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The Bear Trio Gets A New Addition: Richard Koo... And He Is Pissed

Tyler Durden's picture





 

The pragmatic Nomura Keynesian addresses the recent change of Japan's Prime Minister, in what is possibly the best analysis on policy implications of the second coming of Naoto Kan. Yet where Koo shines through is his condemnation of the recent prudent approach defined during this weekend's G20 meeting, in which Europe has "just said no" to pursuing record deficits. Apparently the lack of a European desire to hit the Nitrokeynesian button and go all in on a bet Keynes is right (or, gasp, wrong) has made Koo so furious, he proclaims: "Premature fiscal consolidation is a threat to democracy." In essence, Koo, a devout Keynesian, is taking the false religion's argument one step further to its logical conclusion: that any change, be it today, tomorrow or whenever, will ultimately result in the collapse of the developed world's social fabric, once societies realize they have been fooled for ages by a ruling oligarchy of kleptrocrats. That, we agree with wholeheartedly. As Koo says: "Pushing ahead with these misguided policies risks a collapse of social and economic foundations and could even threaten the survival of democratic structures." Too bad Europe doesn't have our jolly Direct Bidder/Primary Dealer backstops to make sure no bond auction ever fails in perpetuity. Koo is 100% correct that the unwind is beginning as more and more people realize they would rather deal with the pain now, than a version thereof which is 1,000 times worse in a few years.

From Richard Koo's latest:

Premature fiscal consolidation is a threat to democracy

Pushing ahead with these misguided policies risks a collapse of social and economic foundations and could even threaten the survival of democratic structures. A good example is prewar Germany’s Brüning cabinet, which insisted on fiscal retrenchment and allowed the emergence of Hitler in the 1930s. The risk is especially high in Central and Southern European countries, which have a relatively short history of democracy.

Ultimately, I think the reason so many academics and pundits do not trust current low yields on government debt and expect them to rise suddenly is that they do not trust the market economy. When a price level set by the market persists for many years, we need to realize that there is an underlying economic structure supporting those prices.

What governments—including Japan’s new administration—should be thinking about is how to find promising public works projects and implement them in order to offset the deflationary pressures from private-sector deleveraging and provide the private sector with a sense of direction.

When private loan demand is nonexistent, the government must do whatever is necessary to find and carry out promising public works projects (including education and environment-related projects) without worrying about tax hikes.

And Cliff notes for the time challenged:

  • Naoto Kan, the new Japanese PM,  is not tied to a single economic theory or principles, and therefore has room to manoeuvre pragmatically as the situation dictates.
  • Kan is likely to support a weaker yen, which was opposed by his predecessors on the basis that as a trade-surplus nation, pushing the advantage could provoke deficit nations, possibly setting off a wave of protectionism and a currency death spiral.
  • On the other hand, Koo credits Kan for saving the Japanese economy in 1998 by compromising to allow a capital injection for the Japanese banking system to end a credit crunch—which “effectively delayed the birth of a DPJ government by a decade.”
  • Kan’s economic advisor is an Osaka University professor named Yoshiasu Ono, who shares many of Koo’s views about the need for governments to spend in order to boost demand during recessions
  • Koo thinks Japan’s private sector has finished repairing its balance sheet, and there is no risk of serious deflation
  • In order to stay competitive, Japanese stimulus needs to focus on hi-tech and science
  • Japan should not raise taxes but should continue to borrow—the private sector’s loan demand is minimal, and the government (in spite of its relatively high debt/gdp ratio) can still borrow for 10 years at only 1.3%.  Taxes would weigh on recovery
  • He thinks that the persistent low yields on government debt are a function of the high level of private savings that finance the debt, as the government is essentially the only borrower. 
  • Koo thinks the movement toward fiscal consolidation at this stage is a mistake that could lead to economic collapse and threaten the foundations of democracy, especially in Central and Southern Europe...

“What governments—including Japan’s new administration—should be thinking about is how to find promising public works projects and implement them in order to offset the deflationary pressures from private-sector deleveraging and provide the private sector with a sense of direction.

When private loan demand is nonexistent, the government must do whatever is necessary to find and carry out promising public works projects (including education and environment-related projects) without worrying about tax hikes.”

Full note:

 

h/t Jake

 


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Tue, 06/08/2010 - 14:47 | Link to Comment BlackBeard
BlackBeard's picture

Correction Mr. Koo: Hijacked Democratic structures.

Tue, 06/08/2010 - 14:51 | Link to Comment Innocent Bystander
Innocent Bystander's picture

Re

Given the key issue at hand, as discussed by BMO - Shortage of $$ and Europe trying to get hold of as many $$ as possible, it follows that many hedgies on both sides of the Atlantic are feeling the pain, especially those who put their hope in ECB and its monetary discipline (so much for that).

I have a question for this esteemed group, please all and any thoughts on this is are appreciated.

First the scenario, based on a few numbers I’m seeing,  big players, banks, funds and hedgies are all looking for liquidity at some level, a price they are paying for their hubris and underestimating the rot within the system.  So when one looks for liquidity, one tends to sell the best performer (contrary to logic), and given the deflation expectations among many, GOLD - is an ideal candidate.  So the big pools are liquidating, while retail is panicking (in terms of debasement of currencies and therefore buying GOLD) both in Europe and Asia and not so much yet in US.  IMF will be looking for $$ shortly and my bet is there will be more supply of Gold in the market sooner than later.  There are few more factors, but without getting into them, I’m sure this audience gets what I’m trying to say, Gold prices should be seeing a lot of downward pressure at this point and not regaining it highs.  (Let me clarify, I am partial to gold and expect it to hit $34xx in the next 4 years), however, this recent price action, along with global trends, suggests somethings afoot. 

One possible explanation might be the, big houses (without naming names) are looking to raise cash as noted above and hence forced to sell some physical, and if I have the ability to set(manipulate) the Gold market price I would try to set it as high enough as possible without raising any flags.  So that brings us to the question who is buying all this physical from these big houses, my take is a sovereign in Asia who’s reserve portfolio is appreciating with appreciating $$ and not to mention its currency.  Yes I think China is aggressively accumulating Gold now that it has built up its copper and iron reserves.  China is also taking advantage of a strong $$ while it lasts. 

The strong prices in Gold, the last couple of days may have lot of reasons - technical, retail  panic, etc.  but I strongly suspect there is more to it that meets the eye and am trying to come up with the most logical explanation, and I don’t think is simply panic buying by retail, but something new and big has presented itself as a suitable challenger to the esteemed houses.

Again any thoughts are appreciated. IB

Tue, 06/08/2010 - 15:09 | Link to Comment Alexandre Stavisky
Alexandre Stavisky's picture

Annuit Coeptis.  Novus Ordo Seclorum.

Gold is the go-to.  Our problem is our leadership is like our currency.  Made by fiat.  Without backing.  Without the intrinsic and durable qualities that bestow true value.  Princes of gold we have not.  Paper paupers aplenty.

Likewise I see another parallel.

I see another inherent problem in the "syndicate's" organization.  This has a predictive power and forecasting ability makes it a sure thing.  Herein lies our future.

Whenever a "cultured" four-lettered scion of the old-world power and money pyramid ascends near unto the pinnacle--the pyramid inverts becomes more a funnel to again loot the base, precipitating all to the capstone. BLUM or RAHM. All high are brought low, the common ashlars making up the bulk of the structure are tumbled, and a new cycle begins...usually in great turmoil.   Build the pyramid up, assume the pinnacle, invert and tumble.  Transposed those images could make a fine banner, and an emblem an ambitious mercenary tribe can get behind.

France in 1936...and what happened to them (the largest land army in the world at the time) in 1940?

http://www.time.com/time/magazine/article/0,9171,848594-1,00.html

USA in 2008, and what of its fate in 2012?

Curiouser, and curiouser.

Incidentally another powerful flag, one that rose up and devoured the infected Fleur-de-Lys was symbolic of what?

As I recall Nurnberg was a hub to all the European and far east overland trade routes used since Rome, the center to a multitude of spokes.  What was its significance to a maniacal, poorly mustachioed Hun corporal and his Flying Circus Richthofen cohort accomplice?  A cupped whirling mill centered there, reaching out to collect, harvest, and grind to pieces what commodity?

Were the colours, black, white, crimson chosen because of historical association with the state? or in mockery of this? Negredo, Albedo, Rubedo.

http://www.zyworld.com/DrBernardSButler/Alchemy.htm

War upon the pyramid builders and malchemists, just to substitute another despotic hierarchy.

http://www.time.com/time/magazine/article/0,9171,932213-1,00.html

Ascend or descend the pyramid, grapple for the baton of dominion, play the cycles of man.

The faces and names and means of intrigue change.  The tyranny of such serpents, not so much.

Tue, 06/08/2010 - 15:19 | Link to Comment WaterWings
WaterWings's picture

Fascinating post. Junked already. My kind of guy (gal?). All I know is there are some nuclear-tipped powers over thar yonder that would love to see the neighborhood bully go down. And never get up.

Tue, 06/08/2010 - 19:03 | Link to Comment fiddler_on_the_roof
fiddler_on_the_roof's picture

The first "times" article about France is fascinating - showing the power of currency issuing private Bank of France over the Govt. Thanks

Wed, 06/09/2010 - 05:18 | Link to Comment Woosirsir
Woosirsir's picture

how come you flag as junk for 3 times?

Wed, 06/09/2010 - 18:32 | Link to Comment tip e. canoe
tip e. canoe's picture

because he's getting warmer

Tue, 06/08/2010 - 15:14 | Link to Comment WaterWings
WaterWings's picture

Four years? Might as well be four decades. Be prepared for the storm and own physical now. When an investment firm tells clients to move into cash NOW it means Au and Ag for those aware of the crack-up boom on the way.

Speculate at your own risk.

Disclaimer: all tangibles (PMs, storable food, tools for self-defense, tampons)

 

Tue, 06/08/2010 - 18:13 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

I certainly don't know what will happen in the short term re the price of gold.

What I would suggest to anyone who does not own gold is that they should go out and buy some now!

Don't have to buy a lot, but I would get started right away.

If Gordon_Gekko is right (about not much time left to buy actual physical gold), and my gut tells me he is, then anyone without at least a little gold will be sorry.

Tue, 06/08/2010 - 18:41 | Link to Comment Spitzer
Spitzer's picture

So JPM and co. has been manipulating the metals down for 30 years but they, all of a sudden started manipulating them up so that they could sell gold that they don't have even when the cash from them sales would go on the same infanite pile that Bernanke rolled off the press the day before ?????

Are you a half breen Austro-keynesian ?

Tue, 06/08/2010 - 19:05 | Link to Comment RockyRacoon
RockyRacoon's picture

I think you just lent credence to the old axiom:  Gold is money -- as you have just defined it.

Tue, 06/08/2010 - 14:55 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Isn't it interesting that the cheerleaders are beginning to feel betrayed? They had a contract, right? They cheer lead and the powers that be lie, cheat and manipulate to prove the cheerleaders right, thus assuring the cheerleaders great emotional and fiscal profit along with acceptance by the (professional) hive.

It's always ugly when the school bus goes off the side of the road and we find out it was overcapacity and hadn't been inspected for 10 years. No brakes, not seat belts, drivers drinking on the job and so on.

BUT....But....but........but I thought you said........

Tue, 06/08/2010 - 15:21 | Link to Comment chumbawamba
chumbawamba's picture

HAHAHAHAHAHAHA...

GOLD BITCHES!!!

I am Chumbawamba.

Tue, 06/08/2010 - 16:13 | Link to Comment The Merchant of...
The Merchant of Venice's picture

tldr

 

#9!

Tue, 06/08/2010 - 15:22 | Link to Comment Eally Ucked
Eally Ucked's picture

you thought......efficiency is much better!

Tue, 06/08/2010 - 17:12 | Link to Comment Assetman
Assetman's picture

Yeah.  It's funny becuase I like Richard Koo because of his insight.

At the same time, he's a Keynesian to a fault.  And his latest missive is almost comical, if only the real economic effects aren't considered.

The Europeans have decided to swallow the bitter pill, and will likely export deflation to the rest of the world-- it's a bummer for those who dont want to play along.  And I'd gather that doesn't sit too well in Japan, where adding more debt was "just fine".  Ironically, just as Japan was getting ready to cross that finish line to Keynesian nirvana (not), the US stands to suck in as much global capital as it can in a quality trade.  Yikes!

It really doesn't get much better than this...

Tue, 06/08/2010 - 20:00 | Link to Comment greg merrill
greg merrill's picture

+10

I'm amazed someone who lived at ground zero (Japan) to a multi year train wreck keeps prescribing the same medicine. . . . 

Tue, 06/08/2010 - 22:14 | Link to Comment Double down
Double down's picture

We need new theories!!  I mean we have two fucking guys: Hyaek and Keynes.  I know there are others but they are heavily discounted, but what science or art has had only two meaningful contributors?

Economics is a poor art.  

Wed, 06/09/2010 - 20:17 | Link to Comment TuffsNotEnuff
TuffsNotEnuff's picture

Koo's book is "The Holy Grail of Macroeconomics."

He makes the point with very good accounting figures that the long Balance Sheet Recession moved with failures to replace private investment with government activity.

Hayek/Chicago/monetarist and Keynes/fiscal policies each have their times and places. Monetarism for fine-tuning normal growing economies. Fiscal stimulus to avoid the downward spirals that can drive a Great Depression, the Japanese slide, or the worst of what we might face now.

This is a great book. "Salt water" and "fresh water" economic theories get their just dues. And I can't imagine any business school grad with the basic accounting series having trouble understanding what Dr. Koo has discovered.

BTW: the Tyler Durden write-up above is foolish. Clearly lacking the information that he would have gained reading the book. He can't throw off this sort of jack prose and expect to be taken as a serious person.

Tue, 06/08/2010 - 17:20 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Excellent!

Sorry folks, we can't deliver as promised.

Tue, 06/08/2010 - 14:52 | Link to Comment Ragnarok
Ragnarok's picture

Even as reality take the screws to Keynesians they still can't see the error of their ways.

Tue, 06/08/2010 - 16:14 | Link to Comment The Merchant of...
The Merchant of Venice's picture

Well, they don't think their way is an error, but I doubt they see it as perfect.  More likely they see it as the least bad solution.

Too bad the least bad solution is only relevant to them.

Tue, 06/08/2010 - 16:49 | Link to Comment potatomafia
potatomafia's picture

HA!!  They will never see the error of their ways...  They will always be able to scream, "WE DIDN'T BORROW AND SPEND ENOUGH!"

 

Pretty freakin sad, really...

Tue, 06/08/2010 - 18:47 | Link to Comment legerde
legerde's picture

Not only that... They will blame gold hoarders for ruining their ponzi.

Tue, 06/08/2010 - 14:53 | Link to Comment callistenes
callistenes's picture

Uh I don't need or want anyone let alone government to "provide the private sector with a sense of direction." 

Yeah the private would me. Koo can kookookafuckoff!

Tue, 06/08/2010 - 14:54 | Link to Comment economicmorphine
economicmorphine's picture

Mr. Koo fails to grasp this simple fact....it is excessive debt that threatens the foundations of democracy, not a lack of stimulus.  JMK believed that governments should save surpluses to be spent in times like these.  There are no surpluses because the Richard Koo's of the world know only one thing and that's spend, spend, spend.  Tis a shame, but the die was cast a long fucking time ago.  Debt, not lack of surplus, is the problem.  Sing it from the mountaintops.  It's the debt, Dickie.

Tue, 06/08/2010 - 15:15 | Link to Comment etrader
etrader's picture

 G.F. Knapp  (chartalist school of monetary theory,) seems to be a new role model for JMK followers.

Tue, 06/08/2010 - 15:31 | Link to Comment VK
VK's picture

More like Charlatan school of monetary theory.

Tue, 06/08/2010 - 15:43 | Link to Comment Chemba
Chemba's picture

thank you.  It is one thing for a government to run a cyclical deficit, funded by counter-cyclical surpluses, in order to bridge a cyclical economy across a private sector deleveraging.  It is quite another for a government(s) to run secular deficits in order to bridge a ponzi-scheme.

Tue, 06/08/2010 - 16:03 | Link to Comment Captain Willard
Captain Willard's picture

+100! Keynes clearly referred to temporary deficits, not structural ones.

It's amazing to me that this buffoon talks about the "fallacy of composition" while advocating deficit spending for negative-return public works projects.

What a fool I was to believe that wealth is created through positive-return projects. I suppose compounding debt service will be paid by all these shitty projects and transfer payments.

These neo-Keynesians really can convince themselves of almost any rubbish.

Tue, 06/08/2010 - 16:14 | Link to Comment Ragnarok
Ragnarok's picture

What's your definition of a "neo-Keynesian" and how do they differ from the original?  Thanks.

Tue, 06/08/2010 - 17:01 | Link to Comment Captain Willard
Captain Willard's picture

This site has a pretty good summary of 75 years of economic debates...

It's hardly obvious what Keynes would have recommended in this situation any more than Mohammed or Jesus would recognize modern Islam or Christianity.

http://homepage.newschool.edu/het/essays/keynes/endofkeynes.htm

Tue, 06/08/2010 - 17:06 | Link to Comment akak
akak's picture

Whatever he might have recommended today, you can be sure it would have been fundamentally statist, pro-authoritarian and anti-free market.  That evil man deserves to be ranked right up there with Stalin, Mao, Hitler, and Pol Pot as a diabolical enemy of mankind.

Tue, 06/08/2010 - 17:18 | Link to Comment Assetman
Assetman's picture

You are absolutely correct, morhphine... and the thought process of spending well beyond one's capacity wasn't something Keynes have the "two thumbs up" signal for. 

Talk about a mis-interpretation!

Tue, 06/08/2010 - 20:21 | Link to Comment RockyRacoon
RockyRacoon's picture

The economies of Japan and the U.S. are quite similar in one important way. And that is that they both enjoy considerable international demand for their respective currencies. In the case of Japan, this demand emanates from the nation’s active export sector. For the U.S., the demand comes from the dollar’s status as the world’s primary reserve asset and the general perception that it is a safer harbor than many of the alternatives. Or, to paraphrase the words of our own Marin Katusa, while all of the world’s many fiat currencies are little more than toilet paper, the U.S. dollar is of the 3-ply variety. For a time, this support can help prop a currency up, even in the face of the sort of aggressive sovereign debt issuance that has been ongoing of late.

Unfortunately, once a certain point is passed, maintaining currency confidence in the face of crushing debt becomes highly problematic.....

Check out the link for more, and some relevant graphs:

http://www.caseyresearch.com/displayCdd.php?id=450

Wed, 06/09/2010 - 01:13 | Link to Comment Assetman
Assetman's picture

Thanks for the reference, Rocky... that pretty much nails it.

While the Europeans have to scramble to maintain an ounce of faith in the Euro via austerity measures, the US will scramble to issue low coupon sovereign debt.  There appears to be an implicit blessing to cross the debt rubicon while the capital is flowing.

We will see whether this becomes a mistake that leads to the next currency crisis (USD)-- or not.  My guess is it won't be the raising of the debt that will be a currect trigger-- it will be the monetizing of debt that causes a potential panic.

Tue, 06/08/2010 - 14:55 | Link to Comment economicmorphine
economicmorphine's picture

Should read...debt, not lack of stimulus.....

Tue, 06/08/2010 - 15:07 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

You can edit your own posts until they are responded to. Try hitting the "reply" under the post above.

Tue, 06/08/2010 - 14:57 | Link to Comment John Connor
John Connor's picture

I found "When Money Dies: The Nightmare of the Weimar Collapse" to be all the motivation I need to prepare for the worst.

Tue, 06/08/2010 - 16:03 | Link to Comment etrader
etrader's picture

No doubt the end game will feature some form of global reserve Renten-currency introduction.

 

Tue, 06/08/2010 - 15:05 | Link to Comment Hansel
Hansel's picture

Threat to democracy?  Democracy still exists?

Tue, 06/08/2010 - 15:42 | Link to Comment JR
JR's picture

Speaking of threats to "democracy," apparently for the banker rulers the chief threat this week comes from an 89-year-old woman…

Is the Helen Thomas story an economic story?  If not, why is this headline on economic websites such as the Wall Street Journal’s MarketWatch: Journalist Helen Thomas Quits Amid Israel Furor: Sad end for an 89-year-old Washington insider…?

The Journal’s MarketWatch byline story by Jon Friedman laments the mistake that Helen Thomas made in criticizing the occupation of Gaza by Israel.

Writes Friedman on MarketWatch’s Commentary under Final Question:

“This is what can happen when you go too far.  Your career will end, swiftly and unceremoniously.”

When the President of the United States joins in the criticism you have to wonder about the Constitutional protections of free speech.  How long before anti-Israel comments qualify for jail terms?

Democracy? This was a milestone in media. It is a dividing line. It divides the people who are interested in freedom from the people who only are interested in Israel.  There are two sides to this: freedom and Israel.

This was something a woman said and they-- the columnists, the President of the United States, editorial writers, talk show hosts, politicians, movie ‘stars’, Wall Street elitists and journalists--are standing in line at the microphone to tell us they choose Israel over freedom.  The good news is, we are able to see who’s at the microphone and who isn’t—and there will be plenty of people who don’t walk to that microphone.

And it’s not enough just to be critical of anti-Israel remarks.  To get the Israeli lobby’s (AIPAC’s) support, the degree of criticism is important as well.  To say that anti-Israel remarks are inappropriate would not be enough for an official such as Nancy Pelosi: she will be rated by AIPAC on how strong her criticisms are.  Mild is not good enough; they need to be strong or maybe AIPAC will rethink its support. 

To think that the President of the United States could get away with not "condemning" Helen Thomas is to not realize the strength of the Israel lobby, and it is to not realize the weakness of the American people.

Regarding the dangers in this weakness:

“It is the blinde Goose that commeth to the Foxes sermon.”  --John Lyly: Euphues and His England

Read more:  http://www.marketwatch.com/story/helen-thomas-as-cautionary-tale-2010-06-07?link=kiosk

Tue, 06/08/2010 - 16:15 | Link to Comment desgust
desgust's picture

USrael.

Enjoy your rulers.

Tue, 06/08/2010 - 16:20 | Link to Comment The Merchant of...
The Merchant of Venice's picture

She quit.  She could fight.  She didn't.  Her actions speak louder than her words.

Tue, 06/08/2010 - 17:19 | Link to Comment merehuman
merehuman's picture

she is out numbered. And a bit surprised at the vehemence of the vipers no doubt. I think she has more balls than all those sold out so called media whores.  i cant help but feel we (free people) lost a last remaing voice in the press room.

Tue, 06/08/2010 - 19:28 | Link to Comment Busy-Body
Busy-Body's picture

Roberto Duran quit.  She was fired.

Tue, 06/08/2010 - 16:24 | Link to Comment Citizen of an I...
Citizen of an IKEA World's picture

When the President of the United States joins in the criticism you have to wonder about the Constitutional protections of free speech. 

She's free to say whatever she wants. 

The rest of us are free to acknowledge the sickness of her sputtering, spittle-flecked Jew-hate.

Au revoir, bitch.

Tue, 06/08/2010 - 16:33 | Link to Comment WaterWings
WaterWings's picture

-1

She doesn't hate Jews. Simple minds like yours are easy to control. Like by Jon Stewart, who incidentally just jumped the shark. Too bad - maybe people will realize it's not news.

http://www.thedailyshow.com/watch/mon-june-7-2010/thank-you--south-carol...

His laugh tracks are kind of obvious when he gets repetitively obscure anyway.

Tue, 06/08/2010 - 17:03 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

Her statement was clear and damning.

Tue, 06/08/2010 - 17:09 | Link to Comment WaterWings
WaterWings's picture

Wish we had more damnables like her; those willing to speak their mind in the face of genocidal mass murderers. Sign of the times when she is shuttered so quickly.

End the Israeli Apartheid.

Tue, 06/08/2010 - 18:52 | Link to Comment desgust
desgust's picture

In some European countries she might have been sent to jail for similar topics. Democracy we call that and freedom of speech! Coming to a town near you...

Tue, 06/08/2010 - 21:20 | Link to Comment Mactheknife
Mactheknife's picture

She's Lebanese. Everybody has an agenda.

Tue, 06/08/2010 - 17:21 | Link to Comment merehuman
merehuman's picture

i junked CITIZEN for being a hateful jerk

Tue, 06/08/2010 - 17:44 | Link to Comment JR
JR's picture

This is the story behind the story and not only does it support the contention that most of the major media outlets are in the prostitution business but without revealing the details revealed here, they are also the year’s most prized fools:

The Ambush of Helen Thomas by Gary Leupp | CounterPunch | June 8, 2010

Outrage!

White House journalist Helen Thomas, covering a Jewish American Heritage Month celebration at the White House May 27, is accosted on the sidewalk by someone who asks: “Any comments about Israel? We’re asking everybody today---any comments about Israel?”

Smiling in grandmotherly fashion----the way an 89 year-old woman might do when suddenly approached by an 17 year old boy who seems sincerely interested in her thoughts---she replies: “Tell them to get the hell out of Palestine.”

 “Oooh…” responds the questioner. “Any better comments?” (A voice in the background: “Helen is fun!”)

“Hah hah hah,” laughs Helen. “ Remember these people are occupied, and it’s their land, not German, and not Poland.”

“So where should they go? What should they do?”

“They could go home. Poland. Germany.”

“Where’s home? You’re saying Jews should go back to Poland and Germany?”

“And America and everywhere else.”

A week later this video of the impromptu interview appears on “RabbiLIVE.com,” website of Rabbi David Nesenoff. (Who by the way is this “live rabbi”? Who is this rabbi character who’s terminated the career of a Washington press icon? How many journalists are even asking?)

The clip begins and ends with strident musical accompaniment, and concludes with the caption: “Six million Jews were killed in Germany and Poland. Does Helen know that Jews have lived in Israel way before the Holocaust. How can Helen report unbiased?”

According to one report the questioner was Adam Nesenoff, David’s son. The latter supposedly “sat on the Thomas scoop” for a week while his “webmaster son” Adam took final exams.

“So we waited,” Rabbi Nesenoff told Yahoo News. “And of course, during the waiting of it, the flotilla happened.” Nesenoff doesn’t explain how the Israeli assault on the Gaza aid flotilla connects to Helen or the timing of the video release. But clearly it (and perhaps Thomas’s comments about it?) influenced the timing of the video. And once it was online, the White House---which was not outraged at all by the murder of 9 aid workers by the “Israeli Defense Forces” last week---immediately condemned the journalist.

Nesenoff contacted her employer, Hearst Newspapers, telling them they had “to get rid of her.” They did.

Outrage! About what? A journalist is suddenly approached on the sidewalk by two high school students who say they’re asking everybody today if they have comments about Israel. (Might I ask: Why did this happen in the first place? Was this for a school project? Are there other filmed interviews young Adam would like to share, to prove that he and his friend were really fact “asking everybody” and not  just Helen?)

“Tell them to get the hell out of Palestine.” This was obviously a totally spontaneous statement, and could mean simply, “Tell them to withdraw from the occupied territories, as demanded by the entire world.”

The interviewer responds with apparent humor, asking for more comments. So the veteran journalist says, “Remember these people are occupied, and it’s their land.” It is of course absolutely true that Zionists occupy Palestinian land. This fact, not the comment, is outrageous. Most people on the planet understand this.

“Where should they go?” asks the youth rhetorically, perhaps psyched for his gotcha moment.  In this elliptical conversation, the “they” could have been interpreted by Helen, who has just mentioned “occupied” land, as referring to settlers on the West Bank or on the Golan Heights. The topic under discussion is Palestine, which in U.S. journalistic useage is more likely to refer to a future Palestinian state than to the state of Israel in its 1967 borders. But the video is skewed to make it seem as though Thomas said all Jews in Israel and the occupied territories should leave, and go back to places where mass murder occurred.

To those who care about fairness, I suggest that’s unfair. That’s not what Helen Thomas said. She said Israel should leave Palestine. When prompted to say where those referenced should go, she referred to countries with historically large Jewish populations. Lots of Israelis are in fact leaving Israel for those countries.  (About 14,000 Israeli Jews left annually between 1990 and 2005. According to a 2007 poll, half of Israeli youth between ages 14 and 18 express the desire to live outside of Israel, which they see as having a bleak future. A huge percentage of Israelis has or plans to inquire about obtaining foreign nationality; many Europeans offer this generously to descendents of citizens who can prove their ancestry. The Berlin synagogue has 12,000 members and is flourishing. There are now maybe 55,000 Jews in Poland, many emigrating from Israel following Poland’s admission to the EU.) …

Gary Leupp is Professor of History at Tufts University, and holds a secondary appointment in the Department of Religion.  He is also a contributor to CounterPunch's merciless chronicle of the wars on Iraq, Afghanistan and Yugoslavia, Imperial Crusades

http://www.counterpunch.org/leupp06082010.html

Tue, 06/08/2010 - 18:59 | Link to Comment tip e. canoe
tip e. canoe's picture

Helen was RAHMed

Wed, 06/09/2010 - 13:04 | Link to Comment Citizen of an I...
Citizen of an IKEA World's picture

She doesn't hate Jews.

Noooooo.  Of course not.

Tue, 06/08/2010 - 17:40 | Link to Comment JR
JR's picture

Friedman, aka the WSJ, gave this warning to America’s communicators:

“More profoundly, though, it signals a cautionary tale to the ever-growing ranks of journalists -- including bloggers, commentators and, yes, columnists -- who make their careers out of trying to shock audiences. This is what can happen when you go too far. Your career will end, swiftly and unceremoniously…

"Who knows what drove Thomas to make such caustic and offensive remarks? She certainly could've mouthed platitudes about hoping for the elusive peace in the Middle East and left it at that. She could have made a point, too, without offending people.

"One thing is for sure: This is a sad end to an otherwise honorable journalism career. And no matter what you thought of her work, it's a sad day for Thomas that her decades of hard work will be obscured forever by this reckless act.

"Thomas delighted in tweaking presidents over the years. She had a reputation as the kind of journalist who loved to leave an impression on her audience.

"Sadly, Thomas has now done just that. She also unwittingly taught everyone in journalism a lesson." ...

Tue, 06/08/2010 - 17:46 | Link to Comment akak
akak's picture

Says the knee-jerk pro-Israeli Jew.

Imagine my shock!

Tue, 06/08/2010 - 18:19 | Link to Comment puckles
puckles's picture

Alzheimer's, perhaps?

Wed, 06/09/2010 - 13:20 | Link to Comment Marla And Me
Marla And Me's picture

False dichotomy.  Just saying...

Tue, 06/08/2010 - 20:02 | Link to Comment greg merrill
greg merrill's picture

Hansel, He's so hot right now.

 

 

Tue, 06/08/2010 - 15:09 | Link to Comment Wynn
Wynn's picture

premature what Mr. Koo?

Tue, 06/08/2010 - 15:24 | Link to Comment Eally Ucked
Eally Ucked's picture

ejaculation!

Tue, 06/08/2010 - 16:11 | Link to Comment ydderf1950
ydderf1950's picture

+1000

Tue, 06/08/2010 - 15:11 | Link to Comment TooBearish
TooBearish's picture

Wait- Koo wants to increase spending, keep taxes the same and increase borrowing - yup all good....buy em

Tue, 06/08/2010 - 15:13 | Link to Comment centerline
centerline's picture

What a pussy (EU).  Press the big shiny nitro button.  Come on.  Ben says it's fun.  He pushes it all the time.

Tue, 06/08/2010 - 15:22 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I think all central bankers and economists are hooked up to surgically implanted brain implants that stimulate their sexual pleasure centers every time that hit that button your talking about.

Like those experiments with rats and food pellets. Hit the button and they come all over themselves. Gets down right messy after a few hours.

Tue, 06/08/2010 - 15:26 | Link to Comment Eally Ucked
Eally Ucked's picture

premature ejaculation, is it what you mean?

Tue, 06/08/2010 - 15:44 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Continuous ejaculation when they control the button.

Tue, 06/08/2010 - 19:17 | Link to Comment LeBalance
LeBalance's picture

Dennis Hopper...Blue Velvet...The Gas Mask.

Tue, 06/08/2010 - 15:33 | Link to Comment Ragnarok
Ragnarok's picture

Aren't rats aroused by the smell of urine? Somebody should check Timmy's undies!

Tue, 06/08/2010 - 18:01 | Link to Comment Rainman
Rainman's picture

...no, rats are attracted to the smell of bullshit and that comes out of Timmy's other hole.

Tue, 06/08/2010 - 18:08 | Link to Comment akak
akak's picture

I thought reptiles only have one hole?

Tue, 06/08/2010 - 18:25 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

LOL above last few comments!

Tue, 06/08/2010 - 19:19 | Link to Comment LeBalance
LeBalance's picture

Reptiles that are eating their own tails have no holes and are eating their own bullshit.  Reptiles that live in community are hooked up head to tail eating the bullshit of the one ahead.

Tue, 06/08/2010 - 15:19 | Link to Comment Quinvarius
Quinvarius's picture

We did so many things just to make it look like we were following Keynes.  If we pull that illusion away, we have only the reality of a kleptocracy engaged in systematic looting and a failed currency.

Tue, 06/08/2010 - 19:20 | Link to Comment LeBalance
LeBalance's picture

Bada-bingo

Tue, 06/08/2010 - 15:33 | Link to Comment Anarchist
Anarchist's picture

Koo thinks the movement toward fiscal consolidation at this stage is a mistake that could lead to economic collapse and threaten the foundations of democracy, especially in Central and Southern Europe...

 

He fails to mention the collapse of the color revolutions due to the stupidity of the elite to realize the inability of these newly "free" states to support themselves. This is far worse than the collapse of the PIIGS since the loss of many of these states back into the Russian orbit will doom their plans. 

Germany and a few northern states are smart enough to realize the Neocon plans failed so they cut their own energy deals with the Russians. I guess "old" Europe has shown Rummy that they are more relevent than then he believed. 

 

Tue, 06/08/2010 - 16:22 | Link to Comment The Merchant of...
The Merchant of Venice's picture

Deals paid in what currency?

Tue, 06/08/2010 - 16:33 | Link to Comment Anarchist
Anarchist's picture

You don't need currency when both parties bring something to the table. The barter system has worked since the caveman. Germany has sophisticated products and Russia has raw materials and most importantly energy.

The days of acquiring tangible goods with a fiat currency or stealing at the point of a gun are numbered. Producing countries are cutting bilateral deals using barter. In the case of the US it needs to decide if it wants to barter with 747s or weapon systems or try to use the barrel of a gun. When it cost $5 to steal a dollar you are cooked. Ask the Brits, French, Spanish or the Romans...    

Tue, 06/08/2010 - 17:14 | Link to Comment New_Meat
New_Meat's picture

Old data (~2000) but I'd bet still relevant.  GE had a contract in East Africa that couldn't pay in currency, paid in nickle ore, another contract that couldn't be paid in currency, paid in bartered refining, another contract... you get the picture.  Over 4x profit after all of the hops.

Trading unit in Stamford back then, probably in Bangalore these days.

- Ned

Tue, 06/08/2010 - 15:22 | Link to Comment chumbawamba
chumbawamba's picture

Koo: "Where's my FUCKING rose garden!?!?!?"

I am Chumbawamba.

Tue, 06/08/2010 - 15:27 | Link to Comment Eally Ucked
Eally Ucked's picture

fucken rabbits!!!!!

Tue, 06/08/2010 - 15:36 | Link to Comment Alexandre Stavisky
Alexandre Stavisky's picture

Kooing the dovish fiscal policies of Prime Minister New-to-the-Con?

I love the subtlety of the new-age slave runners.  Their efficiency has improved dramatically.

Their slave ships never even leave port.  Indeed their ships are island sized or can even bound a continent.

Funny that NipponKoku is called Japan (never so self-named by the aboriginals).

Cipangu was first mentioned in Europe in the accounts of the travels of Marco Polo. It appears for the first time on a European map with the Fra Mauro map in 1457, although it appears much earlier on Chinese and Korean maps such as the Kangnido. Following the accounts of Marco Polo, Cipangu was thought to be fabulously rich in silver and gold, which in Medieval times was largely correct, owing to the volcanism of the islands and the possibility to access precious ores without resorting to (unavailable) deep-mining technologies.  In reality, the word JII-PAN is a mingling of portuguese, malay, and mandarin thought to mean "screwed by the loss of a world war, shackled with unserviceable debt, and beck-n-call bondsman to the international money changers".

Still thought to be fabulously rich.  But increasingly "the land of the rising sun" is viewed as a setting star, prelude to a dark night of debt peonage.

Tue, 06/08/2010 - 16:18 | Link to Comment JR
JR's picture

Henry Kissinger told national television that the economic collapse was a great opportunity to bring in the New World Order and went on to say that Barack Obama was the perfect person to sell it to the world.

Speaking of the "international money changers," this from George Humphrey, economist and author: "They have created a power elite— we are not talking about your millionaire down the street. You can't even be a member of their club unless you are a multi-billionaire. And friends this is not about 'rich vs poor', this is about a very small handful of the worst criminal element on this planet, manipulating and destroying the good people of this nation and this world." –The Obama Deception (video)

Tue, 06/08/2010 - 16:37 | Link to Comment TooBearish
TooBearish's picture

Link to the Deception pls sounds fun!

Tue, 06/08/2010 - 17:15 | Link to Comment TooBearish
TooBearish's picture

Thanks guys

Tue, 06/08/2010 - 15:34 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

Koo is a good person to read because he distills down into plain English the Keynesian playbook that is usually so maddeningly obfuscated by cryptic central banker speak.  And really, his analysis is spot on and again suprisingly coherent to the average human, it's just the policy recommendations arising from that analysis that are batshit insane. 

Wed, 06/09/2010 - 13:42 | Link to Comment Assetman
Assetman's picture

PF, I couldn't have said it better if I tried.

If you're going to be batshit insane, you might as well have a perfectly logical reason for being so... it keeps you away from the asylum longer.

 

Tue, 06/08/2010 - 15:48 | Link to Comment suteibu
suteibu's picture

The situation was so serious that I was asked to appear on television programs every week to explain why the banking system needed a capital infusion.

Koo saved the economy!!!!!!!


Tue, 06/08/2010 - 15:53 | Link to Comment RagnarDanneskjold
RagnarDanneskjold's picture

I'm reminded of the Spengler column with the line, it's not the end of the world, it's the end of you.

 

 

Tue, 06/08/2010 - 15:53 | Link to Comment taraxias
taraxias's picture

Before that guy with the funny strawhat says it, I'll say it

Koo is a douchebag

Wed, 06/09/2010 - 01:13 | Link to Comment chumbawamba
chumbawamba's picture

A stuck Koo Koo clock is correct two times out of the day.

I am Chumbawamba.

Tue, 06/08/2010 - 16:08 | Link to Comment huggy_in_london
huggy_in_london's picture

... look at this flash rally ..... is it just me or do these "rallys" just look more and more fake each time?  And did the PPT "Head of Nasdaq Ramping" not show up for work today?

Tue, 06/08/2010 - 16:20 | Link to Comment Ragnarok
Ragnarok's picture

Short covering rally after two good days down?  Thinly traded traders market out there....

Tue, 06/08/2010 - 16:22 | Link to Comment huggy_in_london
huggy_in_london's picture

possibly ... but 100bp in 4 minutes ... did anyone actually do any buying or was it machine vs machine again!

Tue, 06/08/2010 - 16:26 | Link to Comment Ragnarok
Tue, 06/08/2010 - 16:31 | Link to Comment huggy_in_london
huggy_in_london's picture

yeah, saw that ... it'll do it every time

Tue, 06/08/2010 - 16:13 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Bears are going kookoo:

Tue, 06/08/2010 - 16:23 | Link to Comment huggy_in_london
huggy_in_london's picture

dude - don't you normally post some soft porn that you whack off to?  I guess this is it today!

Tue, 06/08/2010 - 16:26 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

dude - when you bend over, does it hurt? Some double-penetration will get you standing up correctly again! LOL!

Tue, 06/08/2010 - 16:27 | Link to Comment huggy_in_london
huggy_in_london's picture

you're an idiot

Tue, 06/08/2010 - 16:36 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

And you're part of the Mensa club? LOL!

Tue, 06/08/2010 - 17:10 | Link to Comment aaronvelasquez
aaronvelasquez's picture

LOL?  Come on.  That's so, like, Generation Next.

Tue, 06/08/2010 - 18:15 | Link to Comment Crisismode
Crisismode's picture

Nah.

He's Generation Left Behind.

 

 

Tue, 06/08/2010 - 17:48 | Link to Comment akak
akak's picture

OK Leo, you convinced me to start junking you again.

Why the rest of the ZH management still tolerates your shallow, juvenile and antagonistic crap simply eludes me.

Tue, 06/08/2010 - 16:27 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

5 day perspective of the Dow

 

Tue, 06/08/2010 - 16:43 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

What's your point? Looks bullish to me.

Tue, 06/08/2010 - 16:55 | Link to Comment Eally Ucked
Eally Ucked's picture

Is there anything looking bearish for you?

Tue, 06/08/2010 - 20:33 | Link to Comment M.B. Drapier
M.B. Drapier's picture

[oh well, if we can't appreciate a joke]

Tue, 06/08/2010 - 17:02 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Leo, my point is that it is a 5 day perspective. Period.

It actually does look like a rebound in taking place, but I placed the chart up because the longer perspective was warranted. Period. A one day chart can prove any point you wish to prove. You are being overly sensitive Leo.

Tue, 06/08/2010 - 17:50 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

I agree, if there is meaningful follow-through, a rebound is taking place.

Tue, 06/08/2010 - 20:06 | Link to Comment RockyRacoon
RockyRacoon's picture

If my wife would meaningfully get her ass of the couch we'd have a clean house.

Oh yeah, there's that follow-through part as well.

Tue, 06/08/2010 - 17:58 | Link to Comment Miles Kendig
Miles Kendig's picture

Come on Leo.  That is exactly the sentiment from January 2008 and things look worse now.  Much worse now that Koo & Krugman have had their way with the world since then and most certainly for those that will be called upon to pay their bill. I cannot but be convinced that the bills the K&K brothers have cooked up cannot ever be repaid in full. Perhaps this is the reason K&K believe that all of this is good. Must keep up appearances at all costs. Even when it makes 'em look like the kids at the supermarket checkout that are being refused their candy and are reacting as everyone else in the store has come to deplore.

Tue, 06/08/2010 - 18:30 | Link to Comment EscapeKey
EscapeKey's picture

I think you need to cut down on your Prozac prescription.

Tue, 06/08/2010 - 19:27 | Link to Comment hack3434
hack3434's picture

Leo being a coked out "trader" lives by the minute. Anything over a day is irrelevant lol  

Tue, 06/08/2010 - 16:58 | Link to Comment akak
akak's picture

Wow, the Dow is up for the day ---- I guess we can all just go home now.

All problems solved, guys --- Leo has declared it.  Nothing to see here.  Move along, move along ....

Tue, 06/08/2010 - 19:30 | Link to Comment LeBalance
LeBalance's picture

Leo is a BoCanada yesman:

http://www.zerohedge.com/article/hysteresis-hysteria#comment-396844

Enough already.  Leo = Squid.

Tue, 06/08/2010 - 19:25 | Link to Comment fiddler_on_the_roof
fiddler_on_the_roof's picture

you may be right and I also think S&P is going up till Dec 2010 after US midterm elections.

After which both S&P and Dollar can go down. Leading ECRI indicators are falling.

I could be wrong though. Also the capital gains tax is going up 5% from 2011 onwards

Tue, 06/08/2010 - 16:19 | Link to Comment three chord sloth
three chord sloth's picture

Wow. So he thinks it would be best if Japan continues their borrowing binge for another decade? That'll somehow get them onto firmer footing? For that to work I think his multiplier would need a multiplier of its own.

Tue, 06/08/2010 - 16:40 | Link to Comment Anarchist
Anarchist's picture

Japan is primarily in debt to itself. All the Japanese pensioners and banks will have to take a haircut. Japan can export it's way out of some of it's problems. They will be forced to bring in more low skill foreign workers to take care of all the old. Same problem in most western European countries.  Japan will be forced to cut deals with the Chinese to get access to resources. They will need to transfer more technology to the Chinese.

Tue, 06/08/2010 - 20:08 | Link to Comment RockyRacoon
RockyRacoon's picture

Is that chick holding an AK?

Tue, 06/08/2010 - 22:42 | Link to Comment Anarchist
Anarchist's picture

Who doesn't like hot babes with guns?

Tue, 06/08/2010 - 16:20 | Link to Comment pak
pak's picture

"in order to offset the deflationary pressures from private-sector deleveraging and provide the private sector with a sense of direction"

Keynesian fallacy #2: government spending can stimulate private economic development.

Intuitively appealing, but no empirical proof.

Tue, 06/08/2010 - 19:13 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Well, yeah butt,  we're talking economics here, there's "no empirical proof" of anything.  These guys are still arguing about GD1.  We'll be on GD27 and they'll still be arguing about GD1.  

Wed, 06/09/2010 - 04:29 | Link to Comment pak
pak's picture

Arguing is fine. But wasting money?

Tue, 06/08/2010 - 16:28 | Link to Comment tony bonn
tony bonn's picture

i hereby award richard koo the paul krugman award for advanced fucktardedness given each day to someone with special abilities to walk around the busy streets of tokyo with his head caught between his spinchter muscles.

Tue, 06/08/2010 - 16:43 | Link to Comment pak
pak's picture

Sir, can I be chosen to host the award ceremony?

Tue, 06/08/2010 - 18:12 | Link to Comment Miles Kendig
Miles Kendig's picture

No doubt those two need to POP the heads out of their fourth point of contact.

Tue, 06/08/2010 - 16:35 | Link to Comment Misthos
Misthos's picture

Euroland is not clueless.  The Euro nations have the most gold combined - more so than any other currency in the world.  You think as the SHTF, that their gold will just sit there gathering dust?

This will be the ultimate challenge to US $ hegemnony, and the US, having the most gold of all single countries, will respond in kind.

Don't sell your gold.  When the big boys get desperate, they will make your investment truly worthwhile.  By design, or by default, it's inevitable. 

 

Tue, 06/08/2010 - 19:45 | Link to Comment Crisismode
Crisismode's picture

and the US, having the most gold of all single countries

 

or not, since Ft. Knox has not been audited in more that 60 years,

 

. . . it could all be gold-plated tungsten.

 

 

Just sayin'

Tue, 06/08/2010 - 16:52 | Link to Comment TexDenim
TexDenim's picture

Fantastic stuff!

Tue, 06/08/2010 - 17:05 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re: more and more people realize they would rather deal with the pain now

 

Be careful what you wish for.  The peasants are not going to deal with pain very well, which is why the dear-leaders always provided enough crumbs.   Don't forget, bread and circus.   You gotta have both.

Tue, 06/08/2010 - 18:07 | Link to Comment ThreeTrees
ThreeTrees's picture

Why do Keynesians find it so hard to understand capital and production structures? Economies will align themselves to supply the government's demand when it's literally driving the market eand that structure does not necessarily align with demand after government support is withdrawn.

There is no such thing as premature fiscal retrenchment mr. Koo, nor is there such thing as ideally timed fiscal retrenchment. Contraction is inevitable WHENEVER a major source of demand is withdrawn.

Tue, 06/08/2010 - 19:09 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Everything is male psychology.   The Keynesians hope for a society run by benevolent intellectuals having very intellectual discussions (with good wine, of course) and well reasoned arguments winning the day.   

The exact opposite fantasy of, basically, the male libertarians fighting it out in capitalist survival mode for the females with the biggest teeth, hair, and boobs.   

Let's face it, anything obsessed-over  - by so many males - as economics, has to be bat-poop crazy.

Tue, 06/08/2010 - 19:37 | Link to Comment Cathartes Aura
Cathartes Aura's picture

+1 , and a wicked grin.

Tue, 06/08/2010 - 18:11 | Link to Comment Gully Foyle
Gully Foyle's picture

http://www.eutimes.net/2010/03/china-finally-learns-the-truth-about-the-jews/

 

Who’s to blame for the current global financialcrisis? According to a bestselling book in China, which is leading the sales charts in the country, the answer is clear: The Jews.

In the eyes of most Chinese, Jewish people are considered “smart,” “rich” and “good at makingmoney.” Bookstores in China offer a variety of self-help books titled, “How to make money like Jews,” and “The secret of Jews’ global success.”

Until recently, the notion that Jews and money were inseparable carried no anti-Semitic undertone in the country, but a relatively new book called “Currency Wars” threatens to change all that.

The book’s author, Song Hongbing, claims that behind world-changing events like the battle of Waterloo, Adolf Hitler’s rise to power, President Kennedy’s assassination, and the deep recession in Asia during the 1990s stood an intricate conspiracy aimed at increasing Jews’ wealth and influence.

Song, a Chinese computer engineer and history buff who resides in the United States, writes that almost every defining historical moment has been instigated by Jewish bankers, and mainly the Rothschild family, which Song says dominates the global banking system, including the US Federal Reserve System.

‘important publication’ or ‘nonsense’?
Song’s book was published in China about a year and-a-half ago, and initially sold an insignificant number of copies. But in recent months the global crisis has turned the book into a hit. Estimates put sales of “Currency War” well over a million, not including hundreds of thousands of illegal copies that can also be downloaded off the net.

Responses among readers vary; online discussions about the book reveal that many are convinced this is the most important publication ever written, as it “exposes the truth behind global economy.” However, others claim that this is “nonsense” and say that Song, who has never studied economics, simply pieced together a theory made up of several delusional conspiracy theories published on the internet.

Song’s publishers, a subsidiary of a state-owned publishing house, boast the fact that the book has been read by all leading financial executives in the country, as well as state leaders.

Song himself has become a local celebrity in China, and is often invited to lecture at financial conventions and is interviewed on TV as a famous financial analyst.

 

Tue, 06/08/2010 - 18:18 | Link to Comment fluorideintapwa...
fluorideintapwaterisbadforyou's picture

Song Hongbing has some  good  points

Wed, 06/09/2010 - 14:04 | Link to Comment Marla And Me
Marla And Me's picture

Gully, what the heck does this add to the dialogue?  I get if you want to post your protocols of zion-ish non-sequitur comments on the flotilla articles, but here?  You can come over for shabbat dinner any time.  Trust me, jews aren't as omnipotent as some would like you to believe...

Tue, 06/08/2010 - 18:39 | Link to Comment Paul Bogdanich
Paul Bogdanich's picture

"Mr. Koo fails to grasp this simple fact....it is excessive debt that threatens the foundations of democracy, not a lack of stimulus."

 

That's an unfair criticism.  He grasps that it's just that he also believes that the ruling class has to remain so through any transition and accomplishing that is best done by bankrupting everyone further on down the chain at once.  If you leave even a smattering of a middle class intact they might intermingle with the slaves and rebel against the owners to preserve what little they have left.  What you do historically is bankrupt everyone and then re-propety  the dispossed against the forces of anarchy by making grants of property and what not.  That's the historical pattern and whay they are trying to accomplish.  The template is centuries old.  Return to Normalcy and Order are the modern political phrases attached. 

Tue, 06/08/2010 - 19:31 | Link to Comment epsilonphase
epsilonphase's picture

what the j-govt should start to consider is public works projects to dismantle the past 50years of public works construction and re-beautify the country. Regional Govts have shown themselves totally incapable of weaning themselves off stimulus.

 

The demographics at play over-rule anything the govt can throw into the economy, so they should just do the environment a favour and take apart the bridges and expressways and return the country to nature.

Govt spending in action in Hokkaido :

http://spikejapan.wordpress.com/spike-hokkaido-2/lake-toya-the-billion-dollar-tower-of-bubble/

 

 

Wed, 06/09/2010 - 01:55 | Link to Comment three chord sloth
three chord sloth's picture

Thanks for that. It was interesting reading, providing a perspective on Japan that most outsiders never see.

Tue, 06/08/2010 - 19:36 | Link to Comment rawsienna
rawsienna's picture

Koo needs to realize Koo is wrong.  

Tue, 06/08/2010 - 19:47 | Link to Comment LeBalance
LeBalance's picture

And for the republic for which it stands,

One nation under God indivisible,

With Liberty and Justice for All.

Federalist Republic vs. Democracy.

State's Right to Self Determination vs. The US State Mob

What the Constitution Framed vs. What We Are Told We Are Now.

Remember SC saying to the Congress: Gee we don't like your tariff structure, it seems mighty unfair to us Southern States and overly in favor of your Northern economy, which (for the record) is using just as many slaves as we do.  I know we have this agreement to stay together, but it is predicated on everyone agreeing to everything, otherwise we are free to go our separate ways.

So SC tried to go.  And might made right and we lost State rights by force of arms.

The Union of Separate States became the corporate body "United States."  Soon to fund Lenin, Mao, Hitler, etc.

Or that is one version of what happened. There are many.  They all offer an interesting perspective.

Tue, 06/08/2010 - 19:58 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

I bet all the separate states woulda been able to take on Hitler too  (you know, the worlds greatest generation - [grabs crotch, throws out chest]).    Takes a big big unified nation to take on the really bad guys of the world.

 

(Sorry about you losing the war about "those people" tho, time to get over that one).  

Tue, 06/08/2010 - 21:00 | Link to Comment No More Bubbles
No More Bubbles's picture

They will indeed push ahead with these policies, knowing full well it will cause total collapse.  The previous bubbles were the "set up", now it's time to let it collapse. It's become my belief this has been their goal all along and it's about damn time it happen.....


Pushing ahead with these misguided policies risks a collapse of social and economic foundations and could even threaten the survival of democratic structures.

Do NOT follow this link or you will be banned from the site!