Chasing Our Tail
Econo-Rant:
Stocks are rising because J.P.Morgan-Chase posted better than expected profits of about $5 billion. Well, yay - they were planning on this. Listen - this bank is the central bank of the world, and it knows exactly what it is doing, with the cooperation and implication of the IMF, u.s. FED, etc. So, well, it's just a joke, folks. It's a cruel joke. First of all, Wall Street means virtually nothing. It's good for the banks, because they can make their bets and pull them out in a millisecond once they've made millions of tiny profits, amounting to $billions. It's good for megacorps, most of whom are out of the bankster loop, and the FIRST-NEWS Goldman-Sachs, politician, etc., axis, who insider-trade and secure their profits before stocks even move. It's good for the bubble-investors, except for the late-comer ignorami who are sitting there when the bubbles pop. But, indeed, Wall Street is not realistically connected to the ACTUAL economy, involving manufacturing, jobs and credit for small businesses. Today, Wall Street benefits the banks and megacorps who don't hand out credit; who don't job-create here; who send jobs overseas; who send plants and our tax-income overseas; who outsource to overseas companies which are often protected mega-franchises of our home corps; who infect other companies like parasites and them implode them for CEO bonuses and take-away, (Romney, and other carpet-baggers); who gamble away hedge funds and then turn around and demand the pensions that were the capital behind those hedge funds; who bundle mortgages and sell them and insure them, assuring that they fail, then act like they own the homes behind those mortgages, which they steal and then demolish; who lend out to countries like Greece and then implode the derivative-based funds so that the countries now become infinitely indebted to the Central Banks, who then lend more money, (expecting more $ interest), while demanding AUSTERITY (blood) from innocent populations, AND SO FORTH.
FURTHERMORE, Wall Street only benefits the BIG and SHORT TERM players. Over all, even though the numbers have gone up, Wall Street hasn't produced gross wealth, relatively, in the last 30 or so YEARS. People who invest in stocks, and don't game mortgage or corn or .com or computer-trade tricks, do NOT, in general, GAIN WEALTH. It's an ILLUSION. Why? Because Wall Street goes up when the value of the dollar falls, (and inflation goes up), because investors are throwing around more and more (less and less useful) dollar bills - so OF COURSE the numbers will go up. One of the only values to retain wealth has been gold - physical gold - but in the commodities, futures and stock exchanges, gold has had so many certificates and crap paper printed behind it AS AN INVESTMENT that, just like the mortgage bubble, it can end up being a major loss for a lot of people - like people wanting to cash in their certificates for real gold, not knowing there are too many certifs, and not the stated amount of gold backing them. LIES. Investment in LIES. (Which is ultimately what the dollar is now - a LIE, which is backed up only by MILITARY FORCE SUSTAINING WORLD OIL TRADE IN DOLLARS).
Wall Street profits are also an illusion deceiving most investors because it is ballooned up by more and more foreign investors, who then take their profits - out of the U.S.A. Also, stated corporate earnings by companies are often based on mumbo-jumbo and magical thinking, and I can't even get into this whole nutsy topic. But, often, corporate profit are also wrongly reported because they have been infected by VAMPIRE CAPITALISTS, who are moving to ultimately over-leverage and implode the companies. Further, Wall Street optimism does not react to reality - it reacts to cosmetic, superficial news announcement, which are often IN CONSPIRACY fabricated by government(s) and the corporate media. Even events that have nothing to do with the economy can convince Wall Street to rise, like a capture of some "terriblist," (who is in fact a plant by an intelligence agency), or strategic announcements by the President. The crucial affairs in Europe, and certainly the fundamental economic problems, are not what spark Wall Street to rise or fall - it is rumours amongst political leaders, or the latest re-announcement by the European Community that there is enough to cover some new country's debt, when there isn't - they're merely playing for time, (working to set up the doomed-to-fail EUROBOND, and a global currency). Finally, Wall Street is more keyed into the perfidies of weather, and the destruction-invested-and-invisibly-downwards GDP, and the flushing in of more free funny money from the FED, than it is to the growth of the American Economy, including most investors. And, no one seems to factor in the effect of Katrina and the Western fires, OR THE MOTIVATIONAL DEPRESSION AMERICANS EXPERIENCED WHEN THEY WATCHED THE COMPLETELY OVERWHELMING CHINESE CEREMONIES IN THE LAST OLYMPICS. And now, our Western Olympics are all choked up with SECURITY ALERTS and MILITARY OCCUPATION AND MACHINERY, while the outfits of our athletes were all made in CHINA. UGH!!!!!!!!!!!!!
So - $5 billion profit for Morgan-Chase. That, and a $1.5 trillion QE4, (actually about QE9), is what Obama and vested interests have been counting on to save the day, and the election. But none of this is real economics - it is an investment in the ultimate decline of empire, to save the asses of the likes of TRANSNATIONAL BIG OIL, BIG PHARM, BIG AGRA, BIG NUCLEAR, BIG MILITARY, ETC., MONOPOLY-CARTELS. MEANWHILE, the news announcers say that the now-$5.8 billion (derivatives) that Morgan-Chase somehow lost on it's books, is, "almost three times the original estimate." See - this is how the media is complicit. No, $5.8 billion is not 3x the original - because the original was stated to be, "about $1 billion." Predictably, that number has been moved upwards to now be SIX TIMES the original stated amount. That's what they do. And what you can BET that means is that the ACTUAL amount is something more like $15 billion, derivative-"backed". And you can ALSO bet that that money didn't ACCIDENTALLY DISAPPEARED. No, what PROBABLY HAPPENED, (which I was wanting to post about at the time), is that that $15 billion of uncashed derivatives were given over to THE FED, who then parlayed it into a loan of $150-$300 to the European Central Banks, (as well as the IMF and the U.S.). And what did the euroBanks probably do with THAT money? They parlayed it into credit reserves of about $2 trillion dollars, making them suddenly able to load out to save Spain's ass, so long as Spain dutifully imposed AUSTERITY upon its people. This is what we do, whereas China and India are prudently BUYING GOLD to secure their wealth, seeing that U.S. and EuroBonds are made out of stardust by drunken wizards wearing tin-foil hats. The Neo-Alchemists. Money from nothing! And what happens when those underlying derivatives CRASH, along with the other $600-$1000 trillion derivatives in the markets - a sum far greater than the cash resources than the economies of all the world's nations combined? It will send the West into a spiral such as Greece underwent, finding itself deceptively overleveraged by Goldman-Sachs, (felons, arsonists, et al), being summoned to borrow by some greater lender, required to extract massive AUSTERITY from its vast populations - or else forgo the borrowing and suffer virtually the same ECONOMIC DEVASTATION TO ITS PEOPLES.
We are either complete idiots or we are playing for time - waiting on some amazing Deux-ex-Machina that the covert, benign global conspiracy may have up its sleeve. It feels more likely that we are really waiting for the next shoe to drop. The way the political games play out here in the U.S.A., it seems that we are only edged closer and closer to accepting impositions of serious AUSTERITY and suspension of our rights. As someone recently said recently on CNBC, "Isn't it time we considered that we are in fact being dictated to - owned by - a cabal of global banks?"-(para). There have been indications that Obama at least theoretically opposes AUSTERITY, but he has always erred on the side of saving the megacorps and the banks, and certainly of agreeing to the FED's printing/loaning of QE money, rather than to exploring TRUE Keynesianism and massively investing in the grassroots-up - in the people, small businesses, the infrastructure. These latter type investments have paled and have been haphazard: Compare the LOANS to the auto companies to the BAILOUTS by the Fed to the megacorps, the EuroBanks, the TARP bill, etc. And the new President of France, Gérard Hollande, who as well OVERTLY agreed that AUSTERITY is the wrong way to go has come out strongly in favour of Greece taking the Central Bank loans, in order to stay in the Euro Community, (and eventually NATO, by extension), and so to impose AUSTERITY measures on it's people. Same with Spain, etc. For all the talk and nice token gestures, and for all that Obama MIGHT mean well deep in his heart - or not - the reality appears that we have decided to remain LOCKED INTO THIS PATH BECAUSE OF "SECURITY" CONSIDERATIONS. I.e., once again, "Too big too fail."
What would happen if we had a Jubilee, and let Greece go free, as is advised by some very sane economists? Well, then, we would lose control of Greece - of Spain - of...OMG!!! The fear is that unshackling these countries from forced credit will lead to them borrowing and trading elsewhere, perhaps moving towards trading oil in Yuan, or such, and allowing their populations to become contaminated by what once were THE COMMIES - but now are simply Muslems or Terriblists. Whatever, the fear is that the populations would undermine the house of cards which is the current Western economic and security order. And so, the great tide of Moslems might swarm up through Greece and Spain and Italy, whereas what shall possibly happen if we continue on the path we're on? We will see NATO troops moving through Greece towards Turkey and Syria and Iran. Sounds like a plan.
Choosing the course of FED QE-printing, and top-"down" bank-to-bank lending, and so FORCING COUNTRIES TO IMPOSE AUSTERITY MEASURES is a net waste of economic potential - it's a sieve benefitting those at the top. It is a continuance of dysfunctionalising capitalism's most fundamental, tragic flaw, which is to extract wealth and freedom by imposing VIRTUAL SCARCITY upon all vulnerable competitors, the COMMONS, and the environment. AUSTERITY is a grotesque perversion of true capitalism - it is capitalist empire going to seed. See also:
http://madman101.livejournal.com/1148560.html
more: http://madman101.livejournal.com/1123997.html
http://madman101.livejournal.com/1094998.html
or hit my public tags. There's a lot I haven't tagged yet, rrrrr....
Oh - I didn't even get into how we have this war on drugs and corruption of our Judiciary, partly because the mega banksters are not only implicated in identity-theft, financial fraud, credit-card loan-sharking, and stealing homes, they are also nicely invested in illegal drug smuggling and arms trade. So, if you wonder why Obama has changed his mind and is now fighting MEDICAL MARIJUANA, it's because he probably was forced to cut a deal with the powers that be, which are basically a corrupt global corporate MOB. (Just like he probably had to cut a deal with BIG PHARM, BIG MED, BIG INSURANCE, and the corporatist SUPREME COURT, to see that ROMNEYCARE, which was introduced by the HERITAGE FOUNDATION, could become a (tad lame) reality.
QE/gold - (remember: big dif between PHYSICAL gold, and gold via paper/certif/investment) - http://www.forbes.com/sites/afontevecchia/2012/06/11/golds-metamorphosis-from-safe-haven-to-commodity/
Stocks are rising because J.P.Morgan-Chase posted better than expected profits of about $5 billion. Well, yay - they were planning on this. Listen - this bank is the central bank of the world, and it knows exactly what it is doing, with the cooperation and implication of the IMF, u.s. FED, etc. So, well, it's just a joke, folks. It's a cruel joke. First of all, Wall Street means virtually nothing. It's good for the banks, because they can make their bets and pull them out in a millisecond once they've made millions of tiny profits, amounting to $billions. It's good for megacorps, most of whom are out of the bankster loop, and the FIRST-NEWS Goldman-Sachs, politician, etc., axis, who insider-trade and secure their profits before stocks even move. It's good for the bubble-investors, except for the late-comer ignorami who are sitting there when the bubbles pop. But, indeed, Wall Street is not realistically connected to the ACTUAL economy, involving manufacturing, jobs and credit for small businesses. Today, Wall Street benefits the banks and megacorps who don't hand out credit; who don't job-create here; who send jobs overseas; who send plants and our tax-income overseas; who outsource to overseas companies which are often protected mega-franchises of our home corps; who infect other companies like parasites and them implode them for CEO bonuses and take-away, (Romney, and other carpet-baggers); who gamble away hedge funds and then turn around and demand the pensions that were the capital behind those hedge funds; who bundle mortgages and sell them and insure them, assuring that they fail, then act like they own the homes behind those mortgages, which they steal and then demolish; who lend out to countries like Greece and then implode the derivative-based funds so that the countries now become infinitely indebted to the Central Banks, who then lend more money, (expecting more $ interest), while demanding AUSTERITY (blood) from innocent populations, AND SO FORTH.
FURTHERMORE, Wall Street only benefits the BIG and SHORT TERM players. Over all, even though the numbers have gone up, Wall Street hasn't produced gross wealth, relatively, in the last 30 or so YEARS. People who invest in stocks, and don't game mortgage or corn or .com or computer-trade tricks, do NOT, in general, GAIN WEALTH. It's an ILLUSION. Why? Because Wall Street goes up when the value of the dollar falls, (and inflation goes up), because investors are throwing around more and more (less and less useful) dollar bills - so OF COURSE the numbers will go up. One of the only values to retain wealth has been gold - physical gold - but in the commodities, futures and stock exchanges, gold has had so many certificates and crap paper printed behind it AS AN INVESTMENT that, just like the mortgage bubble, it can end up being a major loss for a lot of people - like people wanting to cash in their certificates for real gold, not knowing there are too many certifs, and not the stated amount of gold backing them. LIES. Investment in LIES. (Which is ultimately what the dollar is now - a LIE, which is backed up only by MILITARY FORCE SUSTAINING WORLD OIL TRADE IN DOLLARS).
Wall Street profits are also an illusion deceiving most investors because it is ballooned up by more and more foreign investors, who then take their profits - out of the U.S.A. Also, stated corporate earnings by companies are often based on mumbo-jumbo and magical thinking, and I can't even get into this whole nutsy topic. But, often, corporate profit are also wrongly reported because they have been infected by VAMPIRE CAPITALISTS, who are moving to ultimately over-leverage and implode the companies. Further, Wall Street optimism does not react to reality - it reacts to cosmetic, superficial news announcement, which are often IN CONSPIRACY fabricated by government(s) and the corporate media. Even events that have nothing to do with the economy can convince Wall Street to rise, like a capture of some "terriblist," (who is in fact a plant by an intelligence agency), or strategic announcements by the President. The crucial affairs in Europe, and certainly the fundamental economic problems, are not what spark Wall Street to rise or fall - it is rumours amongst political leaders, or the latest re-announcement by the European Community that there is enough to cover some new country's debt, when there isn't - they're merely playing for time, (working to set up the doomed-to-fail EUROBOND, and a global currency). Finally, Wall Street is more keyed into the perfidies of weather, and the destruction-invested-and-invisibly-downwards GDP, and the flushing in of more free funny money from the FED, than it is to the growth of the American Economy, including most investors. And, no one seems to factor in the effect of Katrina and the Western fires, OR THE MOTIVATIONAL DEPRESSION AMERICANS EXPERIENCED WHEN THEY WATCHED THE COMPLETELY OVERWHELMING CHINESE CEREMONIES IN THE LAST OLYMPICS. And now, our Western Olympics are all choked up with SECURITY ALERTS and MILITARY OCCUPATION AND MACHINERY, while the outfits of our athletes were all made in CHINA. UGH!!!!!!!!!!!!!
So - $5 billion profit for Morgan-Chase. That, and a $1.5 trillion QE4, (actually about QE9), is what Obama and vested interests have been counting on to save the day, and the election. But none of this is real economics - it is an investment in the ultimate decline of empire, to save the asses of the likes of TRANSNATIONAL BIG OIL, BIG PHARM, BIG AGRA, BIG NUCLEAR, BIG MILITARY, ETC., MONOPOLY-CARTELS. MEANWHILE, the news announcers say that the now-$5.8 billion (derivatives) that Morgan-Chase somehow lost on it's books, is, "almost three times the original estimate." See - this is how the media is complicit. No, $5.8 billion is not 3x the original - because the original was stated to be, "about $1 billion." Predictably, that number has been moved upwards to now be SIX TIMES the original stated amount. That's what they do. And what you can BET that means is that the ACTUAL amount is something more like $15 billion, derivative-"backed". And you can ALSO bet that that money didn't ACCIDENTALLY DISAPPEARED. No, what PROBABLY HAPPENED, (which I was wanting to post about at the time), is that that $15 billion of uncashed derivatives were given over to THE FED, who then parlayed it into a loan of $150-$300 to the European Central Banks, (as well as the IMF and the U.S.). And what did the euroBanks probably do with THAT money? They parlayed it into credit reserves of about $2 trillion dollars, making them suddenly able to load out to save Spain's ass, so long as Spain dutifully imposed AUSTERITY upon its people. This is what we do, whereas China and India are prudently BUYING GOLD to secure their wealth, seeing that U.S. and EuroBonds are made out of stardust by drunken wizards wearing tin-foil hats. The Neo-Alchemists. Money from nothing! And what happens when those underlying derivatives CRASH, along with the other $600-$1000 trillion derivatives in the markets - a sum far greater than the cash resources than the economies of all the world's nations combined? It will send the West into a spiral such as Greece underwent, finding itself deceptively overleveraged by Goldman-Sachs, (felons, arsonists, et al), being summoned to borrow by some greater lender, required to extract massive AUSTERITY from its vast populations - or else forgo the borrowing and suffer virtually the same ECONOMIC DEVASTATION TO ITS PEOPLES.
We are either complete idiots or we are playing for time - waiting on some amazing Deux-ex-Machina that the covert, benign global conspiracy may have up its sleeve. It feels more likely that we are really waiting for the next shoe to drop. The way the political games play out here in the U.S.A., it seems that we are only edged closer and closer to accepting impositions of serious AUSTERITY and suspension of our rights. As someone recently said recently on CNBC, "Isn't it time we considered that we are in fact being dictated to - owned by - a cabal of global banks?"-(para). There have been indications that Obama at least theoretically opposes AUSTERITY, but he has always erred on the side of saving the megacorps and the banks, and certainly of agreeing to the FED's printing/loaning of QE money, rather than to exploring TRUE Keynesianism and massively investing in the grassroots-up - in the people, small businesses, the infrastructure. These latter type investments have paled and have been haphazard: Compare the LOANS to the auto companies to the BAILOUTS by the Fed to the megacorps, the EuroBanks, the TARP bill, etc. And the new President of France, Gérard Hollande, who as well OVERTLY agreed that AUSTERITY is the wrong way to go has come out strongly in favour of Greece taking the Central Bank loans, in order to stay in the Euro Community, (and eventually NATO, by extension), and so to impose AUSTERITY measures on it's people. Same with Spain, etc. For all the talk and nice token gestures, and for all that Obama MIGHT mean well deep in his heart - or not - the reality appears that we have decided to remain LOCKED INTO THIS PATH BECAUSE OF "SECURITY" CONSIDERATIONS. I.e., once again, "Too big too fail."
What would happen if we had a Jubilee, and let Greece go free, as is advised by some very sane economists? Well, then, we would lose control of Greece - of Spain - of...OMG!!! The fear is that unshackling these countries from forced credit will lead to them borrowing and trading elsewhere, perhaps moving towards trading oil in Yuan, or such, and allowing their populations to become contaminated by what once were THE COMMIES - but now are simply Muslems or Terriblists. Whatever, the fear is that the populations would undermine the house of cards which is the current Western economic and security order. And so, the great tide of Moslems might swarm up through Greece and Spain and Italy, whereas what shall possibly happen if we continue on the path we're on? We will see NATO troops moving through Greece towards Turkey and Syria and Iran. Sounds like a plan.
Choosing the course of FED QE-printing, and top-"down" bank-to-bank lending, and so FORCING COUNTRIES TO IMPOSE AUSTERITY MEASURES is a net waste of economic potential - it's a sieve benefitting those at the top. It is a continuance of dysfunctionalising capitalism's most fundamental, tragic flaw, which is to extract wealth and freedom by imposing VIRTUAL SCARCITY upon all vulnerable competitors, the COMMONS, and the environment. AUSTERITY is a grotesque perversion of true capitalism - it is capitalist empire going to seed. See also:
http://madman101.livejournal.com/1148560.html
more: http://madman101.livejournal.com/1123997.html
http://madman101.livejournal.com/1094998.html
or hit my public tags. There's a lot I haven't tagged yet, rrrrr....
Oh - I didn't even get into how we have this war on drugs and corruption of our Judiciary, partly because the mega banksters are not only implicated in identity-theft, financial fraud, credit-card loan-sharking, and stealing homes, they are also nicely invested in illegal drug smuggling and arms trade. So, if you wonder why Obama has changed his mind and is now fighting MEDICAL MARIJUANA, it's because he probably was forced to cut a deal with the powers that be, which are basically a corrupt global corporate MOB. (Just like he probably had to cut a deal with BIG PHARM, BIG MED, BIG INSURANCE, and the corporatist SUPREME COURT, to see that ROMNEYCARE, which was introduced by the HERITAGE FOUNDATION, could become a (tad lame) reality.
QE/gold - (remember: big dif between PHYSICAL gold, and gold via paper/certif/investment) - http://www.forbes.com/sites/afontevecchia/2012/06/11/golds-metamorphosis-from-safe-haven-to-commodity/