Global organizations and agendas
By Andrew McKillop
In a great article published 28 March on why the European Union is doomed to collapse or total transformation – into what? - Charles Hugh Smith shows the explain-it-all chart, below. One important fact is this economic model is a convergent and globalized “no alternative”. Countries that don’t play this game are almost inexistent, for example the paranoid police state of North Korea.
[[wysiwyg_imageupload:942:]]By Tim Iacono
Spotted over at The Daily Bail was this short clip from the John Adams HBO movie in which Thomas Jefferson and Alexander Hamilton discuss the idea of creating a central bank.
In just about every account I’ve seen or read, Hamilton comes off as being the nation’s first Washington-Wall Street douche bag and this movie is no exception. Aaron Burr probably did the world a favor by cutting his life short in the famous duel of 1804.
[[wysiwyg_imageupload:525:]]By Murray Rothbard
"This classic piece appeared in Ramparts, VI, 4, June 15, 1968. It was the fulfillment of an ideological trend that began a few years earlier when consistent libertarians, led by Rothbard, sensed an estrangement from the American right-wing due to its support of militarism, police power, and the corporate state. Here Rothbard presents a rationale for why he and others had, by 1968, largely given up on the Right as a viable reform movement toward liberty, realized that the Right was squarely on the side of power, and thereby developed an alternative intellectual historiography.
by JR Nyquist on Fri, 3 Sep 2010
Once upon a time there was a nation, free and proud. It was armed and ready for war. Its warriors were battle-ready and disciplined. But the leaders of this nation were socialists, and they were opposed to their own country's armed forces. In secret collaboration with a foreign power, they ordered their country's disarmament. They eliminated military units, they slashed military spending, and promoted commanders who were willing to disband their own armed forces.
By JR Nyquist
On 3 December 2007 a curious item appeared in the Russian media. It concerned Igor Ivanovich Sechin, a Russian political figure close to then President Vladimir Putin. Kommersant featured a quote from Oleg Shvartsman, head of the Financial-Industrial Group: "For us, the Party is represented by the power bloc headed by Igor Ivanovich [Sechin]." This statement was offered in response to a journalist's question about Shvartman's strategic task of velvet re-privatization. "Who set this task for you?" asked the journalist. Shvartsman's extraordinary answer slipped inadvertently from his post-Soviet lips: "The party! (laughing)."
Just like out of a Tom Clancy novel, it looks like the head of China's Central Bank, Gov. Zhou Xiaochuan has fled the country? The reason? A $430 billion dollar loss on treasuries. Could this be the first leak in the dam? We think it just might. Why would such a high profile guy be on the run? Consider that Madoff is spending the rest of his life in jail for a ponzi scheme. We don't think the Chinese justice system will be sofriendly to Mr. Xiaochuan. Consider a few things:
China's U.S. debt holdings is at about $843.7 billion, and according to the latest reports by the Treasury department, they have lightened up in June (by 24 billion) and then May (by 32.5 billion).
That is over a 50% haircut.
What happens when (not if) the Chinese start to dump? As famed investor Jim Rogers recently stated, "Head for the hills!" What exactly would it look like? Hard to say. But we will take a stab.
Watch interest rates hit double digits, really, really fast. As interest rates climb, whatever borrowing is left will cease. Business will crumble, unemployment will explode. Not a pretty picture.
“…US Treasury data show that China has cut its holdings of Treasury debt by roughly $100 billion (L65 billion) over the past year to $844 billion…
Two epochal forces are colliding in the global bond market: core deflation is gathering force but the West is losing sovereign credibility just as fast.
Arch-bear Albert Edwards at Societe Generale advises clients to prepare for a violent policy swing from one extreme to the other. First we deflate into the abyss: Then we inflate hard rates to get out again. At some point the "euthanasia of the rentier" will wear off. Misjudge the sequence at your peril.”
Ambrose Evans-Pritchard, The Telegraph, London, 8/23/10
Our favorite Keynesian, Paul Krugman, came out with a hilarious New York Times Op-Ed piece where he is advocating (what else) to print money and that there will be few if any consequences.
Can you believe that this guy is actually respected? Well, this is America, the land where managed and Keynesian economics is not only embraced as policy but also taught in every academic institution. From the article: