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Guest Post: Disinformation Fog Intensifies As Economic Turmoil Develops

Tyler Durden's picture


Submitted by Giordano Bruno of Neithercorp Press

Disinformation Fog Intensifies As Economic Turmoil Develops

In the past few years, the concept of economic globalism has revealed
itself as quite the Trojan horse; once posing as the next step in the
evolution of “free market” capitalism and the savior of third world
nations striving for development status, now revealed as a fiscal plague
spreading delirium and destruction wherever it touches ground. There
is no denying that the economies of the world are irrevocably tied to
one another, but until recently, this was always thought of as a “good
thing” in mainstream financial circles. Today, the great failings of
engineered interdependency are painfully apparent. The EU’s many
peripheral nations are dropping one after another like flies in a fog of
DDT, rising economies in Asia are bloated with investment capital
escaping from debt default in the West, causing impressive levels of
inflation, and the U.S. is on the verge of a currency implosion as the
Federal Reserve opens the floodgates of fiat in a bid to hide our
system’s extreme destabilization and maintain what little international
faith is left in our ability to service our rampant liabilities.
Globalism has led us to disaster…

Of course, this disaster is not quite so obvious if you only follow
the MSM’s version of events, or the pithy, watered down observations of
mainstream economists, central bank officials, and puppet politicians.
In fact, it’s difficult for the average person only mildly versed in
economics to understand just what is going on! The closer we get to the
edge of the ravine, the deeper the deception becomes. Most Americans
feel the danger intuitively, and see the warning signs in their local
communities, but clear, concise information in the midst of this
‘Gordian Knot’ of lies is difficult to come by.

Treasury Secretary Timothy Geithner claims that the Fed’s
quantitative easing programs are no threat to the dollar and that our
country “will not engage in devaluation”, all while commodity and energy
prices skyrocket to record levels and numerous nations threaten to dump
the Greenback as the world reserve currency. China claims that their
inflation is manageable, releasing CPI data that is even more arbitrary
and skewed as our own, while the Chinese masses grow louder in their
anger over a lack of purchasing power to match exploding housing and
food prices. The U.S. blames the lack of global recovery on China’s
undervalued Yuan and its unfair trade imbalance. China blames the lack
of global recovery on the overprinting of the dollar. Europe sits
across the Atlantic hoping both China and the U.S. will keep printing
and sending currency care packages to keep the EU afloat, all while
claiming every three months or so that the “crisis has passed”.

So, what’s the truth in all of this?

In the following, I will attempt to dismantle the latest
disinformation campaigns, explaining the most important factors
surrounding the developing calamity between the world’s major economic
powers in the easiest terms possible; including how these factors will
directly and indirectly affect you…

Truth: Dollar Devaluation Is Occurring, Inflation Is Here

As we have covered in recent articles, widely visible inflation in
the U.S. has been steadily developing for at least one and a half years.
Food, energy, and metals prices across the board are soaring, and
commodities actually outperformed stocks, bonds, and the dollar in 2010:

Wholesale prices (according to “official” numbers) rose 1.1% in
December, following a 1.5% gain in November. These figures are diluted,
to be sure, but the fact that inflation is being reported at all
signals probable danger for the coming year:

Grain prices surged in 2010. Corn gained nearly 60%, while soy and wheat gained around 40%. Cooking oil prices jumped 62%:

Anyone today who denies inflation is evident in our economy is either
blind, dishonest, or mentally deranged. In any case, they are not to be
trusted. The question now is, is this inflation being caused by
devaluing world currencies like the dollar, or a myriad of random
chaotic “coincidences”…

Lie: Current Inflation Is Caused By “Global Recovery”, And “Rising Demand”

The great lie surrounding these inflationary warning signs is that
they are a product of “recovery”, and increasing demand in the U.S. and
developing countries. While the “demand” argument may be partly true
for gold and silver’s rise, it is certainly not true for oil and grains.
Global demand for goods overall is dropping off a cliff, as is evident
in the Baltic Dry Index, which measures shipping and freight rates
around the world. The BDI has suffered a 20% decline in the past three
weeks alone:

If shipping demand is falling around the world, then demand for goods is
falling around the world. If demand for most base goods is falling,
then demand is not the cause of our current price spikes. Period.

More Americans filed for consumer bankruptcy in 2010 than in any year
since 2005. Keep in mind that the government’s new rules making
bankruptcy filing far more difficult took effect after 2005. This means
that even with harsher bankruptcy guidelines, we still saw a massive
wave of filings last year. If demand is actually a substantial factor,
then U.S. consumers are burying themselves in red ink in order to
support it:

Considering that over 8 million Americans have stopped using credit
cards just since Christmas 2009, I think it much more likely that
consumer demand in the U.S. is flat, or, still falling, despite the
claims of the MSM:

Mainstream analysts are often quick to point out that annual retail
sales for 2010 were up over 6%, claiming this is a sure sign of
recovery. Unfortunately, in their effort to ignore inflationary factors
in 2010, they forgot to consider that perhaps rising retail sales were
not due to increased consumption, but INCREASING PRICES on goods we
already buy daily. Black Friday and Christmas season sales were
generally unimpressive compared to 2009. Black Friday sales were flat
and December sales were up only 0.6%. Are Americans really buying more,
or are they forced to spend more on goods they need due to inflation?

Lie: The BDI Is Falling Because Of An Expanding Shipping Fleet

A new disinfo tactic I’ve noticed in the past two weeks is the
suggestion that the BDI is not falling because of decreasing demand for
raw goods, but a growing fleet of idle freight vessels in an already
tight market. That is to say, some analysts are suggesting that it is
not demand that is falling, but the supply of ships that is growing.

While it is true that world freight fleets are to add 200 new ships, this is not to occur for another year and a half:

The BDI plummeted in 2008, and has not shown any signs of recovery
since. This was not due to a new supply of ships, but directly tied to
the global economic collapse. The “growing fleet” argument seems to be a
distraction designed specifically because of the public’s growing
awareness of the Baltic Dry Index and its implications.

Another poorly conceived argument is that the BDI is inaccurate
because it does not take into account that smaller fleet vessels are
seeing increased freight rates while larger ships are falling out of
favor. It’s true, that if you only count the shipping frequency of
smaller boats, demand appears to be rising (barely). However, I hardly
see how this is a good thing. Increased demand for smaller boats means
no one is shipping enough volume to make leasing a large vessel
worthwhile. Smaller volume still equals smaller demand.

Lie: Food Inflation Caused By “Bad Growing Season”

It would appear that the “mystery” of exploding food prices has been
solved, and according to a USDA report released this month, the culprit
is “weak agricultural output” causing a diminished supply of staple
grains in the U.S.:

This release was so shocking to markets because the report’s figures
were so far below the USDA’s original estimates for harvest at the
middle of this year, but why should we care about the USDA’s estimates?
Are they not arbitrary? Why not look at the actual output for previous
years compared to 2010 and get a real sense of what is happening?

If we are going to compare the crop outputs of 2010 to 2009, we
should also keep in mind that 2009 was a record year for agricultural
production. Did the USDA really assume that 2010 would meet or surpass
such a bumper crop?

Corn harvests reportedly dropped 5% compared to last year, however,
2010 was still the third largest crop on record. Soybean production was
down only 1% from 2009. Cotton (not edible, but still important) was
up 50% from 2009. Wheat was down less than 1% from 2009. One of the
only grains affected in a substantial way in 2010 was Sorghum. The crop
yield for Sorghum dropped 10% compared to 2009, but the planting area
used in 2010 was 19% less than a year before, so this drop was to be

What does this mean? The U.S. had a GOOD year for crop output, not a
bad one. And what about Russia’s summer disaster wheat crop? Are our
exports picking up the slack of bad harvests overseas, causing prices to
rise? Actually, warmer Russian weather in November spurred wheat
production, helping alleviate the weaker summer yields:

Are there dangers in world grain output due to weather? Yes, but not
enough to warrant a doubling of commodity prices. The REAL concern of
agriculturalists, not just in Russia but in many nations, has not been
the weather, but the ever expanding costs of production itself! From
fuels to fertilizers, the process of growing food is becoming more and
more expensive. What is facilitating this surging cost of production?
How about the one factor that no one seems to want to discuss; the
devaluation of major currencies, most especially the dollar? I find it
interesting that so much disinformation on supply and demand in
commodities is hitting the news streams just as the Dollar and the Euro
begin to unhinge. In my view, this engineered hysteria is meant to
distract us from the collapse of our currency, and to create plausible
scapegoats for the inevitable ill effects that devaluation will bring.

Lie: Oil Inflation Caused By Rising Demand

Same argument, different commodity. Oil output has been more than
ample in light of the fact that oil consumption in almost every nation
has fallen substantially in the past three years:

What about the surprise shutdown of the Alaskan pipeline this month?
Is our supply in danger? No. According to the EIA (Energy Information
Administration), the U.S. exports (that’s right, exports!) over 2
million barrels (2009 figures) of petroleum and petroleum byproducts a
day, most of it from the Alaskan fields!

Apparently, Americans didn’t need that oil when the pipeline was
working, so shutting it down certainly wouldn’t diminish supply here at

Oil is pegged to and traded in the world reserve currency; the
dollar. Any devaluation in the dollar will have immediate effects on
the value of oil. OPEC nations can and have been absorbing the
inflationary costs, but they can only succeed in this for a short time.
Eventually, the fundamental expenses will overwhelm them, and they will
be forced to allow the price per barrel to take flight. That time has
essentially come. Prices are likely to climb at breakneck speed in
2011, not because of demand, but because of the crumbling Greenback.

Truth: China Is Preparing To Dump The Dollar

Most economists should have seen the Chinese problem back in 2005,
when their central bank started issuing Yuan denominated treasury
securities called “Panda Bonds”:

Maybe the cute name threw mainstream pundits for a loop, or maybe they just couldn’t see the true purpose behind such a move.

China is the largest holder of U.S. debt and dollars. It is also the
largest holder of forex reserves in the world. China’s coffers are
bloated with savings. So then, why would the Chinese government
introduce a plan to sell their own debt securities? They don’t need
constant inflows of foreign cash to stay afloat like we do here. Their
currency was pegged to the dollar so issuing a Yuan denominated security
would have been pointless, at least in the eyes of the common investor.
What did the Chinese central bank know that we didn’t?

It took some connecting of dots, but in 2008, when the ASEAN trading
bloc took shape and they began to allow Yuan bonds for cross border
trades, the reason was clear; China was planning to de-peg from the
dollar. China was going to allow their currency to valuate. China was
going to move towards a consumer based economy. China was going to drop
the dollar as its reserve currency for international trade. And,
eventually, China was going to dump their U.S. Treasury holdings

Why would China start preparations for this all the way back in 2005?
It seems like a serious gamble, unless they KNEW what was coming in
2008. Unless they knew that the credit crisis would strike hard, that
U.S. consumption would falter for years, not months, damaging Chinese
exports. Unless they knew that the Federal Reserve would recklessly
pour fiat into the system. Looking back at China’s actions, one can
only conclude that their central bank was made aware of coming events by
others, or, they are all Jedi, and deserve some kind of award for their
incredible powers of foresight.

So far, the Chinese have de-pegged from the dollar, Yuan bonds are
now being issued by the World Bank, and China has dropped the dollar in
bilateral trades with Russia. We are only a step or two away from a
global shunning of the dollar and a treasury dump by our biggest

Truth: China Is Suffering From Inflation

Concise data on Chinese inflation is even more impossible to obtain
than it is here in the U.S. The “official” inflation rate in China
increased by 5.1% last year, however, some estimates double that figure:

Chinese property prices rose for the 19th month in a row last
December, while Chinese demand for housing remained low. Government
subsidization of residential construction has created modern day “ghost
towns”; entire complexes of apartments and retail spaces devoid of

China has introduced its own stimulus measures in the face of the
global credit crunch. While our fiat dollars have all been stuffed into
the pockets of corporate banks and foreign entities, their fiat Yuan is
going directly into their real economy. This is why China’s inflation
is so immediate, while ours is still partly subdued.

Does this mean China is in the midst of its own bubble, ready to pop and rain down financial havoc? Not necessarily…

Lie: China Can Counter Inflation Without Boosting The Yuan

China has one option; extreme Yuan appreciation boosting the buying
power of their populace in order to counter rising prices. China denies
this possibility in public forums, but their central bank’s actions
tell a different story.

Reserve requirements (the amount of money Chinese banks must hold as a
safety net) have been upped several times, mushrooming to 19%. This is
meant to remove excess liquidity from the economy, but so far the move
has failed miserably. China has also raised interest rates to curb
lending several times to no avail. As noted above, inflation continues.

I believe Chinese as well as Western central bankers are well aware
that the Yuan will have to spike considerably if inflation is going to
be halted, but currency valuation is not something that can be enacted
without consequence. Generally, for one currency to rise quickly,
another currency tends to fall. In this case, that currency will be the

Forget about all the empty rhetoric you hear in the MSM or are liable
to hear during Chinese President Hu Jintao’s visit this week in
Washington. Already, Hu has called for greater cooperation between the
U.S. and China while at the same time stating that the dollar based
system is a “product of the past”:

The U.S. government has called for greater cooperation with China
while the Senate has issued a statement demanding Congress institute a
bill that would label China as a “currency manipulator” on the eve of
Hu’s visit:

The meeting between Hu and Obama will generate nothing, because
neither Hu nor Obama actually have any say in the financial decisions
they will discuss. Those decisions are made by the central bankers of
our respective nations, and the central banks want an end to the dollar.
When it comes down to it, the banking elites of China and the U.S. are
both working towards this goal, while the masses are led to believe
that they stand opposed.

Most revealing has been China’s support of the EU. Why are the
Chinese suddenly so interested in propping up European economies that
are destined to default? It’s definitely not out of the kindness of
their hearts. First, China gains greater proliferation of the Yuan by
tying itself closer to Europe, Africa, and the rest of Asia. Greater
Chinese investment in the EU makes a switch to the Yuan (or a basket of
currencies) and a move away from the dollar more acceptable to the
citizenry of Europe. (Notice that all the American taxpayer dollars
that were sent to tide over the EU were made secret, while all that
Chinese money sent to the EU is loudly paraded for all to see. China:
good guy. America: bad guy). Second, the greater the proliferation of
Yuan bonds, the faster the Chinese can begin to dump their U.S.
Treasuries. This is the key!

China must shrink its forex and T-bill reserves in order to drive an
appreciation of the Yuan able to cut off inflation concerns. Timothy
Geithner claims this will be good for the U.S. Hu claims it would be
bad for China. They are both liars. Ultimately, inflation will be used
by China as the excuse to drop the dollar completely, which is what
they have been planning to do since at least 2005. The private Federal
Reserve and our government will announce victory and a “managed”
devaluation of the dollar, only to have the treasury bubble snap and
bury us in hyperinflation, which is what they wanted all along, for many
reasons, but most importantly to allow for the birth of the IMF’s SDR
as the new global currency (amply supported by the new improved Yuan).

The Saga Of Disinformation Continues

I thought the economic situation was confusing two years ago. I
never dreamed the pretzel could become so twisted so fast. The reason
it is vital to stay on top of the fog and misdirection should be
evident; deception in the economy can be used to steer the public and
our country towards terrible ends. While many of us might become
exhausted with the constant reminders of the dark road ahead, we cannot
take for granted that the battle for the truth is far from over. We
have made great headway over the years, far more than I dared imagine
possible, but this is a beginning, one that must be cradled carefully,
like the embers of the first fire.

The nature of propaganda is to strut, to pound its chest and wail the
closer we get to reality. The more Americans stumble upon the facts
behind the false statistics and false smiles of establishment pundits,
the more we will be subjected to globalist think-tank fancies and
elaborate insanities. In this, we find our most reliable gauge of
impending jeopardy, and salvation. Bigger grifts signal precarious
times, but also desperation amongst the perpetrators and con men. There
does come a time when people become weary of being fooled, and they
turn their blunderings from a hindrance into an education. Ironically,
lies very often destroy themselves, by frustrating their intended
victims into action.


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Tue, 01/18/2011 - 10:07 | 883802 ak_khanna
ak_khanna's picture

The blame for causing the financial crises is to be shared by all the parties involved.

Individuals kept on spending even in face of declining incomes by using the cheap and easily available loans handed over to them by the bankers.

The bankers kept on lending to the individuals, who they knew would never be able to repay their loans, because they were getting commission and charging exorbitant interest on the loans. Moreover they were able to sell the poor loans (after getting them fraudently rated as AAA) to Freddie Mac and Fannie Mae. The bankers also sold these toxic products to the pension funds and fixed income investors for commissions knowing very well they will go down in value when the borrowers default. The bankers were confident that the government would route tax payers collections to them in case of any mishap as they had become too big to fail and controlled the politicians, rule-makers and the rule enforcers.

The politician­­s around the world are nothing more than auction items which can be sold to the highest bidder. They will do whatever they can for the lobbyist paying them the maximum amount of money or votes, be it the unions, the banksters, the richest corporatio­­ns or individual­­s. They are in the power seat to extract maximum advantage for themselves in the small time frame they occupy the seat of power.

The rest of the population is least of their concerns. The only activity they do is pacify the majority of the population using false statistics and promises of a better future so that they do not lynch them and their masters while they are robbing the taxpayers.

Tue, 01/18/2011 - 10:43 | 883833 66Sexy
66Sexy's picture

QE has failed in its objectives, and has only resulted in commodity inflation; there has been no improvement to jobs, housing, or the real economy.

Unemployment will likely go up again once the holdiay reports start phasing out in feb.. Oil prices going up; bad for everyone. Food prices going up, bad for main street. Housing is a complete disaster.

It all brings to light the false assumption that digital control in a credit-debt system is the end all- be all of economics.

Tue, 01/18/2011 - 10:50 | 883884 hedgeless_horseman
hedgeless_horseman's picture

Truth:  The OJ at McDonald's contains much less orange juice (up 11.7% in a month), and much more water than it did a month prior.

How long before they revert back to that "orange drink" we grew up with?

Tue, 01/18/2011 - 10:55 | 883899 Sudden Debt
Sudden Debt's picture


Tue, 01/18/2011 - 13:21 | 884324 Hephasteus
Hephasteus's picture

Quick sell the orange juice ADD drugs. It's LOSING CONCENTRATION.

Tue, 01/18/2011 - 10:28 | 883841 kridkrid
kridkrid's picture

It doesn't matter who gets the blame... the end result would have been the same.  Our monetary system requires that credit/debt be in a state of constant expansion.  It isn't the players bringing us down, it's mathematics.

Tue, 01/18/2011 - 16:37 | 884975 midtowng
midtowng's picture


Fiat currency systems can be built either on printing, or on debt. Printing always leads to inflation. Debt always leads to implosion.

We would be better off with printing because at least that wouldn't lead to such enormous inequality.

Tue, 01/18/2011 - 11:23 | 883962 Sean7k
Sean7k's picture

No, the blame is squarely on the FED. It is the FED that is responsible to control inflation, maintain employment levels and monitor banks. It is the FED that sets reserve requirements, the overnight rates and interest rates. It is the FED that determines safe levels of capitalization for the leveraging of money for new loans.

It is not "everyones" fault. It is the FED. They could have mopped up the liquidity, but instead they blew the bubble larger. They could have monitored the capital in banks, but instead allowed banks to max out the credit card so it could be dumped on the economy. The FED could have interceded in the derivative markets and exercised some discipline in the construction and sale of these tranch time bombs, but they didn't.

If the FED is incapable of following it's own mandates, if the FED is functioning in a way that benefits bankers to the detriment of society at large, it is the FED that should pay the piper. 

Quit being a banker shill!

Tue, 01/18/2011 - 10:09 | 883803 the not so migh...
the not so mighty maximiza's picture

Great Article!!!!  I would give my left nut to know when the "braking point" is achieved.

Tue, 01/18/2011 - 10:53 | 883896 Sudden Debt
Sudden Debt's picture

Just cut if off, put it in a jar, fedex it and I'll tell you :)

Tue, 01/18/2011 - 11:44 | 884033 the not so migh...
the not so mighty maximiza's picture

your avatar scares me

Tue, 01/18/2011 - 10:09 | 883805 Strike Back
Strike Back's picture

But, but, prices are rising due to rising demand!

Tue, 01/18/2011 - 11:37 | 884005 LooseLee
LooseLee's picture

Hey. Like your avatar. Lee wouldn't recognize the world we live in now...

Tue, 01/18/2011 - 10:10 | 883806 sushi
sushi's picture

Lie: The USA is a representative democracy.

Read the prior post on the number of multi-millionaires in Congress. They must be making out like bandits on The Chairman's market boost. Do you really think they will enact any legislation that benefits the populace and has a negative impact on them?


Tue, 01/18/2011 - 10:32 | 883850 SheepDog-One
SheepDog-One's picture

The US is certainly is not a 'representative republic' as it was established any longer, and 'democracies' are what the founders dreaded most. We know have a Kleptocracy at best, those who gain power similar to mafia dons look at 'the people' as things to extort more money out of until we've reached this point where basically everything you produce is confiscated in one way or another.

Tue, 01/18/2011 - 10:55 | 883898 Sudden Debt
Sudden Debt's picture

That doesn' t sound so democratic.

Why won't you just follow the line and do what the rest of the hive is doing?

Tue, 01/18/2011 - 12:08 | 884116 AnAnonymous
AnAnonymous's picture

The US is certainly is not a 'representative republic' as it was established any longer


A representative republic? Awesome. Try your luck at the local circus. They must look for contortionist talents, you'll do great.

Tue, 01/18/2011 - 10:13 | 883812 Savonarola
Savonarola's picture

I blame Pharoah and his policies for making a bad situation much worse.

Most important lesson which they don't teach at Harvard or Yale:  Never trust money to a thief, liar, or man with a beard.


Tue, 01/18/2011 - 11:28 | 883978 Missing_Link
Missing_Link's picture


Tue, 01/18/2011 - 10:15 | 883816 JW n FL
JW n FL's picture

I gave you a 5 for effort... the major hole in the china will bite the hand theory is, we financed everything vertical of scope, scale and / or real value... Bush would not let American's re-patriot monies from China, ala' Blackstone and so on...,+Blackstone+2007&spell=1&fp=ddb181364976507e


The fact that not even the fringe media wants to cover what the facts are gets boring...


Tue, 01/18/2011 - 10:17 | 883819 I think I need ...
I think I need to buy a gun's picture

this was by they have all the money and all the gold at the fuckin end. No one in their right mind would have let all these jobs go years ago....Whatever let the implosion begin.

Tue, 01/18/2011 - 10:17 | 883821 umop episdn
umop episdn's picture

While I like the article in general, it has a few faults, imho.

Weather has affected the BDI as well as crop prices. Many mines in Austrailia will be shut in for quite some time, especially the mountaintop removal coal mines which collected the rainwater. The flooding has been severe in Aus.

Oil is magic stuff. If there were $50 barrels of oil out there, demand would skyrocket. $90 barrel oil, not so much. Oil production has declined since the 2005 to 2008 plateau and is likely to get worse. Getting oil up from holes a mile under the sea and up to six miles under the sea bed requires a *lot* of expensive suckage.

Tue, 01/18/2011 - 11:57 | 884079 N_Jones
N_Jones's picture

Your post insinuates that the current monetary policies would have worked if it wasn't for some bad luck.  I suggest to you that the bad luck has just exacerbated the underlying problem of trying to print our way out of debt.

Tue, 01/18/2011 - 10:21 | 883824 SheepDog-One
SheepDog-One's picture

The only delusion is believing anyone thinks we can 'service the debt' of $14 trillion, throw in unfunded liabilities of 100 trillion more and only a lunatic would extend the Roach Motels bar tab.

Tue, 01/18/2011 - 13:48 | 884392 Bob
Bob's picture

Interestingly, China holds 7% of our debt--the Social Security Trust Fund holds at least 15% (bought and paid for.) The vast majority of total Treasury Debt is held by American individuals and institutions. 

I think it important to bear this in mind as the evolving meme of cutting SS benefits grows louder on the bullshit rhetoric of "fiscal responsibility."  As if fiscal responsibility is threatening to break out ANYWHERE else!  I think this pressure is effectively an effort to impose a selective default that places average US citizens first on the chopping block . . . while couching it in other, more high-minded language. 

Tue, 01/18/2011 - 10:22 | 883827 Paper CRUSHer
Paper CRUSHer's picture

The ECB has begun its recruiting campaign.To join forces in the gold sales program,one tough SOB.....Estonia.Hah,armed with a measly 0.2 tonnes of .9999 fine caliber munitions.

Tue, 01/18/2011 - 10:38 | 883832 Sudden Debt
Sudden Debt's picture

+100 tyler, you best post this year!

I hope everybody reads it at least 2 times!

Tue, 01/18/2011 - 10:24 | 883834 Mad Mad Woman
Mad Mad Woman's picture

Excellent well-written post!  The writer nails it, the actual truths and where the lies are. Kudos!

Tue, 01/18/2011 - 10:43 | 883838 Eternal Student
Eternal Student's picture

An excellent summary of our current economic clusterf*ck.

Perhaps the title should be changed to "Globalization for Dummies"? :)

Tue, 01/18/2011 - 10:34 | 883855 whatz that smell
whatz that smell's picture

Two distinct behaviours are used by inking squids. The first is the release of large amounts of ink into the water by the squid, in order to create a dark, diffuse cloud (much like a smokescreen) which can obscure the blogger’s view, allowing the squid to make a rapid retreat by jetting away.

The second response is to release ‘pseudomorphs’ (‘false bodies’); smaller clouds of ink with a greater mucus content. These are expelled slightly away from the squid, which will often release several pseudomorphs and change color. The pseudomorphs are roughly the same volume and look similar to the squid that released them, and many bloggers have been observed attacking them mistakenly, allowing the squid to escape (this behavior is often referred to as the ‘Bernank-Ink-Jet Maneuver’).

Tue, 01/18/2011 - 10:56 | 883902 johnnynaps
johnnynaps's picture

There definitely is a "smokescreen" going on right now. Me thinks, it's actually more devious than the obvious. "Hope and Change" as the slogan should be changed to "Loaded Corporations and Indentured Servants".

Tue, 01/18/2011 - 10:36 | 883857 Downtoolong
Downtoolong's picture

Globalism, successful or otherwise, inevitably involves some wealth transfer from those who have to those who have not, particularly in the early phases, before the promised long term benefits to all can be realized. The financiers of the world love it because they make money off transfers and exchanges, a lot of money. It’s all well and good, as long as it’s some other guys wealth that is being transferred.

Tue, 01/18/2011 - 12:11 | 884122 AnAnonymous
AnAnonymous's picture

Globalism, successful or otherwise, inevitably involves some wealth transfer from those who have to those who have not, particularly in the early phases, before the promised long term benefits to all can be realized.


Solid footing. In a period like this... And the Moon is the Sun etc...

Poor people in the world are squeezed out of their resources. The transfer is from the poorest regions of the world to the richer. Not the reverse.

No riots if that was not the case...

Tue, 01/18/2011 - 10:38 | 883859 Oh regional Indian
Oh regional Indian's picture

Excellent article as always.

Here is the rub, the food price rub:

Grain prices surged in 2010. Corn gained nearly 60%, while soy and wheat gained around 40%. Cooking oil prices jumped 62%:

No way that genie can be put back in the bottle. And we are not collectively at a stage yet where the photograph of a tomato on an iPhone is the same thing as having it. Better yet, if it were grown on prime Second Life land (ha!) and paid for with Linden Dollars?

reality, so relentless in it's efforts to bite us in our collective asses. Meanwhile, we just keep padding it up to dull the pain.

Exporting inflation, such a sign of a bizzaro world we live in.


Tue, 01/18/2011 - 10:40 | 883860 alter ego
alter ego's picture

Remember that the devil works using twisted ideas, manipulations and moreover, half-truths.


Tue, 01/18/2011 - 10:45 | 883872 teichman317
teichman317's picture

Great post

"Second, the greater the proliferation of Yuan bonds, the faster the Chinese can begin to dump their U.S. Treasuries. This is the key!"


Can someone explain the above to me. Thanks


Tue, 01/18/2011 - 12:14 | 884007 Sean7k
Sean7k's picture

The more people buy the bonds, the more yuan that will need to be spent. It will allow the Chinese to trade in their own currency globally (essential to an export driven economy). 

Presently, they are tied to the dollar to complete trades as there are not enough yuan for the volume of trade they are conducting. 

People will only trade in a currency if they think they can use it later (in another trade or to buy products). The acceptance of bonds means that people are confident they will be using your currency in trade.

The dollar had been fulfilling this function as it is so liquid. As the Yuan bonds increase, the Chinese can sell their treasuries and gain more control over their future.

Tue, 01/18/2011 - 10:47 | 883878 metastar
metastar's picture

"Panda Bonds" is cute is kinda like saying that the PatRIOT Act is patriotic!

Tue, 01/18/2011 - 12:33 | 884207 Oh regional Indian
Oh regional Indian's picture



Tue, 01/18/2011 - 10:48 | 883881 MiddleMeThis
MiddleMeThis's picture

My question is this:  "What does the common man/woman do?"  Seems to me we are virutally powerless and are simply along for the ride.  What action can we take to protect ourselves?

Tue, 01/18/2011 - 11:29 | 883982 LFMayor
LFMayor's picture

Stock up weapons and food.  Learn to use them efficiently.  Standby to run riot.

Are you like me? I don't have the capital to invest in PM's.  I'm screwed.  If the power fails, my IT job will. Maybe sooner.  The only reason I'll keep my roof is because there are millions of other foreclosures log-jamming the paperwork river.  Since victory gardens are now legislated illegal and subject to "confiscation", how in the hell will I feed my family?

So I'm planning on the Sampson Option:

If I'm screwed then at least I can act up... maybe even be that little fish bone that lodges sideways in some bastards throat when I get swallowed whole.  Anything better than that I'll consider a happy bonus.

Tue, 01/18/2011 - 11:38 | 884012 topcallingtroll
topcallingtroll's picture

Join the new religion of St. vincent and help do battle against the 47 named demons.

Tue, 01/18/2011 - 13:00 | 884257 hedgeless_horseman
hedgeless_horseman's picture

Standby to run riot.

Running riot is when poorly-trained hounds chase the wrong prey.

Tue, 01/18/2011 - 12:07 | 884086 Lower Class Elite
Lower Class Elite's picture

Check out, I say.  In whatever fashion is available to you.  For some, that can mean physically bailing out to Montana or Argentina or wherever.  For most (myself included in this group), I think it means getting as many friendlies as close by as possible, and really working on how to take care of you and yours completely outside of the "normal" way that has been ingrained in us since birth.  For example, in my case I have a small piece of land owned free and clear.  It is surrounded by family and friends and woodlands.  It is in the town where I was born and raised, so I am intimately familiar with the area and a good number of the people/families nearby.  It is not by any means prime real estate, but it has decent water and trees, it's within walking distance to a rail line, it has great topsoil, but it is otherwise completely unremarkable and under "normal" conditions not particularly valuable.  I have no financial "assets" whatsoever (not even PM's, sorry, but I need other things worse), but I also have no debt.  I am personally building my own house on the land, cash and carry, no mortgage, no Home Depot card.  Even with experience, this is a demanding task.  I am fortunate in that I grew up on a farm, but even then we took full advantage of cheap and easily obtained pesticides, fertilizers, and farm equipment.  I am also fortunate that I am a fairly skilled and experienced carpenter/woodworker/bodger, and I have quite a collection of useful tools (my "precious" metals).  I still have my "normal" day job, but I am in fact checking out of BAU in plain sight.  I hold no illusions that I'm headed for some utopian Amish-without-the-religion "Good Life".  Cars are freaking cool.  Computers are awesome.  Refrigerators are kick ass.  Air conditioning is wonderful.  Hot and cold running water 24/7/365 is quite nice.  Zipping down to the Ultra Mega Mart and buying 40 pounds of strawberries in January if I feel like it is fantastic.  Now barring an actual no-shit extinction event, I don't think all those things will just disappear from the world entirely one day.  But I am increasingly convinced that they will disappear from MY world at some point.  Soon perhaps.  So I'm checking out of the entire thought process that has enabled me to come to expect all that cheap, easy, neato stuff.  I'll use it while it's still available to me, and I'll try to be as ready as I can for when it's not.  Even then, there are absolutely no guarantees.  I'm OK with that.      

Tue, 01/18/2011 - 14:04 | 884454 Oh regional Indian
Oh regional Indian's picture

Awesome post LCE. Dripping with honesty. Awesome attitude to life also.


Tue, 01/18/2011 - 14:16 | 884488 Lower Class Elite
Lower Class Elite's picture

Thanks ORI.  On a long enough timeline, etc., eh?

Tue, 01/18/2011 - 10:51 | 883889 Salinger
Salinger's picture

great article, reminds me of that Obama website that was set up to fight smears

Tue, 01/18/2011 - 10:52 | 883890 proLiberty
proLiberty's picture


We should also recall the extent to which subsidies for ethanol and biodiesel distorts the prices of corn and oil-rich seed crops like soybeans.  These distortions in market prices are not only on a per gallon basis as is the case with ethanol, but also in large 7 and 8 figure grants to private investor groups to build facilities, as well as in running interference with local agencies for rapid and favorable terms and approvals of permits, especially for water resources.

The more government intrudes in multiple areas of the economy, the less anyone can accurately judge true market conditions. It is like trying to measure the height of waves in a lake from a motor boat circling in its own wake. Worse, one government bureaucracy will then attempt to intrude in the market based on prices and conditions that were partly the result of intrusion of some other government bureaucracy down the block. The result is always the dissipation of wealth and liberty, and the squandering of what remains of our future.

Obama is the first post-solvency president. We have clearly moved beyond merely squandering our blessings. Thanks to big and Bigger government, we have moved to squandering our credit line.


Tue, 01/18/2011 - 10:58 | 883905 Beatscape
Beatscape's picture

Great post.  One thing missing from this analysis that belongs here... the pressure on wages from globalization.  We are all competing with Chinese wages.  This is one of the key factors that is preventing hyperinflation from kicking in. And, is a critical factor that is starting to lower standards of living in 1st world countries--and raise them in 3rd world countries.  There is a great equalization of wages going on and it's impact is significant.

Tue, 01/18/2011 - 11:35 | 884001 topcallingtroll
topcallingtroll's picture

Yes....i dont understand why morgan stanley transferred Steven Roach and why he is so quiet now that all his predictions are coming true. Any thoughts on this TD? Why let a guy have a prominent position to tell the truth and then as it unfolds move him and hush him up? Was he just supposed to be their token permabear to prove that they provide "balanced" commentary?

Tue, 01/18/2011 - 11:49 | 884052 Sean7k
Sean7k's picture

The globalization of wages is a common straw man argument. While wages are reduced for all workers, this also results in the lowering of prices- allowing the laborer "to get more for his buck". It is value neutral.

The problem here is different. Because of the intervention in the markets by Central Banks, growth in government and taxes, the market is now being gamed. Only inflation is allowed to exist as only inflation guarantees that bankers and corporations will receive an additional dividend before the effects of inflation finally fall on the worker- last in line to receive the inflated money.

Governments are funded by ever increasing amounts of debt, incurring ever increasing amounts of interest, diluting the purchasing power of taxes.

If deflation were allowed, price equilibrium would be discovered, malinvestment would be purged and the economy could restart with a clear view to what is profitable and what is not. Employment would rise. Additional wealth and investment would flow into new products and services.

It is the obfuscation of the economy by the bankers and the Federal Reserve in conspiracy with government that is causing unemployment and the loss of purchasing power.

Tue, 01/18/2011 - 12:20 | 884160 AnAnonymous
AnAnonymous's picture

And, is a critical factor that is starting to lower standards of living in 1st world countries--and raise them in 3rd world countries. There is a great equalization of wages going on and it's impact is significant.


Living in Sci FI... Really.

Standard of living decreasing in 1st world countries? Absolutely not.

Less people able to afford the ever increasing standard of living? Very likely.

Same stuff for 3rd world. People should not forget that these countries are the dump yard of the first world countries, living among toxic and radioactive wastes.

There will never be an equalization of wages. The US is absolutely not interested in levelling the playing field.

The US is committed to transfer wealth to the US from the exterior at the lowest cost. China's bursed the plan of the world tour of misery when it comes to outsourcing but not for so long.

What is happening and will keep happening is that the standard of living in the first world are going to keep rising, with less and less people being able to afford them while the rest of the world will at best stabilize or go under.

Tue, 01/18/2011 - 12:25 | 884181 AnAnonymous
AnAnonymous's picture

We are all competing with Chinese wages.  This is one of the key factors that is preventing hyperinflation from kicking in.



It has little to do with that. Supply of money is not circulated at lower levels, it is kept in the highest strata, strata that do not need them to live. They live extremelly well on what they used to spending so they need no more extra cash. Ben bailing out the States will probably be strongly inflationary as it would add more money in the pockets of people who are longing to consume more.

Higher unemployment helps also to keep the wages in check, not on the bogus argument that unemployed people can put pressure on employed people in a world of specialization but by the very fact that people are kicked out of their former consumption habits as they have to live on unemployment benefits.


Tue, 01/18/2011 - 11:05 | 883915 GreenSideUp
GreenSideUp's picture

Thank you for this excellent analysis.  

Most Americans feel the danger intuitively, and see the warning signs in their local communities, but clear, concise information in the midst of this ‘Gordian Knot’ of lies is difficult to come by.

Precisely what brought me to ZH. 

Tue, 01/18/2011 - 11:11 | 883916 sbenard
sbenard's picture

Despite that Neithercorp Press is a personal favorite, and that I think that the central premise of this article is spot on, this article is riddled with errors! I simply don't have time to point out and attempt to correct them all, but a few will suffice.

There is an error in logic in using the BDI to try to suggest that the demand for grains is NOT high. Just because the BDI is falling, that doesn't mean that the global demand for ALL products, including grains, is also falling. Demand for one produdct or class of products can be high despite that the BDI is falling! That is a serious error in logic. In fact, the leading ag analyst in the United States told me that supplies of soybeans and corn in the United States is at 35 and 40 year lows, and just last week, the USDA revised those grain stocks even lower. Each week, he tweets me the latest strong demand and orders from China and sometimes other parts of the world. The fact is that demand for grains is very high! Worse yet, he also told me that the EPA's new energy regulation will transform the US from the world leading exporter of ag products to a net IMPORTER of food!

And all ZH readers will no doubt know by now that China is no longer the largest holder of US Treasuries. The Fed is!

I suggest reading this article because it has value. However, take some of it with a grain of salt. False data can yield false results.

Tue, 01/18/2011 - 11:58 | 884085 Sean7k
Sean7k's picture

If an article is "riddled" with errors, you could point out more than one- this is an assumption and not logical in the least. That being said, I also agree that the use of the BDI in this manner may be fallacious. Many of the exporting countries are facing shortages at home (Russia, India, Australia and the US). This could be a major reason why demand is not being met and that grains are not being shipped.

On the whole, the article seems pretty sound to me.

Tue, 01/18/2011 - 11:11 | 883939 Arkadaba
Tue, 01/18/2011 - 11:22 | 883958 buzzsaw99
buzzsaw99's picture

as long as the usa retailers own the CONgreff our politicians will kiss panda butt.

Tue, 01/18/2011 - 11:26 | 883971 topcallingtroll
topcallingtroll's picture

Yes it is times like these when new religions develop but it has been fucking hard to get a religion off the ground when your only St., St. Vincent is charitably described as a drunk irish fuck, and the most fearsome head demon is a vertically challenged guy named GG. Cmon Tyler, GG finger puppets would help. Might sell better than the t shirts

Tue, 01/18/2011 - 21:40 | 885978 MSimon
MSimon's picture

St. Vincent Price is more like it.

Tue, 01/18/2011 - 11:28 | 883977 topcallingtroll
topcallingtroll's picture

Voo doo dolls of the 47 demons? A miraculous chia head of St. Vincent?

Tue, 01/18/2011 - 11:57 | 884081 Zero Debt
Zero Debt's picture

The scheme here is to blame capitalism, politicians and then get rid of national currencies and institute SDR as a global super currency. This is the poison presenting itself as a cure. Ultimately, the SDR will also be devalued. The point of the currency transition is not to get rid of the currencies. It is to institute a global central bank. This is far more important than national politics.

Unless politicians worldwide immediately get a schooling in monetary mechanics we're in really deep shit. They don't understand that their money supply is their national debt. They don't get that all of China's currency is equally printed out of thin air to buy up the western world in the open market (why bother with armies), and even if they knew it, they could't say because they've already used the inflation weapon against their own population to deprive them the fruits of their labor.

Gold and silver, ladies and gentlemen.

Tue, 01/18/2011 - 12:00 | 884090 Sean7k
Sean7k's picture

Yep, but I wouldn't hold my breath on the politicians- they are educated, they are also complicit.

Tue, 01/18/2011 - 12:02 | 884096 LiquidBrick
LiquidBrick's picture

Cmon Tyler, GG finger puppets would help.

Voo doo dolls of the 47 demons? A miraculous chia head of St. Vincent?


Actually, these are being manufactured right now in China


A couple of chinese day traders found some good ideas on this morning and decided to pool some of their US Fiat and manufacture some finger puppets and voo doo dolls in their home country. They intend to sell these dolls to members of ZH by advertising on their site as well as in all of VNO's ToysRus stores. Lord Blankfein is underwriting the IPO right now and was quoted 10 seconds ago, "With great speed we continue to find and fill a market need thanks to the internets, low manufacturing costs with our Chinese partners and free-cost fiats."

The 3 year old chinese day trader was unavailable for comment but his mommy had this to say, "The 50 billion dollar valuation that Lord gave us 5 seconds ago will help our people. Our son is the chosen one. We will move to America soon and buy the NYSE. Don't fight the tape."


Tue, 01/18/2011 - 12:08 | 884098 Problem Is
Problem Is's picture

+555...Debunker, Extraordinaire
Wow. I like this guy. Retort to lies(man) with facts and figures. Excellent analysis...

Tyler: More Giordano Bruno guest posts...

Less madhedgefundtrader aka Commander McBragg please...

Tue, 01/18/2011 - 12:34 | 884177 Dr. Acula
Dr. Acula's picture

>Globalism has led us to disaster…

This is fallacious; specifically cum hoc ergo propter hoc. A causal link like this cannot be deduced based on the data of an ever-changing, complex market. Ceteris paribus globalism brings prosperity as shown by Ricardo's law of comparative advantage.

What's the opposite of globalism? Neighborhoodism? Householdism? The truth is that the opposite of globalism is penury.

What's the opposite of free trade? It's unfree trade - a lack of freedom.

I guess it's easier to blame other people than to look in the mirror and contemplate your own destructive socialist tendancies.

Tue, 01/18/2011 - 12:35 | 884215 AnAnonymous
AnAnonymous's picture

Globalism has led us to disaster…


 Globalism has made the wealth of the US (not to be shared by all of the US citizens, it was understood at the start of the US) and the poverty of some other countries.

Non zero  sum games formulation in economics is a laughter, feeble and worthless.

As shown today, these non zero sum games comedies of a joke have allowed some countries, led by the US, to force some other countries out of their food growing capabilities, turning them in   mono resource economies that have to export in order to be able to buy food and eat.

Of course, any time a slowdown is in the pipe, those countries gringe as they lose exports and therefore can no longer import food.

That is wonderful though when the idea is to extract as much as possible from those countries. Food blackmail is always a winner.

Tue, 01/18/2011 - 12:51 | 884227 Dr. Acula
Dr. Acula's picture

>Non zero sum games formulation in economics is a laughter

There is no "zero sum" in market exchanges. There is not even a sum. If person A trades $1 for person B's banana, it is because person A subjectively prefers having the banana over having $1; while person B prefers having $1 over having a banana. Both have subjectively gained. How in the world do you sum up their psychic gains? You cannot even quantify each individual's gain, let alone sum them up.

Tue, 01/18/2011 - 13:05 | 884270 AnAnonymous
AnAnonymous's picture

Maybe by subjectively summing on their actions?

If one admits the idea of subjective gains, one has no ground to reject the subjective idea of measuring the subjective gains in subjective terms using subjective means. Leading to the possibility of summing subjectively every subjective aspect of the transaction.

The approach is worst actually than bartering. And smells by far the school of crazy named Austrian Economics.

Hunger and thirst have somehow kept grounding in reality enough to tell that the requirement to eat and drink is not a subjective one but a general one.

Tue, 01/18/2011 - 14:10 | 884463 Dr. Acula
Dr. Acula's picture

>If one admits the idea of subjective gains

Obviously there are subjective gains. For example, you find some benefit to posting here. Otherwise you wouldn't do it.

>Maybe by subjectively summing on their actions?

Sorry, you can't refute my post by posting nonsense. If you think you can create a science based on random numbers that people pull out of their ass, then go for it.

Tue, 01/18/2011 - 12:50 | 884241 jmc8888
jmc8888's picture

It's not hard.  Globalization = Imperialism


Same ol East India tactics, made to seem like it's destiny.  It's our growth as human beings cannot be stopped, thus (the idiot idea) if you stop this, you stop human beings.  Globalization can't be stopped (you can't stop the QUeens imperialism....SHE says).

It's all bs.

Yes what you are drinking isn't some miraculous new 0 calorie, all-the-taste soda.  It's good ol fashioned Saccharin.  What you didn't know?

Somehow the academics let the idea of globalization as an idea that can't be stopped was bandied with British Imperialism and taught to be the best thing since sliced bread.  Somehow we put British Imperialism into the bedrock of an apparently inescapable idea. Different things, thrown together as fact, and few saw the bullshit. 

Somehow we can't grow more together, unless British Imperialism is along for the ride?

Well that's what they want you to believe.  Show them otherwise.

Glass-Steagall, in full spirit, including derivatives, mbs, cmbs, state balance sheets.



Tue, 01/18/2011 - 13:09 | 884282 philgramm
philgramm's picture

It's really sad.  This is a truly Shakespearean tragedy.  The main theme of Shakespeare's amazing writings was that a man's character defines his destiny.  The destiny of these United States, a land I have loved for as long as I've known it, has been determined by the character of a few greedy men.  There will be chaos.  Families will be uprooted.  Many will likely die.  I have prepared for what is coming the best I can.  I have even secretly, and not so secretly, wished for the charade to end sooner rather than later.  But now as this time approaches I can't help but be overcome with emotion at what has become of this land.  The seeds may have been sewn generations ago but those people are not the witnesses to the end of the greatest experiment of human freedom the world has ever known.  Those people have long past.  I moved to this country when I was 10 years old from a place far less free.  I loved this place the first day I landed.  I wept like a child on my 19th birthday when I stood in front of the flag of this country and pledged my allegiance for the  first time as a citizen.  

I have thought long and hard about what I will do when the SHTF.  I have prepared to the best of my abilities.   I will continue to prep until the end.  What I will not do at any cost is leave.  I will be here no matter what lies on the other side.  I hope that we who love this country will step outside of our homes, from behind our computer temrminals, and gather with our fellow man to rebuild what is left of this society.  What will you do?


sorry for the emo post but that's the way I feel as I read this article. And one more bitchezzzzzzzzzzzzzz!!!!!

Tue, 01/18/2011 - 14:24 | 884484 Dr. Acula
Dr. Acula's picture

>The destiny of these United States... has been determined by the character of a few greedy men

And what of the millions who voted for Bush? And for Obama?

Which socialist(s) did you vote for?

"We do not support government bailouts of private institutions. Government interference in the markets exacerbates problems in the marketplace and causes the free market to take longer to correct itself." - 2008 Republican Platform

"TARP, is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector which was signed into law by U.S. President George W. Bush on October 3, 2008. It was a component of the government's measures in 2008 to address the subprime mortgage crisis." -




Tue, 01/18/2011 - 14:38 | 884565 Sean7k
Sean7k's picture

By what twisted logic do you associate voting as the method of determination of national policy? All voting is representational, meaning we are trusting in another to vote our preferences, but they just as well might not.

Even the Presidency is representational. There is no popular vote winner.

If you entertain the possibility that all representatives are chosen by and beholden to the parties they represent, voting is more likely a scam perpetrated on the people through political ignorance.


Tue, 01/18/2011 - 15:30 | 884709 Dr. Acula
Dr. Acula's picture

>we are trusting in another to vote our preferences, but they just as well might not.

Yes, if the politician professes a love of freedom, property rights, peace, and capitalism, and those are things you love; but then he turns out to be a socialist warmonger, then you can feel betrayed.

If on the other hand you favor and vote for socialist warmongers, then you have yourself to blame for the predictable consequences. Especially if you vote for one of these bozos twice.

>Even the Presidency is representational. There is no popular vote winner.

You're splitting hairs here. There have been very few elections where the most popular candidate did not become president.

Tue, 01/18/2011 - 15:56 | 884832 Sean7k
Sean7k's picture

You love logic , but then fail to apply it to your own arguments. I guess it's only important when others fail to follow it's precision.

Actually, I prefer to not vote at all- it lends legitimacy to a criminal enterprise. As for the presidency, I was not splitting hairs- the electoral college is not a creature of the popular vote, but of the party representation in state legislatures. Even then, only for the first vote, then they can change any way they want. This is most important in races where the presidency has been deadlocked with neither candidate receiving a clear majority of the electoral votes.

It is not a democratic institution, but a republican one- meant to limit the power of democracy and majority rule.

Tue, 01/18/2011 - 20:52 | 885848 philgramm
philgramm's picture

I have not voted in 10 years sir.  I do not believe voting makes a difference.  In fact, I believe that voting harms us in a system that is rigged. This is because a no vote is reaklly a vote of no confidence for the system, IMO.  

Tue, 01/18/2011 - 13:37 | 884372 Hephasteus
Hephasteus's picture

The same fuck by the same dicks do not make a new sensation.

Tue, 01/18/2011 - 14:54 | 884625 JW n FL
JW n FL's picture

I tried to get some up top to start, but no luck... who's money was used to buy treasuries? did china print it new? nooooooooooooo......

Tue, 01/18/2011 - 14:51 | 884569 cranky-old-geezer
cranky-old-geezer's picture

I just did some looking back at the Mt Pinatubo eruption in '91, estimated 10 times larger than Mt. St Helens.

Vulcanologists wanting to save as many lives as possible put their reputations on the line, issuing evacuation warnings days before the cataclysmic final eruption, saving tens of thousands of lives.

Contrast that with America's bankster leaders and their government puppets trying every way possible to convice us everything is fine, nothing to worry about, while they feel financial earthquakes intensifying, seeing small eruptions occurring more frequently, knowing full well a cataclysmic eruption is coming that's gonna blow their ponzi system to bits, killing millions of people financially.


Tue, 01/18/2011 - 14:51 | 884614 Sean7k
Sean7k's picture

Well, that's the difference between bankers and humans, eh?

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