Posts Tagged ‘criminal government’

The Trillion Dollar Coin Delusion

January 12, 2013

When some of the most prominent pundits, economists and financiers, if not the intelligent ones, can opine positively on this idea, then I too feel entitled to offer my thougths.

The idea is, to be polite, at best asinine. No suspense in what my position is as you can see.

Here is the quick and dirty.

If treasury can mint a 1oz coin of platinum and declare it to be worth $1 Trillion Dollars, where do we stop?

The question is rhetorical of course because in the new normal governments are attempting just that. When Fractional Reserve Banking and Floating Exchange Rates no longer provide the lift to asset prices as they used to, then the monetary authority must intervene directly to buy assets itself which, of course, runs counter to the dynamic they are trying to save.

Moreover, anyone who still believes the West enjoys free markets and a capitalist economy should finally have the cob webs removed from their eye lids. Insidiously if deliberately we are reaching the logical end of what this monetary system has wrought and the statist slant of the electoral political process is finally revealed for the authoritarian centrally planned utopia most politicians worth their salt dream about.

A $1 Trillion Dollar coin? If that works, then similarly why not declare by fiat the value of real estate, the value of wages, or what the rate of unemployment is…. oh! Wait!

The bitter sweet reality

July 12, 2012

I don’t mean to be self congratulatory as this is nothing to celebrate and, to be sure, even I am astounded at the speed and depth of how events are unfolding.

I am finding it both stupefying and incredible to witness events that I had reason to think might come to pass and that, three, four and five years down the line, are actually unfolding before our own very eyes.

I have come a long way in the past decade. Although I am one of a few lucky people to have had a father whom was fully aware of the realities of life, I can only imagine his chagrin at my inability to comprehend what he was trying to convey to me. Today, although belatedly, I am fully cognizant of what freedom is and I can only observe in helpless horror at the near term destiny of the men, women and children of the world.

Some of you will roll your eyes to the heavens but I defy any of you to dispute the realities on the ground. You may think that what is happening today with PFG Best, with LIBOR, with the ESM or the EFSM or with any number of innocuous sounding acronym foisted upon the masses may have nothing to do with you but, in fact, it touches the very core of your freedom.

If you can take a few minutes to rationalize your life, I hope you can see that the “freedom” we have been sold is not only carefully circumscribed but it is designed to gradually reel the individual into a web of dependency that is in every respect as deleterious as dependency on drugs may be and, in fact, very often leads to it.

Just the other day, I was yet again reminded of the absurdity of our predicament when a high level civil servant complained to me about feeling exploited, cheated and misunderstood by her colleagues, her superiors and by a system that she describes as wasteful, impersonal and self serving. To my suggestion that she should quit her job and find something more rewarding to do, her predictable reply was that she would if it were not for the loan she had to service and that she would find difficult to service if working in the slightly less gilded real world.

And that is the reality.

We have grown up in an environment where the education system, academia, the main stream press, chosen pundits and a select group of commercial entities convey selected ideas and half truths all the while telling us that we are free. When confronted by critics, the system is unanimous in pointing out our “freedoms” as opposed to the condition of societies in the former USSR for example. We are free to associate. We are free to chose where to go to school. We are free to chose what car to buy. We are free to seek employment either in the private or the public sectors. We are free to chose what we want to produce and sell. We are free to buy a house. We are free to sell our house. We are free to bring our grievances to a court of law and be judged by our peers… but in truth all of these freedoms are not only well circumscribed but they are arithmetically diminishing till they disappear.

Today, as the noose of our self imposed but thoroughly self serving ignorance tightens, we find ourselves at the vanishing point of our freedoms. What is happening today is not a freak accident that could not have been foreseen. What is happening today could have been inferred long ago and in fact it was. But if a tree falls in the forest and nobody is around to see it fall, does it make noise?

The freedom we have been sold is predicated on deliberately false premises. Our freedoms are predicated on debt.

I am reminded here of my time working in London where it was very fashionable amongst my colleagues to juggle credit card debt. The women in particular used to boast of their excessive use of credit cards and overdraft facilities to highlight their nonchalant ease at living life to the fullest cost what it may. Having a “cab hand” was considered very cool as they competed to see whom used a cab for the shortest trip.

Our freedom is inexorably tied to our currency; to our money. We may be free to chose the schools we send our children to or the companies we want to be associated with but crucially, the money we must inevitably make use of, gradually but inexorably draws us into a web of dependency till the point we are no longer free to act upon our ideals and stand for what we believe to be right against what we believe to be wrong, because doing so would deprive us of what we construe is our freedom. Today, few people are free to make the choices they would like to make or should make and this constraint renders them accomplices of a system that now shows clear signs of oligarchy be it bureaucratic or corporatist. They may still be able to go out to a restaurant or take a trip across county lines (for now) but the overarching direction of their life is dialed in. This would not be such an undesirable situation if it were not for the pesky condition known as the diminishing marginal utility of debt which ensures that our currency loses purchasing power over time. Thus, whereas a family could make do comfortably with one salary till the 50s, today, all members of a family must work and rely on credit as well as state hand-outs in order to make ends meet. Today the vast majority of people in the West are tied to a system that was designed to reel them in and tie them to the state; a state that, ironically, is growing larger, more demanding, more intrusive, more aggressive and more absolutist as a self declared necessity to safeguard our “freedoms”.

What the bankruptcies of MF Global and PFG Best finally uncover is what till the bankruptcy of Fannie Mae or General Motors the government was still able to hide. In observing the bankruptcies of PFG Best and MF Global it becomes clear that the authorities no longer even bother to try to dissimulate the malfeasance, the deliberate criminal fraud and the preferential legal treatment of certain entities over the rest of society. The price fixing scandal that is now breaking out over LIBOR finally confirms and exposes in its full tawdry and arrogant  glory that there really is a malevolent entity devoted to the eventual destitution of society. We are no longer in the realm of conspiracy here. Today, we are faced with a reality so horrifying I am reminded of what someone “greater” than I said:

“the individual is handicapped by coming face to face with a conspiracy so monstrous he cannot believe it exists.”
J. Edgar Hoover, 1956, speaking of communism

And since I am at it:

“Facts must be distorted, relevant circumstances concealed, and a picture presented which by its crude coloring will persuade the ignorant people that their Government is blameless, their cause is righteous, and that the indisputable wickedness of the enemy is beyond question.
A moment’s reflection would tell any reasonable person that such obvious bias cannot possibly represent the truth. But the moment’s reflection is not allowed; lies are circulated with great rapidity. The unthinking mass accept them and by their excitement sway the rest.
The amount of rubbish and humbug that pass under the name of patriotism in wartime in all countries is sufficient to make decent people blush when they are subsequently disillusioned.”
Arthur Ponsonby, Falsehood in Wartime, 1928

“It only stands to reason that where there’s sacrifice, there’s someone collecting the sacrificial offerings. Where there’s service, there is someone being served. The man who speaks to you of sacrifice is speaking of slaves and masters, and intends to be the master.”
Ayn Rand

“It is also important for the State to inculcate in its subjects an aversion to any “conspiracy theory of history;” for a search for “conspiracies” means a search for motives and an attribution of responsibility for historical misdeeds. If, however, any tyranny imposed by the State, or venality, or aggressive war, was caused not by the State rulers but by mysterious and arcane “social forces,” or by the imperfect state of the world or, if in some way, everyone was responsible (“We Are All Murderers,” proclaims one slogan), then there is no point to the people becoming indignant or rising up against such misdeeds. Furthermore, an attack on “conspiracy theories” means that the subjects will become more gullible in believing the “general welfare” reasons that are always put forth by the State for engaging in any of its despotic actions. A “conspiracy theory” can unsettle the system by causing the public to doubt the State’s ideological propaganda.”
Murray N. Rothbard, in The Anatomy of the State

“The terrible thing about the quest for truth is that you find it.”
Remy de Gourmont

And finally, from Jesse’s Cross Roads Cafe: The Political Continuum

Government As The Biggest Actor In The Economy

July 2, 2012

As outlined in these pages over the past five years, DBFM and Fractional Reserve Banking can only result in government becoming the largest actor in the economy. As a corollary to this mathematically inevitable dynamic, profits gradually concentrate in the finance industry till they finally concentrate in the hands of a very restricted group of banks with the result that the productive capital of society is gradually taken away from individuals and redistributed to these banks.

As I pointed out in The Stuff Revolutions Are Made Of in early 2009, scandals will be the hallmark of this period of asset deflation. I am not a prophet and neither am I a world class economist. Nonetheless, a basic understanding of the mechanics of our monetary and political systems are sufficient to deduce how things evolve and how they will end. The only unknown is time of course but the eventual denouement is arithmetically preordained.

This monetary system and the system of electoral politics that derives from it, is a self reinforcing dynamic that results in banks becoming perceived as the one and only pillar of our life:

That Western governments have been shoveling public money into banks could have been inferred long ago but, as of Paulson’s “bazooka” stunt, it has now become clearly glaring… for those that wanted to see…

Now, we have the latest scandal that has made the pages of the main stream media.

However, it is clear that the magnitude, depth and significance of this latest scandal has not yet dawned neither on politicians nor on media hacks let alone on the great unwashed.

The usual suspects of the banking world have been caught manipulating LIBOR. In its narrowest definition, LIBOR is merely an interest rate. But as interest rates go, LIBOR packs a punch as LIBOR governs a market that in 2007 was estimated by the Bank of International Settlements at US$500Trillion and that the following year grew to US$650Trillion. LIBOR governs the derivatives market the bulk of which consists of interest rate swaps and credit default swaps (those instruments that, for example, bankrupted Jefferson County in Alabama, lost about $400M for Harvard Uni or allowed Greece to mask gargantuan debt in order to qualify for EU membership).

Just for context, the entire world GDP was estimated at one point to be worth US$50Trillion of which the USA commands about US$15Trillion.

Although I have not followed up on the latest BIS estimate of the derivatives market, I can guarantee that in light of the gargantuan sums that our elected criminals are throwing around as ostensible solutions to what is by now a global depression, the derivatives market is certainly much larger than US$650Trillion. You would think that in light of recent developments since 2007 this market would have unwound at least some of its positions but this monetary system guarantees that cannot and will not happen.

Apologists will rush to claim that the derivatives market only represents “notional value”. This of course begs the question as to why, if this is only notional value, should the great and the good of the banking world bother to manipulate LIBOR? If that makes no sense to these nitwits, then the following question would be to ask them what happened to the derivatives Lehman was a counter-party to? The answer of course is that when one of the counter-parties to a derivative packs it in, notional becomes very real value in a hurry.

This is another breach in an already unstable dam. It is a serious breach.

What remains to be seen is how our elected criminals will deal with this latest structural blow. What is certain is that a catastrophic event is nigh and, therefore, so is a comparably dramatic “solution”. The type of solution I envision the elected criminals to devise, includes a good old fashioned war. You know; the type of war that requires something similar to a draft to be implemented. The type of war that will distract and galvanize the unemployed, homeless, soon to be hungry and likely very angry throngs that would otherwise precipitate a revolution at home.

What is now needed is something to galvanize our populations. Will it be religion? Will it be ethnicity? Will it be territorial claims? How about all of the above?

I say we have time till 2015 at the most.

Gold moves from investment to money (Forbes)

August 26, 2011

Though many would be tempted to say better late than never, this does not detract from the absurdity that the specialized press as, indeed, professionals in finance and economics, should finally be coming around to the mathematical reality of our monetary system.

Status Change: Gold Moves From Investment To Money

Why the movement to gold per se? It is an emphasis on asset-based rather than debt-based money. As Stoferle puts it, “The possession of gold is tantamount to pure ownership without liabilities.”” […] “The pump priming meant to nudge the economy out of the early 2000s recession spawned the housing bubble and its disastrous endgame. No central bank action, and virtually every possible one has been tried, has turned things around. The Erste report acknowledges a system failure: interest rates cannot go any lower, government debt has saturated the economy, and the misery index (the sum of the unemployment and inflation rates) in the U.S. is close to its average in the 1970s. Indeed, the real economy in addition to the financial system is deeply flawed. Forty-four million Americans are on food stamps and the effective unemployment rate is closer to 20 percent than the reported 9 percent.

Stoferle deftly links the rise in inequality in the U.S. to its monetary policy. Today, a CEO earns 425 times the average worker’s wages; in 1980 the disparity ratio was 24:1. “Monetary dispersion is not neutral,” he writes. “Market participants who receive the new money early and exchange it for goods benefit in comparison with those who get the newly created money later. We can see a transfer of assets from late money users to early money users.”” […] price inflation is relative and staggered as “newly created is distributed neither equally nor simultaneously among the population.

I will take only minor issue with the statement by the writer (not excerpted above): “Investors and central bankers have woken up to the reality that paper currencies decline over the long run because governments cannot resist pump priming in the face of economic slowdown.

The problem is not that governments cannot resist pump priming. The problem is woven in the monetary fabric. Debt Based Fiat Money can only exist in a world of constant pump priming. If that were not the case, then any other monetary system would do. The reason banks propose the system and politicians impose it on society is exactly because the system mandates constant pump priming (so banks make profits and politicians can fund their pet projects) AND BECAUSE those entities that have access to the newly created money first (banks and politicians) gain disproportionally more than entities that have access to it further down the line like the consumer… i.e. you and me.

Do any of you reading this blog still harbor any doubt that the particular variety of monetary system that has been imposed in the West is a deliberate policy of impoverishment of the many for the benefit of the few?

If so, I submit you truly need to revise your elementary arithmetic skills.



Mobs roaming the streets

June 9, 2011

My “tic,toc… tic, toc” posts of the recent past must now give way to the proverbial resounding “boing” of high noon.

Gangs are now openly threatening our city centers in Europe and in the USA.

Count down to global conflict very much on track for 2012/2015

Memorial Day Mobs: Boston, Nashville, Long Island, Miami, Rochester, and Charlotte

Wildings occurred in other cities on Memorial Day weekend in what may have been coordinated flash wildings. Gangs swarmed beaches in Boston, Nashville, Long Island, Miami, Rochester, and Charlotte in what some believe was a social media coordinated effort. (Hat tip: Second City Cop)

Read more:

Is a world war impossible?

May 28, 2011

Of course it is not. Sticklers for semantics might opine that it is not impossible but rather it is improbable.

How do you explain the following then.

Is it not curious how in the past ten years and particularly in the past five Western governments have gradually enacted legislation that could make a total war possible? Starting with broadening the definition of “terrorist”  to encompass actions that till recently had been an integral part of democratic expression thereby turning most law abiding citizens in potential terrorists if, for example, they dissent from the political line imposed by decree by government.

McGovern recalled how five years ago, when he challenged Rumsfeld, he did not get beat up by police, and was at least given the opportunity to interact with Rumsfeld.  By contrast, when McGovern disrupted a speech by Secretary of State Hillary Clinton, on February 15, 2011, he was arrested.  All he did was turn his back on Clinton at a speech at Georgia Washington University (You Tube video). After turning his back on Clinton, McGovern was dragged out of the room, and left with blood dripping down his pants.  This seems unbelievable, as McGovern poses no threat, is a 71 year-old calm gentleman, and a respected former CIA official.

Is it not curious that the Lisbon Treaty should have given rise to a political body that despite not being elected has broad executive powers?

And then there is the pesky provision of “Worldwide War” embedded in the National Defense Authorization Act:

And then there is that troubling attitude  that till recently was the almost exclusive domain of tin pot dictators in fringe countries like Tunisia, Syria North Korea or Libya for example and that is becoming ever more prevalent amongst “enlightened” Western politicians.

A worldwide war impossible? At this rate, hardly.

PS: By the way. I forgot this little gem from some months back:

So now NATO MUST, in the words of its chief, be prepared for perpetual war; must!

Must??!! Has anyone bothered to ask why we should prepare to launch foreign wars?

Social unrest a precursor to total war.. tic-toc… tic-toc…

May 25, 2011

Things are coming together nicely. What we are missing is for these localized national movements to coalesce across borders and Bob will be your proverbial uncle… our leaders will precipitate a conflict requiring drafting millions into the war effort…

Of course, the alternatives are only two. Let things develop and do nothing. The sequence of events would go something like this:

– mobs start roaming the streets looking for some politicians and bankers to lynch

– governments are taken down wholesale

– political and social strife for control

– likely rise of an extremist government

Second alternative, would be to come clean, let the banks fail, abolish central banks, repudiate debt based fiat money, place monetary policy within the democratic framework and prosecute all fraud dating back to, say, the past 10 years.

So, what are you going to do?… To answer this question it helps to know that similar junctures in history have resulted in global conflicts. Global conflicts typically preserve banking and, to a certain extent, political interests.

Some of us consider ourselves progressive, others conservative. Some of us are believers, some not. Some of us have clearly defined ideologies, others are apolitical, but we are all concerned and angry about the political, economic, and social outlook which we see around us: corruption among politicians, businessmen, bankers, leaving us helpless, without a voice.

Rural migration (tic-toc… tic-toc)

May 16, 2011

It’s been some time since I wrote one of my “tic-toc” posts and although till then what I was writing about could have been considered speculation, this Guardian article bears out some of the logical outcomes I was pointing out.

There are also other aspects of this article that are interesting from my point of view. I am going to post the entire article and intersperse my comments throughout.

Debt, unemployment and poverty is causing mass unrest and thousands to seek a cheaper lifestyle outside the capital

High in the hills of Arcadia, in a big stone house on the edge of this village overlooking verdant pastures and a valley beyond, a group of young Athenians are busy rebuilding their lives.

Until recently Andritsaina was not much of a prospect for urban Greeks. “But that,” said Yiannis Dikiakos, “was before Athens turned into the explosive cauldron that it has become. We woke up one day and thought we’ve had enough. We want to live the real Greece and we want to live it somewhere else.”

Piling his possessions into a Land Rover and trailer, the businessman made the 170-mile journey to Andritsaina last month. As he drove past villages full of derelict buildings and empty homes, along roads that wound their way around rivers and ravines, he did not look back.

“Athens has failed its young people. It has nothing to offer them any more. Our politicians are idiots … they have disappointed us greatly,” said Dikiakos, who will soon be joined by 10 friends who have also decided to escape the capital.

They are part of an internal migration, thousands of Greeks seeking solace in rural areas as the debt-stricken country grapples with its gravest economic crisis since the second world war.

“It’s a big decision but people are making it,” said Giorgos Galos, a teacher in Proti Serron on the great plains of Macedonia, in northern Greece. “We’ve had two couples come here and I know lots in Thessaloniki [Greece’s second biggest city] who want to go back to their villages. The crisis is eating away at them and they’re finding it hard to cope. If they had just a little bit of support, a little bit of official encouragement, the stream would turn into a wave because everything is just so much cheaper here.”

GR: Mr. Galos is oblivious to what exactly has caused this crisis which is in fact government intervention. Seeing the devastation wreaked on his nation, Mr. Galos calls for more of what has caused the crisis in the first place in the form of “official encouragement” in order to nudge those that are sitting on the fence to make the move because, as he says, “… everything is just so much cheaper here”.  But that’s exactly the problem and Mr. Galos does not see it. As is always the case, things are “cheap” till government encourages people to make use of something. The moment government encourages some entities to do something, prices will automatically rise not least because when economic actors perceive that there are funds to be had from the government they will feel no compunction at all to take advantage of the perceived free money… because it is government money… and government money is not perceived to be any natural person’s money… but, of course, it is and sooner or later it has to come out of our taxes or increased cost of living somewhere. Similarly, politicians are naturally inclined to give away funds as a way to garner votes from interest groups. Crucially, debt based fiat money allows politicians to be profligate because unlike value based money fiat money is perceived to be cost free. All that is needed, it is thought, is to expand the debt. And, anyway, in an electoral democratic system, a politician is never around to see the extent of the ramifications his/her policies engender.

The trickle into Proti Serron might have gone unnoticed had the village not also been the birthplace of the late Konstantinos Karamanlis who oversaw the nation’s entry into the then European Economic Community in 1981. An alabaster white statue of the statesman in the village square is adorned with the words: “I believe that Greece can change shape and its people their fate.”

Nearly sixty years after they were uttered, a growing number of Greeks, at least, are beginning to wonder whether the old man was right. The drift towards the bright lights of the big cities were by Karamanlis’ own admission one of the great barometers of the country’s transition from a primarily agricultural society into an advanced western economy.This week, as the IMF and EU debated ways of trying to re-rescue Greece and observers openly wondered whether the country would have to leave the euro, Greece appeared more adrift than ever, tossed on a high sea of mounting anger and civil disobedience from people who have lost trust in their politicians, and at the mercy of markets that refuse to believe it can pull itself back from the brink of bankruptcy. “The reality is that these people, they are in deep shit,” the managing director of the IMF, Dominique Strauss-Kahn said recently. “If we had not come they would have fallen into the abyss. Two weeks later the government would not have been able to pay civil servants’ wages.”

GR: Mr. Strauss-Kahn is a product of his environment and cannot therefore admit the perversity of his statement. The IMF rides ostensibly to the help of countries distressed by debt by offering… more debt… Of course, if you understand the nature of debt based fiat money, then you also understand that supranational entities such as the IMF exist precisely to prop up the monetary construct. Debt based fiat money can only exist in an environment of expanding credit regardless of the natural characteristic of debt to conform to the law of diminishing marginal utility. Had the IMF not offered assistance, Greece wouldn’t be any worse off. Look to Iceland for a glimpse of what can be achieved if only politicians had the balls to stand up to banking interests. But of course. A politician is by definition someone that lives by expedients so that biting the hand of the entity that finances your politically expedient programs is not done.

Ironically, it is the medicine doled out under last year’s draconian EU-IMF €110bn (£96bn) rescue programme, implemented to modernise a sclerotic economy, that has made their lot worse. Twelve months of sweeping public sector pay and pension cuts, massive job losses, tax increases and galloping inflation have begun to have a brutal effect. GDP is predicted to contract by 3% this year – making Greece’s the deepest recession in Europe.

GR: The author of the article at once identifies the problem and then negates it. GDP is contracting simply because it had been artificially inflated for so many years prior. If anything, GDP is reverting to its true intrinsic value. The public sector in Greece like in the rest of Europe but, particularly in Latin Europe, is bloated because it is politically expedient to just hire people in order to garner votes from unions and interest groups. One of the most glaring examples of political expediency of the past 3o years was the Italian airline Alitalia where over staffing and staggering losses reached biblical proportions over the years.

In Athens, home to almost half of Greece’s 11 million-strong population, the signs of austerity – and poverty – are everywhere: in the homeless and hungry who forage through municipal rubbish bins late at night; in the cash-strapped pensioners who pick up rejects at the street markets that sell fruit and vegetables; in the shops now boarded and closed and in the thousands of ordinary Greeks who can no longer afford to take family outings or regularly eat meat.

“We’ve had to give up tavernas, give up buying new clothes and give up eating meat more than once a week,” said Vasso Vitalis, a mother-of-two who struggles with her civil servant husband to make ends meet on a joint monthly income of €2,000.

GR: Not to detract from the real drama Ms. Vitalis is experiencing but one of the less intuitively related advantages of decreased consumption is a decrease in the rate of depletion of food stocks, a diminished carbon foot print and the concomitant beneficial effects that counter the devastation of the environment that has, in large part, been brought about by aberrant inflationary monetary policies over many decades. Greens the world over should embrace this crisis. Reduced consumption of animal protein could allow the replenishment of fish stocks that have been decimated over the years as well as the re-stocking of staples that no longer need to be used to rear live stock. Prices drop, the environment is saved and food stocks get replenished. Everyone’s a winner.

“With all the cuts we estimate we’ve lost around €450 a month. We’re down to the last cent and, still, we’re lucky. We’ve both got jobs. I know people who are unemployed and are going hungry. They ask family and friends for food,” she sighed. “What makes us mad is that everybody knew the state was a mess but none of our politicians had the guts to mend it. It was like a ship heading for the rocks and now the rocks are very near.”

GR: Bingo! Except that we are already on the rocks. And, yes, it has been clear for many decades that the system is mathematically not viable… but politics being the expedient animal it is… what is happening was a foregone conclusion… and we are no where near the end of it all...

Greeks also know that with their economy needing another financial lifeline, and few willing to lend to a country in such a parlous state, it will also get much worse before it gets better.

GR: Once again. The author of the article fails to recognize the problem of insolvency brought about by too much debt. Particularly when every single country in the world is afflicted by the same problem. You see, in a global economy, for as long as only one or two countries are afflicted by too much debt as, for example, Japan was in 1989, increasing the debt burden appears to help because a country could still sell goods and services to other countries. But, as time goes by and each country feels the necessity to expand their credit market in order to stimulate the national economy, the diminishing marginal utility of debt ensures that at some point all countries will be buried in debt simultaneously. At that point, more debt no longer helps. And this is the point we are at today.

“In the past, the future always implied hope for Greeks but now it implies fear,” said Nikos Filis, editor of the leftwing Avgi newspaper. “Until this week people thought that with all the measures the crisis would be over in a year or two. Now with the prospect of yet more austerity for more aid, they can’t see an end in sight.”

With unemployment officially nudging 790,000 – although believed to be far bigger with the closure of some 150,000 small and medium-sized businesses over the past year – there are fears that Greece, the country at the centre of Europe’s worst financial debacle in decades, is slipping inexorably into political and social crisis, too. Rising racist tensions and lawlessness on the streets this week spurred the softly spoken mayor of Athens, Giorgos Kaminis, to describe the city as “beginning to resemble Beirut”.

GR: Greece is not at the center of Europe’s crisis. Greece was merely the first in Europe to succumb to the debt crisis. Others have followed Greece since and still more will follow in months to come or till politicians will grow a pair and we let global banks fail.

Yannis Caloghirou, an economics professor at the National Technical University of Athens, said: “Greece has become a battleground, at the EU level where policymakers have made the crisis worse with their lack of strategy and piecemeal approach, and among its own people who no longer have trust in institutions and the ability of the political system to solve the situation. My concern is that the country is slipping into ungovernability, that ultra-right groups and others will grab the moment.”

GR: As a person Mr. Caloghirou is entitled to his opinion. As an economics professor Mr. Caloghirou fails to grasp the dynamic that is afflicting Greece. A debt crisis is not due to lack of strategy and piecemeal approach. It is due to too much debt that has been piled on by deliberate political decree. So, the strategy was not so much lacking as it was aberrant.

Nineteen months into office the ruling socialists, riven by dissent and increasingly disgust over policies that ideologically many oppose, are likewise beginning to show the strain of containing the crisis, with the prime minister, George Papandreou, being forced publicly to whip truculent ministers into line.

A mass exodus of the nation’s brightest and best has added to fears that in addition to failing one or perhaps two generations, near-bankrupt Greece stands as never before to lose its intellectual class. “Nobody is speaking openly about this but the prospects for the Greek economy are going to get much worse as the brain drain accelerates and the country loses its best minds,” said Professor Lois Lambrianidis, who teaches regional economics at the University of Macedonia.

“Around 135,000, or 9% of tertiary educated Greeks, were living abroad and that was before the crisis began. They simply cannot find jobs in a service-oriented economy that depends on low-paid cheap labour.”

GR: Other than to say that exodus of  people whether bright or not is not a big deal, Mr. Lambrianidis hits the nail on the head although I suspect he does so unwittingly. Namely, Mr. Lambrianides identifies the problems of a service based economy but, from what we are given to understand from this limited quote, fails to realize that a service based economy is the inevitable consequence of debt based fiat money.

Just as in Arcadia where the young are choosing to start anew, Greece, he says, needs to rebuild itself if it is to survive its worst crisis in modern times.

A good catch by Karl Denninger… (Timo Soini and the Wall Street Journal)

May 11, 2011
In the eternal ebb and flow of the battle between the natural absolutist inclination of government and the rights of the people, the internet is clearly affording the people an edge that was recently lost as the press and the media in general have almost entirely been absorbed by those entities that enjoy the favors of the state and therefore gravitate around it.
WSJ Caught BLATANTLY Scrubbing…..

… the words of Timo Soini after the fact and after they printed it unedited online yesterday.

Here is what was originally published at this link, with the omitted parts that they scrubbed bolded:

Why I Won’t Support More Bailouts

When I had the honor of leading the True Finn Party to electoral victory in April, we made a solemn promise to oppose the so-called bailouts of euro-zone member states. These bailouts are patently bad for Europe, bad for Finland and bad for the countries that have been forced to accept them.  Europe is suffering from the economic gangrene of insolvency—both public and private. And unless we amputate that which cannot be saved, we risk poisoning the whole body.

The official wisdom is that Greece, Ireland and Portugal have been hit by a liquidity crisis, so they needed a momentary infusion of capital, after which everything would return to normal. But this official version is a lie, one that takes the ordinary people of Europe for idiots. They deserve better from politics and their leaders.

To understand the real nature and purpose of the bailouts, we first have to understand who really benefits from them. Let’s follow the money.

At the risk of being accused of populism, we’ll begin with the obvious: It is not the little guy that benefits. He is being milked and lied to in order to keep the insolvent system running. He is paid less and taxed more to provide the money needed to keep this Ponzi scheme going. Meanwhile, a kind of deadly symbiosis has developed between politicians and banks: Our political leaders borrow ever more money to pay off the banks, which return the favor by lending ever-more money back to our governments, keeping the scheme afloat.

In a true market economy, bad choices get penalized. Not here. When the inevitable failure of overindebted euro-zone countries came to light, a secret pact was made. Instead of accepting losses on unsound investments—which would have led to the probable collapse and national bailout of some banks—it was decided to transfer the losses to taxpayers via loans, guarantees and opaque constructs such as the European Financial Stability Fund, Ireland’s NAMA and a lineup of special-purpose vehicles that make Enron look simple. Some politicians understood this; others just panicked and did as they were told.

The money did not go to help indebted economies. It flowed through the European Central Bank and recipient states to the coffers of big banks and investment funds.

Further contrary to the official wisdom, the recipient states did not want such “help,” not this way. The natural option for them was to admit insolvency and let failed private lenders, wherever they were based, eat their losses.

That was not to be. As former Finance Minister Brian Lenihan recently revealed, Ireland was forced to take the money. The same happened to Portug-al-uese Prime Minister José Sócrates, although he may be less forthcoming than Mr. Lenihan about admitting it.

Why did the Brussels-Frankfurt extortion racket force these countries to accept the money along with “recovery” plans that would inevitably fail? Because they needed to please the tax-guzzling banks, which might otherwise refuse to turn up at the next Spanish, Belgian, Italian, or even French bond-auction.

Unfortunately for this financial and political cartel, their plan isn’t working. Already under this scheme, Greece, Ireland and Portugal are ruined. They will never be able to save and grow fast enough to pay back the debts with which Brussels has saddled them in the name of saving them.

And so, unpurged, the gangrene spreads. The Spanish property sector is much bigger and more uncharted than that of Ireland. It is not just the cajas that are in trouble. There are major Spanish banks where what lies beneath the surface of the balance sheet may be a zombie, just as happened in Ireland for a while. The clock is ticking, and the problem is not going away.

Setting up the European Stability Mechanism is no solution. It would institutionalize the system of wealth transfers from private citizens to compromised politicians and otherwise failed bankers, creating a huge moral hazard and destroying what remains of Europe’s competitive banking landscape.

Some defend the ESM, saying its use would always require unanimity. But the current mess with Portugal shows that the elite in Brussels will seek to enforce unanimity through pressure when it cannot be obtained by persuasion. Abolishing unanimity is only a matter of time. After that we have a full-fledged fiscal transfer union that is obviously in hock to Brussels’ anti-growth corporatism.

Fortunately, it is not too late to stop the rot. For the banks, we need honest, serious stress tests. Stop the current politically inspired farce. Instead, have parallel assessments done by regulators and independent groups including stakeholders and academics. Trust, but verify.

Insolvent banks and financial institutions must be shut down, purging insolvency from the system. We must restore the market principle of freedom to fail.

If some banks are recapitalized with taxpayer money, taxpayers should get ownership stakes in return, and the entire board should be kicked out. But before any such taxpayer participation can be contemplated, it is essential to first apply big haircuts to bondholders.

For sovereign debt, the freedom to fail is again key. Significant restructuring is needed for genuine recovery. Yes, markets will punish defaulting states, but they are also quick to forgive. Current plans are destroying the real economies of Europe through elevated taxes and transfers of wealth from ordinary families to the coffers of insolvent states and banks. A restructuring that left a country’s debt burden at a manageable level and encouraged a return to growth-oriented policies could lead to a swift return to international debt markets.

This is not just about economics. People feel betrayed. In Ireland, the incoming parties to the new government promised to hold senior bondholders responsible, but under pressure, they succumbed, leaving their voters with a sense of democratic disenfranchisement. The elites in Brussels have said that Finland must honor its commitments to its European partners, but Brussels is silent on whether national politicians should honor their commitments to their own voters.In a democracy, where we govern under the consent of the people, power is on loan. We do what we promise, even if it costs a dinner in Brussels, a “negative” media profile, or a seat in the cabinet.

When in Europe’s long night of 1939-45, war came to Finland with the winter blizzards, my mother was one of eight siblings being raised on a small farm in central Finland where my grandparents eked out a frugal living.

My two young uncles rushed to the front and were both wounded in action during Finland’s chapter of Europe’s most terrible bloodshed. I was raised to know that genocidal war must never again be visited on our continent and I came to understand the values and principles that originally motivated the establishment of what became the European Union.

This Europe, this vision, was one that offered the people of Finland and all of Europe the gift of peace founded on democracy, freedom, justice and subsidiarity. This is a Europe worth having, so it is with great distress that I see this project being put in jeopardy by a political elite who would sacrifice the interests of Europe’s ordinary people in order to protect certain corporate interests.

Europe may still recover from this potentially terminal disease and decline. Insolvency must be purged from the system and it must be done openly and honestly. That path is not easy, but it is always the right path—for Finland, and for Europe.

Mr. Soini is the chairman of the True Finns Party in Finland.

That reads a bit differently, doesn’t it?

Among other things there is a clear statement that Ireland was intentionally screwed.  This also falls into what I reported earlier – that it was Tim Geithner who “forced” the Irish to not haircut bondholders.  Never mind that the same problem exists right here in America – pretending that our problems were “liquidity.”  They weren’t there and they’re not here. Period.

You don’t think that chain of responsibility being documented by the head of a political party might have resulted in a few phone calls from Treasury back to The Journal “asking nicely” to have all reference to this blatantly improper arm-twisting removed, do you?

By the way, wouldn’t such an act by a foreign government be considered an act of economic war?

I read – and reported on – this editorial as originally penned.  When I was directed back to the article by astute readers I discovered the changes.  Unfortunately for The Journal and others who would intentionally distort the record, the original was picked up and reprinted in its entirety in enough places on The Internet to be able to find what had been done, and reproduce it so you, the reader, can see exactly what sort of “sanitizing” of the truth our corporate media engages in.

You can find one of many copies of the original here, on a site hosted in Finland.  I have reprinted the original article for the express purpose of outlining the sort of outrageous revisionism that our corporate-owned media expects us to put up with and the rampant dishonesty that is found in those so-called “Newsrooms.”

PS: Yeah, I have it as originally presented on the web page as an image file.  Nice try jackals.  Now how about admitting who yanked your chain and “convinced” you to strip the rest out – especially if that pressure came from Treasury, as I suspect it did.

Osama Bin Ladin; a reminder

May 2, 2011

9/11 Was the pretext for the wars in Iraq and Afghanistan in order to hunt down Osama Bin Ladin.

However, OBL was never a person of interest in the 9/11 investigation.

Murder of U.S. Nationals Outside the United States; Conspiracy to Murder U.S. Nationals Outside the United States; Attack on a Federal Facility Resulting in Death

As already posted on this blog some months ago.

… and the body has been shipped out to be buried at sea… ???? This for the ostensibly most wanted criminal of the century? Obviously I could never be a politician let alone a leader of a country as I cannot grasp such basic concepts as having nothing to show citizens for all government’s efforts to keep them safe from harm…