September 21, 2011

World is on the edge and something has to change

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Did you know 47 million Americans live under the poverty line and that figure has risen every year for the past four years? There are more Americans in poverty than at any other time during the past 52 years.

What about the fact there are the same amount of jobs in total in the US economy today as there were in 2000, and yet the population is 38 million larger? These are significant figures because the US economy is not creating jobs and, without jobs, these figures get worse. If they get worse, something will give.

Maybe the rise in US poverty is the reason why extremely rich Americans like Warren Buffett are imploring US President Barack Obama to tax the rich more. Maybe Mr Buffet reckons it is better to give away a bit of wealth now, than all of it in a massive political change later. We see the same thing in France, where the very rich are arguing to be taxed more.

This is unprecedented. For the past three decades, the major ideology in much of the world has been “greed is good” and income disparities are the result of superior talent and effort. Now even the rich are calling for more redistribution.

But it’s not just in the area of rich/poor politics that we are seeing changes to the status quo and establishment thinking. Take the Arab Spring or the Tea Party in the US, these are all reflections of great social changes that are ripping apart old certainties.

This sense that we are moving into a much less certain, much less predictable era is manifesting itself all over the financial markets, where fear has replaced swaggering self-confidence. For example, JP Morgan reported that in a survey last week of the world’s major money managers, 85pc said they were “neutral” as to where the world’s financial markets were going. “Neutral” is shorthand for “I haven’t a clue”.

When people have no idea what is going to happen next, they seek a safe haven. That safe haven is gold. Gold futures, the price where people expect gold to go in the next few months smashed through $1,900 (€1,380) an ounce last week. That is a rise of 55pc in the past year.

The establishment worldwide is on the defensive, old certainties are being assailed and no one is too sure what comes next.

In Europe, Siemens has just taken €6bn out of the major French banks and deposited this with the ECB against the background of the US Federal Reserve lending dollars to the ECB, to lend on to European banks who can’t find anyone to lend to them. When large companies lose faith in large banks and the Fed lends emergency dollars to the ECB, you know something is going badly wrong.

But why would European banks not lend to each other? Because, presumably, they are afraid that one will go bust and will not be able to pay the money back. Why would that be? Because they are afraid that banks haven’t been exactly honest in revealing what is on their balance sheets and therefore they don’t trust each other. When trust is gone, the system breaks down.

All the while, investors — as well as Siemens — are taking their money out. Investors are selling shares. It is only a matter of time before the ordinary Joe takes deposits out, as happened and is still happening in Ireland. If you doubt this is still happening here, just look at the deposit rates the banks are offering. They are offering almost as much on deposits as they are charging to lend out. This means they are petrified.

Of course, the reason European investors are fleeing the banks is that they believe that the banks will take huge losses, not just on their Greek portfolio but on their holding of bonds of all the peripheral countries.

For sure, Ireland has benefitted in recent weeks from traders following a bond arbitrage trade of selling Italian bonds and buying Irish bonds, but this too will unwind because the coming default in Greece changes everything.

When you take all the various piece of data and information together, from the poverty in the US and the anxiety of the very rich, from the lack of any real direction in financial markets to the lust for gold, we can see the world is at the edge. Add to this recent events in the Arab world where regimes that ruled for generations have been swept away; it’s clear something seismic is afoot. The old establishment is not credible.

Come back to Europe, where we see such a paucity of leadership and options on offer, where only a fool can believe that Greece will not default and only a fool can believe that once Greece goes, the contagion can be stemmed. So Europe and the euro are in a bind. It is clear that “austerity” imposed so that taxpayers pay for banks’ mistakes can’t work economically or politically. Yet this is all the establishment is offering.

The way out of this is that Greece defaults within the euro or Greece defaults and then leaves the currency and re-issues the drachma. European banks take a massive hit in this case and, to insure that Greece has a financial system after the default/ejection option, all former euro debt in Greece will be converted into drachma. This is what happened in Argentina and it is likely to happen again in Greece. Once you are down the road this far, this type of move is unavoidable. The question then is what happens to us. It is clear that Ireland needs to make a significant choice now. The options are not brilliant; they never are in a crisis. However, a return to the punt is now moving from the inconceivable to the entirely possible.

If there is one thing this crisis has told us, it is that “serious people” — the establishment figures rolled out to defend the status quo — have no idea what they are talking about. They were wrong in the boom and they are wrong again in the bust. The pattern over the past few years is with every new crisis, what was extreme becomes consensus and what was consensus becomes redundant. It is time to think the unthinkable.

When the very rich in the US are saying “tax me more”, it is not unrelated to the 47 million people who are below the poverty line. When the price of gold is sky high, it is not unrelated to the poverty of EU leaders’ ambitions or vision. And when the interest rate on Greek two-year bonds is above 50pc, it is not unrelated to the fact that the country is bust.

We are at a global tipping point.

David McWilliams has devised and will teach a new economics diploma, Economics Without Boundaries, from October 11. More details: www.independentcolleges.ie.


  1. John Q. Public

    David, you don’t mention the fact that 20million blacks in America have always lived in poverty. Immigration into the states has to feed into this figure. How many strugglers have entered into poverty?

    • stiofanc02

      WTF? and that has to do with the price of tea in China because? The black population in Richmond Ca. and Oakland gun each other down daily too. Your point is? Who the hell are strugglers? Any relation to the Commitments? Also, this so called “immigration” is usually an illegal border jumper or an Irishman overstaying his or her visa. Did you read this article or are you just wanting to be the first to post?

      • John Q. Public

        My point is there was always poverty in America and always will be. I agree about your point on black gun crime by the way. Those border jumpers as you call them feed into the stastic about poverty so it can’t be all native Americans who make up the statistic.

        • dwalsh

          Why the attempt to dissimilate and distort. What difference does skin color make. Poverty is poverty. And there is more and more of it in the USA. And that is a sign of a failing economy. That’s all he’s saying. Your points have no relevance to the discussion.

          • John Q. Public

            skin colour makes no difference sure but these descendants of slaves have been ignored and allowed to make their poverty worse. My point is a large % of the poverty was always there and not caused by present day banking crises.

          • dwalsh

            Yes, but we all know that. The point David is making is it is rising; and that it is a significant economic indicator. Etc.

    • Note from America for both of you:
      As my more articulate brother put it once I explained the situation: When Martin Luther King got his people on the up escalator it started going down for everybody.

      American minimum wage adjusted for inflation in 1968 (43 years ago!): $10.15/hr. American minimum wage early 2007: $5.50/hr. Malthus would have expected the minimum to shrink by one-third as population grew one-half. Instead it shrunk almost one-half WHILE AVERAGE INCOME DOUBLED (industrialization you see; Malthus hadn’t counted on that).

      Today’s American MEDIAN wage is about where our MINIMUM wage should minimally be: $15/hr.

  2. Malcolm McClure

    As someone who danced to the live Chubby Checker in the Pavesi a few years back, I consider myself something of an authority on Bernake’s latest idea: Twist and Shout.
    So here goes:

    ‘Long term bond yields are equal to the sum of future short rate expectations, plus a risk premium which represents the additional volatility and reinvestment risk in long dated assets. In order to flatten the curve, they need either to reduce the duration risk premium, or to convince markets that short rates will be lower for longer than currently expected. The markets call this “Operation Twist” and “Operation Shout”, respectively.’
    “Operation Twist” involves selling short dated government debt and buying longer dated debt.
    “Operation Shout”, is effected by promising to keep short rates at close to zero for the next two years or until unemployment falls below a predetermined level, say 7.5%. so long as inflation stays below 3%.

    So: Let’s Twist Again, as was last done under JF Kennedy.

    • Malcolm McClure

      This thing is movin’ fast. Watch what happens tomorrow (Thurs).

    • Deco

      Operation twist – effectively borrowing more, except playing with the statistics, so that it is borrowing further out, on a longer timescale.

      It is an attempt to control the long term interest rate of the US Treasury Bond market. This is extremely important as it is a mechanism to try and shore up the value of the dollar (by printing more).

      It will end up being Operation Twister when it is finished, as a resulf of the trail of destruction it will leave behind it. It is yet another attempt to fudge interest rates/the “official” inflation rate.

      • Malcolm McClure

        Operation Twist is an alternative to QE3, not a cover for it. It is going to hit banks and the life insurance market hard in a futile attempt to bolster the stock market.

        Insurers were accustomed to purchase long-term bonds with the premiums they collected to balance their long-term obligations. But OT is intended to push long-term rates lower, which will force insurers to retrench on product sales.

        If two-year yields are the same as overnight fund rates this allows for no incremental gain — the return that leveraged banks and lending institutions based their income and expense budgets on. A bank can no longer borrow short and lend two years longer at a profit.

        With short interest rates at Zero, the Fed are pushing people into higher-risk assets in a search for yield, at precisely the time the US may be slipping into recession, which will put those assets at even higher risk.

        Fundamentally I think the problem is that even with free money people don’t want to borrow and spend. Given this, it’s not a “financial system” problem but some kind of existential psychological problem, and no QEx or Twist operation will help there.

        OT could end in tears and land those who are close to retirement in even worse shape.

  3. Adam Byrne

    subscribe.

  4. tony_murphy

    Alex Jones on where we are headed and some of those responsible..

    http://www.youtube.com/watch?v=Vg-5WgcMV_o&feature=share

  5. PropagandaBusta

    Im curious David, for someone who is so well informed about whats going on in world finance, how can you not talk about the elites trying to set up a one world government? This has been exposed in the European Parliament and by many researchers, intelligence analysts, economists etc, etc, etc. I find it very hard to believe that you dont know about it. Anyone who has been following world financial and government affairs would have to have came across this conspiracy. Are you afraid to speak out or what? The people need to know what is going on.

  6. 33square

    @PropagandaBusta: shhhh… no they don’t :D

    why have o2 got a “money card”? what is bitcoin? what is nfc and google wallet? qr codes anyone? doesn’t take a genius!

    it’s like the chemical brothers said “heavens down, and hell is up, all rights reversed”.

    not to worry though, it’ll “galvanise” the worlds population… what’s left of it, that is, after Becks Chemtrails!

  7. 33square

    Beck – Chemtrails

    I can’t believe what we’ve seen outside
    You and me watching the jets go by
    Oh, ooh, oh
    Oh, ooh, oh

    Down by the sea
    So many people
    They’ve already drowned
    You and me watching a sea full of people
    Try not to drown

    So many people
    So many people
    Where do they go?
    You and me watching a sky full of chemtrails
    That’s where we belong
    [ Lyrics from: http://www.lyricsmode.com/lyrics/b/beck/chemtrails.html ]
    All I can take from these scars is hope
    But all I can see in this night are boats sinking
    Oh, ooh, oh
    Oh, ooh, oh

    Down by the sea swallowed by evil
    We’ve already drowned
    You and me watching a sea full of people
    They’ve already drowned

    So many people
    So many people
    Where do they go?
    You and me hit by a touch of white evil
    Watching the jet planes go by

    You and me watching
    You and me watching
    The chemtrails is where we belong
    That’s where we’ll be when we die in the slipstream
    We’ll climb in a hole in the sky

  8. I love the cartoon, but would hopping from the euro to punt be a less painful option? The punt was set up to break the sterling link and tie us closer to Europe. Investors loved it and trade with the EU core boomed. As you point out elsewhere, there were devaluations and busts, and emigration, but the aim was convergence with Europe. Then Maastricht happens and everyone talked about the European train, destination euro. The punt had been a staging post on that journey. As you say, there was a vision, and none now. But while I see the sense of your argument, the new punt you yearn for would be a different, unchartered place. What are the risks down the line? And what if Germany does provide that massive injection of credit first? In the 90s there were all sorts of funds for the peripheral countries. Where have these gone? cheers Rory

  9. 33square

    @PropagandaBusta: “for someone who is so well informed about whats going on in world finance, how can you not talk about the elites trying to set up a one world government”

    Is David McW Ireland’s equivalent to Alex Jones?

  10. I hate to break the news to you all (including David) but the official US poverty level is based on three times the price of an emergency diet (emergency as in dried beans only, no expensive canned) — no basket of goods or services at all; a long outdated 1995 formula.

    I used to get vexed by the number being used by all over here in the states because everyone else was always using it. The formula left the poverty line at an ridiculous $18,000 for a family of three — and yielded 12.5% of Americans in poverty (not counting government help like food stamps — with which help poverty would probably have seemed all gone — officially).

    A few years back though I came up with a ploy. Using a realistic poverty measure from page 44 in the MS. Foundation book “Raise the Floor” I came up with $45,000 as the minimum needs line for a family of three ($5/day/person for food; no entertainment) — if they had to come up with their own medical insurance. $45,000 was the 37% line on the US Census family income scale at that time. Dropping 7% who with paid health left 30% below minimum need (18% if you did not count government helps — unofficially).

    I emailed (spammed!) the essay linked below around the journalist world here and haven’t seen much of 12.5% since. :-)

    http://ontodayspage.blogspot.com/2008/02/are-38-of-american-families-living.html

    • Deco

      The latest way envisaged of dealing with the poverty crisis in the US – change the CPI. In other words change the inflation rate. This is a statistical technique to justify social security payments are kept down so that nobody will realise that it is just a ponzi scheme.

      • +1

        The inflation rate has been well masked by using that device of changing the CPI, change the products upon which the CPI is based:

        Also:

        See Jon Williams site here:

        “Have you ever wondered why the CPI, GDP and employment numbers run counter to your personal and business experiences? The problem lies in biased and often-manipulated government reporting.”

        http://www.inflationdata.com/inflation/

        See the SGS alternative inflation rate

        According to SGS(Shadow Government statistics) unemployment and inflation 2/3 times the government rate.

        Plus the middle class in the USA have been hollowed out and we are now statistically at a point of greatest difference between distribution of wealth between the poor and middle incomes and the super rich.

        When this happens, the lower and middle income groups hoovered of their wealth upward, with no more give available and debted out, the system crashes.

        • Deco

          In the Clinton era, several new novelties were invented including the now famous deflator based on increased improvements in CPU processing capacity in newer PCs.

          Another fudge is the unemployment rate.

          Apparently U2 is the official rate, and U6 is the nearest there is to a correct rate.

          • The Republicans came up with a scheme to factor high tech improvements — like ever more powerful computers for the same price — into US social security calculations. IOW, less money for potatoes for old people because they can now buy a better TV set for the same price: same overall value in their check. :-)

            Of course everyone else’s dollars have the same “hidden value” so you could just call it a variation of adjusting payments to average income increase.

            In face retirements payments are supposed to be so adjusted. I made $25,000 in 1968 (adjusted for inflation) and expect to get credit for $50,000 in my pension calculations — as average income has doubled since then. No; only for $33,000 (1/3 of expected increase) as the income of average workers (the data used) has only gone up 1/3 as average income went up 3/3 in the de-unionizing labor market of the US.

      • Ponzi scheme? Hardly; average income doubles every 40 years — population (including we aging) doubles every 80 years. Average income doubles twice as fast as population — in case you can’t figure that out — so the social security crisis has always been baloney.

    • Make that a long outdated 1955 formula.

  11. It seems as though we, and most likely the Greeks, although having nominal equal partner status in the EU, have rarely exercised this right and have been happy to be told what to do and by all means avoid any actual responsibility as partners, or god forbid express an opinion counter to the prevailing positions of the largest economies. If ever there was a time to do thsi its now. If the Eurozone disintegrates, its as much down to the selfishness and cute-hoor-ism of the Greeks and the Irish as it is to the selfishness of Germany and France.

    By the way, I’m posting this from a region of Europe with a population of 4 million and an unemployment rate of 14%, and which will suffer greatly if the Eurozone collapses. Can you guess where it is?

  12. dwalsh

    David wrote: “we are at a global tipping point”

    Indeed we are. Let us consider an image used by Malcolm McClure in a recent post; the Archimedean image of the fulcrum and lever; and consider the question he posed; which will break first?

    The fulcrum or base upon which the lever operates is our real physical economy which is the product of the enterprise and work of our communities and nations. Upon this base of tangible assets and real living wealth the lever operates. The lever is the financial markets which use leveraged virtual capital and complex financial instruments to gamble on the transactions in our real physical markets and extract wealth from our communities and national economies. The financial markets produce nothing of actual value except immense profits for a tiny elite and bonuses for their minions.

    At this time something must give. Either the fulcrum or the lever. It is a simple choice. Do we allow the financial markets destroy the fulcrum — our nations and civilisation; or do we call a halt to their world wrecking profiteering?

    Seems a simple choice to me.

    • @dwalsh

      I think you mean it to be ‘is a simple question but a difficult choice’ .

      This is where Leadership comes in and will the playing field allow one to appear soon?

      On our home turf should Mc Guinness become successful and elected President then I would recognise that as a human symbol of a new kind of national leadership on this Isle of ours and the arrival of a new playing field.

      On the European turf there has not yet arrived a new playing field and there are no aspiring real EU Leadership .This is the real Omen for Continental Disaster in an EU format , France / Germany ( co-joined twins ) excepted .

      We are an Island set apart that has a national geography that shows that too and a social network that can adapt to an Island economy with self sufficiency within the realm of good national politics .

      Ask a fisherman why he is not allowed to fish in the rich fishing grounds around his harbour or the river fishermen where have the river stock gone to ? Now go to the large Chinese foodstores in the cities and you will see enormous amount of imported fish outside of Irish Waters .

      • dwalsh

        @ John ALLEN

        I agree; leadership is the global problem; not just here in Ireland. The only Irish politicians I see capable of leading us through this mess and looking out for Ireland’s national interests, whether in or out of Europe (in gets my vote), are Sin Fein.

        I never thought I would say such a thing.

    • transitionman

      @dwalsh
      I agree with you the financial markets need to be dismantled. The difficulty is too few people have taken the time identify that this is the core of the problem. I see the conclusion of this article by David which is not published in a newspaper as a serious warning
      ” The question then is what happens to us. It is clear that Ireland needs to make a significant choice now. The options are not brilliant; they never are in a crisis. However, a return to the punt is now moving from the inconceivable to the entirely possible.”
      How in a democracy does one change the path from poster boy compliance to radical alternative financial structures when the majority cannot even see the problem?

      I have worked on local alternative currencies and suspended my participation until the welfare well runs dry.

      My own belief is that I will be a spectator to Ireland undergoing a rapid transition which very few people are prepared for. On my first entry on this blog I posted a link to D Grey A Lennox singing Full Steam
      http://youtu.be/czvxyDgqxmM
      “You saw it coming I saw it coming but we still brought it”

  13. Technical Fault Report

    I think the above article is not assessable to the public reader directly not using the invitation received from this blog .Please check.

  14. Great article. I’m not so sure Punt Nua is a route to take anymore. I wonder if we’ve been so mauled by the banks and the ECB, that this is no longer an option.

    We may be in a Hobsons choice situation where the inevitable choice between two objectionable alternatives is between Punt Nua and joining a commonwealth relationship with the UK and adopting sterling currency.

    Only this way could our financial affairs be unwound with the leverage coming from UK and the ECB.

    Realistically our political establishment is too much infiltrated by the banks. We have no Olafur Grimsson mindset in charge. These gombeens in charge cant hack it by themselves:(

    Sucks Sutherland will make a speech today to lash those doubting austerity. Goldman Sachs need their money back and that is what suds is paid to do.

    Expect a visit soon form John Bruton of IFSC to stoke support for the casino financial services sector squid thats plays a large part in the mess we’re in, these bankers want to suck blood.

    • 33square

      “Realistically our political establishment is too much infiltrated by the banks. We have no Olafur Grimsson mindset in charge. These gombeens in charge cant hack it by themselves:(”

      not gombeens, puppets… to greedy people who are still in charge

      we’ve sold ourselves out so often though, what do we expect? “cast iron guarantees”? they have us over a barrel now, exactly where they want us! didn’t take them long since the last vote did it? funny that…

      you want a referendum now? go jump…

      Sutherland’s not in Denver? LOL

    • Deco

      Suds needs to try some austerity himself instead of preaching to some old grandmother stuck on a trolley waiting for an operation.

  15. rebean

    I have been reading about the one world government and the fact that human slavery (Apparently were are all slaves) though subtle is the order of the day. Apparently and you can check it out on utube Jordan Maxwell who leads the field tells us that the Roman church is in cohorts with the mafia and the whole thing is a money racket.It seems ever since ancient Egypt we have been ruled by the same bloodlines and that the whole circus has got too greedy and we are all lost.I love reading up about the history of the church as I could never really figure out why I climbed into a wooden wardrobe in a church to tell some ass in garbs why I felt I had done something wrong.I think I will invest in weaponry for the revolution when it comes. God knows it will make more sense than throwing gold bars at someone who is raping your wife and murdering your kids.

    • Perhaps rather than going psycho dreaming of weaponry you need to concentrate more on getting smart for the revolution:)

    • dwalsh

      I remember reading an article written by a banker at the time of the American Civil War. He said Capital had decided to replace slavery, where the owner had the obligation to look after the slave. They had decided instead to control labour by wages; and let the workers look after themselves.

      Also Capital realised that a bound-slave cannot buy consumer goods; and thus his economic use is limited to his labour. A waged slave can buy consumer goods and thus his economic use is greatly amplified.

  16. 33square

    “Sinn Féin Vice President and Presidential candidate Martin McGuinness has said he did not kill or shoot anybody while he was a member of the IRA between 1970 and 1974.”

    http://www.rte.ie/news/2011/0922/president1.html

    need to kill or injure a person without you actually doing the killing or the injuring? use a bomb! because “guns don’t kill people, rappers do!”

  17. BrianC

    Good article.

    Yes the public has lost faith in the establishment because they know the establishment has not got one iota of what is what but they try to make out they know what is what. Basically the reality is this those who are supposed to govern and apply regulation are ignorant and at worst stupid.

    The so called free markets are in an end game to protect their wealth. And a lot of them have their wealth tied up in pieces of paper rooted in derivative markets and they cannot get out of the positions they hold in these soon be be proved worthless markets.

    The markets do not operate in a free market economy because they are bailed out which incentivizes rogue behaviour. The reality of this is crystalizing as we are witnessing in Germany where they do not want to bail out bad behaviour. Bail outs do no work.

    NAMA is a bail out and it does not work; it reinforces erroneous illogical behaviour as per reinforcing upward rents only and removing such pierces the value of NAMA who need high rents to sustain their viability. The forced ratchet rents are against the run of the market which requires a downward movement in rents to reflect the recessionary state of the economy. Protect the few at the expense of the majority.

    The whole economic situation is asinine and the political leadership is gutless to deal with it because of me fein perspectives originating in personal positions. In Europe we are subject to nationalistic perspective thinking for international problems.

    The public throughout the world are now realising the Emperors have no clothes and those who tailored the clothes and the Emperor’s knave advisors were there for one purpose only to fill their own pockets that is human nature. The people the world over are now coming to realise this and the final casualty will be currencies which will be regarded as worthless pieces of paper and the next step in this merry go round economic dance is hyperinflation.

    The Global tipping point has already reached when you see the FED being positioned to push liquidity into the European Banking system. This is ludicrous as the dollar is now a failed currency. The US economy is basically owned by China. The massive exportation of capital from Western to Asian economic zones has imported unemployment in Western economies to such levels it has killed the equilibrium in their markets compromising the viabilities their societies. These factors have destabalised the faith of individuals impinging on the confidence of aggregate consumers.

    Half the banks in Europe will be hit badly when Greece defaults. The question is this – Can their balance sheets take the hit? But truthfully this will not matter when hyperinflation takes hold. The value of any currency resides in the confidence that the public have in it as a medium to transfer value. Their confidence in the trading currencies are now beyond suspect because their intrinsic value were impaired by avarice.

    We are now entering the arena where new currencies must emerge to reflect the true will of the people and status quo minds fixed in their resolve to protect their personal interests will not accept such change until it is forced upon them.

    And RTE is now as ever bleating the good news of the export side of the economy but never regales the fact that the export sector cannot sustain the full needs of the Irish economy. And a new Irish currency will give vent to Ireland reforming itself but first reality must set in to the Government and the public sector that they need to revalue their worth from their present over valued status.

    • We need to clarify the difference between the central banks and the markets. You mention this yourself “The Global tipping point has already reached when you see the FED being positioned to push liquidity into the European Banking system.”

      There has been a massive coordinated push by central banks around the world to push liquidity support to the embattled euro, see here

      http://seekingalpha.com/article/294195-central-banks-sell-dollars-to-prevent-liquidity-crises

      It seems to me we are moving towards a stateless world currency led by the Fed.

      The Fed is not only battling markets, but moves like this are attempting to negate free market capitalism as attempted by the markets, replacing it with a new Banking Socialism run by the Wizard of Oz, Bernanke and his clones.

      This is a new bubble matrix world where even the markets themselves are being manoeuvered out of existence.

      Will the effort to pump up this global bubble succeed?

      • wills

        Colm,

        Looks like that from where I’m standing.

        The Fed, a private bank, owned by private investors, some European, are playing *money alchemy* with the public and the world economy.

        They are no fools. They have their contingency arrangements in place while they twiddle the knobs out front and steer the *money charade* down whatever experimental road they decide will yield the owners of the means of production the best outcome for them into the new tech-securito- neo-feudal future.

      • dwalsh

        I think you are spot on here colm brazel.

        The managed demolition of capitalism and national sovereignty will provide the conditions for implementing radical changes to fundamental structures of our world.

        As wills says the people who own the system are not fools. They have had research institutes and think-tanks working on all this for years. It is risky enterprise.

    • dwalsh

      @ BrianC

      The Fed has been pumping money into Europe for years now. I remember watching Bernanke being questioned by Congress about where the bailout funds were going. He admitted some of it was going to European banks. He refused point-blank to answer which banks had benefitted or by how much.

      The Fed is part of a global consortium of major banks; it’s not just an American operation.

  18. wills

    Article is defining the facts and they read as if as we are back in 2008.

    What have the *serious people* / insiders, what have they been up too for 3 years.

    Sticking their sausage fingers and thumbs into the CDS derivatives ponzi scam dam is what.

    The insiders have the most to loose if Greece default triggered domino effect collapsing the CDS derivatives pyramid scheme they are all trying to keep stacked up with their dennis the menace scaffolding spoofarama austerity they are spiv man like shystering onto the taxpayer.

    Bunch of headbangers the whole lot of ‘em.

  19. http://graphics8.nytimes.com/images/2011/09/04/opinion/04reich-graphic/04reich-graphic-popup.jpg
    At the risk of being called a perseverant! Found this graphic neatly summarizes many issues discussed on this forum. A few minutes musing over it will give you more insight than many hours reading if you´re an amateur like me!

  20. dwalsh

    Many of us today seem to be viewing the world through a peculiar mental prism; a mental prism that controls our perceptions and obliges us to perceive the world in anti-human terms and tacitly support a proliferation of anti-human financial systems as acceptable economic behaviour.

    This mental prism is the neoliberal economic philosophy which has literally saturated the media for decades and sets the consensus parameters in which the unfolding economic disaster is discussed. We used to call it the Celtic Tiger. It is a global phenomenon; a global mental prison.

    The neoliberal mental prisoner sees the world as a primeval Darwinian economic jungle in which the pre-eminent human right is the right of the fit to compete for profit and position and power. They call it ‘liberty’. In its most virulent ideological forms it is utterly cold-blooded in its attitude to human beings and humanity; especially to those who compete less than successfully.

    The neoliberal mental prisoner perceives human beings as units of production and consumption; and our nations as economic engines of profit. Even the collapse of our nations is a profit opportunity for them. They are a treasonous coven; fiddling the books as our civilisation burns.

    We were shepherded into this ideological prison unknowingly by decades of media propaganda. In the boom years it seemed to make sense. We got caught-up in the fervour; some of us lost the head a bit and thought we could be wheeler-dealers too. Now that the bust cycle has kicked-in and the money-changers are coming for their pound of flesh — our wages and our medical and social services and our pensions and our homes and our national assets — we are all wondering “what went wrong”?

    Well nothing went wrong folks; we just neglected to read the fine print. Booms are followed by busts; it is a technical feature of the privately controlled debt based monetary system we live in and tacitly support by our compliance.

    • StephenKenny

      Booms are followed by busts: 7 years of boom in Egypt were followed by 7 years of bust. Autumn and winter follow spring and summer; animal populations oscillate, many believe that the universe itself oscillates.

      The best we can hope for is a state of dynamic equilibrium within a reasonable range, but planing for a steady state will just make everything worse.

    • EMMETTOR

      All true, “the media” (propaganda) is to a liberal democracy what violence is to a totalitarian state, namely, the means of control. (Chomsky)

  21. redriversix

    Okay….. I dunno what the fuck ye all talkin about.

    Ireland has no money…. Greece has no money.. in fact nobody has any money anymore except those that print money that has no value to prop up a failing market.

    They do this to give the impression of wanting to help save us when really all their doing is getting all their “ducks in a row ” so they can be ready to step in when Euro Countries Collapse.

    This is not as big deal to them , it is the same as War , People make money gettin ready for War , they make money during War and then they make money cleaning up after the ” War ”

    Their are casualties of War , the poor , the minorities , and the countries who hand over their sovereignty for the promise of jobs and riches beyond their wildest dreams.

    Our leaders bought a bill of goods and we are paying for it.

    There are no leaders , only ministers following instructions from the top.

    There is no one going to get it us out of this mess.

    Markets are in turmoil , Gold is going up and down like a yo-yo as if someone is trying to send out mixed messages.

    French Banks in decline , German Banks next.

    Major European Collapse imminent , but do not worry cause somebody has a plan to ride in to town to save us at….a cost

    The sooner Greece defaults , the better for all of us.
    That way , if there is a dominio effect and someone ” rides in to save us ” then we will know who the so called “new world order” people are and we can act accordingly.

    That’s if we do not continue blogging about what we should do instead of actually doing something about it.

    Time to separate the Men from the Boys….

    Have you ever seen so much shit written about a useless presidential election , when the financial world is imploding.

    Talk about ” dumbing people down “

    • EMMETTOR

      One definition of a “leader” is someone who has a vision of the road ahead and leads people towards that vision. Our political systems are designed to root out any people like this before they get their hands on the levers of power. Our media will scream hysterically at anyone who has a view that’s more than a degree or two different from those being spouted by the powers that be. The whole “soundbite” presentation of politics allows no time or room to any ideas that are not pretty much the same as the other guy with a few meaningless tweaks. There is no time allowed to debate radical alternatives, which may need detailed explanation.

      • Lets just imagine for a moment a decent broadcasting tv station investigating the real news, probing the financial world with real journalism, raising the bar in terms of critical debate on economic and political matters, responding to creative needs in the Arts, theatre, documentaries, films, seeding newcomers, supporting a new film industry, exploring the world of science, tackling the real needs of business and supporting these needs, exploring agriculture, the environment, transport.

        OK, moment over, Pravda RTE with 9 o clock news and ads, followed by Tubridy, with one blinker for everyone in the audience:)

      • Adam Byrne

        The riff-raff (and yes, I use that term in a derogatory manner because that is all they are – a shower of numpties) are not interested in detailed explanation. Their eyes glaze over after 20 seconds and The X-Factor is the main topic of conversation again.

    • Adam Byrne

      People dumb down themselves. There are libraries all over this country and they are one of the only things that is free. There is a wealth of knowledge therein, for example, anyone can learn a language with the aid of books, DVDs etc. – as well as a large dose of effort and focus, but Joe Soap on the street can’t even be arsed writing English in anything other than text speak. Twats one and all.

  22. Malcolm McClure

    As I predicted last night 11:48 pm, world stock markets crashed today, but 3.5% War Loan actually gained 10.34% today.

    - Just sayin’,

    • Adam Byrne

      Do you think it will get worse tomorrow Malcolm?

      • Malcolm McClure

        The stock markets don’t like uncertainty on Fridays.

        • Adam Byrne

          Meaning it will calm down a bit?

          • redriversix

            Hi Adam

            Markets will close down tomorrow after today’s actions by the fed has some reaction across the world.

            Dollar rose slightly today on the back of Bernacke’s actions , but its a false rise,

            See how the Greeks act over the weekend.

            Euro to fall again for a short while flood of Dollars subsides.

            Remember , these are all short term non-solutions to buy time..None of these actions are backed by any ” real ” assets.

            Bnp Bank [Paris] seeking to rise money in middle east.

          • Adam Byrne

            Cheers redriversix. I’m watching closely here as I guess we all are.

          • Malcolm McClure

            Not unless Merkel or Sarkozy offers something substantial during the day. The Eurozone purchasing managers’ index, covering services and manufacturing, dropped fell below the 50 level which divides expansion from contraction for the first time since July 2009.
            It’s hard to find reasons to buy stock tomorrow.

    • redriversix

      Hi MalcolmMclure

      War is were the money is , always has , always will be , either Financial or military.

  23. redriversix

    sorry , should read “Euro to fall again until flood of Dollars subsides “

  24. Tull McAdoo

    Oh what a tangled web we weave,
    When first we practice to deceive.

  25. Tull McAdoo

    Mis- allocation of credit.
    Mis-pricing of risk.
    Unequal distribution of wealth.
    Asymmetric information.
    More unequal society’s.
    I could go on but in the words of Beckett ” I must go on, I cant go on”.

    With instant messaging, facebook, txt, twitter and all these other programmes it is proving almost impossible for the insiders to put the shit back into the horse………we have known that on this site for years…….game over….default…..recognise losses….write down assets to market….write off debts that cannot be repaid….and for God sake be mature about it, enough time has been wasted with all this nonsense and posturing.

    • Malcolm McClure

      Beckett combines the existentialism of his adopted home country of France with the innate Irish gift for combating despair with biting humor and sheer absurdity.

      • Tull McAdoo

        I remember somebody telling some years ago that the best way to get an interview with Beckett was to bring him some Tullamore sausages.

        Beckett although fond of the afore mentioned would, I’m sure have drawn a line, when it came to electing one of them Taoiseach……..

  26. Tull McAdoo

    Oh and while I’m at it, this bullshit that Merkel and Sarcastic are playing out, not wasting a good crisis, power grab for Europe and so on is built on very shakey foundations given the integrity and strength of both the German and french banking sectors.

    If Angie and Nicky think that they will be the last to starve then they might want to reconsider that position.BNP is dogshit stock…I could go on, I cant go on…

  27. Euro Contagion

    Lets look at the Space Satelite Prediction where it will land in the next 24 hrs .It will be a ton in weight when it re -enters the atmosphere and it will land somewhere and we are given a 1:3200 possibility it will hit someone .

    This is called a remote possiblity it will actually hit some one .

    ‘I don’t get the odds of 1:3200, that does not sound too good to me! There are supposedly 7 billion people on earth, if we all have a 1:3200 chance of getting hit then surely more than 2 million people are going to get it?’

    Now look at the Euro Demise and its Consequences and Your Pocket ?

    That probility is 1:2 it will hit You.

  28. Fellow bloggers will sympathise with my writing of world peace here:)

    http://wp.me/pBbF3-fT

    Also, how come DmcW article above wasn’t published in Indo or SBP?

  29. Praetorian

    “the major ideology in much of the world has been “greed is good””

    Would suggest it has been the prevailing ideology in elite circles and certainly not that of ‘much of world’ which sees the vast majority of people struggle on a dollar a day or less.

    Buffet is no fool, he knows from history what happens when the ultra-rich are inflexible but he is swimming against the tide, he also knows any statement is going to fall on deaf ears, so loses nothing from saying it but gains when people like yourself pick it up, it has been replicated in France and Germany but not here of course. The rich in the US with their political acolytes (both Republicans and Democrats) have sealed the fate of the US. More of question of when not if.

    “When you take all the various piece of data and information together, from the poverty in the US and the anxiety of the very rich, from the lack of any real direction in financial markets to the lust for gold, we can see the world is at the edge.”

    The world is not the uber-rich, the hedge fund managers, traders and the well connected, the world is the impoverished, the struggling, the billions who live permanently on the edge courtesy of the former, they will now be pushed off that edge into the abyss so the rich can save their shirts. Above all things, round two of the crisis is class warfare par excellence.

    Interesting to note, that the main $tream media and good old Pravda-RTE have given zero coverage of the occupation of Wall Street, which is in its 6th day.
    http://www.care2.com/causes/occupation-of-wall-street-enters-fifth-day-videos.html

  30. Alf

    The problem is self-inflicted. The recession/depression (whatever you want to call it) was started by our politicians meddling and it will not end until they stop with this bail-out nonsense. The more the government cuts and taxes the more the economy will shrink, the more the banks profits will be hit and the more further taxes and cuts will be ‘needed’. Bailing out the gambling debts is not just unfair, it’s the root cause of everything wrong in the financial world… and it won’t stop until politicians stop believing they can save us. They are creating a continuous recession with this madness. Call up your local politician and tell them to stop saving us already!

    • dwalsh

      I agree that what the politicians are doing now is all wrong.

      But I would say allowing the gambling to be considered acceptable behaviour is the real problem; and only the politicians can stop it. Like them or not our fate is in their hands.

  31. EMMETTOR

    The brakes cannot be applied, nobody really knows where the pedal is and the steering rack has been welded in place. All the drug addiction in the world is far less harmful than the gambling addiction which is represented by our “Financial Markets”. If we are at the edge the first thing to realise is that we are going over it and there’s nothing anybody can do, even if they wanted to. Neoliberal Capitalism has arrived at the only destination it was ever headed to, it’s logical conclusion and when something reaches it’s conclusion, that means it’s over.

  32. dwalsh

    Our world is infected with a toxic mindset; an ideology called neoliberal capitalism.

    The idol of the Golden Calf; worshipped in the temples of greed — the financial markets. The gaping maw of Mammon into which our planets wealth is being heaped. That maw is a black hole; it can never be satiated.

    This global disaster cannot be solved within the mindset that is causing it.

    The world needs a change of mindset; and a change of heart.

    NOW before it’s too late.

    The only ones who can stop this disaster are the politicians. Only they have access to the power to shut the markets down and avert global disaster.

    If they do not awaken in time disaster will unfold. Our nascent global civilisation will shatter and we will be plunged into a feudal dark age. Given the vast quantities of weaponry distributed around this planet it will be hell on earth.

    • I’m rather optimistic the future will be secured with a rebuild.

      But what’s on quicksand should be allowed to fall, it shouldn’t be built up more with austerity, or other band aid solutions that make the problems worse.

      Re “The world needs a change of mindset; and a change of heart.” I wouldn’t expect too much change there.

      But we do have the mindset to be able to effect change in positive ways.

      Fire Bernanke, Trichet, Suds and the ilk trying to prop up the broken system that has turned out to be a mess that has increasingly become so since 1971.

      If you have any spare cash, silver seems to be a bargain at the moment.

      Financial reforms similar to those enacted in Glass Steagall will be required in the great unwind. Financial services industry will need to be brought under control. Consideration should be given to a new global currency backed by gold, to effect a transition to a more financially sound and stable world.

      We need more Olaffur Grimssons to effect this change. Papandreou will do the needy and unpeg Greece from the clutches of foreign banks. It would be cool if the other PIIGS countries unilaterally defaulted and went back to a gold peg in their native currencies.

      This would spur other countries to follow eg UK http://www.guardian.co.uk/business/2011/sep/23/george-osborne-european-debt-crisis?newsfeed=true

      Re “If they do not awaken in time disaster will unfold. Our nascent global civilisation will shatter and we will be plunged into a feudal dark age. Given the vast quantities of weaponry distributed around this planet it will be hell on earth”

      Errrr, NO. We are not living in the middle ages. We have the technology to grow and expand food production to limitless quantities, we have education enough to bring about positive changes to deal with the financial mess.

      What we have is a rather primitive ponsi currency scam money scam that needs to be brought up to date and modernised to fit the need of global development.

      The bankers and the scam nature of the ponsi fiat money system with a casino financial services industry benefiting the bankers, rather than the people, needs to be brought under control.

      Great lessons can be learned from the failures over the past decade. Time to grow tulips to use as currency. Economic activity has to focus on real jobs to benefit the planet and the people; not merely jobs based on casino financial services ponsi economics.

      Tulips are worth more than whats been exchanged for money at the moment:) If you have money to spare, silver seems to have fallen to a great price, caveat emptor as always:)

  33. Alf

    The governments all from each member of the Euro-zone should declare a surprise bank holiday. Government auditors then show up at every bank and forcefully audit the books, search for any toxic derivatives and any unpayable gambling debts. An immediate write-down of bad debt must be made and an “on the spot” evaluation of each bank would be made. Each bank would be sound or bankrupt. Some bankrupts would be worth saving once toxic debt is written down and these would become temporarily state owned banks with cash injection from the ECB. Some will be totally bankrupt and worthless (e.g. Anglo) and should be closed. All governments must work in partnership to resolve the true state of the banks where debts are interdependent. All deposits should be paid up and covered by the ECB. This will be funded with a simultaneous Euro devaluation. The next day, the banks open (the ones that survived), and the crisis is resolved. Some bondholders, creditors will get fried but that is the game. No more panic, No more fear of the unknown. All of this with a statement that no more bailouts would be made. The Euro-zone would remain intact and the Euro would appreciate rapidly from the “flight to safely” afterwards.

  34. BrianMc

    We’re cursed with “interesting times”. It’s end-of-19th-century Vienna; von Hofmannsthal’s “das Gleitende”.

    @BriMcS

  35. dwalsh

    I am sure politicians around the world are talking to each other; privately and discretely. Sounding each other out. Organising behind the scenes. They are waking up.

    Perhaps the banksters will be getting the surprise visits Alf recommends above.

    Disaster will be averted.

  36. We have new Words

    Drachmatised

    Escudified

    Puntified

    It means that borrowers will have their bank loans depreciated when their current currency ‘the euro’ departs from their shores and becomes ‘local ‘..

    How would Tull feel ? …….Perthtrified .

  37. dwalsh

    We are in the midst of a global war.

    The enemies of humanity are waging war upon us; using the financial sector and the banking system to bankrupt and assset-strip our nations.

    And they are doing a pretty good job of it.

    Thing is – and they must know this – we’re not all media-duped fools.

  38. Tull McAdoo

    I was just wondering if we could get away with it,

    If we told the ECB that it’s not about the Money! Money! Money!

    We don’t need your Money! Money! Money!

    We just want to make the World dance

    Forget about the Price tag!

    We need to take it back in time!

    When music made us all unite!

    Cha-ching, Cha-ching, Ba-bling, Ba-bling.

    Take it away Jessie J……….Cleopatra in high heels……and Goodnight Ireland .Sleep well.

    http://www.youtube.com/watch?v=tnw0mn_eYLM&feature=relmfu

  39. dwalsh

    The solution to this global systemic break-down crisis is in principle simple.

    Shut-down the financial markets; and restructure the global economy.

    Bailouts and Eurobonds and defaults and returning to the punt and all the other assorted desperate fixes being discussed in the media and on this forum cannot succeed so long as the current system is operational.

    The system is the crisis.

    The financial markets are insatiable and will destroy our global civilisation if they are not shut down very soon.

    There is no other possible solution.

    The only discussion at this point is — how to do that.

    That is the discussion we should be having; not this nonsense of how to tweak a leprous cancerous system that is destroying our world.

    Tweaking the system is like the addict adjusting his addictive behaviour; the alcoholic trying to manage his drinking. It does not address the issue at all and it cannot work.

  40. dwalsh

    Of course this simple solution entails facing and overcoming the great challenge of this era for our species and planetary development. We must face and overcome the challenge of moving from the barbarism of neoliberal Darwinian economics to a new era of civilised global cooperation and integration.

    We must move from an era of competitive exploitative dominion of the planet and each other to an era of cooperation respect and stewardship. We can no longer abuse our planet and each other in these barbaric and destructive ways. We can no longer view our planet and each other as prey to be exploited and fed upon for personal profit.

    It is simple. The old-world man of exploitation and dominion is no longer the fittest; he is now a threat to the very continuance of human civilisation. The meek — meaning those who live by cooperation and respect and stewardship — must now inherit the earth. It is an evolutionary and survival imperative.

    • Re “The meek — meaning those who live by cooperation and respect and stewardship — must now inherit the earth. It is an evolutionary and survival imperative.”

      EEK, meek huggers wont fix it> people with real balls and vision should look what was done during the great depression:

      http://americanhistory.about.com/od/greatdepression/a/facts_great_dep.htm

      Firstly, lets admit the system is in shreds. 2008 losses have been hidden away in French banks, they’ve tried to disguise this with their impailment programs for the periphery hoping the profits from these bailouts will recapitalise their banks.

      But Greece is their Black Tuesday bringing the muck to the surface.

      Not to do -> inflate the world economy with more hot air fiat money like the trillions they are taking about throwing at it, that Bernanke wants them to do. This will only lead to bigger collapse up ahead with hyper inflation.

      Time for an unwind into national currencies with eg Smoot Hawley type protection of agriculture and painful reforms for the euro:)

      Consideration should be given to a gold reserve world currency regulated strongly.

      Better still remove the powers from fiat private banking and set up a greenback dollar state banking system to rescue broken fiat money system.

      • A banking mess was made by the Fed and the bankers and their clueless political chaperones.

        The opening and deregulation of global debt sluice gates, have all contributed to an erosion of faith in the dollar.

        The Big Party was fed by false growth, false because it was fueled by easily available fake debt regulation.

        Party over as it was in 1929. Time for governments to say NO to the bankers and their toxic solutions to the mess they’ve made.

        Start with deep regulations to control the out-of-control derivative market.

        Continue with default based on ability to pay, not obliged to pay.

        Trichet policy of no default, banks too big to fail, should immediately end.

        We need Agile Government able to respond to the problems the above reboot will entail. This should be cross border and global.

        Bye bye to Bernanke’s policy of feeding the G Sucks banks at the expense of the real economy.

        We need a return to real value to replace the virtual value world of vampire financial industry that has destroyed the basis of trade and commerce to the degree it has.

  41. Spare a thought for the politicians facing the con job of Soros and Geithner here

    http://www.businessweek.com/news/2011-09-25/europe-faces-geithner-soros-pressure-to-defuse-debt-crisis.html

    Beefing up the EFSF is in breach of the Lisbon Treaty. They may have conned Obama into QE1 and QE2 for the banks to allow private interests suck more out of european economies.

    They may have conned Merkel and Sarkozy too into creating an even bigger mess down the road.

    Face it, its time to make senior bondholders pay for the shambles and make orderly default, the norm rather than pouring more fuel to further indenture already broken economies.

    We need a bailout for the people not a bailout for the vampire financial service industry that has been allowed to grow out of control.

  42. dwalsh

    News Alert! from Wishful Thinking Media

    President Obama has signed an Executive order suspending all US derivatives trading and shutting down Wall Street. He is calling on all nations to follow suit and for an immediate summit of all nations on the global economy.

  43. Malcolm McClure

    The Wall St Journal says: Critical differences between European leaders threatened to stymie efforts to combat the euro zone’s debt woes, despite mounting international pressure to contain a broadening crisis.
    http://on.wsj.com/osfYO2

    Things are moving too fast for IMF or politicians to have any effect on inevitable outcomes. They just hope to delay matters sufficiently so that their cronies can mitigate their downfall by short-selling etc.
    On Friday, Art Cashin, head of floor operations at UBS diverted attention from his real problems with this:

    “The Thursday/Monday Syndrome — We had suggested yesterday that we should probably explore the history of what old fogey traders refer to as the Thursday/Monday syndrome. While it would be pretensions to say that was prophetic, it was, to say the least, serendipitous, for yesterday’s action looked like the perfect first step in a Thursday/Monday setup.

    “We had intended to give you a more thorough history of the syndrome with lots of analytical examples starting with the classic one — October 1929. Unfortunately, events are moving too fast this week, so we have neither the time nor space to wax poetic on the topic. So, you will just have to rely on my recollections of 50 years of watching markets and hundreds of nights studying market history.

    “The classic Thursday/Monday syndrome starts with the kind of action we saw yesterday. The markets open under pressure and selling accelerates in swelling volume. By early afternoon, there is a virtual stampede of selling. Then, later in the session, stocks stabilize a bit based on some reassurance. On Thursday, October 23, 1929, that reassurance came in the form of Richard Whitney bidding ’205 for 10,000 steel’ on behalf of the bankers’ rescue pool. (Read a terrific account in the chapter ‘The Crash’ in Fredrick Lewis Allen’s marvelous and essential ‘Only Yesterday’.)

    “The action on Friday (and Saturday in the case of 1929) is uneven, often ending choppily steady or somewhat weaker.

    “Then on Monday, the trapdoor opens with liquidation and margin calls bringing tsunamis of selling.

    “Is that what’s going to happen? Who knows? If it were that easy, kindergarten kids could do this. But chance favors the prepared mind. Old fogeys will guard against undue risk and exposure. Some may even get out a special shopping list. They will set their basket right, put in silly bids and hope some panicky soul throws a bargain in. Recall the story of the floor messenger boy, who, in 1929, according to legend, bought White Sewing Machine with his silly bid of one dollar when all other bids canceled.

    “One final note on the syndrome. Not infrequently, the Monday massacre spills over into Tuesday morning — a capitulation bottom in mid-morning resulting in a massive reversal to the upside.”

    Could this be an intentionally self-fulfilling prophesy so that financial people can make a killing?

    • Re “Could this be an intentionally self-fulfilling prophesy so that financial people can make a killing?”

      Its a mini version of the thalesian killing ground more and more evident in the commodity futures market, eg in food and apparently in the silver market, might be of interest to DWalsh and John Allen:

      Its meant to be regulated, but…..

      “Thales, so the story goes, because of his poverty was taunted with the uselessness of philosophy; but from his knowledge of astronomy he had observed while it was still winter that there was going to be a large crop of olives, so he raised a small sum of money and paid round deposits for the whole of the olive-presses in Miletus and Chios, which he hired at a low rent as nobody was running him up; and when the season arrived, there was a sudden demand for a number of presses at the same time, and by letting them out on what terms he liked he realized a large sum of money, so proving that it is easy for philosophers to be rich if they choose.”

      “http://en.wikipedia.org/wiki/Cornering_the_market#ca_6th_Century_BCE:_Thales_of_Miletus”

  44. The deadly banking zombie virus is back again.

    This time it looks as if Angela Merkel has fallen foul.

    It turns the brain into a bankers’ voodoo doll ready to do the craziest and most irrational will of unseen vampire bankers.

    No, Angela, Greece is not in danger, if she defaults, of creating a situation where nobody will invest in Europe again.

    Greece is in danger, if she doesn’t default, of creating a situation where nobody will want to invest in Europe again:)

    Meanwhile Elderfield of the Irish Light Banking Brigade, according to Business, Sun Indo, is ‘Regulator on a Korean jolly as market panics’. He’ll be in South Korea 23Sept – Oct 3 at a festival hosted by “International Association of Insurance Supervisors”(IAIS). They intend to have a great time.

    Meanwhile AIB have appeal in with government to raise the bar on the €500,000 they can offer their new chief of AIB zombies.

    Things are looking dodgy in the presidential race with Mary Davis revealed by Shane Ross as a ‘Quango queen’ and FF appointee on the DAA board and a BOI subsidiary and Bertie crony.

    Not to be outdone, rather than facing a lengthy stay behind bars for interfering with the judiciary, Senator Norris apparently is sitting on a pile of more incriminating paper.

    Those documents should reassure us he’ll look favourably on the antics of others who’ve shown favoritism to perpetrators of abuse, over their victims.

  45. New Perception

    Maybe we should look up and be confident .Lets look at the cartoon and think positive for a change it will definately be good for blood pressure .

    Lets see it as a bare pan and now a pan of plenty and heat to cook it .That would be a great meal for many.

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