“In these new times, in spite of the dangers, the most brutal force, the most fearful night, we are engaged in the fight to survive.” No Novo Tempo-Ivan Lins, Vitor Martins
The financial system established in England after 1688, based on usurious lending to the state by private bankers, is reaching its final blowout in the form of a series of devastating bubbles and a massive bailout of the financiers with public money. But the issuance of money doesn’t have to be in the hands of a private consortium: another credit system is possible.
Many are the obstructions to the so-called (mislabeled) deflation threat within the USEconomy. To begin with, falling asset prices does not constitute deflation. One of the primary objectives of the banking elite in firm control of the USGovt and USCongress is to confuse the public and investment community on the entire topic of inflation, what it is, how it is measured, and its risks. The same goes for deflation. All debate as to whether the Untied States will suffer from inflation or deflation is a horrible misdirected distraction that manifests the confusion. The US will suffer both higher monetary inflation and worse economic deterioration, not one or the other, but BOTH, and with steadily increasing intensity. Imagine a massive tornado building force, inflicting damage, and being fed to grow even more powerful by current policy. To argue on whether the high pressure or low pressure will prevail misses the entire storm, built upon the grand and growing differential in pressure. The storm is born of opposing pressures, each growing more intense. Human response to economic distress and banking woes ensure evermore pressures to be exerted on each side. The grand growing monetary expansion continues to collide with grand worsening asset price decline, while the Deflation Knuckleheads spout more nonsense. They miss the storm itself, how it is formed, and the dual nature of its tempest. Read the rest of this entry »
Celente is a bit hard on Mussolini who would , of course, have been appalled at government backing for purely parasitic financial wheeling and dealing. The problem is not state intervention per se but the fact that it is not orientated to rebuilding infrastructure, productive capacity and the general welfare.
From Times Online
June 30, 2009
UK economy shrinks at fastest rate for 50 years
Miles Costello, Grainne Gilmore
The UK economy shrank by 2.4 per cent in the first quarter at the fastest rate in more than 50 years and far worse than expected, according to official figures today.
Revised figures from the Office for National Statistics (ONS) showed that, between January and March, the economy contracted by its fastest pace since 1958. The ONS revised down its initial estimate, showing a contraction of 1.9 per cent. Read the rest of this entry »
A warning bell on California muni bonds
As sure as the sun will set on the Golden State, analyst Martin Weiss says California is going to default.
By Jon Birger, senior writer
Last Updated: June 25, 2009: 2:21 PM ET
NEW YORK (Fortune) — Known for his early warnings on Bear Stearns and Lehman Brothers, analyst Martin Weiss of Weiss Research is now sounding the alarm about state of California municipal bonds.
In a new report, Weiss has some rather blunt advice for California muni investors: “Sell all California paper now!” His reasoning? California is facing a $24 billion budget gap with no obvious way to close it. Read the rest of this entry »
“Not even the « jobless recovery » many experts are trying to make us believe in. In the United States, United Kingdom, Eurozone and Japan, it is a « recoveryless recovery » we must expect, i.e. a pure invention aimed at convincing US and UK insolvent consumers to start buying again and keeping US T-Bonds’ and UK Gilts’ country purchasers waiting as long as possible (until they decide that there is really no future selling their products to the lands of the US Dollar and British Pound.”
As anticipated by LEAP/E2020 as early as October 2008, on the eve of summer 2009, the question of the US and UK capacity to finance their unbridled public deficits has become the central question of international debates, thus paving the way for these two countries to default on their debt by the end of this summer.
In reaching across the aisle for Republican support – and no doubt future campaign contributions from the financial sector Pres. Obama is morphing into Joe Lieberman. There also is a touch of Boris Yeltsin in his sponsorship of a financial “reform” ominously similar to what advisor Larry Summers backed in Russia – relinquishing government power to a banking elite. The Financial Regulatory Reform proposal promotes Wall Street’s “product,” debt creation, at the expense of the economy at large, and lets financial chieftains continue to self-regulate the debt industry – and to keep scot-free all their gains from the past decade’s worth of fraudulent lending.
Death by a thousand cuts China Commodities Undercut USDollar
Jim Willie CB
Jim Willie CB is the editor of the “Hat Trick Letter“ Jun 19, 2009
Use this link to subscribe to the paid research reports, which include coverage of several smallcap companies positioned to rise during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.
China is directing their mountain of reserves away from acquired mining firms and toward managed hedge funds. This is a new direction for Beijing, clearly in response to the refusal by Rio Tinto to permit a $19 billion stake from the Chinese aluminum giant Chinalco. They were frustrated and angered by the other refusal with the failed Unocal deal in 2005. Clearly, whether stated openly or not, the Chinese are thwarted by USGovt and UKGovt hidden leaders from investing in strategic firms. From their point of view, tarnished by ill feelings, their money is good for credit supply but not good for commodity supply lines. So China will continue its pursuit of significant interests in commodity firms, both metals and energy related, and will amplify the pressures by taking scattered interests in hedge funds.Read the rest of this entry »
The dangerous consequences of New Labour’s massive bailout of the banks is causing some disquiet. As we have already noted King appears intent on protecting the pound, for whose value the Government seems to have a cavalier disregard. As UK PLC goes down we can expect more sparks to fly as the elite agenda starts to fragment.
This week marks the end of the dollar’s reign as the world’s reserve currency. It marks the start of a terrible period of economic and political decline in the United States. And it signals the last gasp of the American imperium. That’s over. It is not coming back. And what is to come will be very, very painful. Read the rest of this entry »
