this "PUBLIC" borrowing? Anyone in UK got a free quid lately? Nobody angry yet? Well, at least when UK prolapses the pretty UK NWO-obedient folks can keep warm with the memories of the UK brave troops torturing someone else's kids.
- Car production down 40%. Commercial car production 60% down.
- Homo jokes illegal.
- Anti social behaviour warning meted out to a 2 yr old. Raises a valid question, who's more bonkers USA or UK?

U S A USA - Expands Pakistan military assault.
- AIG, after getting zillions, wants back the 300M it paid in taxes. Baboons had no response to the matter.
- Auto supply industry gets a quick 5B USD injection.
- Sends warships to Black Sea. Another go at Russia? Are they serious?
- Unemployment over 9% and happily climbing.
- 60B USD pulled out by foreign investors in Jan only.
- US Mail closing branches, mulling garage sales, and getting rid of 150K workers.
- Shuts down Hormuz. This is the west's biggest fear and here it is. USA did it on their own. US nuke sub smashed into another US boat creating another west eco-attack spilling 100K litres of oil in the narrow and compromising the west oil thief route.
- Let's look at the beauty of the "bailout" scam. Citibank is using 10M of it to build new posh office centre while those that paid for it all are moving to tent cities.


Well depictied by artist Dees. Bailout is an euphemism for the west war junta consolidating their assets while looting what's left of the west world. Once all piggy banks of west have been smashed, they'll pull the plug.

- Hussein Obama notches up another int'l embarrassment. After China's sending 2 destroyers to meet the 1 Obama sent, USA bully is forced to fold and act like a brat crying that China is playing too "aggressively".
- State of Georgia is out of ammunition.
- State of Idaho is out of ammunition. Ammunition import halt is working then. But who are the baboons gonna shoot anyway? Neighbouring baboons? The herd swinging on trees, in tents? They don't even know what's happening but somehow figure a rifle's gonna save them. This alone speaks volume about the self-proclaimed most civilised and advanced people. But at least it shows USA's growing desperate by a minute.
- Bill passed to create 200K "volunteer" state-loving and helping force. Membership in these special forces is extended to children.
- The Fed buys 300B worth of gov't bonds. Now this means that USA populace is on the hook for another massive loan from the war bank cabal at terms set by the war elite. USA hyperinflation is immaterial to keep track of now.
- The Fed unveils a 1.2T "rescue USA" plan. If this isn't insane enough, the plan will buy up mortgages. Now, that's not rescue! If USA wanted to save the mortgage slaves, it would give the people some cash. Not the case here! What this proposes is to buy up baboon dwellings for USA central bank. The plan fails however to illuminate where will the baboon go. Could the vids of boxes and camps strewn across USA have anything to do with this?
- Governance takes over two federal credit union clearing house titans (basically just preferred banks) US Credit Fed Credit Union and WesCorp Federal Credit and another 3 banks.


The "new and improved" look of USA.

- 20 banks across 3 states shut down.
- Forget AIG's 450M bonuses being offensive. MLynch, also bailed out by USA baboons, gives self 3.6B, that's BILLION, in "bonuses".
- Anger sets in: 3 policemen dead in California in a gun battle.
- Basic deficit now touching 2T.
- Desperate and out of breath Obama sends Iran a sweet overture vid begging for a new start replacing the redneck "we'll kick your ass" with redneck "we're committed to diplomacy now". Iran responded: "sure mate, but first change your ways -- fundamentally." The fundamental change is however given, whether USA wants it or not, considering the advanced stage of the prolapse rigormortis of the whole of west.

V E N E Z U E L A Venezuela - 6B USD co-op with China underway to build oil refinery in China.
- Creating another venture with Russia for oil int'l projects. For over 100 yrs till 2006 no oil well was dug without the west vampire slurping from it. Since 2006, non-west int'l oil and gas ventures are commonplace, nay boring to report.

...to be cont'd as it all piles up.

87 comments:

Anonymous said...

Thank you, thank you! Utterly grateful. God bless.

King

Anonymous said...

Yes!

by informatron

Another nice bit of good news for everyone.
Looks like things are happening after all,
Nation by Nation

Anonymous said...

Interesting information


h ttp://www.worldreports.org/news

Anonymous said...

Nation by nation,

continent by continent, the giants of the Freeworld are moving in for the kill. Particularly interesting to my mind is the way the Chinese are slowly taking over Australia and, naturally, the general preparedness to dump the dollar. May the good work go on without interruption.

Anonymous said...

Even little Madagascar saw the tide was turning and seized its chance. What better proof of things to come. Well-spotted.

Anonymous said...

You know how it is with bailout UK today. It's called quantative easing and means that over the past week the Bank of England bought up two billion pounds worth of public and corporate debt in the form of 2, 5 and 10-year bonds. Why can't we come up with similar tricks to make both ends meet? All we know how to do is to pay our bloody taxes.

Anonymous said...

China wants IMF unit to replace dollar as a reserve
March 23, 2009

BEIJING: China on Monday proposed a sweeping overhaul of the global monetary system, outlining how the dollar could eventually be replaced as the world's main reserve currency by the IMF's Special Drawing Right.

The SDR is an international reserve asset created by the International Monetary Fund in 1969 that has the potential to act as a super-sovereign reserve currency, Zhou Xiaochuan, governor of the People's Bank of China, said in remarks published on the central bank's Web site.

"The role of the SDR has not been put into full play due to limitations on its allocation and the scope of its uses. However, it serves as the light in the tunnel for the reform of the international monetary system," he said.

Zhou diplomatically did not refer explicitly to the dollar.

But his speech, issued exceptionally in English as well as Chinese, spells out Beijing's dissatisfaction with the primacy of the U.S. currency, which Zhou says has led to increasingly frequent global financial crises since the collapse in 1971 of the Bretton Woods system of fixed but adjustable exchange rates.

U.S. Treasury hopes to lure private equity
"The price is becoming increasingly high, not only for the users, but also for the issuers of the reserve currencies. Although crisis may not necessarily be an intended result of the issuing authorities, it is an inevitable outcome of the institutional flaws," Zhou said.

Jim O'Neill, chief economist at Goldman Sachs in London, said the dollar-based system of floating exchange rates had demonstrated great flexibility down the years.

"But over time, as the world is taken off the steroids of the overleveraged U.S. consumer, you can't have the same dollar dependence as we have had. But who can provide it? And the answer is, if it functioned properly, maybe the SDR could have a much bigger role," O'Neill said.

A super-sovereign reserve currency would not only eliminate the risks inherent in fiat currencies such as the dollar -- which are backed only by the credit of the issuing country, not by gold or silver -- but would also make it possible to manage global liquidity, Zhou argued.

"When a country's currency is no longer used as the yardstick for global trade and as the benchmark for other currencies, the exchange rate policy of the country would be far more effective in adjusting economic imbalances. This will significantly reduce the risks of a future crisis and enhance crisis management capability." he said.

Reform of the international monetary system is likely to take a back seat to the more urgent task of economic and financial stabilization when leaders of the Group of 20 developed and emerging economies meet in London on April 2.

But Zhou's speech shows that the issue is a pressing one for China, whose top officials regularly bemoan the volatility of the dollar and what they see as U.S. economic mismanagement.

Creating a new, widely accepted reserve currency may take a long time, Zhou acknowledged. It would be a "bold initiative that requires extraordinary political vision and courage".

Allocating more SDRs would give the IMF more resources and help it address imbalances in power within the fund, where big emerging economies like China muster a fraction of the votes cast by Europe and by the United States, which wields a veto.

As well as a further allocation of SDRs, Zhou proposed a series of steps to broaden the unit's use so it can evolve into a reserve currency:

-- Set up a settlement system with other currencies so there SDR can be widely accepted in global trade and financial transactions. Currently, the SDR is largely an artificial unit used by governments and international institutions.

-- Actively promote the use of the SDR in trade, commodities pricing, investment and corporate bookkeeping.

-- Create financial assets denominated in SDRs to increase its appeal. The introduction of SDR-denominated securities, which is being studied by the IMF, would be a good start, Zhou said.

-- Expand the basket of currencies forming the basis for valuing the SDR to include currencies of all major economies.

If the SDR were backed by real assets, such as a reserve pool entrusted to the IMF, confidence in its value would rise and destabilising currency speculation would be deterred, Zhou said.

Anonymous said...

Even while US announces a 5.1% increase in home sales and markets which would believe anything go up, Japan home prices slump. Japanese residential land prices fell to a 24-year low as job losses and wage cuts discouraged homebuyers, while tighter credit markets choked off funding for property developers.

Anonymous said...

west democracy (czech irish, french, any other) = hypocrisy + sheeple. can't go on. find another system double quick.

James Wolfe said...

My blood boils and heart sinks looking at the photo of Israeli scum sitting and laughing, at the Palestinian men they’ve hand-cuffed and blind-folded squatted down. I hope to god when the is ECONOMIC COLLAPSE of the West is complete, this vile racist squatter state is finally eliminated, and all the Avigdore Lieberman Israelis flee back to Europe or Brooklyn.

Anonymous said...

Hello James, Glad you're back. Are you taking over this part of the blog now? Re. the zioentity, we share your revulsion. The world has shown a great deal of patience so far. But they never understood anything beyond their own hubris. Their days are numbered now.

Anonymous said...

False flag ops in Islamabad tonight on the anniversary of Pakistan Day. Those who think they are sooo clever acted in haste and will repent at leisure. The population will grow even more wary of outsiders after this outrage.

poiuytr said...

14:46 -- BoE
it's so perverted there's no words. so a UK central bank prints 200B and London borrows via bonds. it's insane!

there's a giant war twixt west war legislature and west war financiers. they paid bush/blair to re-establish dollar dominance, subjugate china, eliminate non-west energy and they lost everything. all west cash is gone via "derivatives", which is war investment. and now it's clear that west war bitches cannot touch anyone anymore except kids and the west bank cabal wants it all back.

so there's this giant war erupting. it's happened before that the king lost his head, hasn't it?

-----------------------------------

18:03 -- SDR article
whatever happens, however it goes, it means that west central bank, or the fed as it's known for the USA, is over.

right now, USA is floated by some 12 int'l funds called the fed. the fed has NO loyalty or even national affiliation with USA. it's just a private fund assembly. the predominant being rothchild and so on private wallet. USA baboons are all slaves to the debt owned to these 400 people or so that own 65% of USA assets. the same goes for UK and every part of west via their local central banks, which are exactly the same.

if the west war bankers allow mixing with China, Russia and so on, they'll lose control, they may save their trillions, transmogrify their dollar wealth to some SDR crap, but they'll lose control. and that means no west.

but if they don't join, they'll lose it anyway.

west is in a very funny situation.

it's gonna break up on its own just fighting over who gets what now from the loot and for the west folks, well, it's completely over. today is the richest they'll ever be.

-----------------------------------

18:55 - James
israel is not only west's product but it lives off west arms and cash. no west, no israel. jews in israel are a minority, so once west buggers off, it's over, if not internationally for israel, then nationally.

that's given, they know that and thats why west's prolapse is so incredibly fun and must be screamed and sung everyday because it spells end to all the disgusting pieces of war shit.

it also means the end of west/churchill-border lines of middle east and arab oil monarchy that's gonna be toppled in hours once USA slides to hell.

Anonymous said...

X speaking here. I'll identify myself as such in future. Brillliant financial analysis above better than anything else one stmbles across on the web. I was specially pleased you thought to mention the homophobic jokes shit along with all the rest. Rome burns and the people get another stitch in the lips. The shadow of totalitarianism lenthens over the UK lot. Their freedom brothers in the US no better off. Laughter 24/7 along with twinges of sadness.

Anonymous said...

Five Reasons Why Americans Won't Resist

By Mickey Z.

March 24, 2009 "Information Clearing House" -- Protest (American, definitely not a verb): Wait for UFPJ or ANSWER to stage a parade (I mean, demonstration) on a weekend afternoon so no one misses work or school or in any way disrupts the flow of commerce. Don't make a sign; the organizers will make one for you. March in an orderly fashion, be polite to the occupying army (I mean, cops), and be sure to stay in designated free speech zones. Blame the Republicans. Wear costumes. Make puppets. Exclude anarchists. Hold a candlelight vigil. Sign a petition. Chant. Vote for a Democrat and hope for change. Need I continue?

With the stakes never higher than they are now, why aren't activists ramping up the pressure and looking beyond tactics that are allowed by those in power?

Here are my five guesses:

1. We are trained to believe that nothing major is wrong. Global warming? Economic meltdown? Epidemics of preventable diseases? Slavery, genocide, ecocide? You name it and we're ready to downplay it. We're Americans, goddammit, we'll figure out a way to fix it. When the going gets tough, we'll call the experts.

2. We are trained to leave it to experts. Rather than worry our little heads over why more than 100 plant and animal species go extinct each day, we rely on experts. Instead of learning what a "collateralized-debt obligation" is and how it contributed to the current economic depression, just let the professionals handle the mess. Besides, such delegation frees up much more time to watch TV and update our Facebook pages.

3. We are trained to embrace non-violence. All the real heroes would never raise a fist in anger: Jesus, MLK, Gandhi, Mother Teresa, etc. Sure, the government and its corporate owners are taking away all our rights and all our money. They're poisoning our air, water, and food while crafting laws that make prison a looming possibility, but the moment we contemplate anything more than a non-violent response, we become worse than any of them. Ain't that right?

4. We feel too damn privileged to risk prison (or worse). The average Gaza resident doesn't have the luxury of wondering if their resistance could result in arrest and thus perhaps ruin their reputation. The average American? Well, that's a different story. I can't defy insane laws designed to squash protest. I might get arrested and that means close proximity to all those scary criminals and it also means hurting my chances of landing a good job and maybe even losing all my respectable friends. I mean, I'm an activist and all but that's asking way too much. Who do you think I am, Mandela?

5. We're fuckin' cowards. Our acquiescence in a disturbingly broad range of areas—access to health care, tolerance for voting irregularities, directly funding the Israeli war machine, stomaching the groupthink behind saluting a flag, etc. etc. etc.—appears to have no limits. Americans love to talk the talk about being fearless and tough but when ordered to remove our shoes before going through airport security, it’s “yes sir” all the way.

We know things have passed the proverbial tipping point and that immediate action is 100% needed and justified, but we're far too spineless to do anything that might get us in trouble. Somehow, it's more terrifying for any of us to face down a cop than it is to contemplate the total destruction of our earthly eco-system.

If it's true that action expresses priorities, we American activists aren't overly concerned about the future.

We now return to our regularly scheduled slate of left wing articles…

Mean, but true, every line of it, a good descrition of the baboon mentality.

Anonymous said...

Sunday, March 22, 2009
How big a deal is the loss of the dollar's reserve status?
by Eric deCarbonnel


In the last week we have learned that:

1) Fed is planning 15-fold increase in us monetary base
2) U.N. panel says world should ditch dollar
3) Zimbabwe has ditched the US dollar in favor of the rand
4) China and Russia rethinking the dollar's status as world’s reserve currency

With the US monetary base expanding at a breathtaking pace and nations around the world worrying about the value of their US holdings, the dollar looks virtually guaranteed to lose its status as the international reserve currency. This begs the question: how big a deal is the loss of the dollar’s reserve status?

To answer this question, lets first calculate just how large are the dollar holdings of foreign governments. From the CIA’s world Factbook, below is a ranking of countries by reserves of foreign exchange.

(amounts in billions)

Rank
Country
Foreign Exchange Reserves

1
China
$1,534

2
Japan
$954

3
Russia
$476

4
India
$275

5
Taiwan
$275

6
Korea, South
$262

7
Brazil
$180

8
Singapore
$163

9
Hong Kong
$153

10
Germany
$136

11
France
$116

12
Algeria
$111

13
Malaysia
$101

14
Italy
$94

15
Thailand
$87

16
Mexico
$87

17
Libya
$80

18
United Arab Emirates
$77

19
Turkey
$77

20
Switzerland
$75

21
United States
$71

22
Iran
$69

23
Poland
$66

24
Norway
$61

25
United Kingdom
$57

26
Indonesia
$57

27
Nigeria
$51

28
Argentina
$46

29
Canada
$41

30
Romania
$40


Etc…



Total =
$6,898





According to Wikipedia, at the end of 2007, 63.90% of the identified official foreign exchange reserves were held in United States dollars. Therefore, total dollar reserves at the beginning of 2008 were about $4,408 billion (63.90% of $6,898 billion). However that is not the end of the story, as we still need to account for stabilization funds or Sovereign Wealth Funds. Wikipedia explains:

Excess reserves

Foreign exchange reserves are important indicators of ability to repay foreign debt and for currency defense, and are used to determine credit ratings of nations, however, other government funds that are counted as liquid assets that can be applied to liabilities in times of crisis include stabilization funds, otherwise known as sovereign wealth funds. If those were included, Norway and Persian Gulf States would rank higher on these lists, and UAE's $1.3 trillion Abu Dhabi Investment Authority would be second after China. Singapore also has significant government funds including Temasek Holdings and GIC. India is also planning to create its own investment firm from its foreign exchange reserves.

For more, the Market Oracle explains sovereign wealth funds.

Sovereign Wealth Funds
June 30th, 2007

Central banks have traditionally kept their reserves in relatively low-yielding, highly liquid government securities, agency debt, money-market instruments and bank deposits. The most current official IMF figure for official worldwide foreign currency reserves is US$5.89 trillion [Worldwide foreign currency reserves increased by about 1 trillion over 2007]. At US$1.35 trillion, China holds the world's largest pool of official reserves, followed by Japan with US$911 billion and Russia with US$403 billion.

In addition to these reserves, market estimates for the total value of Sovereign Wealth Funds (SWF) run as high as US$2.5 trillion. This compares to US1.6 trillion for hedge funds. These are state-owned and operated funds, comprising of financial assets such as stocks, bonds, or property not included in the IMF figures. The use of these funds enables large reserve holders to invest in higher yielding instruments.






With around 40 percent of stabilization funds invested in the US, the dollar holdings of sovereign wealth funds are around $1,000 billion (40% of $2,500 billion). After combining the numbers from foreign exchange reserves and stabilization funds, the dollar holdings of foreign governments are about $5,385 billion. Meanwhile, as you might have noticed from the CIA’s ranking above, the United States holdings of foreign currencies is around $71 billion.


Implications of the loss of the dollar’s reserve status


As the dollar loses its reserves status, at least half of the world’s $5,385 billion dollar reserves will be sold off and replaced with other currencies (yuan, euro, khaleeji, gold, rand, etc…). The US, with its $71 foreign reserves, will not be able to do anything to counteract this mass exodus from the dollar. With outflows of this magnitude, the dollar’s value will collapse to a fraction of where it is now.



The process of foreign nations extracting themselves from the dollar is not going to be pretty. The likely impacts are:


1) The dollar’s value will plunge as investors see the writing on the wall and jump ship.


2) US credit markets will collapse. As the dollar fall, a mass exodus from credit market will begin. Investors sitting on toxic securities will sell at firesale prices to escape the currency depreciation.


3) The fed’s balance sheet will explode beyond all reason. In response to the mass exodus from credit markets, the fed will buy trillions worth debt in a desperate attempt to hold interest rates down. Unfortunately, the more debt the fed buys, the more quickly the dollar will fall, and the more panicked the credit selloff will become.


4) US interest rates will soar, despite (or because of) the fed's efforts.


5) Countries around the world will be hurt badly by the dollar’s decline. These countries include:


A) Nations which are heavily dependent on US exports: Japan, Mexico, etc…
B) Nations with large dollar reserves: Japan, China, Gulf oil states, etc…
C) Nations which receive large amount of US foreign aid: Israel, Egypt, etc…
D) Nations which rely on remittances from citizens working in the US: Mexico, India, etc...
E) Nations which use dollars as their official currency: Liberia, Panama, etc…
F) Nations which have large amounts of dollars in circulation: Central and South America (especially Argentina), Eastern Europe, etc…


6) Some nations will see benefits from the dollar’s decline. These countries include:


A) Nations with large gold reserves: EU zone, Switzerland, etc…
B) Nations which owe dollar denominated debt will see that debt wiped out: Iceland, African nations, etc…
C) Nations who stable currencies: EU zone, Switzerland, China, etc…


7) World politics will be greatly altered. There will be considerable anger at the US from nations hurt by dollar’s fall. The US will lose influence to Asia (mainly China).


8) US retailers will get crushed. As the dollar falls, the cost of imports for retailers will increase, but the American consumer will be unable to afford to these higher prices. Competition between desperate retailers will force them the sell inventory at below cost, creating massive losses. Retailers most heavily dependent on imports (ie: Wal-Mart) will be the first to go under. Eventually as more and more retailers go bankrupt, the few survivors will be able to raise prices enough to cover costs, and the sector will stabilize at a fraction of its current size.


9) American lifestyles will change radically. The end of cheap oil, low interest rates, and deficit spending will mean a lower quality of life and higher taxes.


10) The price of gold and other precious metals will explode.


11) US will experience hyperinflation.

Anonymous said...

The thing is ID (aka N by N) is the most authentic and original of the blogs going. If its initiators (aka admins) decide they no longer want to go on with it, we'll have to fall back on stuff like atheo or iraqwar and never eat our fill again. Too bad.

Mandolin

poiuytr said...

8:59
not to worry! NbN is on on this blog and in parallel on nationbynation.blogspot.com

the reason it's x-posted in parallel is for organisational purposes. i thought this one is gonna have tons of articles posted beside NbN,

(advertisement :) )
CALLING WRITERS, WRITE ARTICLES, POST THEM, JUST SEND THEM VIA THAT CONTACT FORM

and the other one is just dedicated to NbN so it's easier if one should study previous posts for some issue that rankles.

in fact, i'm planning a sort of a summary of the issues from NbN cuz if you read them, you'll see the bigger issues as they snake through. reading just articles from news, you don't get that sense of what's really the important issue of the day.

so, no, NbN isn't going anywhere. in fact, email to friends, foes, and family.

Anonymous said...

Good news. Specially considering the alternatives. Seen any of the comments on atheo lately? Sound like teenage girls in mini skirts on a flirtation run. The other's a bit better, but often obsessed with the one theme, Jewish blood groups, etc. and who's a Khazar and who not, as if the who cares? question wasn't specially framed to cover such pastimes. The glad news will be spread to the 3 F's.

Mandolin

Anonymous said...

Re: "How big a deal is the loss of the dollar's reserve status?"

Good post.

But the thing is: Nobody is going to jump off the cliff. Countries will just slide over the edge as if asleep. Main stream media pundits will still talk about a crisis fixed.

Don't worry. Expect nothing from the G20 summit, on 2 April. We already know what they have to say, through their timid squawks about changing the world reserve currency, reforming the IMF, more international regulation.

Theoretical stuff that cannot possibly be put in place in time to stem the urgent tide of total collapse.

Expect more posturing and more worthless edicts from world leaders, as more virtual cash is injected into a system that has been seeded for its own destruction.

Such macro-economic analysis does not take into account the more urgent sociological impacts taking place on the ground day by day (and so aptly described here).

Expect the streets to talk louder and louder by May. Greek style.

Expect the International Revolution to begin in earnest by May, with the good weather of Labour Day Parades. By then, the crunch would have crunched, Nation by Nation.

Free Peoples of the World: What is your Agenda for the New World Order?

informatron

Anonymous said...

Malnutrition may be related to World War One Industrialists decision to go with Oil- based fertilizer farming. This has so degraded and removed the minerals from the soil and the west plains that the bristle-back there can no longer grow or produce food with adequate ESSENTIAL minerals.

This means that over the last 70 years, the baboon body (and stem) has been developing in an effectively DE-MINERALIZED body. Such a mineral malnutrition theory might explain the endless cravings, bulk food eating parties, low international math scores, power of comprehension issues in the brain, and even the latest "whiplash effect" economic Announcements we watch with amazement on BBC and CNN baboon-speak.

This would also explain other theories and behaviors that have never been spotted before... LOL

Anonymous said...

Yeh, very good: "a system seeded for its own destruction". Exactly like Monsanto genetically modified trash. Equally, the "demineralized" body could be the reason behind a lot of aberrations. Thanks Informatron, thanks Anon (13.41). I enjoyed the way your minds worked and I learnt something while reading, a rare occurrence.

Anonymous said...

ANOTHER BANKRUPTCY IMPERVIOUS TO BAILOUT

(Article for posting on blog. The Contact Form did not work).

Terry Holdbrooks was the US Guantanamo guard who converted to Islam because he was so struck by the innate grace in devastating suffering his Muslim detainees showed, he could not but pronounce the shahada (la ilaha illallah) himself. Before that all he’d known – though he might not quite have described it in this way – was whinging in the lap of luxury so characteristic of the West. The Muslim response is how hearts and minds are won. Through example, unfailing patience and gentle sincerity. None of this would make much sense to the west as it has come to be.

Journalist Chris Hedges, let’s call him ex-mainstream to correspond to how he presents himself, has pointed out that what America (to be extended automatically to include the entire west, without forgetting such far off places as South Korea and Japan) really stands in need of now is a Moral Bailout. “we live in an age of moral nihilism”, he writes, by which he means:

1. American universities are no longer worth anything.
2. The humanities have been trashed.
3. The press prefers celebrities to unpopular questions on the legitimacy of the corporate state.
4. The selfhood cult.
5. The consumer society.
6. The disappearance of compassion, self-sacrifice or honesty from our behaviour.
7. The deification of success measured exclusively in terms of money and power.
8. The ends justify the means attitude towards life.

Then, of course, the whole finely-tune analysis is casually linked to post World War II attitudes, although that particular event in human history took place over sixty years ago, years crammed full of every kind of change and crime which could serve as a more fitting reference to anything we may wish to say today. But, no, the world war II complex is one that must be kept alive, however much its life support machine may be faltering. Keep it alive, this is one story which must absolutely not be allowed to die a natural death.

Left out of the above enumeration as well is inborn aggressiveness in the west which has led to much of the world today being turned into a war-torn zone. We miss no less the utter lack of shame which characterises all west dealings. Or the self-pity which justifies each one of their abominations. And full lifelong membership in the psychology club which has robbed humans of their humanity.

More in the same vein and we learn that values that sustain an open society have been crushed and we have unlearnt how to probe, question and judge as individuals rather than clogs in a societal machine. No moral autonomy left, wails Hedges, just a “timid, cowed and confused population, a system of propaganda and a press that offered little more than spectacle and entertainment and an educational system that did not transmit transcendent values or nurture the capacity for individual conscience.” All well and good and no part of it at all assailable, yet in the whole mass of high-sounding words there is no concrete suggestion on how to rescue the morally shattered population. In other words, based on what he writes, Hedges’ plea for a moral bailout would no doubt have a similar effect to what Timothy Geithner’s efforts in the world of finance have led to, no lightening of the burden for the have-nots and a massive increase in corruption for those who already have it all.

It’s the done thing these days to claim our main problem is we have lost the knack of questioning things. In the 70s this was not the case, we bewail. Of course we knew how to question then, any and every damned thing. The Soviet Union was there offering us at every turn retreat from arrant west nonsense. Weaker countries knew they could escape plunder by sheltering under the Soviet wing. All that vanished without a shot being fired – and we were infinitely the poorer for what had been taken away.

In today’s one-thought world, we know nothing about morals of any nature. Concepts such as compassion, self-sacrifice or honesty retain their beauty perhaps, but are simply ghosts of ancient virtues whispering in our ears. In a book entitled The Underground Writers or The Death of West, which has been doing the rounds for the past year or so, the anonymous compiler concludes by saying: “Western societies provide a striking example of failed societies. We believe the inability to survive because survival implies more crimes than even the west could swallow in comfort has transformed itself into a desire for collective suicide.”

Those really bent on suicide can rarely be held back. If the west is now doing overtime cutting down the trees in the virgin forest, they are actually being far-sighted for once, stocking up on wood to build their own coffins.

Similarly, if Hedges and others like him had tried to convert a Terry Holdbrooks to any system of belief, they’d have tried and tried again, poor people, and then would have had to shake their heads and admit defeat.

King

Anonymous said...

Brilliant King of light, the west is bankrupt in more ways than one.

Now we can see the great reservoir of True wealth stored with the meek...

Anonymous said...

and in this regard, Bishop Williamson has an interesting comment on his blog this week:

Don't Cry for me Argentina
http://dinoscopus.blogspot.com/2009/03/dont-cry.html

informatron

Anonymous said...

Did you mean this unemphatic expression of dignity and detachment, informatron?

"Therefore the future is in God's hands. I wish I could say that I object to being reduced to silence, but if the alternative is being reduced to saying only those things that the "gentlemen of the Press" do not object to, then I think I prefer the silence." Bishop Williamson

Anonymous said...

Free Peoples of the World: What is your agenda for the New World Order? (informatron, 13:11)

Many people might be tempted to reply: I don't mind a little change, but I don't want a lot. My own feeling: total transformation. A strictly non-profit economy, a by law non-military world from which both poverty and the obscene prosperity of the west would be banned. Of course I'd like my own ideological partners to bring about the changes. But if the other side could do it better, ideology could go to the devil. And no more lost souls ever again, god willing.

Anonymous said...

Bishop Williamson for the hero list, a man of supreme integrity and determination.

Anonymous said...

Czech Republic joins East Europe's falling dominoes

The economic crisis sweeping Central and Eastern Europe has claimed a third victim in a month after the Czech government lost a vote of no confidence on Tuesday night in a drama that risks setting off a fresh round of investor flight from the region.

By Ambrose Evans-Pritchard
24 Mar 2009

The fate of premier Mirek Topolanek shows how fast the crisis is moving from finance into the core economy Photo: AFP/GETTY IMAGES
Latvia's government fell last month following violent street protests. Hungary's premier Ferenc Gyurcsany resigned last week after struggling to impose austerity measures required under the terms of a $25bn (£17bn) bail-out from the International Monetary Fund.

But the Czech crisis has unnerved investors even more because the country has been seen as a rock of stability. It kept a tight rein on credit and avoided the stampede into euro and Swiss franc mortgages that occurred in other parts of Eastern Europe.

The fate of premier Mirek Topolanek – toppled in the middle of the Czech Republic's EU presidency – shows how fast the crisis is moving from finance into the core economy. Czech industrial output fell 23pc in January as car plants moth-balled production lines.

"This is the next leg of the crisis," said Neil Shearing from Capital Economics. "We're seeing the political backlash as this spreads into the labour market. The risk is that we will see a move to populist nationalism in some countries. That could prove dangerous."

Capital Economics says no country in the region will be spared a crisis that evokes the "shock therapy" devastation after the fall of communism. It expects output to fall by 7.5pc in Hungary and Romania this year, 10pc in Estonia and Ukraine, and 15pc in Latvia and Lithuania.

Russia and the Czech Republic will fare better at -5pc, but this is still a wrenching adjustment after years of stellar growth. The concern is that mass lay-offs will stoke bitter feelings of betrayal over the promises of free-market ideology.

Britain's Prime Minister Gordon Brown assured the European Parliament in Strasbourg that EU leaders "will not walk away" from the region in its hour of need and renewed his call for an IMF fighting fund of $500bn to meet potential threats.

European banks account for the lion's share of the $1.7bn of foreign loans to the region – a considerable chunk on short maturities that must be rolled over this year. Austrian banks have lent the equivalent of 70pc of Austrian gross domestic product

Anonymous said...

The range of topics covered in any one edition of Nation by Nation is amazing. Thinking now of the East European dominoes falling, one gets the sense of an EU struggling to keep afloat, with Austria about to be tipped overboard. Bizarre, too, that Evans-Pritchard can mention Russia and the Czech Republic in the same breath, as though one were not among the leaders of the world and the other merely a mini European state with a lot of pretentions. Go figure.

Mandolin

poiuytr said...

tech issue: i can only comment this with a heartfelt ayayayayay! i tried 3 different contact forms (just finding them among the 6000 google "gadgets" is a serious job) and none seem to work. i tried this one and it says it failed but it did sent it but only once. so... so until i find one, pls, just stick the articles here.

---------------------------------

7:21 -- "why USA won't resist"
great article! but i think there's more to it. there's something incredibly mentally wrong in USA. of course, not all are effected but in general, it's beyond words/explanation/reason. i don't have an answer for it cuz it can't be just brainwashing. look at EU, it's brainwashed for 2000 yrs and people resist through irony, sarcasm, and passive resistance. but in US they wave the flag even though the flag stands for torture, war, econ theft, billion dollar bonuses,... USA lords are pissing on the heads of all the baboons and they're waving the flag. it's beyond brainwashing, stupidity, and ignorance. it's fear of thinking. it's fear of walking upright.

---------------------------------
7:43 "how big a deal is the collapse" article

hyperinflation however doesn't mean cash is worth just less, it foremost means war, very likely WWIII, cuz west is gonna spill its borders when it implodes. that or total physical break up of west -- if they're sane.

all that's happening now is theft and consolidation of assets in the west. it's amazing that this too is pawned off to west as "bailout" or "stimulus package"...and they're eating it.

so anyway, great article, but it's written too late and forecasting too little: it's not a significant lifestyle change here but plastic boxes and camps and civil if not int'l wars.

you'd think the west would fold by now but clearly the west war junta has no intention of doing that; instead they seem in delusion now of "diplomatic" solution with Russia, a country they attacked last year and in 1941 and with Napoleon; Iran, a country they've been wanting to wipe off the face of the earth; China, a nation they've bullied and exploited for ages; Africa, a mighty continent they've raped ever since they found it in the most evil and vicious way; and Arabs, people they've systematically genocided for 100 yrs now to keep the stolen oil flowing.

as i don't see any obvious friends the west can run to -- not even tiny islands like Turks and Caicos or Reunion, i don't see any options except 1: loot the west, sack it, rinse the populace dry and this is happily underway; run, take the loot, convert the trillions to anything and run; and to make certain no one follows set off wars, either civil or int'l via another 911-like missile attack on some nuke power. that will shut the angry west up and keep them busy, or those left.

if USA devalues, which is gonna happen if there's a currency replacement or eventually with dollar as it dies (which has just been announced), west becomes a 800M lunatic mob.

and no matter how many riot guard state-trained scumbags they've got, they won't have nearly enough.

this is a bizarre situation the west is in.

but someone tell me this. how did they get into this mess? really, are they really this stupid? we know the west folks are pretty, well, ignorant, but the leadership (and i dont mean comedians like hussein obama or bush ii) of the west... they're equally as baboon. as laughable as kissinger now begging on behalf of the prolapsed west in moscow. but they really are that cretinous, aren't they?

didn't the west dare the Freeworld to 'bring it on'?

poiuytr said...

> WASHINGTON, March 24 (Reuters) - U.S. President Barack Obama and his top two economic officials on Tuesday dismissed suggestions by emerging economic powers that the world move away from using the dollar as the world's main rese... bla bla bla bla bla bla


THERE IT IS! west is rejecting, as expected given their out of this world insanity, the offer to break up and go peacefully and instead is going for mayhem for there exists no other alternative.

but my guess is that within 3-4 months, west may sing quite a different tune, "proposing" new currency to China and Russia. they love spinning stuff like that in the west, they're psychotic that way.

if the west does not go for dollar overhaul within 6 months, brace for serious mayhem in every respect.

and 6 month could be far too optimistic now cuz this is exponential. it maybe be half that actually now.

Anonymous said...

From a distance, one can only loathe the Americans. To see them closer up, however, is to pity them and understand they are labouring under the eternal curse of the Indian tribes.

King

Anonymous said...

Alarm as government debt auction fails

Efforts to rescue the UK economy were plunged into fresh uncertainty this morning after the government failed to find a buyer for some of its debt, the first such failure in seven years.

City dealers blamed Mervyn King, the Bank of England's governor, for sowing confusion after he warned earlier this week that the UK could not afford another stimulus package.

The UK debt management office said it attracted just £1.62bn of bids for a sale of £1.75bn of 40-year gilts. Normally, such auctions of government debt are oversubscribed. This was the first failure of an auction since 2002.

Analysts warned that it cast doubts on the government's ability to borrow billions of pounds to stimulate British economic activity.

The Bank of England had begun buying up gilts and corporate debt through its quantitative easing (QE) programme, which is designed to boost the money supply and get the economy going again.

But on Monday King suggested that the Bank might not need to create the full £75bn assigned to QE.

"This is a direct result of yesterday: the fact that this gilt auction has failed means that we're just not getting the benefits of QE. Mervyn King was never a big convert," said Graham Turner, analyst at GFC Economics.

"The bond market is just failing – investors can see there's a row between King and the government, and he's not committed. This is the problem with trying to run a separate monetary and fiscal policy," Turner added, referring to King's other remark on Monday that there was little room for the government to engage in further fiscal easing.

The gilts market has been alarmed by King's comments, as demand for gilts will be hit if the Bank buys fewer than planned. Bond prices plunged this morning and look to be on course to record their biggest weekly loss in at least six years. As a result of falling prices, yields (income relative to price) shot higher.

More than half the big fall in gilt yields since the Bank announced its QE programme has now been reversed. A key aim of QE was to push down yields, thus reducing further borrowing costs in the economy.

Anonymous said...

There is chess game position which leads and enters a waiting phase. This is a phase where ANY MOVE the opponent makes drastically weakens him, and brings him that much closer to the dreaded checkmate. Still, the opponent has to make a move… because time is running out...

In such circumstances, the attitude to adopt is one of indifference, or even one of polite and slight boredom. As if one is not at all responsible for the inexplicable turn of events. (Under no circumstances should one allow oneself a grin, or worse still, a sneer.)

This will then help to avoid the unseemly scenario of an opponent who suddenly throws his hands up, flings the chessboard across the table, and storms out in a huff.

In this way, one can later savor a clean victory in quite. With a note one did not fail at all... to be magnanimous… to the opponent.

:)

Anonymous said...

Excellently formulated, Anon (15.55), this summing up of present circumstances. No hectic, no gloating, the slightly withdrawn calm of the highly trained chess player needed.

We, in the general public, on the other hand, can gloat away as much as we like, can't we? No one takes us over-seriously in any case. And we've waited many long years for this particular constellation where we can now begin to hope the west is on its way out. But magnanimity to the opponent? Yes, always. Though a fat lot of good it does with certain crude baboons, unable even to pronounce the word, leave alone recognise the depth of the gesture.

Anonymous said...

Game over.

There you have it, he has made his move: "The way to Hell."

Expect to find change as early as May this year, I tell you:

BRUSSELS March 25, 2009 — Transatlantic tension over the handling of the global economic crisis intensified Wednesday when the prime minister of the Czech Republic, which holds the European Union presidency, described the President Obama’s stimulus measures as the “way to hell.”

http://www.nytimes.com/2009/03/26/world/europe/26czech.html?_r=1

As for the agenda for the NWO:

Justice, Health, and Prosperity...
Net neutrality, disarmament, reparations, freedom to all political prisoners...

Anonymous said...

EU president calls Obama's plans to spend his way out of recession 'the road to hell'

Wednesday March 25, 2009 BRUSSELS (AP) — The head of the European Union slammed President Barack Obama's plan to spend nearly $2 trillion to push the U.S. economy out of recession as "the road to hell" that EU governments must avoid.

The blunt comments by Czech Prime Minister Mirek Topolanek to the European Parliament on Wednesday highlighted simmering European differences with Washington ahead of a key summit next week on fixing the world economy.

It was the strongest pushback yet from a European leader as the 27-nation bloc bristles from U.S. criticism that it is not spending enough to stimulate demand.

Shocked by the outburst, other European politicians went into damage control mode, with some reproaching the Czech leader for his language and others reaffirming their good diplomatic ties with the United States. The leaders of EU's major nations — France, Britain and Germany, among others — largely ignored Topolanek and his remarks.

Obama pays his first official visit to Europe next week, aiming to thrash out reforms to the global financial system with the Group of 20 nations and call on NATO allies to commit more troops to the U.S. war in Afghanistan.

The Czech surprise factor in play again...

Anonymous said...

And this path (or way) isn't even paved with good intentions. Ha, ha.

Anonymous said...

X speaking: After the day's media overdose, let's see what one can retain from all that crap.
- It's media-official now: Afghanistan is Vietnam 2. We'll call it V 2 as we go along.
- Someone points out the absentee power at the G20 will be EU. G20 should be called G2 henceforth, China, US.
- Military cemeteries in US secretly overhauled to receive thousands of bodies. All those war casualties coming out of the ice box and getting a decent burial at last.
- Sudan's Bashir back from Egypt. Though why he bothered to go at all, no one knows. Geriatric Mubarak might find a resting place in that re-dugged up US graveyard.
Bye for now. X

Anonymous said...

Above there was a sparsely-commented article Another Bankruptcy Impervious to Bailout deserving of a second look. It took us away an instant from brute politics to what made it all possible, i.e. brute social engineering. Homosexuality is one of their big successes as is the creation of the media-drugged 21st-century man. Thelastest effort is towards making incest respectable, after which they'll have another go at polishing up paedophilia, an attempt at which they failed in earlier years. Political changes will not be possible before the heart once again is given a chance.

Anonymous said...

COUNTDOWN TO

CIVIL UNREST AND ARMED RESISTANCE IN AMERICA

190 DAYS FROM NOW

187 DAYS REMAINING

(See Future Fast Forward link)

Anonymous said...

Wall Street Manipulated Rally Will Not Bailout Global Banks - Bernanke And Geithner Have Run Out Of Ideas - In July, Total Meltdown, Civil Unrest And Armed Resistance Will Spread Across America and Europe - By Matthias Chang (25/3/09)

The numbers that have been bandied about is beyond the comprehension of the average Joe Six-Packs. I cannot even figure out $500 billion, what more $500 trillion. Ninety per cent of government leaders are also unable to figure out the enormity of the global debt sink-hole.

So, I have accepted the fact that 97 per cent of Americans will just accept whatever explanations and excuses thrown at them by President Obama, Fed Bernanke and Treasury Geithner for bailing out the banks and failing to prevent the implosion of the economy by summer of 2009.

Obama inherited the mess created by war criminal Bush, aided and abetted by Alan Greenspan, Bernanke and Geithner, so he can be excused for there is nothing that he can do at this late hour to change the outcome. But the rest should be lynched!

In the last two years, I had in several articles, drew your attention to the fraudulent securities that have been peddled by the global banks and how they have caused the present grid-lock in the global financial system. In essence, these securities – MBS, CDOs, CLOs, etc. were all fraudulent papers. Whatever mortgages underlying these papers, were over-valued and now they have shown to be worth at the most 10 to 20 cents on the dollar.

There have been suggestions that if all these papers were to be shredded and the debts written off, the global banks’ balance sheet would be wiped clean of such toxic assets. In the result the economy would restart and the good old days of cheap credit and unrestrained consumption would usher another boom!

This is a fairy tale. In the old days, when the hoodlums want to kill someone and have him disappear for good, they would tie his legs together and attach the rope to a heavy object or an anchor and throw the poor fellow into the bottom of the lake or sea, never to be seen again. A small weight, say 10 kg is more than enough to drag the body to the bottom!

The current financial system is not unlike the man who has been thrown overboard and being dragged down by the heavy object. The only chance for survival is if the man could somehow loosen the rope and detach the weight from his legs and swim to the surface, if he could hold his breath long enough.

What is this small weight that is dragging the financial system down? And why writing off this particular debt will not save the banks?

Compared to the global derivative market which is valued in the hundreds of trillions, the global stock market by comparison is a midget. But it is this midget that will cause the financial implosion in America and Europe and reverberate across the world.

Let me explain in simple terms. When the Dow collapsed from the stratospheric high of 14,000 to less than 7,000 recently (though recovered somewhat) and other stock markets also went south in tandem, it was estimated that at the minimum $30 trillion was wiped out.

What are the consequences of such a drastic collapse? Let me explain in simple terms again.

Take the share price of Citigroup. At the height of the boom, its market capitalization was over $250 billion. Today, it is less than $10 billion.

Let us say that you bought the shares when it was trading at $150. You also borrowed from the bank to purchase the shares. These shares will have to be pledged to the bank as security for the loan. The shares are now trading a few dollars, say $5.

There is just no way that you can repay the loan and or to obtain additional security to “top-up” the value of the security pledged to the bank. Where are you going to get the cash to buy more shares? Shares of other companies that you may own have also collapsed, and their value may not be sufficient to cover the difference. You are dead meat!

The bank is also in deep shits because there is no way that they can recover the loan from selling the shares, which is worth $5.

There is the added problem that companies, whose shares are traded in the stock exchange, are not worth even at current values because their core business and operations were premised on cheap credit and were therefore highly geared! These companies are in debt to their eyeballs!

They are insolvent, bankrupt!

Try as hard, the Fed and the Treasury will not be able to engineer a stock rally back to 14,000 points. And even if they could, it does not follow that the prices of the shares of specific companies would return to its previous high. In the case of Citigroup back to $200 per share!

There is no way in the next 3 to 5 years for companies whose businesses have collapsed to be able to recover fast enough and to be profitable enough to justify a market value of at least 50 per cent of its previous high. In the case of Citigroup, back up to $100.

That is an example in the financial sector.

In the manufacturing sector, an outfit like General Motors will take at least a decade to recover. Then there are those companies which have out-sourced and or re-located overseas. To restart local production again would take time and vast amount of credit. But would they be competitive, given cheaper cost of production elsewhere?

Corporate America is shutting down.

Stimulus and pump priming will not solve this huge problem.

Millions played at this casino using home equity. Pension funds risked your retirement benefits gambling at this casino and lost. Leveraging, 10, 20 or even 30 times was the norm. There is no money left in the kitty!

Quantity easing or printing money will not solve the problem, because a company’s value and market capitalization can only be enhanced through actual production of goods and services. But the Western economies in the last twenty years were skewed towards consumption and the availability of cheap credit.

Applying common sense, what was missing was the creation of surplus value, which is the result of efficient production, and savings which in turn provide the essential capital for more production and savings.

Nothing illustrates this problem better than the case of a farmer who stops farming because he had so much cheap credit, that he stopped farming. He could now easily purchase all he needed, and earned five times more gambling in the stock market casino than he would earn from farming. He mortgaged his farm to secure the borrowings. He lived and consumed like the rich and famous!

When the casino collapsed, he could not maintain the lifestyle and had to resort to selling heirlooms to survive.

Until and unless the farmer starts farming and pays off his debts, he would not be able to accumulate sufficient capital to resume what was once a profitable business.

In short, the farmer like all the millions of gamblers who have been ensnared by the global casino, are now in the debt trap and being slowly dragged down to the bottom of the lake!

Therefore, pumping hundreds of billions to the banks will not solve the problem.

You can bet your last dollar that when millions are caught in the debt trap and there is no way out, and they see billions been given to the Wall Street fat cats, lynching parties will be the order of the day!

The Count Down has started.

Anonymous said...

By the way, the buzz is that some banks may participate in the bailout scheme, borrowing money from the gov to buy their own bad assets at ridiculously inflated prices. That renders them technically solvent, with Washington holding the bag. Nice.

Anonymous said...

Former KGB analyst and Russian academic Igor Panarin, who has predicted the country's 2010 disintegration on the back of mass immigration, economic decline, and moral degradation, insisted in a Monday interview that a revisited foreign policy may more than anything prevent the fall of the United States.

http://www.presstv.com/detail.aspx?id=89642&sectionid=3510203

The scholar went on to say that Obama also had to "stop destabilizing the situation around Russia, put an end to destabilization, particularly around Iran, Iraq and Afghanistan, stop sending additional troops and military contingents to the territory of Afghanistan and address the problem of drugs and the struggle against drugs in Afghanistan. The restriction of foreign military activities should be the first step in my view."

He has also named the European Union, Russia and China the prime candidates to dominate the globe following the dissolution of the American power.

>> READER FEEDBACK: Ok, hold it right there Igor! First, er.. if there is to be a “dissolution of the American power”, rest assured their will be no new dominance from any these 3 (actually 2) prime candidates. 3 reasons.

1st: The Dark Horse Candidate. Remember how Saddam Hussein was hanged on an Islamic holiday? You might want to mark this date in some history book because this is the exact day things went into Over-Drive and the hatchets started flying off the walls inside Muslim Households. Reports are that they are still sharpening them...

2: Dominance won't happen for eu because MEN DO SHUT THEIR DOORS UPON A SETTING SUN, don't they, Igor? Yes, look for eu (pronounced “eww”) to revert to ‘no-go’ and ‘no-fly’ zone avoided by world trader.

3rd: Dark Horse takes down “global politics” and “wise of the world” Very hard. Very fast. Says "don’t bother with excuses."

Now that's the Candidate with the winning line.

Anonymous said...

Cheat away until it all comes to an abrupt halt. In 187 days to be precise, if Matthias Chang is to be believed.

Mandolin

Anonymous said...

4th reason: Dark Horse candidate triples world food production. Wins public's loyalty.

Anonymous said...

Celebrity may have gone to Igor's head, hence a somewhat unruly rhetoric emerging. As for Dark Horse candidates,certainly the Hatchet Man stands a very good chance. Re: the food production man, he will be the same as the one who dismisses excuses and global sleaze.

Anonymous said...

Very intelligent comments above and below the text that prompted them.

US 2010 apocalypse avoidable:
Press TV
Thu, 26 Mar 2009 03:36:45 GMT

A Russian scholar, who had earlier predicted the collapse of the US, has offered President Barack Obama ways to prevent such a misfortune.

Former KGB analyst and Russian academic Igor Panarin, who has predicted the country's 2010 disintegration on the back of mass immigration, economic decline, and moral degradation, insisted in a Monday interview that a revisited foreign policy may more than anything prevent the fall of the United States.

"I would, in the first place, suggest that he radically reduce the US foreign policy activities, especially in the Eurasian space," Panarin said speaking to Russia Today.

Washington would have to stop its contribution to 'NATO enlargement' and "anti-missile defense elements in the Czech Republic and Poland," he added referring to the two major moot points in Russo-US relations.

The remarks come while Obama said on Wednesday that he supports the expansion of NATO, should European countries want to join the alliance.

The scholar went on to say that Obama also had to "stop destabilizing the situation around Russia, put an end to destabilization, particularly around Iran, Iraq and Afghanistan, stop sending additional troops and military contingents to the territory of Afghanistan and address the problem of drugs and the struggle against drugs in Afghanistan. The restriction of foreign military activities should be the first step in my view."

Panarin, a doctor of political science and dean of the foreign affairs department at the Diplomacy Academy of the Russian Foreign Ministry, had forecast that the disintegration would be catapulted by a civil war before dividing the US into six parts on ethnic, economic and geographical lines.

He has also named the European Union, Russia and China the prime candidates to dominate the globe following the dissolution of the American power.

Panarin also warned that "Obama doesn't have the necessary relations of trust either with the governors of the US states or the top businessmen," to facilitate the fulfillment of his decisions.

"His task is to find this consensus inside the American political elite, and in that case to turn from the captain of a sinking ship into a captain who will save not only the American vessel but the entire ship called the world economy."

Anonymous said...

"His task is to ... save not only the American vessel but the entire ship called the world economy."

His first order: "Full steam ahead to Afghanistan"

Anonymous said...

Panarin a bit wobbly on his pins. As suggested earlier, success does that to one at times. BO even wobblier.

Anonymous said...

The head-turning fame brings must never be underestimated. One feels invulnerable, no doubt. Bush 2 clearly suffered from it. Now its Obama's turn. But reality is in the offing. Vietnam 2 sees off the invaders by this summer probably.

Anonymous said...

Hey folks, don't know about this summer, but see what the great guy has to say. Good thing, people in Afghanistan find international news reporting a waste of time.

Obama's exit strategy for Afghanistan

President will end weeks of White House division with plan for more troops and a 'civilian surge'

By David Usborne in New York and Jerome Starkey in Kabul (Friday, 27 March 2009)

Barack Obama will vow to end the "drift" in the war in Afghanistan with a new plan to assert greater American control over the conflict, simultaneously ramping up attacks against the insurgents and deploying a "civilian surge" to bolster state institutions with the aim of leaving the country within three to five years.

First details of the long-awaited review, which will explicitly acknowledge there can no longer be any separating US actions in Afghanistan from relations with Pakistan, were revealed by Mr Obama to congressional leaders at the White House last night.

He is expected to publicly unveil the multi-pronged plan as early as today. It will be the moment that Mr Obama redefines the drawn-out Afghan war on his own terms. The announcement, which will not just determine strategy in Afghanistan but will also set the tone for US foreign policy more widely, will be made after weeks of divisive debate inside the fledgling Obama administration. It comes just ahead of an international conference on Afghanistan to be hosted by the Dutch government on Tuesday, and a Nato summit in Strasbourg at the end of next week.

King

Anonymous said...

Surprise, surprise. Even Lula is getting the message.

In Brazil, Gordon Brown continued his pre-summit tour but there was embarrassment when his host, President Luiz Inacio Lula Da Silva, said the financial crisis was caused by "white people with blue eyes". He told a joint press conference with Mr Brown that he had never met a black banker.

"This is a crisis that was caused by people, white with blue eyes. And before the crisis they looked as if they knew everything about economics," he said. "Once again the great part of the poor in the world that were still not yet [getting] their share of development that was caused by globalisation, they were the first ones to suffer.

"Since I am not acquainted with any black bankers, I can only say that this part of humanity that is the major victim of the world crisis, these people should pay for the crisis? I cannot accept that. If the G20 becomes a meeting just to set another meeting, we'll be discredited and the crisis can deepen."

Anonymous said...

Shanty State: Hidden Homeless Emerge as US Economy Worsens

Emergency shelters brimming with homeless people in California's capital are quietly turning away more than 200 women and children a night in a sign of the deteriorating U.S. economy.

Anonymous said...

What about shanty town EU?

Fears of unrest in eastern Europe grow as Czech government collapses

Which is worse off?

Anonymous said...

If you want to make sense of the sub-prime thing, here is the Rosetta stone:

Gov. Elliot Spitzer (remember him?) was right: Bush was in on the organized financial crime machine.

The predatory lending industry had a partner at the White House. Spitzer said as much two weeks before his downfall. At the time, the New York Governor was investigating the Sub Prime Scam.

Spitzer was politicaly assasinated by a hooker scandal “uncovered” by the FBI, exactly one year ago. Nobody from the Main Stream Media talked.

What surprised me, at the time, was the way he quietly resigned without a fight, remaining silent to this day. Thats not normal.

Perhaps they had other stuff on him besides hookers.

But he certainly had it right in the article he published about the criminal gang on Wall Street, two weeks before his downfall.

Here’s the video about this affair, produced then by Brasscheck TV, on March of 2008. MUST SEE.

http://article19-videoblog.tumblr.com/post/90206103/gov-elliot-spitzer-was-right-bush-organized

Anonymous said...

We also wondered about Elliott Spitzer and his sudden downfall. Is Barack Obama also involved in this crime machine? Anyway, Spitzer should be borne in mind as we see the American saga unfold.

Anonymous said...

COUNTDOWN TO

CIVIL UNREST AND ARMED RESISTANCE IN AMERICA

190 DAYS FROM NOW

186 DAYS REMAINING

(See Future Fast Forward link)

poiuytr said...

fantastic commentaries folks like 6:24 (Lula says it's white blue eyed people.) it's a great comment but i don't get how Lula took this long to realise/say it?


6:38 - eastern EU shanty towns:
easter EU never got any benefits from EU. in fact czech started with a penalty from brussels. when Greece joined, they got cash for roads, but not east EU. EU is handcuffed to west and they'll get flushed unless they set themselves free running back to russia. and they'll do that, they have that option. west doesn't. i wouldn't be surprised if brussels kicked all the east EU members out although that solves nothing either for the prolapsing west.
-----------------
10:25 - M Chang 190 countdown:

it's sufficiently ominous, his article, but far too complicated and he never explains it either why the west is falling down the abyss and why it has no way to avoid its end.

the nuts and bolts of west's prolapse are very simple.

west lives/d off MONOPOLIES. nothing else makes profit. that's the first and last lesson of econ.

the key monopoly, beside drugs, arms, oil wells, was the dollar for the entire west. it was monopolisied by petrodollar. but that was nuked to hell in 2006. since then the dollar's been dying. that's all. no other variables in this. no equation. no numbers.

the only way to save the west is to re-establish the dollar monopoly.

but there is NO way cuz west has no monopolistic export to which to attach the dollar and thus artificially inflate its value. hell, it's funner than that; west has no export whatsoever.

and so without dollar monopoly, all their trillions are just paper. they should have made the bills blank. that way they could at least use them as bog paper.

and the only choice "white, blue-eyed" west has now is either to accept foreign monetary dictate, devalue, lose everything, roll up sleeves and hope to get a job after becoming functional in Mandarin or Russian; or "stay the course" and keep heading towards WWIII and possibly get the deathwish.

-------------------------------
8:55 -- homosexuals
another west attack on family. by the way west exalts and protects gays, one would think homosexuality is quite prevalent. in reality it runs twixt 1-2%.

now, nearly 27% of USA suffers some mental disorder! near 20% of USA is illiterate and 30% effectively so.

why aren't these groups promoted/aided/protected by west governances?

cuz crazies and illiterate idiots, beside either the self or state-drugged are among the chief necessary pillars of the west war child murdering thieving society.

and why is 2% of society then getting so many ridiculous perks like joke bans and glorifying textbook entries?

cuz homosexuality destroys family, one of chief west state enemies.

Anonymous said...

Great to have you back poiuytr and lolling over Lula's comment. The best part of it is he made it in the company of the dour Scotsman who runs Britain at the moment. The man must have winced hearing Brazil speak out at long last. The rest of what you say also has a basis one can grasp. You really shame the devil there. Is WWIII something to oppose the entire Freeworld to the West or just Russia and China? By the way, Amis are sending warships over to counter the soon-to-be NKorea launch. My three-year old daughter has mor sense in her little finger than the entire west establishment. Stupidity, thy name is the white, blue-eyed ones.

Anonymous said...

Re: Anonymous 09.51's allusion to NKorea

US deploys warships as North Korea prepares to launch missile
The US has deployed two warships with anti-missile capabilities in the waters off Japan as tensions mount over North Korea's plans to test-fire a long-range ballistic missile capable of striking Alaska.

By Peter Foster in Beijing
Last Updated: 3:56PM GMT 26 Mar 2009

The US Navy spokesman said the two destroyers, the USS McCain and USS Chafee, had left Sasebo port in southwestern Japan. The deployment comes as America, Japan and South Korea threaten North Korea with 'serious consequences' if it proceeds with plans to conduct the missile test in defiance of a 2006 UN resolution.

North Korea, which has informed international agencies of its plan to fire the missile between April 4 and 8, says the launch is a "satellite test" which it is entitled to make under international law.

Recent satellite imagery has shown that the North Korea has now assembled two stages of the three-stage Taepodong-2 missile on a launch pad in the country's northeast. Experts estimate that missile could be ready to fire within four days.

Japan has threatened to shoot down the missile if it crosses over Japanese territory, a move which Pyongyang has already said it would consider an "act of war".

Anonymous said...

Friday, 27 March 2009
Schwarzenegger to Provide Government Camps For Homeless
'Plans to shut down tent cities in California and relocate homeless people to government-run facilities have stoked fears that the move could be a pretext for a wider internment of Americans in the event of a total economic collapse.

California Governor Arnold Schwarzenegger said a make-shift tent city for the homeless that sprang up in the capital city of Sacramento will be shut down and its residents allowed to stay at the state fairgrounds.'

Anonymous said...

Good grief.

Anonymous said...

Hey you guys! You, poiuytr, Lula, and all the rest of you.

No need for racial slurs here.

The best of us are those who worship Truth and Justice, no matter what the colour of her eyes.

And while I am it, let me say there is nothing wrong with Jews if they are anti-Zionists. Let there be freedom of religion for people to believe what they want to believe, as long as they obey the laws of civilisation.

(As you all know, it is urgent that we prepare the agenda for The Free Peoples of the World: The New World Order. For example, if we capture prisoners by self evident truths, we should treat them humanely. So please don't misunderstand, I am not trying to start a flame war.)

On the other hand, Lula's comment was an accurate quip in the morass at this stage of the game, which certainly destabilised Mobama: black running dog, lackey of the imperialist and racist white nation of holocaust deniers (Iraq, Dresden, Heroshima, etc.,).

Bring back the Guillotine to cut off the tongues of those who lied, and chop off the hands of those who committed crimes against humanity.

Anonymous said...

This is actually a bloomberg story with a spin.

Anonymous said...

Who said we were racists? Lula isn't one. He's Brazilian and they are a mixed culture of the type never achieved in the anglo-saxon world. He just stated the obvious, for once, instead of the mealy-mouthed inventions politicians usually spout. poiuytr isn't one either all the time we've known his blogging wit. And none of the people usually writing here advocate anything in that direction either.

Yes, by all means, let the world to come be humane in every one of its acts and never sink to the levels of vileness acieved by the preceding system. As for the Guillotine, why not? In its own macabre way, it played a role in giving the west a taste of the beautiful, unrealised triad of liberty, equality, fraternity, which failed probably because the most vital of concepts, justice, was not a part of it.

Anonymous said...

A 11:16

Down with the spin brigade of holocaust deniers (Iraq, Dresden, Hiroshima,). Their crimes will catch up with them.

A 11:22

Even if only a bloomberg story with a spin, it gladdened the heart for a moment. Spin is all over, we'll not escape it. But if it provides a good laugh, why not? And if Lula did not say what was attributed to him, he should have done. It's the least one can expect from one of the leaders of coming times.

Anonymous said...

What on earth was Gordon Brown doing in Rio? Asking for asylum maybe. And from where will he borrow the £19 million needed to host the glittering G20 show? From the Brazilians naturally.

Anonymous said...

Re: Gordon Brown, he continues his strutting and fretting on the world stage tirelessly pursuing the chimera of another century (or is it a thousand years) of Anglo-saxon world hegemony. Given that the game is up Brown has to be commended for his “never say die” attitude, However, said or unsaid, the empire is dead.

Mr Brown used a speech to MEPs in Strasbourg on Tuesday to exhort the European Union to take the lead in rehabilitating the world economy and forging a new “moral” capitalism. He called for an end to offshore tax havens, tougher financial regulation, and international limits on remuneration.

But his message risked being overshadowed by a warning from Bank of England Governor Mervyn King that Britain may not be able to afford further fiscal stimulus measures.

Mr King told the Treasury Select Committee that the UK’s deficit levels were already “very large”.

“I think the fiscal position in the UK is not one where we could say, ‘well, why don’t we just engage in another significant round of fiscal expansion’,” he added.

The remarks were seen as embarrassing to Mr Brown, who has successfully pressed the case for wealthy countries to bring forward significant fiscal stimulus packages to refloat the economy. Britain has introduced a temporary VAT cut, among other steps.

Anonymous said...

"Mr Brown used a speech to MEPs in Strasbourg on Tuesday to exhort the European Union to take the lead in rehabilitating the world economy and forging a new “moral” capitalism."

And in answer to that speach Gordon got a whipping.

Daniel Hannan MEP in European Parliament: The UK economy has collapsed, Gordon Brown is a devalued Prime Minister, borrows more to spend more, to climbe out of debt.

Here it is: “The most viewed political speech in the fastest time in internet history”.

1/3rd of million views on YouTube.

http://article19-videoblog.tumblr.com/post/90438409/daniel-hannan-mep-uk-economy-collapse-gordon

Anonymous said...

Thanks for above (21:03). And what about below?

Australia blocks Chinese purchase of Oz Minerals (IHT)

Citing national security, Australia on Friday blocked one of several acquisitions China was seeking in the country’s vast natural resources sector, a move that could stoke concerns about rising protectionist tendencies around the globe.

The decision to block the purchase of Oz Minerals, a mining company, by the state-owned China Minmetals, coincides with a heated debate concerning a much larger investment that another Chinese metals company, Chinalco, is planning to make in the Anglo-Australian mining group Rio Tinto.

It also comes two weeks after the Chinese antitrust authorities blocked a move by Coca-Cola to take over Huiyuan Juice Group, a Chinese juice manufacturer, for $2.4 billion — a decision that caused widespread concern about China’s attitude toward foreign takeovers of local companies.

Tit for tat, but can they really afford it? I mean the Australians, not the Chinese.

X

Anonymous said...

Britain has suffered its worst quarterly fall in GDP for almost 30 years. Contraction of 1.6% for final quarter of 2008.

Anonymous said...

IMF rescue for UK soon? Should the PM fall on his sword after appalling speech (Anonymous 21:03)? The Brits running about like rats in a maze.

Anonymous said...

March 27, 2009
World Depression: Regional Wars and the Decline of the US Empire
By James Petras

Introduction

All the idols of capitalism over the past three decades crashed. The assumptions and presumptions, paradigm and prognosis of indefinite progress under liberal free market capitalism have been tested and have failed. We are living the end of an entire epoch: Experts everywhere witness the collapse of the US and world financial system, the absence of credit for trade and the lack of financing for investment. A world depression, in which upward of a quarter of the world’s labor force will be unemployed, is looming. The biggest decline in trade in recent world history – down 40% year to year – defines the future. The imminent bankruptcies of the biggest manufacturing companies in the capitalist world haunt Western political leaders. The ‘market’ as a mechanism for allocating resources and the government of the US as the ‘leader’ of the global economy have been discredited. (Financial Times, March 9, 2009) All the assumptions about ‘self-stabilizing markets’ are demonstrably false and outmoded. The rejection of public intervention in the market and the advocacy of supply-side economics have been discredited even in the eyes of their practitioners. Even official circles recognize that ‘inequality of income’ contributed to the onset of the economic crash and should be corrected. Planning, public ownership, nationalization are on the agenda while socialist alternatives have become almost respectable.

With the onset of the depression, all the shibboleths of the past decade are discarded: As export-oriented growth strategies fail, import substitution policies emerge. As the world economy ‘de-globalizes’ and capital is ‘repatriated’ to save near bankrupt head offices – national ownership is proposed. As trillions of dollars/Euros/yen in assets are destroyed and devalued, massive layoffs extend unemployment everywhere. Fear, anxiety and uncertainty stalk the offices of state, financial directorships, the office suites the factories, and the streets…

We enter a time of upheaval, when the foundations of the world political and economic order are deeply fractured, to the point that no one can imagine any restoration of the political-economic order of the recent past. The future promises economic chaos, political upheavals and mass impoverishment. Once again, the specter of socialism hovers over the ruins of the former giants of finance. As free market capital collapses, its ideological advocates jump ship, abandon their line and verse of the virtues of the market and sing a new chorus: the State as Savior of the System - a dubious proposition, whose only outcome will be to prolong the pillage of the public treasury and postpone the death agony of capitalism as we have known it.

Theory of Capital Crisis: The Demise of the Economic Expert

The failed economic policies of political and economic leaders are rooted in the operation of markets – capitalism. To avoid a critique of the capitalist system, writers are blaming the leaders and financial experts for their incompetence, ‘greed’ and individual defects.

Psychobabble has replaced reasoned analysis of structures, material forces and objective reality, which drive, motivate and provide incentives to investors, policy makers and bankers. When capitalist economies collapse, the gods drive the politicians and editorial columnists crazy, depriving them of any capacity to reason about objective processes and sending them into the wilderness of subjective speculation.

Instead of examining the opportunity structures created by enormous surplus capital and the real existing profit margins, which drive financial activity, we are told it was ‘the failure of leadership’. Instead of examining the power and influence of the capitalist class over the state, in particular the selection of economic policy-makers and regulators who would maximize their profits, we are told there was a ‘lack of understanding’ or ‘willful ignorance of what markets need’. Instead of looking at the real social classes and class relations – specifically the historically existing capitalist classes operating in real existing markets - the psycho-babblers posit an abstract ‘market’ populated by imaginary (‘rational’) capitalists. Instead of examining how rising profits, expanding markets, cheap credit, docile labor, and control over state policies and budgets, create ‘investor confidence’, and, in their absence, destroy ‘confidence’, the psychobabblers claim that the ‘loss of confidence’ is a cause for the economic debacle. The objective problem of loss of specific conditions, which produce profits, as leading to the crisis, is turned into a ‘perception’ of this loss.

Confidence, faith, hope, trust in capitalist economies derive from economic relations and structures which produce profits. These psychological states are derivative from successful outcomes: Economic transactions, investments and market shares that raise value, multiply present and future gains. When investments go sour, firms lose money, enterprises go bankrupt, and those prejudiced ‘lose confidence’ in the owners and brokers. When entire economic sectors severely prejudice the entire class of investors, depositors and borrowers, there is a loss of ‘systemic confidence.’

Psychobabble is the last resort of capitalist ideologues, academics, experts and financial page editorialists. Unwilling to face the breakdown of real existing capitalist markets, they write and resort to vague utopias such as ‘proper markets’ distorted by ‘certain mindsets’. In other words, to save their failed ideology based on capitalist markets, they invent a moral ideal the ‘proper capitalist mind and market’, divorced from real behavior, economic imperatives and contradictions embedded in class warfare.

The inadequate and shoddy economic arguments, which pervade the writing of capitalist ideologues parallels the bankruptcy of the social system in which they are embedded. The intellectual and moral failures of the capitalist class and their political followers are not personal defects; they reflect the economic failure of the capitalist market.

The crash of the US financial system is symptomatic of a deeper and more profound collapse of the capitalist system that has its roots in the dynamic development of capitalism in the previous three decades. In its broadest terms, the current world depression results from the classic formulation outlined by Karl Marx over 150 years ago: the contradiction between the development of the forces and relations of production.

Contrary to the theorists who argue that ‘finance’ and ‘post-industrial’ capitalism have ‘destroyed’ or de-industrialized the world economy and put in its place a kind of “casino” or speculative capital, in fact, we have witnessed the most spectacular long-term growth of industrial capital employing more industrial and salaried workers than ever in history. Driven by rising rates of profit, large scale and long-term investments have been the motor force for the penetration by industrial and related capital of the most remote underdeveloped regions of the world. New and old capitalist countries spawned enormous economic empires, breaking down political and cultural barriers to incorporating and exploiting billions of new and old workers in a relentless process. As competition from the newly industrialized countries intensified, and as the rising mass of profits exceeded the capacity to reinvest them most profitably in the older capitalist centers, masses of capital migrated to Asia, Latin America, Eastern Europe, and to a lesser degree, into the Middle East, Southern Africa.

Huge surplus profits spilled over into services, including finance, real estate, insurance, large-scale real estate and urban lands.

The dynamic growth of capitalism’s technological innovations found expression in greater social and political power – dwarfing the organization of labor, limiting its bargaining power and multiplying its profits. With the growth of world markets, workers were seen merely as ‘costs of production’ not as final consumers. Wages stagnated; social benefits were limited, curtailed or shifted onto workers. Under conditions of dynamic capitalist growth, the state and state policy became their absolute instrument: restrictions, controls, regulation were weakened. What was dubbed “neo-liberalism” opened new areas for investment of surplus profits: public enterprises, land, resources and banks were privatized.

As competition intensified, as new industrial powers emerged in Asia, US capital increasingly invested in financial activity. Within the financial circuits it elaborated a whole series of financial instruments, which drew on the growing wealth and profits from the productive sectors.

US capital did not ‘de-industrialize’ – it relocated to China, Korea and other centers of growth, not because of “falling profits” but because of surplus profits and greater profits overseas.

Capital’s opening in China provided hundreds of millions of workers with jobs subject to the most brutal exploitation at subsistence wages, no social benefits, little or no organized social power. A new class of Asian capitalist collaborators, nurtured and facilitated by Asian state capitalism, increased the enormous volume of profits. Rates of investments reached dizzying proportions, given the vast inequalities between income/property owning class and wageworkers. Huge surpluses accrued but internal demand was sharply constrained. Exports, export growth and overseas consumers became the driving force of the Asian economies. US and European manufacturers invested in Asia to export back to their home markets – shifting the structure of internal capital toward commerce and finance. Diminished wages paid to the workers led to a vast expansion in credit. Financial activity grew in proportion to the entrance of commodities from the dynamic, newly industrialized countries. Industrial profits were re-invested in financial services. Profits and liquidity grew in proportion to the relative decline in real value generated by the shift from industrial to financial/commercial capital.

Super profits from world production, trade, finances and the recycling of overseas earnings back to the US through both state and private financial circuits created enormous liquidity. It was far beyond the historical capacity of the US and European economies to absorb such profits in productive sectors.

The dynamic and voracious exploitation of the huge surplus labor forces in China, India, and elsewhere and the absolute pillage and transfer of hundreds of billions from ex-communist Russia and ‘neo-liberalized’ Latin America filled the coffers of new and old financial institutions.

Over-exploitation of labor in Asia, and the over-accumulation of financial liquidity in the US led to the magnification of the paper economy and what liberal economist later called “global disequilibrium” between savers/industrial investors/ exporters (in Asia) and consumers/financiers/importers(in the US). Huge trade surpluses in the East were papered over by the purchase of US T-notes. The US economy was precariously backed by an increasingly inflated paper economy.

The expansion of the financial sector resulted from the high rates of return, taking advantage of the ‘liberalized’ economy imposed by the power of diversified investment capital in previous decades. The internationalization of capital, its dynamic growth and the enormous growth of trade outran the stagnant wages, declining social payments, the huge surplus labor force. Temporarily, capital sought to bolster its profits via inflated real estate based on expanded credit, highly leveraged debt and outright massive fraudulent ‘financial instruments’ (invisible assets without value). The collapse of the paper economy exposed the overdeveloped financial system and forced its demise. The loss of finance, credit and markets, reverberated to all the export-oriented industrial manufacturing powers. The lack of social consumption, the weakness of the internal market and the huge inequalities denied the industrial countries any compensatory markets to stabilize or limit their fall into recession and depression. The dynamic growth of the productive forces based on the over-exploitation of labor, led to the overdevelopment of the financial circuits, which set in motion the process of ‘feeding off’ industry and subordinating and undermining the accumulation process to highly speculative capital.

Cheap labor, the source of profits, investment, trade and export growth on a world scale, could no longer sustain both the pillage by finance capital and provide a market for the dynamic industrial sector. What was erroneously dubbed a financial crisis or even more narrowly a “mortgage” or housing crisis, was merely the “trigger” for the collapse of the overdeveloped financial sector. The financial sector, which grew out of the dynamic expansion of ‘productive’ capitalism, later ‘rebounded’ against it. The historic links and global ties between industry and financial capital led inevitably to a systemic capitalist crisis, embedded in the contradiction between impoverished labor and concentrated capital.

The current world depression is a product of the ‘over-accumulation’ process of the capitalist system in which the crash of the financial system was the ‘detonator’ but not the structural determinant. This is demonstrated by the fact that industrial Japan and Germany experienced a bigger fall in exports, investments and growth than ‘financial’ US and England.

The capitalist system in crisis destroys capital in order to ‘purge itself’ of the least efficient, least competitive and most indebted enterprises and sectors, in order to re-concentrate capital and reconstruct the powers of accumulation – political conditions permitting. The re-composition of capital grows out of the pillage of state resources – so-called bailouts and other massive transfers from the public treasury (read ‘taxpayers’), which results from the savage reduction of social transfers (read ‘public services’) and the cheapening of labor through firings, massive unemployment, wage, pension and health reductions and the general reduction of living standards in order to increase the rate of profit.

Rest of bla-bla available on atheonews. Bears out in its own way poiuytr's one word economy lesson: MONOPOLY, boys, MONOPOLY. But good to see others getting it too finally.

Anonymous said...

(off topic)
It seems that the only reliable source of information on the internet has been down for two days, can you confirm?
iraqwar.mirror-world.ru

Anonymous said...

I hate to bring this up but has anyone noticed Iraqwar-ru is down for the third time in two weeks? Over 24 hours now and still not up and running. Is this some kind of targeted attack against dissident voices? If so, should this blog be taking precautions as well?

Anonymous said...

Or over-traffic, provider-down, server-exhaustion?

Anonymous said...

A World of Peace anf Justice is what we long for. What we get instead:
- Our friends the brits round up 200 kids as "potential terrorists" on the principle that evil begins in the craddle. Nip it in the bud.
- Our friends the Southams are closer to setting up their Bank of the South.
- Our friends the Canadians ban Galloway from their country under Canada-Israel security pact.
- Our friends the Russians work hand in hand with Haliburton in western Siberia: oil exploration.
- Our friends the Americans expand their wars to include Pakistan. Obama stabs his own shadow by making non-existent Al Quaida enemy number one.
These are some of the activities of our friends today. Then there are the friends of our friends. But enough for now. With friends such as these (Southams the honourable exception), our enemies can happily go off on holiday.

Anonymous said...

Off topic: Telepathic mind control wave length

07.38 was your comment an answer to mine re iraqwar or just "coincidence"?

Sounds like "coincidence" to me by the tone of your text. Please confirm.

Beware, we might by on the same "telepathic mind control wave length".

Anonymous said...

Six years into the occupation of Iraq

Dear Friends,

Six years after the attack, the pain is as fresh and cutting as it was in March 2003. This year, I decided to view the attack as a scientist without emotion. I would let the numbers speak for themselves. This year I will sit back and play the part of the analyst- the researcher- on this topic that is closest to my heart.

Six years into the occupation…

- 72 months of destruction

- $607 Billions spent on the war

- 2 Million Barrels of oil being sold per day

- 2 Million Displaced Iraqis inside of Iraq

- 3 Million Iraqis forced to leave the country

- 2615 professors, scientists, and doctors killed in cold blood

- 338 dead journalists

- $13 Billion misplaced by the current Iraqi government

- $400 Billion required to rebuild the Iraqi infrastructure

- 3 hours average of electricity daily

- 24 car bombs per month

- 7 major mafias running the country

- 4260 Americans dead

- 10,000 cases of cholera per year

- 50 of my friends dead

- 22 of my relatives dead

- 15 abductions of close relatives and people I know and love

- At least 1.3 million Iraqis dead since 2003.

So the numbers speak for themselves. Six. Six months is what it took for most Iraqis to realize no good could come of this war and occupation. Six years is what it has taken the rest of the world. Six years, six million Iraqis displaced inside and outside of Iraq- well over a million Iraqis dead or dying inside of the country.

As an Iraqi, it is enraging. The numbers and statistics fill me with a rage and shame that make my heart throb and my blood boil. It’s a rage towards all who are silent and uncaring, and a shame at the little we all are doing.

Dr. Souad N. Al-Azzawi

Associate Professor,

Baghdad, Iraq

March26/2009

Dr. Souad Naji Al-Azzawi is a former Vice-President of Mamoun University of Scientific Affaires; former professor of environmental engineering at Baghdad University, recipient of the 2003 Nuclear-Free Future Award for her work on environmental contamination after the Gulf War in Iraq. She published 50 Papers in hazardous Waste management and Radiological Pollution from the use of Depleted Uranium Weapons in Iraq.

(edited for brevity from original text by Article19-videoblog)

Source: http://www.brusselstribunal.org/

Anonymous said...

Hi Off Topic, Yes, coincidence it was, definitely. Telepathic mind control wave length, I'm less sure about.I've been meaning to post that particular comment several days running (you too?), but hesitated since the themes discussed did not quite seem to lend themselves to an expression of worry of this nature. Still, I'm glad at least that there are a few of us out there still willing to take an interest in Iraqwar.

Anonymous said...

Anon 13.49 - Thank you for posting the Iraq figures. Heart-rending reading, but these devastating facts and figures must be endlessly repeated. Dr Al-Azzawi should never think she's alone in her rage and shame. From Iraq (and Afghanistan) I have learnt a cold determination never to get taken in by the west again.

poiuytr said...

thanks for the articles!

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9:51
yes, it's bizarre, i caught that news obama sending warships to intercept N Korea's satellite launch. well, we'll see. i can't imagine that would be so important to risk hawaii over or more. but they're nutters. they need a war. maybe they'll sic Japan on N Korea, Moldova on Russia, Ukraine on Russian assets, Colombia on Venezuela. but so far their plan's have all failed.
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10:51 camps are on in USA then?! i missed that news. that's something to look into.

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11:16
spare me the bullshit racism allegation, will ya? i dont respond too kindly to crap like that. and be sure to read 11:52.

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Anonymous said...

14.01 Yes,I wished to inquire for several days running too, but did not dare disturb anybody.

So, ok, its a coincidence with a 4 minute difference after days of meditation to finally come out with the same question.

13.49 - "2615 professors, scientists, and doctors killed in cold blood" Someone out there wanted to blast Iraq back to the stone age through targeted assassinations, I guess we all know who it is.

On that line: The blast in the mosque in Pakistan killing 70 at prayers can be no other than...and they try to blame it on the Taliban. This incident coinciding with Obamadoff Afghan/Pakistan new (loser) policy speech.

How long will it be before we round up these American Israeli Zionist criminals?

Anonymous said...

Soon, soon, soon and never lose hope. The Muslim world has to go through this unendurable torture to wake up at long last. In the mantime, anyone who believes the Taliban would blow up a mosque probably imagines the Waterloo Warriors are some kind of new pop group.

Anonymous said...

Oh, and as for the coincidence, be happy it turned out so fortunately, for barely had we put our fears into words than the site was returned us almost miraculously.

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