Posted by: graemebird | October 23, 2011

The Crucial Importance Of DECAPITALIZING The Banks

The international banker crime wave rolls on with that bitch Merkel, and that evil tawdry little frog, Sarkozy, fronting for their masters and doing the exact opposite of what they are supposed to be doing.

Its a debt crisis. The debt is owed (not morally, but legally) to the banks. If it is indeed a crisis then the debts need to be lower. Ergo the banks need to be DECAPITALISED. But instead every time this evil anti-democratic filth gets together they go and do the opposite, therefore making the problem worse.

Note how this could not now be happening were there no Eurozone, no Euro and no central banks. The central banks are the ultimate enabler to this international criminal enterprise.

“During their meeting on Saturday, EU finance ministers heard from the head of the European Banking Authority, who told them that if EU banks were to raise their core capital ratios to 9 percent, and if the bad government bonds on their books were accounted for at current prices, then between 100 and 110 billion euros ($138.9 and $152.8 billion) was needed to shore up the banking system.”

There is absolutely no rhyme nor reason to this. Its just the banks getting their gimps to steal for them, and they will turn around and give campaign contributions if these traitors comply. More importantly the banks will give massive contributions to their opponents, if this rolling thunder of criminal activity does not continue.

As of necessity, debt forgiveness would bring down the core capital ratios of the banks. Maybe down to 2 or 3% so they were running without much margin for error. Where the government could help is in providing much more cash and a far higher reserve asset ratio. The banks could even go into negative capital, if there was a 100% backing, and a lot of cash out there. If a lot of banks were going to be facing negative equity, because after all they are all fucking useless, then you could even bring the reserve asset ratio up to 105% to help cover sundry bad debts, and pump yet more actual paper currency into the economy.

Another helpful matter would be good tax loopholes for new entrants into banking, and particularly for the purpose of buying hard assets, like buildings and branches, off the old banks, who have all manifestly failed. Or excellent tax advantages for franchises, if the bankers want to turn their retail act into a franchising affair under the new 100% backed industry.

So its DECAPITALIZING of the old banks we are after for fucksakes. DECAPITALIZING. Re-liquifying the money supply. But decapitilizing the banks.

These fucking meetings that the Germans and Frogs keep going in for are only there to plan one heist rolling into another.  Every last meeting that Merkel and Sarkozy have attended on this matter has been an elaborate fraud, where they are in no way meeting for the purpose of easing the alleged crisis at hand.

The crisis cannot end by way of this relentless stealing, except that it has to be recognized, that the rest of the public could possibly work so very hard and save so very much that they over-match the stealing rampage, thus solving the problem that way.

Everyone with any intuition knows vaguely that they are being scammed. Thats why there are protests all over the world right now.  But the economists, monetary cranks, and bankers always step in to practice obscurantism, when it comes to explaining banking matters to the public. House-niggers of every shape, also get into the act, because house-niggers have intuition too….. more than most ….. and must on some level know who their real masters are and which way the wind is blowing.

Its the job of every actual MAN or WOMAN, (properly considered) to see to it that the wind eventually blows the other way. Such a cool change cannot happen except that the old bankers are on the way out and the new guys are entering the industry.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

HOW CAN WE SOLVE THESE PROBLEMS QUICKLY.

Above I’ve given people some idea of how to reform banking in the problem economies. But how about getting economic growth going again? How ought Italy, the US, Ireland, Greece, et al, solve their problems and produce manufacturing-lead recoveries in all cases? Australia would be in a similar position, but we have put an APPARENT-disaster off …………….. by recourse to the ACTUAL-AND-REAL-disaster ………… of selling off the farm.  We are getting along quite nicely, for similar (but more disgraceful) reasons, as to why the Nauruans used to get along quite nicely, back in the 70’s

So how would Australia revamp its manufacturing, leading to REAL economic health rather than the make-believe economic health that selling off the farm is producing?

Here is how they …. and we …. could make the decisive moves to effect the right sort of recovery. No one policy will do it. It takes a combination of policy measures to effect a lasting recovery, based on manufacturing expansion:

From the comments section below:

  • “Likewise, the reluctance on the part of banks to extend credit to manufacturers is not because they lack capital, but because they find it more profitable to invest in speculation, that is, in buying and selling of assets and/or securities such as bonds, stocks, commodities, real estate, currencies, and the like—destabilizing activities that tend to create asset price bubbles, inevitably followed by bursts.”

    That part quite true. And you can see the problem in that only slow monetary growth would end these bubbles, and lead to the resources being allocated in the right areas. But the first thing that will happen, if monetary growth is slowed, is that the manufacturers, will have even LESS access to funds, will find their debts even HARDER to pay, and will probably find themselves in yet more adverse conditions vis a vis the price of their currency.

    So it takes real sophistication to be able to unwind this scenario. Its almost impossible to see how a one-sided partial jubilee is not part of the recovery picture. I can say with great assurance that one-sided partial jubilee is part of a FAST RECOVERY. No fast recovery for manufacturing, leading to general economic health in the troubled economies (eg. Greece, The United States) is possible without it.

    Supposing you have a onesided jubilee, to the disfavor of the banks, and this coupled with the move to “growth-deflation”, and as well the closure of many government departments, so as to run surpluses, then manufacturing gets a company tax exemption for maybe twenty years. Suppose you have this full-spectrum policy combination landed on manufacturing all at once.

    Well in that case the speculation is cut off by the low monetary growth. The manufacturers get a break in terms of less debt, and are more viable long-term because of the lack of company tax. They have more REAL capital resources to borrow, (but not necessarily more funds in nominal terms.)

    Its really only a combination of this sort that could lead to economic health being restored in a matter of months. Its only this multi-faceted approach that could get everything humming along again, without years of lots of pain.

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Responses

  1. Banks on the Brink
    by Andrew Cockburn

    “If the Occupiers start chanting ‘Mark to Market,’” an attorney highly conversant with the darker workings of the Wall Street-Washington complex told me, “we’ll know they’re serious.” Such a call would quickly presage the collapse of our “too big to fail” banks, for it would highlight the fact that a huge proportion of the assets of Bank of America, Wells Fargo, JP Morgan, and Citigroup consist of loans that will never be paid back and are therefore essentially worthless. The so called “recovery” of our leading financial institutions from the post-Lehman abyss has depended on a fraudulent valuation of these assets, but stripped of the fiction, the banks are insolvent.

    Not long ago, accounting rules required bank assets, such as mortgage, credit card and other loans, not to mention the securities derived therefrom, to be “marked to market,” meaning that they had to be valued on the balance sheet at what they might fetch if offered for sale on the open market. This practice, enjoined by the Financial Accountancy Standards Board (FASB), was quite popular at a time when the bubble was still inflating, propelling house prices and the mortgage backed securities they supported in a pleasingly northward direction, and naturally carrying quarterly bonuses and other good things along with them. However, such attitudes changed in a hurry once the housing bubble burst and the ratings agencies, albeit belatedly and reluctantly, began certifying that mortgage loans, as packaged and puréed into securitized instruments, were worth a lot less, or nothing at all. In 2008 therefore the banks were forced to disclose write-downs of $175 billion. By early 2009 not only were most of these institutions facing capital shortfalls that rendered them insolvent, they were close to having to admit the fact and head for the bankruptcy court.

    Cries of rage and pain echoing round Wall Street were amplified in Washington DC by $27.5 million in bankers’ cash, funneled through lobbyists who focused their particular and generous attention on the capital markets subcommittee of the House Financial Services Committee. The consequences were immediate and gratifying, at least from the point of view of the banks. Hapless number crunchers from the FASB were hauled in front of the subcommittee on March 12, 2009, and harshly instructed to change their rule, fast, or the congress would do it for them. Results were immediate. Instead of having to price their assets at a realistic level, ie one where someone might buy them, banks were permitted to use “substantial discretion” in their book-keeping. “Mark to fantasy,” some called it, but suddenly Wall Street was booming again, along with bonuses. Notional profits were further bolstered by shrinking “loan loss reserves” – money put aside against a rainy day – on the balance sheets. Since all those assets were at healthy valuations again, who needed to provide for losses?

    But of course the underlying reality never changed, except for the worse. Loans defaults continued their inexorable climb. Desperate to hoard whatever actual cash they did have, largely courtesy of Fed largesse, the banks eschewed anything as risky as actually lending money to businesses who might use it to give jobs to people. No one, at least in government or on Wall Street, was prepared to admit the ongoing reality of major bank insolvency.

    As one clear-eyed observer of Wall Street told me earlier this week: “Bank of America earnings were out today and you need an advanced degree in bullshit to understand half of it. The whole thing is malarkey piled on crap. I don’t know how to separate the garbage from the decent and neither do (the banks). It’s the main thing that’s stopping any bank recovery, the denial and the inability or unwillingness to take their medicine.”

    However, there is a way out of the morass. Congress did pass the 2010 Dodd-Frank financial reform bill. Though assiduously laced with loopholes and escape hatches, the law does contain one crucial element that would, if implemented, allow the seizure of the banks and the loans they control. That’s the part of the 2010 financial reform act that gives the FDIC the necessary authority “to liquidate failing financial companies that pose a significant risk to the financial stability of the United States in a manner that mitigates such risk and minimizes moral hazard.” It goes on to mandate that “creditors and shareholders will bear the losses of the financial company,” while management should not only be fired but also held personally liable (“bear losses consistent with their responsibility”) for the wreckage they have caused. God knows how this got past the lobbyists, but it’s on the books. Let’s use it, dismantle JP Morgan, Wells, etc. At that point the Federal Deposit Insurance Corporation would actually own all those loans that homeowners and other borrowers have been struggling to repay. The banks have been obstructing any reduction of principal by allowing subprime borrowers to refinance at affordable rates. But a government takeover, which is entirely in the administration’s power, would permit just that. As a result, homeowners etc would be able to afford their payments, with cash to spare.

    Too bad it won’t happen.

    ANDREW COCKBURN is the co-producer of the feature documentary on the financial catastrophe American Casino. He can be reached atamcockburn@gmail.com

  2. Borrowing and investing in the production of goods and manufactures is weak not because there is a shortage of investible funds (corporations are sitting on more than $2 trillion in cash but not hiring) or because the cost of borrowing is too high, as is implicitly assumed by the QE gurus, but because the macro-level purchasing power is too weak and the uncertain market conditions do not warrant investment and expansion. Furthermore, corporations prefer to produce not at home but where the labor is cheapest globally.

    Likewise, the reluctance on the part of banks to extend credit to manufacturers is not because they lack capital, but because they find it more profitable to invest in speculation, that is, in buying and selling of assets and/or securities such as bonds, stocks, commodities, real estate, currencies, and the like—destabilizing activities that tend to create asset price bubbles, inevitably followed by bursts. Parasites discovered long time ago that it is easier to suck the existing blood out of the body of living organisms than producing it from scratch.

    http://www.counterpunch.org/2011/10/21/what-quantitative-easing-really-means/

    • “Likewise, the reluctance on the part of banks to extend credit to manufacturers is not because they lack capital, but because they find it more profitable to invest in speculation, that is, in buying and selling of assets and/or securities such as bonds, stocks, commodities, real estate, currencies, and the like—destabilizing activities that tend to create asset price bubbles, inevitably followed by bursts.”

      That part quite true. And you can see the problem in that only slow monetary growth would end these bubbles, and lead to the resources being allocated in the right areas. But the first thing that will happen, if monetary growth is slowed, is that the manufacturers, will have even LESS access to funds, will find their debts even HARDER to pay, and will probably find themselves in yet more adverse conditions vis a vis the price of their currency.

      So it takes real sophistication to be able to unwind this scenario. Its almost impossible to see how a one-sided partial jubilee is not part of the recovery picture. I can say with great assurance that one-sided partial jubilee is part of a FAST RECOVERY. No fast recovery for manufacturing, leading to general economic health in the troubled economies (eg. Greece, The United States) is possible without it.

      Supposing you have a onesided jubilee, to the disfavor of the banks, and this coupled with the move to “growth-deflation”, and as well the closure of many government departments, so as to run surpluses, then manufacturing gets a company tax exemption for maybe twenty years. Suppose you have this full-spectrum policy combination landed on manufacturing all at once.

      Well in that case the speculation is cut off by the low monetary growth. The manufacturers get a break in terms of less debt, and are more viable long-term because of the lack of company tax. They have more REAL capital resources to borrow, (but not necessarily more funds in nominal terms.)

      Its really only a combination of this sort that could lead to economic health being restored in a matter of months. Its only this multi-faceted approach that could get everything humming along again, without years of lots of pain.

  3. Yeah fantastic article. But one thing is the big players seem to have come in and obstructed anyone serious. If you have a Ron Paul sign, or a sign saying “end-the-fed” you get harassed, and in any case the media will ignore you. But its a good point he’s making. Unless people show sophistication in monetary and banking matters the protests can be diverted and marginalised. The bankers have got any education on this matter fully obstructed. Its just incredible. One of these things that would be easier to understand if we had proof positive evidence for demon possession.

    Week in week out I would attempt to educate people, on what ought to be pretty straight-forward matters of banking and money. Week in week out people like Jason Soon were obsessively going out of their way to lead people astray. Often they would send out the mentally confused Mark Hill as a key tactic. Andrew Reynolds once filibustered every day for four months on a matter of pure sophistry. One way or another the house-niggers, bankers, and monetary cranks would ensure that the educational process could not get off the ground.

    And look at the consequences!!!!!!!!!! The United States and the European Zone countries, stagnated and hurt. And it comes down to these matters of spontaneous total interference when it comes to educating people in banking. The public does not really even understand fully and consciously that they are being constantly stolen off.

  4. But the times are a’changing, Graeme.

    The OWSovement has transfixed the US and in just a few weeks spread from Manhattan to hundreds of US towns and cities and now taken root in many other countries. It has focused the widespread anger that so many feel toward a tiny group of extraordinarily rich individuals (the 1%) who have destroyed our communities, eliminated our jobs, deprived the youth of a future worth striving for, taken control of our governments, and done everything they can to make us (the 99%) as insecure as possible.

    Even mainstream US economists like Paul Krugman, Jeffrey Sachs, Robert Reich, Joseph Stiglitz, Jeff Madrick are actively supporting this mass movement.

    But none of these economists have the answers either.

    These hopefully will and must come from the grassroots, from people like you and me.

    There can be no doubt that OWS has changed the political landscape in the US. It has opened up new possibilities for discussing and debating what is going on in the world and what should be done.

    We shouldn’t be complaining that the occupiers haven’t come up with a specific set of demands or developed a full-blown theory of social change.

    We should be happy that, at last, there is a large and visible outpouring of men and women, young and old, giving witness to economic, political, and social conditions that are no longer acceptable. It is up to everyone who wants to make a difference and challenge economic dysfunction and corruption to place our own ideas in the mix, organise around specific demands where possible, and eventually form our own political organisations if the existing ones are wanting.

  5. It must be recognized that a great many who make the 1% cutoff are going to be superbly productive and not part of the problem at all. But one supposes that its not a bad slogan, if it is recognized as shorthand.

  6. Yeah, it’s shorthand. I think it’s a lot more than 1%. But then the precise minority percent figure is not the important or cutting issue at the moment.

    • Just beautiful. Yeah just brilliant. Now obviously this fellow is from the centre-left, or possibly the hard-left. But he’s a sensible bloke from the centre-left.

      Supposing that 20% of the protesters were as smart and focused as this fellow? Still how would we know it without flying over there ourselves, since, the lamestream media are just going to focus on the others, and mostly on the more stupid soundbites they can find.

      • Graeme, people who are interested and even those who aren’t so much are getting their current affairs and news information from diverse sources, which is the beauty and power of the internet, social media, ethnic media, personal media via Facebook, twitter etc.

        There is no limiting what people can find out about what is going on in the world and what individuals think about that and increasingly people are bypassing the “lamestream media” for excellent practical reasons.

  7. Right. Certainly a lot more than 1% of higher than average earners benefit from labor market rigging of one sort or another. And that has to change. Nearly all top management of larger companies are overpaid for a number of reasons,

    Every-time we find pro-market ways to pull down the earnings of such people, without direct force, baby Jesus smiles. That amounts to less people cascading down to the lower levels of the labor force, so better wages and less unemployment there. And it also amounts to more resources for business renovation. Like in the LED-light example I was talking about earlier.

  8. Note Philomena, that tape you had of former representative Grayson. I think that was his name. I remember him grilling these miscreants in the Fed and the treasury. Well not surprisingly he’s out now. The culprits weren’t able to get rid of Ron Paul. But they can change the election results in enough districts to keep their thieving going a lot longer.

    You’d wonder how long it would take someone like Sinclair to wake up to how terrible this sort of banker-control of the electoral system is. Supposing he even gave a fuck in any possible universe.

  9. All my industry plans involve getting rid of the company tax, and that would go for banks to. But with bankers it would be mostly the replacement newcomers that benefited from the tax break. And you would set the partial jubilee at a level calculated to make sure that this was the case.

  10. Try putting this in the google:

    DECAPITALIZING The Banks

    ….. you will see that this is a breakthrough post on google.

    • Seriously, your “breakthrough” phrase is nonsensical. Makes as much sense as “demilitarizing the army”.

  11. Seriously. You are a complete moron.

  12. How did you get an idea as dimwitted as this one? Was it like your comets are snowballs idea? Where you just trusted the propaganda? Or was it some sudden inspiration generated internally?

    Seriously. You are a complete fuckwit.

  13. Mr Bird
    It is incumbent on you to stop blaming the banks for this. The banks were forced at gunpoint to lend to a bunch of financially incompetent blacks and hispanics in the US who could never pay off their debts. The lesson is clear. Never lend money to blacks and browns again.

  14. Get the fuck out of here. There is always the context of regulations. So you can always blame the crack-up on the regulations that are in place. But there wasn’t just a poor neighborhood black people problem. Thats just bullshit. That is just looking around for some bloke with swarthy skin to blame. Its an old game. I know. Because when my eel net got slashed, I was looking to blame the people with the dark skin as well.

    It wasn’t just a black people mortgage crisis you fuckwit. For fucksakes. They had a derivatives crisis, which was forestalled by the method of paying particular attention to bail out those people on the other side of the bets. That is to say ALL THE DERIVATIVES PROVIDERS AND THEIR COUNTER-PARTY RISKS. No poor black people were involved with THAT matter.

    This is a worldwide banking phenomenon. Its not fucking something that just happened in the South-Side of Chicago, Bedford-Steyvestant, Harlem, the poorer black suburbs of Atlanta and so forth. You are either a banker or you fall for the most unbelievably stupid shit.

    This is not a one off either. Banking crises and/or bubbles are basically a once a decade phenomenon. Once every two decades max. These fucking cunts are always holding their hands out for a bailout. They are always destroying wealth by mis-directing resources. You just had the tech bubble (you moron) a few years prior to the housing bubble.

    The Americans had a commercial real estate bubble. You going to blame that on poor black neighborhoods too? What about the Greek debt bubble? The US educational debt bubble. The third world bailout of the early nineties? The fucking Volker crunch big bank bailout. Poor black people to blame?

    What about the 100 minimum banking crises in the last 1000 years? Blame black people regulation?

    Mate the poor black people were the bunnies! Their role in this matter was to be the last people to buy into the hot potato. The crash would have happened earlier if these asswipes didn’t have one more load of poor suckers to off-load the hot potato houses onto.

    There is always a fucking problem with the bankers because there is always fractional reserve. Fractional reserve is phantom supply. And phantom supply is always and everywhere an intervention into the price-mechanism. It fucks up price, and therefore screws up supply and demand. Its wealth destruction, and you do it with wheat in a poor country, you’ll wind up with famine.

    We have to get rid of all forms of phantom supply. The commodities exchange (COMEX) is all phantom supply. Everything it does involves anti-social wealth destruction.

  15. “Plus, also via Drudge, EU bank failures will crash Wall Street.

    http://www.marketwatch.com/story/eu-bank-failures-will-crash-wall-street-again-2011-10-18

    Maybe the time to start hedging bets on a rate cut next month is now?”

    No-FUCK-NO-Alex.

    Look we have got to stop subsidizing the financial sector with cheap interest rates. It is true, that even with the best free market reforms, there will be cause to stimulate business revenues, or aggregate demand …. (NOT GDP … GDP, FOR CRYING OUT LOUD, IS NOT AGGREGATE DEMAND) from time to time, just to stop business revenues from falling in a heap, and-or, to prevent the economy from being crippled by the current debt load.

    But on no occasion does this stimulation need to come from subsidizing the banks with low interest loans. ALWAYS, there is but one honest way to increase business revenues or aggregate demand. And this is the retirement of debt, via, new cash creation. No other method is morally acceptable. And deficit spending DOESN’T EVEN FUCKING WORK in this regard. So there is no other alternative. And we have to cut through the lying and the ignorance of out pathetic economists to get to this truth.

    Always the new cash should come with an upward adjustment in the reserve asset ratio. The idea is that the new cash creates the extra demand in its own right, but that the banks are not able to pyramid to any serious extent on this new cash.

    • Great blog and piece. I discovered that site only recently. Love the comment threads.

      “The Occupiers Revolution enters a new phase soon: First Arab Spring rippled into American Fall. Next, EU bank collapses will ripple through Wall Street.”

      Bring It On

  16. Max Keiser and Stacy Herbert are so cool. They have been talking about this campaign of there’s …… GIABO

    The global insurrection against banker occupation. Somehow they manage to make this stuff sound almost non-fringe, and just commonsense. They manage to make it sound like bringing these assholes down is a fun thing to do. Which makes it seem like its doable. Not this hopeless dour mission I’ve been on for the past five years or so.

    • “hopeless dour mission”

      ach, you probably have Viking heritage too. You’ve got warrior genes from somewhere for sure.

  17. Yeah but Vikings had a great time. Supposing you were a group of psychopaths, and just brought up to not identify with the suffering you brought on those outside your group ……. well under those circumstances, there is no doubt that these guys had a great deal of fun.

    I have a great deal of fun also. So in that respect you may be quite correct. Its just with pushing the sound money line. With regards to pushing the sound money line, its not the same instant gratification you can get from willing females, or their cooking.

  18. “its not the same instant gratification you can get from willing females, or their cooking.”

    Lol. What’s your favourite meal?

  19. Often-times its the last one that the girl cooked. I suppose though the best eating experience is Yum Cha (is that how you spell it?). This Chinese deal is not unlike the norm when I’ve been in Thailand. Because Thai people like to get together in groups of 4-6 and buy all the dishes, then divy them up so that you always have great variety.

  20. “Often-times its the last one that the girl cooked.”

    I know what you mean. Every delicious meal just seems better than the last and all preceding ones. I do most the cooking in my household for various reasons not excluding the cooking skills of others, but I do find that the best food experience always involves it being prepared by another. Yum Cha is great, the Asian version of smorgasbord. Today I think I prefer just one dish well cooked. Like spaghetti bolognese, French onion soup or ratatouille.

    Speaking generally though the great world cuisines are definitely Chinese, Indian, Thai, French and Italian imho.

  21. Actually the best feed I can remember having lately was at this German place at “The Rocks”, that my stepdaughter selected for us. But we’ve been there twice since that time, and the others have gone off the cooking there. I’m not so sure if its a real thing that has turned them sour on the place. I found the food pretty damn tasty every time, but then I must admit to not being totally knocked out like the first time.

    Just across from there is “the” pancake parlor, but really its a restaurant with a wide range of dishes. Well I cannot remember what we ate, but I can remember that it was fantastic. But I’ve developed a sentimental affection for the German place, and I bought one of their two-litre glasses, as a way of watering down my beer with ice-cubes. Sadly I somehow managed to break this thing. Thick as a plank though it was. I almost became a member of the German place. Only laziness and disorganization prevented me from being a member. But “it was a close-run thing.”

  22. I meant to write “not including” i.e. they are good cooks

  23. “Today I think I prefer just one dish well cooked. Like spaghetti bolognese, French onion soup or ratatouille.”

    Right but thats a crapshoot. What if that one good dish lets you down on that one bad day? Whereas the reality is that I don’t care for about 60% of THAI dishes, and it just doesn’t matter a hoot, because I’ve so much to choose from out of the other 40% within the typical Thai sitdown.

  24. Bear in mind Philomena, that I really am a Philistine when it comes to this sort of thing. No good taste at all. So the idea of sticking with the variety that my thai family delivers, and with the idea of “variety” itself, is probably derived from my lack of true culture and discernment in these matters.

  25. No way, is the pancake parlour still at the Rocks? I’ve never been to it but I know a very funny story about it from when I first arrived in Sydney.

    German food is ok. I got very sick of it quickly when I was in Germany. Our hotels served cheese, pickles, sausage and bread for breakfast ffs. And every meal seemed to involve pork, cream, potatoes and not much else. Actually, fact is, two days after arriving in Germany I did a big dummy spit and wanted to come home and the dire food played a major role in my misery. Fortunately we found a Chinese restaurant or two where we were first staying (in Essen) and there were the Turkish restaurants which leaned a little more towards the vegetarian than did the German.

  26. All I know is that if a person is really hungry bread and water will taste like elixir of the gods. One dish that I like well cooked more than satisfies but yes a plethora of choices and tastes can be very seductively satisfying too.

    But then the best eating experiences are surely of one substance and none other.

    Such as icecream.

  27. “German food is ok. I got very sick of it quickly when I was in Germany. Our hotels served cheese, pickles, sausage and bread for breakfast ffs. And every meal seemed to involve pork, cream, potatoes and not much else. ”

    Yeah you see that! For me all this constituted a bit of a novelty and I was just as happy as a pig in shit. And the girls loved it too at first but it wasn’t long until enough was enough. But what I cannot discern was if the quality had dropped or if the girls had experienced more than enough of a good thing. So as you got sick of this gear, I suspect the others did too, although I remained pretty happy and engaged with it.

    Plus there is also the entertainment and experience of Germanic culture to contend with. I just thought it was marvelous and it served to make me sad all over again that our side didn’t follow truly excellent guidelines of just war, and instead sought to carpet bomb those people.

  28. “All I know is that if a person is really hungry bread and water will taste like elixir of the gods. One dish that I like well cooked more than satisfies but yes a plethora of choices and tastes can be very seductively satisfying too.”

    It may be difficult to separate the qualities of the dish from the girl who cooked it and the specific day or night when you were there to eat it. Like when my stepdaughter chose the German place, I suppose that would have made me well-disposed to what we were eating and drinking for starters.

    • “It may be difficult to separate the qualities of the dish from the girl who cooked it”

      That is very generous and loving of you. I am afraid like many less amiable people if a dish falls well below my expectations I can’t help but transmit some of that dissatisfaction on to the cook.

  29. Ah, sounds like you’d love the Munich Beer Festival. I drank a lot of beer in Germany mostly outdoors in beer gardens and it was very pleasant, though I didn’t make it to Munich.

    Germany was the first European country I visited. And it was mostly a tremendous disappointment and a sad and even upsetting place to be even today so long after the war.

  30. “Germany was the first European country I visited. And it was mostly a tremendous disappointment and a sad and even upsetting place to be even today so long after the war.”

    Right. I have no sense of why this would be the case, and I’ve never been there. I’m reflecting that its already late October so there is slim chance of scamming you to some German drink-fest and getting you to drink so much beer you wind up mistaking me for Elvis.

  31. I must tell you about my German visit some time.

    But, meanwhile, lol. What is your favourite Elvis song?

  32. The one that goes “This time the girl is going to stay” the one about the hunka hunka burning love, and the AMERICAN TRILOGY where Elvis heals the wounds of all sides of the civil war, and Englebert Humperdink shoes up as a backing singer.

    I’ll just retrieve that one that I haven’t linked in the past. Well I will maybe in an hours time.

  33. Since we have been talking about Germany, one of my favourites that springs to mind right now is “Wooden Heart”, which is based on a German folk song, “Muss i’ denn zum Städtele hinaus”

  34. Neat. The same guy who wrote this gem.

  35. Both songs written by Barry Mann and Cynthia Weil

  36. I like the way they thickened the plot in the middle of that one. Makes me wonder what else they’ve written.

  37. Bill Black. This aint no party. This aint no disco. This aint no fooling around. Former regulators are scandalized by just what a bunch of little gimps and bitches the regulators and economists have become. Like it was Weimar Berlin and the economists and regulators were just there in some dark alley for financial bigshots to take turns pissing on them.

  38. Oh god youtube is like going down the rabbit hole. A very pleasurable one but.

    • Good Lord. What a wonderful version. Actually I’d have liked it even better if she had matched her superior vocal richness with something a bit closer to Gilbert O’Sullivan’s more conventional phrasing. I’m not sure I care for the Jazz-phrasing, wherein the singer is a little bit behind and ahead of the beat. It takes away from a unified effect, and actually in Jazz all the muso’s seem to be doing this to some extent. As do old blokes when performing the hits that made them famous many decades later. But there is no doubting the amazing vocal capacity of this babe. And its not like she even seems to be flaunting it the way some of the younger divas do it.

      Gilbert O’Sullivan had such depressing hits. He came and he went as if delivering a severe warning that Leonard Cohen had already moved into music and was just about to hit the mainstream.

    • Its certainly worth listening to the original, Philomena, if you are not yet familiar with it. But if you are feeling like you might easily be thrown into a deep funk, don’t click the youtube and I’ll never mention this version again. I’ll never mention it ever.

      • Thanks, I didn’t know the original singer, tho’ I guess I must’ve heard Gilbert O’Sullivan sing this. An Irishman, eh.

        I think many female singer versions are better than his though. He’s not expressive enough. Too reined in. And skipping ahead or behind the beat is a technique for expressing spontaneous emotion and deep feeling which is why people like it when done well. Plus Black women artists like Nina Simone have incomparably complex, versatile and supple voices as well as the requisite emotional expressiveness that renders songs of love, loss and death, such as this one, ecstatic and cathartic.

  39. Look at this, Gra Gra – the banksters are trying to shoot down lone economists who dare to criticise their racket:

    http://catallaxyfiles.com/2011/10/25/debunking-economics-again/

  40. Its true that Steve Keen carries a Keynesian handicap, but then so does Sinclair. But Steve Keen is massively more sophisticated than Sinclair will ever be when it comes to the workings and effects of the banking system. I basically agree with him on most technicalities on these subjects. It doesn’t matter if one bloke is coming from a lefty perspective and another is centre-right. You guys, if you hadn’t of been bigots, could have learned a great deal about monetary-economics, from either myself or Steve Keen if you had shown an interest.

    The mentality of Sinclair is described by the question: Which tribe are you with? It doesn’t get deeper than that with Professor Davidson. Its just the white-shoe version of the Crips and the Bloods without even the manly virtue of physical courage.

  41. A mistake according to Herr Professor Bird? (see bold)

    http://www.amazon.com/exec/obidos/ASIN/0674031466/geneexpressio-20

    Just over a thousand years ago, the Song dynasty emerged as the most advanced civilization on earth. Within two centuries, China was home to nearly half of all humankind. In this concise history, we learn why the inventiveness of this era has been favorably compared with the European Renaissance, which in many ways the Song transformation surpassed.

    With the chaotic dissolution of the Tang dynasty, the old aristocratic families vanished. A new class of scholar-officials—products of a meritocratic examination system—took up the task of reshaping Chinese tradition by adapting the precepts of Confucianism to a rapidly changing world. Through fiscal reforms, these elites liberalized the economy, eased the tax burden, and put paper money into circulation. Their redesigned capitals buzzed with traders, while the education system offered advancement to talented men of modest means. Their rationalist approach led to inventions in printing, shipbuilding, weaving, ceramics manufacture, mining, and agriculture. With a realist’s eye, they studied the natural world and applied their observations in art and science. And with the souls of diplomats, they chose peace over war with the aggressors on their borders. Yet persistent military threats from these nomadic tribes—which the Chinese scorned as their cultural inferiors—redefined China’s understanding of its place in the world and solidified a sense of what it meant to be Chinese.

    • Fractional reserve is a worse problem then paper money. And the fractional reserve ponzi-artists show up when there is wealth there to liberate from the people who have created it.

      So you had the wealth creation of post-war Japan, and the massive fractional reserve overkill that came about in the 80’s. Note how this makes it inevitable that wealth creation, and banking mischief will seem to go hand in hand if you are looking at matters several centuries hence.

      So yeah the funny-money and the wealth creation appear to come together, and when someone then looks at the situation, who doesn’t understand economics, they may come to the wrong conclusion that the funny-money creates the wealth. Rather than that the funny-money shows up to feed on the wealth once the wealth comes about.

  42. “Note each cruise missile contains approx. 15kg of silver in wiring, contacts, solder and batteries. The more silver the SLA talkes off the market, the less bombs and missiles can be fired. BUY! BUY! BUY! so they can’t bomb! bomb! bomb!”

    Silver gets used up like oil does. Whereas gold is probably at a fair price, and ought to move up somewhere close to the increasing money supply, if it were to stay at a fair price, silver is in no way at a fair price. We don’t have proper supply and demand any more with commodities, because you have phantom supply and people buying thin air. People like JP Morgan can naked short-sell 3.3 billion ounces in silver, which is of course illegal, but it doesn’t matter. They don’t have to hurry up and cover their shorts. Why would they? Don’t they pay their lawyers enough? Doesn’t a high percentage of top management in JP Morgan have law degrees? Are they not pals with the federal reserve and with Goldman Sachs? So the rules don’t apply to them.

    People can buy physical silver which is only 1% of the silver traded or so. If enough people decide to buy physical then the price has to go up. But a movement to do this seems to have doubled the price, and then all the people who were going to take delivery are tapped out, and so with the buying and selling of thin air, the silver price can fall again to anti-free-market levels. All because the bankers have perverted the markets. We just don’t have a proper price system any more thanks to these parasites.

    I just bought a motherload of silver myself. Took delivery. Paid fabrication costs. Storage costs. I can trade it for gold or cash in $5000 dollar amounts for free. I got it for 30.41 AUD per ounce. I expect it to keep falling, since if it doesn’t keep falling, that would mean I’d picked the bottom, and that I was practicing witch-craft.

    Buying and taking delivery of physical is fulfilling the requirements of old-fashioned speculation. Positive-inventories speculation is socially useful behavior, whereas the negative inventories speculation that JP Morgan does is anti-social.

  43. Well I may have bought pretty close to the bottom. I bought at 30.41, but I worked it out that with costs it was really 30.57 per ounce. The price is now 32.22 one day later. I’m up $2945 dollars already. If people could somehow start suing JP Morgan to at least begin the orderly covering of their shorts position I’d wind up being able to sell what I had and buy a Penthouse or something like that. That isn’t going to happen, but just to stop shortages breaking out, that would bring international electronics production to a grinding halt, silver will need to gyrate its way up past $100 dollars per ounce over the next few years. So I’m hoping to do well from it. Because I think I’m coming in at about the time the short-sell artists are pretty much tapped out.

    • Why the fuck are you buying silver when you ought to be paying off your mortgage?

      Where are you going to store the fucking stuff you dummy/

      • I paid off my mortgage. I don’t have a mortgage.

      • NO YOU ARE A LIAR. I’VE NEVER ABUSED A BANK FOR LOANING ME MONEY. YOU JUST HAVE TO ACCEPT THAT YOU ARE TOO STUPID TO UNDERSTAND ANYTHING I SAY.

      • WHEN I SAY I “TOOK DELIVERY” WHAT I MEAN WAS I WAS DEALING IN REAL METAL, SENT TO PROPER POOL-ALLOCATED STORAGE, AND NOT THAT I JUST BOUGHT PAPER SILVER. THE PERTH MINT DOESN’T BUY DERIVATIVES, AND SO IS IN NO POSITION TO BE SELLING THIN AIR. I CAN SEE HOW IT MAY HAVE SOUNDED MISLEADING. WHAT I MEANT IS THAT THIS METAL IS NOT NOW AVAILABLE TO THE BANKSTERS, AND REPRESENTS A REAL INCREASE IN ACTUAL METAL DEMAND.

  44. Sorry, I meant Sarah Vaughan. Though I note there is a Nina adaptation which is almost too painful to listen to.

  45. why hold up my comment in moderation dude? it just had a sincere question about economic history

    • I’ll go look for it. I didn’t block it, so it must have wound up in the spam filter.

  46. Good Lord the stupid wop Cambria is now claiming I was talking about “peak energy”. The real story is that I couldn’t manage to get it through the dumb wops head that the peak-oil model had nothing to do with peak energy. There are some people who have to be counted as too dimwitted to understand a concept like peak oil.

    I don’t know how many times I had to go over it. He still could not understand the concept. The peak oil concept was silent on synthetics. It had nothing to say about gas. This absolute shit-for-brains was backing a carbon tax at the time, and I was stressing how important synthetics were. But the stupid quisling couldn’t understand why that would be the case. Now the dummy is lying about it all after the fact.

    Remember its your money he’s managing.

    • YOU IDIOT. I ALWAYS KNEW THAT THERE WAS PLENTY OF SHALE. I WROTE A THREAD ON IT YEARS AGO. THERE IS HEAPS OF SHALE AND TAR SANDS.

      THE PEAK OIL MODEL IS WORKING FINE YOU FUCKING DUMB WOP. IT DOESN’T RELATE TO SHALE, GAS OR TAR SANDS.

      ITS JUST INCREDIBLE WHAT A FUCKING MORON YOU ARE. CAN YOU NOT GET IT THROUGH YOUR FUCKING THICK DEGENERATE, USELESS EATER HEAD THAT PEAK OIL HAS NOTHING TO DO WITH SHALE.

      FOR FUCKSAKES YOU JUST CANNNOT COMPREHEND IT CAN YOU.

      AND YOU DUMB CUNT, YOU WERE ADVOCATING A CARBON TAX THAT WOULD HAVE MADE SHALE A STILL-BORN INDUSTRY.

      • Stop the lying Bird. You had no idea there was enough shale gas and oil around.

        You were peddling a bullshit story about peak energy

        NO YOU ARE A DIRTY LYING WOP CUNT. I’VE NEVER PEDDLED ANYTHING ABOUT PEAK ENERGY. ONLY ABOUT A VERY LIMITED PEAK OIL MODEL. A HIGHLY CAVEATED PEAK OIL MODEL THAT SHOWED WHAT A CUNT YOU WERE BEING FOR BACKING THE CARBON TAX, WHICH WOULD HAVE STOPPED SHALE IN ITS TRACKS.

        I WILL PUT THE FOLLOWING IN THE GOOGLE.

        WE NEED TO SAVE THE ENVIRONMENT FROM THE ENVIRONMENTALISTS IN THE SAME WAY THAT WE NEEDED TO SAVE THE POOR FROM THE SOCIALISTS.

        AND WHEN I DO IT WILL PROVE THAT YOU ARE A LYING WOP CUNT.

  47. For the record, I’ve paid off my mortgage. I don’t have a mortgage. I’ve never abused any bank for lending me money. All this stupid talk by this dumb wop, is just evidence that this primitive cannot separate public policy in his little goth-mind from personal financial decisions.He’s from the dumb goth wing of the Italian gene-pool and not the Aquinian wing.

    • I’VE PAID OFF MY MORTGAGE CAMBRIA. MY MORTGAGE IS NO MORE. I’VE NEVER WHINED ABOUT MY MORTGAGE. THAT WAS A CATALLAXY FANTASY WHERE CATALLAXIANS WEREN’T ABLE TO SEPARATE THE PERSONAL FROM THE POLICY QUESTIONS.

      LIKE I REMEMBER SAYING HOW THE RESERVE BANK OUGHT TO PUT IN 17 BILLION IN NEW CASH INTO THE ECONOMY, AND THEN RAISE THE RESERVE ASSET RATIO. I SAID THIS BEFORE THE GFC. AND YOU THICK SHITS AT CATALLAXY, INSTEAD OF GETTING TO GRIPS WITH WHAT I WAS SAYING, DECIDED THAT I WAS TALKING OUT OF MORTGAGE STRESS. AND THAT I HAD TURNED INFLATIONIST.

      ITS REALLY A VERY STUPID THING TO BE JUDGING OTHERS BY YOUR OWN RETARDED STANDARDS.

  48. Cambria has a dreadful case of glass jaw, doesn’t he. Lashes out but can’t stand the blow-back.

    What a textbook bully-sook.

  49. Graeme, where’s the best place to go to for personal financial advice? A bank? Super fund? Or an independent? Does it make a difference?

  50. Its very hard to say. I mean you just got to listen to everyone and see where you think the logic is. Like I was watching some fellow talking about how in the long run shares are always the best. He made a convincing case. I’m up to my eyeballs in silver at the moment. But thats not a forever thing. Its just something I can be relaxed about for a little while until the problems the banksters have caused can resolve themselves somewhat.

    Where people really need the advice is with their self-managed superannuation. Because in this country, thats the only really good tax dodge that you can have for normal people.

  51. The peak oil model is a very good model that relates specifically to traditional oil-wells on land AND NOTHING ELSE. You cannot get people at Catallaxy to understand the model. Even after all these years somehow the dumb wop has peak oil and synthetics, like tar sands, and shale confused. And it matters not one whit how many times you explain it to this dumb wop. Where is it that the peak oil model isn’t working? It works in every country, so long as you don’t do what the ever-stupid Cambria is doing, and confusing the model with gas production, shale liquification, and so forth.

    You guys at Catallaxy have to come to grips with what a thicko Cambria is. He’s so mentally challenged. That is where we are today. Stupid people hiring stupid people and on and on.

  52. Thought as much.

    A friend who’s been living off a basic income from margin fund investments for about 12 years went completely broke within days after the Standard and Poors downgrade of the US. He had to cash in what was left which wasn’t much and now he’s talking about declaring bankrupt or doing a runner. He’s an actor. And doesn’t have any other assets or a regular reliable income.

    • Actually my best advice I’ve written over Cambria down below. That is it really and you cannot go far wrong if you follow it. But the best educational series is the rich-dad poor-dad series of books. Forget that the artifice of having a semi-imaginary friend is a bit bogus. The series of books are magnificent and spell it all out. And they are so popular that they will now be in all the libraries.

      But the advice stands: Never buy on margin unless you are already an expert. Don’t buy with debt, except for real estate. Don’t buy real estate except that its positive cash-flow real estate. This implies that you may need to wait for years before buying real estate.

      Now thats a lot of don’ts. But if you work vigorously within that framework you can get very rich. Take the founder of the rich dad poor dad series of books. He’s up to his eyeballs in real estate, after the biggest real estate crash in US history and the second biggest real estate crash in world history, to Japan only.

      He’s got 4000+ properties. But he’s fine since his idea was only to look for cash-flow positive properties. Turns out he has all the sort of joints that people go to after they get foreclosed on.

      The idea is that you buy a property that allows you to buy another if one comes up. If you do that with honest intent and you make a mistake the market will tend to bail you out with a delay. But its better not to make a mistake then you can buy another and another.

      Its just hard from an emotional point of view to do that. The girl wants to buy a place to live in, in most relationships. And this skews things away from such a plan. We came up with a pretty good compromise on our one, but the timing was wrong, as I knew it was. But nonetheless it was a compromise with what I recognized was a better plan, and so we wound up with a property that wasn’t good enough to go right ahead and buy another one. But thats alright, because she learnt from that and every so often she’ll show me some place she’s interested in that indicates she’s more on the right track now.

  53. Margin funds are going to be a terrible trap. Because it means you have to sell when you ought to be buying. I know a fellow who was buying silver on margin, in order to make enough profit to get delivery of the real thing. As far as I know he’s still doing well out of it, but if someone without expertise were to try it, the banksters would get that money off of them. Because they are allowed to just come in and sell make-believe commodity, crash the market, and then that leads to margin calls. So if the big guys perceive that there are many margin investors out there they can shake that tree. None of this has anything to do with a properly functioning price system. The bigshots have set up the system to be crooked so they can milk it.

    Its not just the margin people that would be shaken out ruthlessly from time to time. But you also cannot hang in there if you buy on debt. I’d not recommend anyone buy silver in debt. Sooner or later you have to cash in your chips, because while you can analyse trends, or find companies that really are undervalued, the bigshots now can delay proper price discovery with their short-selling and derivatives. So you can wait and wait around for the value to show up, and you’ll just get burnt by the debt you are in.

    The only thing to buy out of debt would be cash-flow-positive properties. And doing so is not wealth creation either. Its just a free gift that comes up from time-to-time as a result of our crap financial system. People really have no choice but to benefit from the anomalies of the system that has been foisted on us.

    That would be the only advice I would give. Segregate investments into real estate and other. Only use debt on real estate. But don’t even do that unless its cash flow positive. And the reality is that you may need to wait years to pick up cash-flow positive real estate investments.

  54. Silver up another 43 cents, to 32.63. Thats me getting another $1264 dollars richer. So already I’m 4211 dollars ahead. Of course it could all go down again next hour.

  55. Here is an excellent (if perhaps exaggerated) explanation of why silver is such a good buy right now. But the core reason why silver is such a good buy, is the corruption of financial markets by the usual suspects and by phantom supply. If there was only real supply, and real demand, and only positive-inventories speculation, and not any negative inventories speculation, then there could be no special sure-fire deal. That there is such a good deal on silver is testimony to the failure of the current cronyism.

  56. These guys will never give it up.
    The delusional power trip of fractional righteousness is buried deep in the psyche.
    Trying to reason with even a cube level field nigger who claims financial expertise is about as useful as arguing with a Christian. Or Atheist for that matter.
    The legendary Threads of Doom were merely symptomatic.
    So I’m not seeing how an orderly transition from our current trajectory of slavery and poverty to a better world of liberty and prosperity is possible.
    And if the Carbon Bills go live it will be game over. Because they are, in effect, a licence issued to a legal person for the right to breathe.
    It will take a revolution. Just maybe it can be achieved without too many lamp posts.
    If a critical mass of individuals were to claim personal sovereignty and secede in place, we could make an end-run around the Banker/Government tyranny.
    Outflank ’em with abundant energy on one side and sound money on the other.
    Yeah I’m dreamin’. But hey, so was the Rev. Mr King.

    Thorium Rocks. No doubt about it. Obvious win is obvious.
    Low Pressure Molten Salt is proven and presents zero conceptual difficulties.
    Cannot blow up and cannot melt down, the right team could get it done in very short order if told to get serious, Manhattan style.
    Simply won’t happen.

    Radiant Energy and the Legend of Tesla is the other alternative.
    Tesla had in fact moved on from the “big tower” idea and got it down to suitcase size by the end of his career.
    What’s required is gear that can be put together by a bloke in his shed.
    There are some other seemingly viable concepts such as Schauberger’s vortex devices (my favourite) and Bedini’s “back EMF” motors.

    The other requirement is sound money and sane exchange.
    I was a fan of your idea of a “strategic reserve of an energy resource plus one stage of refinement as currency” as soon as I read it.
    So much so that I have been sketching out the architecture of a network transaction protocol with which to implement it ever since.
    But these guys are way ahead of me:
    bitcoin.org
    I’ve only been going over it for a couple of days, but damn, it looks sound, and it looks the goods.
    And! It’s already up and running – live and in production and being traded right now.
    Basically it is a set of unique numbers in a self regulating distributed network with “growth deflation” built in as a design requirement.
    It simply cannot be fractionalised!
    The only conceptual hurdle I’m trying to get my head around is that it amounts to “voluntary fiat”.
    So far, all I’ve got is: Why not?

  57. “So I’m not seeing how an orderly transition from our current trajectory of slavery and poverty to a better world of liberty and prosperity is possible…..”

    Its a hard enough ask to see how you could wind up with the more humble goal of an honest silver market. Oddly enough the antidote to phantom supply is a government mandated minimum price. Supposing they made the minimum price 50 AUD? Well I’d be about fifty-seven thousand dollars richer. But they could then force the bigshots who had sold short to start clearing their shorts at that price. I don’t quite know how JP Morgan has managed to get out of it. But it will be by some mechanism not available to normal players. The whole thing is so corrupt its sickening. But that it is corrupt has given me the opportunity to make something for doing nothing. And here is the appeal of a corrupt system to the already wealthy. This half-free subtly corrupt setup has to be immensely appealing. Because its half-free it keeps functioning and producing wealth at some feeble level. And because its corrupt the rich don’t need to do anything useful to get still richer.

    Its just hard to imagine how we can get out of it. Like where you had all these slaves down the back, and so you could get addicted to exploiting the black chicks sexually. Once you are used to that sort of setup you’d want to be holding onto it no matter what the looming threats are.

    • why aren’t you endorsing Herman Cain, Graeme?

      is it a BLACK thing?

      • He’s an attractive candidate for sure. But its pretty clear that he’s going with the flow as far as the criminal bankers are concerned. Whereas right now we need to be setting ourselves against the shadow government as our mortal enemy. The shadow government evidently finds Herman Cain acceptable. Therefore he can not be counted as a substitute for Ron Paul. Certainly I would prefer him over an outright quisling like Rick Perry. But the reality is that only a candidate that is set totally against the shadow government can make the Presidential election anything but a big fat yawn.

        Washington is enemy occupied territory.

  58. A Letter from Goldman Sachs
    Concerning Occupy Wall Street

    The following is a letter released today by Lloyd Blankfein, the chairman of banking giant Goldman Sachs:

    Dear Investor:
    Up until now, Goldman Sachs has been silent on the subject of the protest movement known as Occupy Wall Street. That does not mean, however, that it has not been very much on our minds. As thousands have gathered in Lower Manhattan, passionately expressing their deep discontent with the status quo, we have taken note of these protests. And we have asked ourselves this question:

    How can we make money off them?

    The answer is the newly launched Goldman Sachs Global Rage Fund, whose investment objective is to monetize the Occupy Wall Street protests as they spread around the world. At Goldman, we recognize that the capitalist system as we know it is circling the drain – but there’s plenty of money to be made on the way down.

    The Rage Fund will seek out opportunities to invest in products that are poised to benefit from the spreading protests, from police batons and barricades to stun guns and forehead bandages. Furthermore, as clashes between police and protesters turn ever more violent, we are making significant bets on companies that manufacture replacements for broken windows and overturned cars, as well as the raw materials necessary for the construction and incineration of effigies.

    It would be tempting, at a time like this, to say “Let them eat cake.” But at Goldman, we are actively seeking to corner the market in cake futures. We project that through our aggressive market manipulation, the price of a piece of cake will quadruple by the end of 2011.

    Please contact your Goldman representative for a full prospectus. As the world descends into a Darwinian free-for-all, the Goldman Sachs Rage Fund is a great way to tell the protesters, “Occupy this.” We haven’t felt so good about something we’ve sold since our souls.

    Sincerely,
    Lloyd Blankfein
    Chairman, Goldman Sachs

  59. Bird.

    Stop giving people financial advice on your blog. You are not licensed to do so

    HAHAHAHAHAHAHA. YOU IDIOT. YOU OUGHT NOT BE ALLOWED TO GIVE ANYONE ADVICE OF ANY SORT. FOR VERILY YOU ARE A MORON.

    AS TO ME I’LL GIVE ALL THE ADVICE I CAN. DON’T BUY ON MARGIN UNLESS YOU ARE ALREADY AN EXPERT AND MY ADVICE ISN’T GOING TO STOP YOU. DON’T BUY ANYTHING WITH DEBT EXCEPT FOR REAL ESTATE, AND ONLY BUY REAL ESTATE WITH DEBT WHEN ITS CASH FLOW POSITIVE. WHICH IN PRACTICE MEANS YOU MAY HAVE TO WAIT MANY YEARS BEFORE BUYING REAL ESTATE.

    NOW ANYONE WHO FOLLOWS THIS ADVICE IS GOING TO BE JUST FINE.

    • I think your financial advice is spot-on Mr Bird and aligns with what I have learned elsewhere. Thank you for confirming.

  60. This is beautiful and amazing.

  61. Meanwhile, the 1% prepare for hyperinflation following the inevitable money printing to come…

    • Right. But the Perth Mint is a righteous outfit, despite such showiness. The speculation you can engage in via the Perth Mint, is all socially valuable and helps stabilize the market. Whereas the speculation that people engage in, in the COMEX, particularly on selling side of the equation, is anti-social, and destabilizes the market, because its negative inventories speculation. What is a bit tragic is that some of the people I most admire, in the investment game, are promoting speculation to do with food commodities. Now I don’t know the technical details. But the general principle is that if they are running index funds wherein real rice, corn and grain is going to be stored, they are life-savers, helping to stabilize the market, prevent outright famines and so forth. ….

      …. But if any of them were running a commodities fund, with a promise to deliver on demand, but without 100% backed storage capacity, then they are destablizing the market, and they may wind up starving off thousands if there is a full-blown famine.

      This is the general principle, but like I said I don’t know the details.

      An excellently regulated situation ought not tolerate, much less encourage, anything but full inventories backed speculation. But think of the storage costs???? It ought to be first on the list of UN meetings to be asking each country to wave taxes on positive inventories speculation, and the construction of the storage capacity that would allow it ….. and at the same time segregate any other sort of speculation to the gaming community. or otherwise tax them in such a way as that they cannot pre-empt the more socially sound type of speculation.

      The Perth Mint seems to be almost unique. And it would be a far better thing if the Perth Mint model could be expanded to the full range of commodities. It would be a like a new model version of the Bank Of Amsterdam and we could clean up and hopefully bring in a new renaissance.

  62. This particular phraseology appears to be individual to me.

    I’m going to try putting “phantom supply” “positive inventories speculation” and “negative inventories speculation” in the google, and I think we will see that this refinement of the classical/austrian economics case in favor of speculation is pretty unique to myself.

  63. I vaguely remember from history that it was the discovery and exploitation of American silver – in Peru, Mexico, Bolivia – that made the Spanish monarchy the richest, most powerful and militarily successful European nation from around the 16th century. And it was Spanish silver bullion that led to the formation of European capital that marked the modern era. The Spanish silver empire extended to east Asia (with its major base in the Philippines) and it also had a destabilising effect on the Chinese economy of the Ming dynasty.

    The silver coins minted in the Spanish-American factories formed the basis of a global monetary system but eventually this bullion economy led to inflation and the failure of Spain economically vis-a-vis its European rivals. And so the wheel turns. Also like today there were prominent people and movements in Spain which challenged the bullion economy as being one that only increased wealth inequality, and entrenched poverty, and claimed, with good reason, that it was a diversion from the more important priorities of productive trade, agricultural and industrial development and investment.

    The growth in silver extraction, coin production and exchange was surely not much different from the inflationary printing of paper money today to get out of debt and other crises endemic to the capitalist economic cycle.

    • But what was discovered in the thousand year history is that the inflation came first, and then came the exploitation of gold from the new world. In other words the normal historical view had been that the ruthless behavior of the Spanish in the New World had lead to the gold importation, which lead to the inflation.

      A more forensic analysis puts it that the fractional reserve banking came first, leading to inflation and ruthlessness with finding new gold and silver, leading to or exacerbating vicious behavior in the New World.

  64. Okay so lets go in googles recognition of me as being an innovator in economics.

    “bank cash pyramiding” gives you this page:

    http://www.google.com.au/search?gcx=w&sourceid=chrome&ie=UTF-8&q=%22bank+cash+pyramiding%22

    “positive inventories speculation” gives you this page:

    http://www.google.com.au/search?aq=f&gcx=w&sourceid=chrome&ie=UTF-8&q=%E2%80%9Cphantom+supply%E2%80%9D#sclient=psy-ab&hl=en&source=hp&q=%E2%80%9Cpositive+inventories+speculation%E2%80%9D+&pbx=1&oq=%E2%80%9Cpositive+inventories+speculation%E2%80%9D+&aq=f&aqi=&aql=&gs_sm=s&gs_upl=53959l60643l0l61930l16l6l0l0l0l1l787l787l6-1l5l0&bav=on.2,or.r_gc.r_pw.,cf.osb&fp=a4dd50632ae7b790&biw=830&bih=461

    “negative inventories speculation” gives you this page:

    http://www.google.com.au/search?gcx=w&sourceid=chrome&ie=UTF-8&q=%E2%80%9Cnegative+inventories+speculation%E2%80%9D

    “broker share pyramiding” gives you this page:

    http://www.google.com.au/search?gcx=w&sourceid=chrome&ie=UTF-8&q=%22broker+share+pyramiding%22

    Now I’m a big fan of the accumulated reasoning of the British-Classical and Austrian schools of economics. They amount to the pinnacle of achievement in the humanities and in APPLIED LOGIC. There is really very little doubt about this, the accumulated intellectual heritage here is an just a wonderful thing.

    But as good as they are, these schools of thought are still skewed and flawed, at least in emphasis. And the above shows why I am the best person to talk to, in order to be able to put these matters into perspective.

    For verily it can be shown that only I managed to come up with this formulation which showed what many reasonable observers thought, as being perfectly compatible with economic science with regards to speculation.

    Many perfectly sound observers could see that much of the speculation that was going on was harmful, but the economists would poo-poo them because it didn’t work in with what those economists had sussed out in the textbooks.

  65. http://www.facebook.com/pages/OccupyMARINES/246310432083819?sk=info

  66. A 2-time Iraq War vet at this demo remains in critical condition with a fractured skull and brain swelling.

    This is how we must expect the plutocracy and its paid goon-pigs to defend itself. All on film though and the whole world is watching.

    This is the US today. Oakland, California.

    http://www.ktvu.com/video/29587714/index.html

  67. Yeah its just a disgrace. Like these police are akin to an occupying force, and the fellows who have the skills to take them down clean, get brain damage, just for being reasonable and protesting in a reasonable manner.

  68. http://www.occupyoakland.org/2011/10/general-strike-mass-day-of-action/


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