Saturday, December 3, 2011

The Confidence Fairy Was A No-Show (Killing the Euro!); Same Demented Regime But It's A Wonderful Life - Vote for BRAD MILLER!

A word to the wise: When so-called Dumbya said the Constitution was just a piece of paper, he hadn't come up with that odd piece of information out of nowhere. I always assumed that anything Bush said (or mis-said) was something he had heard many times before from people who had impressed him as people who knew what was what (so to say) and what was to come. I haven't changed my mind (as you will confirm after reading today's essay).

Yes, the confidence fairy is back in all her/his/its glory! (Or vanished glory, whichever telling you prefer.)

Paul Krugman shares the inside dope on why Europe is now going down. And if you've been reading Krugman and my other favorite econ profs, you'd know they've been warning the austerity boosters about this exact situation being the logical outcome of their vengeance taking on the victims of the brnksters frauds for a very long time.

And don't let those last yelps out of the American stock market get to you.

It's all over but the shouting.

Can the euro be saved? Not long ago we were told that the worst possible outcome was a Greek default. Now a much wider disaster seems all too likely.

True, market pressure lifted a bit on Wednesday after central banks made a splashy announcement about expanded credit lines (which will, in fact, make hardly any real difference). But even optimists now see Europe as headed for recession, while pessimists warn that the euro may become the epicenter of another global financial crisis.

How did things go so wrong? The answer you hear all the time is that the euro crisis was caused by fiscal irresponsibility. Turn on your TV and you’re very likely to find some pundit declaring that if America doesn’t slash spending we’ll end up like Greece. Greeeeeece!
But the truth is nearly the opposite.
Although Europe’s leaders continue to insist that the problem is too much spending in debtor nations, the real problem is too little spending in Europe as a whole. And their efforts to fix matters by demanding ever harsher austerity have played a major role in making the situation worse.

The story so far: In the years leading up to the 2008 crisis, Europe, like America, had a runaway banking system and a rapid buildup of debt. In Europe’s case, however, much of the lending was across borders, as funds from Germany flowed into southern Europe. This lending was perceived as low risk. Hey, the recipients were all on the euro, so what could go wrong?

For the most part, by the way, this lending went to the private sector, not to governments. Only Greece ran large budget deficits during the good years; Spain actually had a surplus on the eve of the crisis.

Then the bubble burst. Private spending in the debtor nations fell sharply. And the question European leaders should have been asking was how to keep those spending cuts from causing a Europe-wide downturn.

Instead, however, they responded to the inevitable, recession-driven rise in deficits by demanding that all governments — not just those of the debtor nations — slash spending and raise taxes. Warnings that this would deepen the slump were waved away. “The idea that austerity measures could trigger stagnation is incorrect,” declared Jean-Claude Trichet, then the president of the European Central Bank.

Why? Because “confidence-inspiring policies will foster and not hamper economic recovery.”
But the confidence fairy was a no-show.
Wait, there’s more. During the years of easy money, wages and prices in southern Europe rose substantially faster than in northern Europe. This divergence now needs to be reversed, either through falling prices in the south or through rising prices in the north. And it matters which: If southern Europe is forced to deflate its way to competitiveness, it will both pay a heavy price in employment and worsen its debt problems. The chances of success would be much greater if the gap were closed via rising prices in the north.

But to close the gap through rising prices in the north, policy makers would have to accept temporarily higher inflation for the euro area as a whole. And they’ve made it clear that they won’t. Last April, in fact, the European Central Bank began raising interest rates, even though it was obvious to most observers that underlying inflation was, if anything, too low.
And it’s probably no coincidence that April was also when the euro crisis entered its new, dire phase. Never mind Greece, whose economy is to Europe roughly as greater Miami is to the United States.

At this point, markets have lost faith in the euro as a whole, driving up interest rates even for countries like Austria and Finland, hardly known for profligacy. And it’s not hard to see why.

The combination of austerity-for-all and a central bank morbidly obsessed with inflation makes it essentially impossible for indebted countries to escape from their debt trap and is, therefore, a recipe for widespread debt defaults, bank runs and general financial collapse.

I hope, for our sake as well as theirs, that the Europeans will change course before it’s too late. But, to be honest, I don’t believe they will. In fact, what’s much more likely is that we will follow them down the path to ruin.

For in America, as in Europe, the economy is being dragged down by troubled debtors — in our case, mainly homeowners. And here, too, we desperately need expansionary fiscal and monetary policies to support the economy as these debtors struggle back to financial health. Yet, as in Europe, public discourse is dominated by deficit scolds and inflation obsessives.

So the next time you hear someone claiming that if we don’t slash spending we’ll turn into Greece, your answer should be that if we do slash spending while the economy is still in a depression, we’ll turn into Europe. In fact, we’re well on our way.

over at ZeroHedge is making a lot of sense to me today. Give him (them) a few minutes of your attention. I think it's almost uncanny how we cover the same territory (and I do not know him (them) except through the movie character he/they've adopted to ensure anonymity).

[BREAKING NEWS: It's A Wonderful Life is on NBC now!]

(Everybody into the pool!)

The SDR: The Same Demented Regime

It’s fascinating to watch things play out as we rapidly approach the final rounds in the end game of the great game.  The great game is of course the never-ending global struggle for power and dominance.  The current entrenched powers that be have been in their positions for a very long time and they have no intention of giving up that role.  What the moral and decent percentage of humanity need to understand in no uncertain terms is that these folks and their minions have no conscience.  They could care less how many starve to death, get blown to bits in war or waste their lives away in front of the television set watching Snookie on the Jersey Shore.  In fact, I am certain that they totally get off on these things.
Degrading humanity into an animal-like state clearly appears to be their aphrodisiac.  Notice how the media encourages people to go out and trample each other for a $2 waffle maker on Black Friday.  The scenes of people running into Wal-Mart or Best Buy in the early morning hours when they should be at home with their families having conversation after Thanksgiving dinner reminds me of scenes of cattle being shuffled into a sorting pen.  Actually if you look at this video the cattle appear much more civilized (just go a minute and a half in). 
I think the second step after one sees the insane matrix we are trapped in is to free yourself from it mentally and emotionally.  It is the mental and emotional control that they are really after.  That is the most powerful and effective tool of control so don’t give them the satisfaction.

Try to buy local and support your communities.  It may cost more but in that case just buy less.  You will feel good about it.  More specifically, anything encouraged by the mainstream media, like spending money you don’t have on superfluous items made in China with slave labor and sold to you at a giant tax dodging corporation should be avoided if possible.
With that out of the way, on to the main topic of this paragraph.  The good ol’ SDR.  I will tell you one thing right now.  When TPTB progress to talking about IMF rescues and SDRs we are the end of the line, boys and girls.  This is the LAST play they have in the conventional playbook.  For those that are unaware, this is what the SDR is according to the IMF itself:

The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries' official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies. With a general SDR allocation that took effect on August 28 and a special allocation on September 9, 2009, the amount of SDRs increased from SDR 21.4 billion to around SDR 204 billion (equivalent to about $328.3 billion, converted using the rate of August 31, 2011)For an SDR factsheet go here:
So here is what I think they may try to do.  The guys who really pull the strings, whoever they may be, absolutely understand everything.  They know fiat money that they can create and distribute at will is the source of total power and they will never willingly give that up They also have known for a long time that the fiat dollar reserve floating exchange rate system was inevitably going to blow up on itself.  It has become readily apparent since 2008 that we are at that fork in the road, which is why the whole SDR concept has gotten more play.
It seems that the intent of TPTB is to somehow shift the SDR into the world’s reserve asset.  The purpose of this might be to devalue all of the world’s major Western currencies at once while also shifting the blame away from sovereign governments and Central Bankers.
At the very least, it would be a way to achieve a massive stealth devaluation of the U.S. dollar For example, if the SDRs were suddenly declared the world’s reserve asset and were therefore needed to conduct global trade in commodities for example, the dollar’s purchasing power would plunge.

We could no longer just create dollars out of thin air and directly buy the world’s resourcesWe might need to exchange our national currency into the new reserve asset (SDRs) to then buy thingsSo there would be direct and drastic consequences if we continued to great create unlimited dollars, just like all other countries around the world face today.  While this is actually the way it should be, the problem is that this is a bankster plan at the highest levels.
First, they would introduce this SDR and then once faith in national Western currencies’ purchasing power cratered and faith was lost, TPTB would use that as an excuse to eliminate all national currencies and move to a global fiat currency that they, of course, control the distribution of.
Problem, reaction, solution.  This is the central planning bankster’s ultimate wet dream.  Remember this is exactly what they have done with the euro. It is no secret that they knew from the beginning that the euro currency in its current form would blow upThat was part of the calculation.
Once the crisis hit, they would then consolidate power in a Euro fiscal Union with centralized control of everything.  If they pull that off successfully the next stop will be the global currency, with the bait being the SDR.  This should be quite transparent at this stage if you are paying attention.
Will it Work?

So above I have outlined what I think is the ultimate prize of TPTB.  In this paragraph I want to address whether I think their demented plan for world government and world currency can or will be achievedMy answer is NO.  First of all, they are having a hard enough time with Europe.  Sure they have installed their little puppet technocrats into positions of power in Greece and Italy but all indications point to the fact that this is taking a lot longer than they wantTime is NOT on their side.
I say this because every day people become more informed and more upset about the “agenda.”  To some extent they do need people to be asleep sheep in order to pull off this giant power grab and more importantly to keep it in place for an extended period of time.  It is my belief that they must pull off the consolidation of Europe first and then move along to the U.S.
However, let’s say for the sake of argument that they panic and attempt to go straight to the SDR.  What do you think they reaction is going to be when the public is told that all of a sudden there is a new digital global resevre currency called Special Drawing Rights that is created by the IMF and oh by the way a slice of bread costs $20.
All hell will break loose.  Although very few people have an in depth understanding of how the global monetary ponzi scheme system works, an increasingly large number now get that it is rooted in bankster fraud and have had enough.
Good luck trying to issue SDRs and devlauing the dollar.  It’s a non-starterThat said, the one way they still might try would be to crash the entire markets into oblivion (remember central bankers have TOTAL power to do this at this stage).  That way they would get people begging for central bank printing.  This would then destroy the national currencies and then they would come in with the global currency solution.  Just something to bear in mind . . .

So this is where it gets dangerous.  If I am correct in my logic above they might realize that they have exhausted their conventional options.  This means the playbook shifts to the unconventional.  This probably means war.  This is why the rhetoric is heating up against Iran right now.  If they cannot get their way via conventional means I believe they have no problem whatsoever in wiping out a vast percentage of the world’s population to get their way.

That is why I put up the quotes at the top.  People need to undertand and understand right now that any global conflict will not be for the reasons we are told.  It will be The Powers That Be (TPTB) way of resetting things and shifting blame away from where it belongs; them the control freak central plannersWe are close to the end of the road and the choices for the power structure are now increasingly limited thus they are likely to move to more desperate measures.
Police State/Crony Capitalism Headlines
These clowns know we increasingly know what we are up to therefore they are putting on the clampdown behind the scenes in many ways.
Indefinite DetentionGotta love how this old fascist John McCain quotes John Adams in supporting a bill that allows indefinite detention of American citiziens WITHOUT a trial (it passed). As I have been writing for years, Congress and the elite see all citizens as potential terrorists for calling them out on their crimes.
Time MagazineEver wonder why Americans seems so braindead?  The media.  Check out the cover story by region.,9263,7601111205,00.html 

Hank Paulson Another crony capitalist crook that robbed Americans continues to be a free man.  Why?  He worked at Goldman Sachs of course.  Check out how he passed along inside info to his fellow Goldman crony capitalist friends.  The game is totally rigged.
Do you own an Android?:  I am sure this makes you feel all warm and fuzzy inside.
Notary who blew whistle on foreclosure fraud found dead:  Hmmmm…

And to end on a positive note for something good people can still promote and volunteer their services in order to really change this world (and organize your own recovery measures if one of the above belongs to you) . . . from Down with Tyranny:

I was on the phone with some friends back East Monday and we were talking about working on a primary campaign against corrupt ConservaDem Joseph Crowley of Queens. Crowley is a Rahm-like bag man for the New Dems whose modus operandi is basically to go to corporate lobbyists and agree to get progressive legislation buried or watered down in return for the pay-offs that have led to inside-the-caucus political power for himself. I would describe him as a mini-Steny Hoyer without the charm. His lifetime ProgressivePunch crucial vote score is a mediocre 83.53 but it's his behind-the-scenes wheeling and dealing that makes him such an odious character.
In 1999 he was one of the movers and shakers on the Democratic side who backed ending Glass-Steagall for Wall Street. And, although that was one of the primary reasons for the collapse of the financial system and the ensuing catastrophe for the economy, Crowley hasn't blinked. The Finance Industry has rewarded him handsomely for selling out his Queens constituents in Woodside, Jackson Heights, East Elmhurst and College Point and the ones who live in neighborhoods in the East Bronx like Throggs Neck, Morris Park, Co-op City and Pelham Parkway, people who would never think of voting for a Republican - but who, in effect -  get much of the same greed-and-selfishness agenda.
Since he sold out his constituents in the debate over Glass-Steagall, the Finance Industry has funneled a hefty $3,229,109 directly into his political career in the form of legalistic bribes. He's used that money to build up his own political power inside the Democratic Party, exactly what Wall Street wanted him to do with it.

But one of the guys on the call remembered a particularly horrible vote by Crowley - Bush's Bankruptcy Act, S 256. It passed the House on April 14, 2005, 302-126. Most Democrats voted against it and every single Republican voted for it. But 73 Democrats, mostly the worst Blue Dogs and corporate whores, voted with the Republicans to give it that glowing "bipartisan" patina.
Joseph Crowley, a Member of the House Ways and Means Committee, where he regularly undermines the interests of the 99%, is one of the Democrats who was not subsequently defeated for reelection after crossing the aisle that day to vote with the GOP, with Wall Street and with the 1% against American working families. Instead he managed to worm his way into the House Leadership and is now the Democrats' Chief Deputy Whip and a Vice-Chairman of the DCCC.

The bill, whose purpose was to make it more difficult for consumers to file bankruptcy, was originated in the Senate and the lead sponsor was deranged Iowa Republican Chuck Grassley. It was co-sponsored by a gaggle of Republican corporate whores like Jim DeMint, Orrin Hatch, Jeff Sessions and David Vitter (who, during the debate, was talking on his cell phone with a high priced call girl about what color diapers he would be wearing that night) as well as by two of the sleaziest corporate Dems in the upper chamber, Ben Nelson and Tom Carper. The banksters spent millions in lobbying and bribes (campaign "contributions") and it was widely considered their greatest victory against the American people at the time.

Yes, douche bags play guitar too

Sleazy legislators like Crowley who supported it parroted the banksters' lies that passage would reduce losses to credit card companies, who would then pass on the savings in the form of lower interest rates. The first half was true; credit card company losses decreased. But the rates charged to customers not only didn't decrease, they increased while the insatiably greedy credit card company profits went through the roof, a cut of which was given to the corrupt Members of Congress (like Crowley).

Pelosi led the progressives against the bill. Hoyer led the conservative and corrupt Democrats in favor. There were no Democratic tribunes for working families who voted for the bill - but most of the dreck in the Democratic caucus, like Hoyer and Crowley, did.
The other day I used this bill as an example of why North Carolinians who have to decide between redistricted David Price (who voted with the Republicans against working families) and Brad Miller (who, as always, voted to protect working families and against this bill, should choose Miller. Here are some of the noteworthy Democrats who crossed the aisle that fateful April day:

Melissa Bean (IL), the Chamber of Commerce's favorite Democrat, defeated for reelection 
Dan Boren (Blue Dog-OK), George Bush's favorite Democrat, retiring next year 
Leonard Boswell (Blue Dog-IA), with minimal support from the base, he's likely to be defeated in 2012 
Allen Boyd (Blue Dog-FL), defeated for reelection 
Dennis Cardoza (Blue Dog-CA), retiring next year 
Jim Cooper (Blue Dog-TN) 
Jim Costa (Blue Dog-CA) 
Henry Cuellar (Blue Dog-TX) 
Harold Ford, Jr (Blue Dog-TN), defeated in a Senate run, now a bank lobbyist 
Stephanie Herseth Sandlin (Blue Dog-SD), defeated for reelection 
Tim Holden (Blue Dog-PA)
Steve Israel ("ex"-Blue Dog-NY), current DCCC chair, recruiting conservative candidates just like himself 
William Jefferson (LA), sentenced to 13 years in prison for bribery 
Ron Kind (WI), New Dem slime, almost exact replica of Crowley 
Jim Matheson (Blue Dog-UT) 
Mike McIntyre (Blue Dog-NC) 
Bob Menendez (NJ) 
Collin Peterson (Blue Dog-MN) 
Mike Ross (Blue Dog-AR), retiring next year
Crowley is also on the House Foreign Affairs Committee and he was one of the 81 Democrats who voted to authorize Bush to attack Iraq.

126 Democrats (and 6 Republicans) voted against the unprovoked aggression, which turned out to be one of the worst and most costly foreign policy blinders in American history - costly for the taxpayers, but very profitable for the arms industry, which, of course, has rewarded Crowley very nicely. With their biggest bucks reserved for Republicans, arms dealers have bestowed a tidy $82,500 on Crowley for his support of their business interests.

Crowley has never had a serious opponent for reelection and, in fact, he was selected congressman in a very sleazy backroom deal with his predecessor, Tom Manton, who announced his retirement after the filing deadline and then, as head of the Queens Democratic Party, handed Crowley, a former staffer and a crony, the Democratic nomination.

Crowley doesn't live in Queens; he lives in Virginia with his family. He badly needs a primary from someone who does live in Queens (or the Bronx) and who is more than just a Democrat in name.

Staving off Pottersville for another little while.

No comments: