February 6, 2012

The Champagne is flowing...again

Posted in Sunday Business Post · 161 comments ·

What a difference a month makes. We entered this year with a debt  crisis in Europe and a growth crisis in the US. Investors were  terrified, governments were falling and there was a total lack of  political leadership both in Europe and the US. Corporations were in  retrenchment mode and even the bulls were retreating, having taken a  battering in 2011, particularly in the second half of the year.

This weekend, the first one of February, we are looking at financial  markets all over the world booming. It is almost total reversal. Bond  yields in Europe have fallen significantly, with the exception of  Portugal.

For example, Italian bond yields are now down at 5.6 per cent, not a  million miles from where they were this time last year before the  European bond crisis blew up in Silvio’s reconstructed face.

Stock markets, too, are roaring ahead. In fact, the rally in stocks  since the dark days of late November has been spectacular. And the  feelgood factor isn’t just limited to Europe and the US. The Indian  rupee, the Brazilian real and the Mexican peso have risen by more than  7 per cent in four weeks. And investors have added about $7.7 billion  to emerging-market equity funds in the same period.

What is happening? Most fund managers have been caught out by the  rally, having opened the year in cautious mode. I have also been very  surprised by the rally. But the job of columnists is to deal with what  is happening. If they have been caught out, acknowledge it – and then  seek a few explanations.

In answering the ‘why’ question, one aspect of the rally which is  important to note is that the most ‘risky’ assets have risen most – we  are talking about emerging market currencies and many European bond  markets. Why is it happening in the riskiest assets?  For example, are Europe’s peripheral countries, including us, suddenly  more creditworthy? No, we are not. The data in Ireland remains  appalling. Meanwhile, EU-wide growth and unemployment figures are  still atrocious.

Taken together, in Ireland, Portugal, Italy, Spain and Greece, youth  unemployment is well over 30 per cent. Given the fiscal contraction  announced by last Monday’s fiscal compact, countries will have to  reduce national debt significantly each year for the next 20 years, to  get us moving down to the target debt-to-GDP-ratio of 60 per cent.

So how could we be more creditworthy? With the fiscal compact, there  will be precious little money left here, so much will be going out in  debt reduction and interest payments.

The reason markets are rallying is that the central banks are creating  money as never before. They are inflating the bubble again. The  European Central Bank (ECB) for example, will lend €1 trillion to  European banks at the end of this month at 1 per cent. The banks of  Ireland, Greece, Portugal, Italy and Spain give trashy collateral to  the ECB and the ECB will give them fresh crisp cash. Then the banks  lend this money to the bust governments. This is causing the yields on  the bonds to fall.

The banks borrow from the ECB at 1 per cent and lend to the host  government at 6 per cent. They make a free 5 per cent. With all this  profit margin, they can rebuild their balance sheets by what they see  as a risk-free trade. It is called a ‘carry trade’ in finance.

Seeing this free trade, the hedge funds change tack and decide to ride  the wave of €1 trillion of free ECB cash. They buy ‘put options’ which  are a trade that gives the hedge funds the right to buy an option to  purchase government bonds at today’s price for delivery in one month.

This means that, if the bond market keeps rallying, they will make  good profits. But with the giant tsunami of €1 trillion of new  liquidity in the market, why wouldn’t they buy on that trade?

The only problem is that someone subsidises this trade. Who pays? You  do, because the difference between the 6 per cent at which the  governments borrow and the 1 per cent at which the banks lend has to  be paid by someone. That someone is the taxpayer.

Outside Europe, the US Federal Reserve has stated that it will keep  the rate of interest below the rate of inflation for the foreseeable  future. This means you would be mad to save, so the market borrows  dollars and lends these dollars to high-yielding risky assets. Another  state-sponsored ‘carry trade’.

The taps have been turned on. My favourite way to visualise this  (apologies to regulars because I have used this image before) is the  champagne pyramid. When someone keeps pouring champagne at the top  (the central banks printing money) this liquidity gushes into all the  glasses – even the risky ones at the very bottom. So long as the  central banks keep the taps open, most asset classes should rally.

Significantly, had this financial market news not been accompanied by  huge gains in the US job markets, it would be easy to dismiss it as a  localised casino event in the global roulette table that is the  international financial markets. But the US is creating jobs again,  lots of them – and just in time for Obama, too.

As we pointed out last week, the most important thing for a president  in re-election year is that the economy is moving in the right  direction. The US economy is moving in the right direction for Obama.  Combine this with a cynically timed pull-out of Afghanistan, and the  election may be his to lose.

Now before you go out screaming it is all over and the global corner  has been turned, be careful because, below the surface, things are not  so rosy. Even with the new jobs numbers, house prices in the US  continue to fall, average wages are stagnant or falling and consumers  are continuing to pay back debt. This means consumer spending is still  very weak and might remain so, dragging the economy back.

This is a liquidity-fuelled rally. But it is a rally nonetheless and  cleverer people than me are betting big money on it lasting.  Time will tell if last week was a significant milestone or just a  flash in the central bank pan. Let’s keep watching the numbers.

For a novel look at the economy, look at my new initiative, Punk  Economics, using cartoons to explain tricky stuff on YouTube.

  1. Adam Byrne


  2. mediator

    Call Options not Put Options

  3. So the fed lent the ECB 1 trillion dollars, then through leveraging “fractional reserve magic” they created up to 10 trillion and gave this to the european banks who have bought the bonds of the kaput governments and speculated the rest on the markets.

    Add to this QE3 and of course there will be a lift in the markets!!!

    Pop the cork guys!!!

    Crisis over forever!!! :)

  4. wayneleone

    David, does this mean Irish banks will start giving out mortgages? Will this affect (upwardly) house prices?

    • Realist

      Banks have more important job to save governments from defaulting for a solid profit margin :)
      And they will not be able to refuse that as they are getting money through government controlled central banks anyway.
      Both governments and banks profiting by inflation as they are first on the money, while people and companies in the second half of the chain will pay up.

      House prices might go either direction but most likely south for a solid time.
      I doubt ECB will inflate it too much so Irish house market goes up soon.
      They anyway need to balance inflation with whatever other stupid measures to show how central bankers are smart and people are stupid.

      Uncertainty is here the political game as politicans can do anything with central bank that can again do anything with banks.

      Governments have a grip on a banking system and they always had, just neither David nor some other posters can see or admit that.
      Not being interested in banking does not mean governments have no power over them (law, army, garda, ..) :)

      Governments like bankers and vice versa. Excellent symbiosis.

  5. molly66

    The books are being cooked and the printing press is in full over drive mode.
    Why can’t we do the same and make the jobs we so badly need.
    Why are things here getting worse and worse.
    Where is our help coming from or are we to be thrown to the wolves.

    • Think back Molly. Things are getting worse for the same reason that they got bad!

    • Realist

      Because jobs are real and electronic money coming from thin air are not.
      What they are doing is inflating things, so governments and banks profit as first on money.

      If we are all wake with double more money tomorrow, only surprised shops will sell a bread with old price tag.
      In this case governments and banks get direct financing first, to say 1% or 2% of overall money, hard to see for us, they use it for their own interest and we mortals will notice that in a week or month time once things get more expensive.
      You can see printing press (or to say a big server nowdays as it is all mostly electronic money from thin air) in all countries/regions, just look how suddenly $ becoming stronger than euro dependant partly on who is printing more recently :)

    • redriversix

      We are in the Wolf pen ,Molly

      seems quite difficult to climb out…….

  6. Deco

    Well, seeing as we are in a low interest rate environment, with suspicious inflation statistics, and central banks shoving hundreds of billions into the banking system in an effort to shove the banks into funding the sovereign bond market, maybe a quote from Alan Greenspan might be relevant. Just for the sake of irony. He was an expert in Bubbles. Retrospectively speaking of course.

    “History has not dealt kindly with the aftermath of protracted periods of low risk premiums.”

    This is another effort to kick start the Ponzi asset bubbles.

    This is nothing new. The Japanese have being doing it for years. And Japan has a trade surplus, a large network of firms repatriating money from foreign subsidiaries into the domestic financial system, and a stable savings rate.

    On this basis, it certainly will not work for Europe. Or the US.

    So now, where it this bubble.

    Just look at the hype surrounding the Facebook IPO. Does this not sound familiar ? Familiar in the same way there was a Dot Com mania twelve years ago ?

    When there is a low risk premium, and an ample supply of electronic money, you get money flooding into something which seems like a sure thing. And when I see the face of Zuckerberger, and the media feting this individual, I realise that the hype is simply too much. There is not an awful lot in Facebook that is new, in the context of IT. Strictly speaking, the strength of facebook, is not the technology, as much as the membership. And this might be more fickle than the experts think. In effect you might have a social herd effect in facebook, which is driving a market herd effect in Facebook shares. Just a theory.

    And the revenue model is questionnable. The link between Facebook users, and revenue is something which remains a mystery to me. Many of the users simply do not have the income to justify the valuations on their membership, or the assumption that advertising can be applied to them.

    Greenspan’s low interest rate policy in the aftermath of the 1998 crisis, and fears concerning Y2K, resulted in a Dot com valuations that were positively stratospheric, and manic.

    Now, we are seeing something that is strangely familiar. The familiarity seems amazing.

    • Deco

      The easy monetary policy is designed to maintain easy credit to state sovereigns (in other words politicians). This is because in the west the state system has become overladen with abuses. Abuses like bailing out bank bondholders, TARP, and the current ECB racket to subsidize the PIGIS sovereign debt market.

      Of course, they can print money, but they only have so much influence in where it ends up. And for some peculiar reason it is ending up in social form dot com operations.

      Just wondering, how does the Price Earnings ratio of Facebooks compare with a company in the oil refining sector, or electricity generation ? I mean providers of essential goods and services, that we need everyday for our lives ? It seems to me to be way out of whack with reality.

      The central banks have not beaten inflation, and they will probably not beat deflation either.

      Inflation tsunami approaching, with respect to essentials of livng.

    • bonbon

      A last twitch (or twitter) of dot.com-munism.

      They are simply unable to do anything else. Talk about programmed!

    • Colin

      Most people use facebook now because their social lives are less active due to the recession. Instead of going to the pub, people are surfing the net at home because they don’t have the money to go out as they used to. How facebook thinks these people are cash cows is beyond me. How investors swallow that is not beyond me, as fools and their money have been parting since the year dot.

  7. molly66

    Unless this government tears up it’s gombeen plan and invents a plan thought out buy people who think outside the box we will run out of road

    • Realist

      They just need to leave people and entrepreneurs alone for a bit and not decide anything for us.
      Governments have the worst project success rate, most likely in the region >90%.

  8. German Banker thanks the people of Ireland for bailing out the banks.. http://www.youtube.com/watch?v=SnX_q5Pbnac

  9. michaelcoughlan

    All that cash floating around should mean that sooner or later that the real value of mortgages relative to assets (Houses) will drop in other words the politicians are happy to allow savings become worthless to facilitate borrowers and busted banks by inflating away the problem.

    The people to watch are the Germans. It remains to be seen whether Gunther and his Frauline are happy to allow themselves to be shafted to save German and French delinquent bankers especially since the Germans don’t have the same love affair with their houses as we do. It would seem so. It would seem that Europe has decided for political reasons to shaft savers and the parsimonious for the sake of borrowers and investors with the knock on effect that employment levels should start to rise with all the loot flowing around the system.

    If forced to choose I would sooner be back doing a job with my savings worthless than sitting on my ass with my savings intact. (Lucky for me I have been in and out of gold/cash since this whole thing blew up).

    It ultimately comes down to the advice given by a commentator on the site recently “put on your own life jacket first”. Thankfully we have David McWilliams and Constantin Gurdgiev to guide us economically speaking.

  10. wills

    A clear, concise, simple a-z on financial ponzi mechanics the central bank warfare model system of economics provides us with in the computer-info age we find ourselves in living on planet earth.

    Do a punk economics specifically on this article a.s.a.p/

  11. [...] David McWilliams » The Champagne is flowing…again [...]

  12. Malcolm McClure

    David, whilst I agree the the QE taps have been turned on by he major central banks, I dislike your vivid analogy of the champagne pyramid. I think the intervention is taking place much more subtly via the exchange rate mechanism. Transnational T bond buy and sell orders by central banks are the intermediary that balances the various exchange rates. The counter parties to these trades are the beneficiaries. Consequently the effects of QE are effectively masked from the markets as the new money flows in from T bond profiteers.

  13. bankstershill

    So Let me get this straight. According to insider David ,who gets confused between his puts and calls (rollseyes), the Federal Reserve (its not federal and it has no reserves btw) prints 1 tr to lend to the ECB to ‘give’ |(yes I mean give) to the irreversibly insolvent oligarch interalpha banking system to lend to gimpy Enda at 6 % who in turn hands it back, + the 6% of course,to the same interalpha cartel who then in turn give it back to the ECB who then gives it back to the Fed who then take it out of circulation. So in actual fact all that has happened is that gimpy Enda has just transferred real wealth (as represented by the 6% interest payment) to the interalpha banking system. So as an alternative why not change our constitution to give the exchecher the authority to issue Irish sovereign credit at 0 % for the purpose of assisting the cost of running the State and for financing some critical infrastructure thereby providing some productive employment. At the same time place our own banks in receivership and reorganize them. Simple.
    Finance and economics at its heart is actually quite simple. It the insiders who like to obfuscate and confuse the public with their mumbo jumbo in order to look out for their own interests.

    • wills

      Apart from the personal insult of David you’ve gone for there, you’ve just surmised ponzi economics in one go, but from a different angle.

    • bonbon

      Without a hermetic separation of banking activities, a sovereign credit system will flounder. With it, yes the change to Hamiltonian banking will work.

      I agree they are trying to rescue the Inter-alpha banking group the core.

      I also agree on simplicity, but the real obfuscator-in-chief is Sir Alan Greenspan (knighted for bringing stability after the S&L blowout). I do not see that level here.

      I am surprised at the willingness to believe Gov’t statistics, never mind the election, and go along with it.

      • Realist

        Hamilton – another central banker ? No, thanks.

        • bankstershill

          That’s not the point. The point is that that under a regulated NATIONAL banking system financial flows resulting from arbitrage conditions , like the carry trade for example, accrue to the public coffers and not into the pockets of a private cartel as in the present system

          • Realist

            I agree that money should not go to banksters the way it goes now.
            But I do not want money going to public wasters, aka politicians neither.
            Central bank is just government bank and I do not regard neither taxation nor inflation for the government the way to improve the society.
            Money is the medium of exchange and not the medium to distribute wealth from weak to mighty, regardless are they bankers, government officials, central bankers, …

            I do not want too much wasted wealth due to money manipulation and this is why it should be sound under full-reserve banking without central banks and government influence.

    • Apologies for the put/call mistake. Not so much confusion as a human mistake on my part.



  14. conor

    Hi David,
    Have a look at John Mauldin, re “Putting a good employment number in Perspective”


  15. Interesting stuff David. It is election year and there is going to be miracles appearing out of the blue for sure. Smoke and mirriors everywhere

    Your Punk Economics producition was very good by the way.

    You mentioned the disconnect between politicians and the public. You forgot to mention the western media. Here is another short movie that Jum Kirwan linked to regarding Libya. It is well worth watching and shows us the real power of propaganda. Look out for the quote by the Zionist rat Sarkozy

    Never believe all you hear

    Libya & Gaddafi -The Truth you are not supposed to know 9 min VIDEO


    • 33square

      Libya has McDonalds now. If that’s not mission accomplished, i don’t know what is… or was that Rothschild banks? McDonalds/Rothschild banks, i’m so confussed : )

      not much word by the state broadcaster about the implications for Irelands oil trade with that country… or the long forgotten arms trade… but that’s water under the bridge now, isn’t it…

      world opinion was “galvinised” against ghadaffi ; ) a cruel dictator who we gladly traded with up until the end. with friends like that…

      and what of the rumour of irish soldiers caught illegally trading arms in the seychelles and the irish government ministers who are aware of said trade? willie’s gonna get ya… yes he is <>

      who are confidential investigations athlone?
      and network search associates in waterford?


      • Colin

        Great news for Libya. We spent the 80s in Limerick wondering what we had done wrong for McDonald’s not to arrive and set up. So trips to Dublin always included a trip to McDonalds there.

        No one has a gun put to their head and ordered into buy a happy meal. Its voluntary. You don’t like it, don’t go in there then. You’re free to boycott it if you like.

        But just remember, Irish farmers do well out of McDonalds, as all meat used in burgers in the UK comes from Bitish AND IRISH farms. Last time I checked, Libya didn’t have large swathes of pasture land, so Irish farmers and processors might do well out of this.

    • redriversix

      Pauldiv , I wonder what influence the West has in Syrian uprising..?

      Any thoughts as to why Russia and China vetoed Vote against replacement of Assad by deputy ?

      Good link on Libya , Thanks


  16. conor

    Hi david,
    Just to hand re your comments on US unemployment numbers.


    Three Official Lies About Jobs!
    by Martin D. Weiss, Ph.D. and Mike Larson
    Monday, February 6, 2012 at 7:30am

    While Washington announced last Friday that unemployment dropped to 8.3% …
    And while Wall Street rejoiced with another rally …
    The true unemployment in the United States actually rose to an estimated 22.5%, nearly the worst since the Great Depression.
    Hard to believe?
    Just consider how the government is lying to us about jobs in America:
    Lie #1. “Discouraged workers – unemployed workers who give up looking for jobs – are not really unemployed.”
    Even a third grader would know that’s laughable. If jobs are so hard to find that people are abandoning the search, that’s a sign things are actually WORSE, right?
    Yes, but that’s not how the government counts its headline unemployment number. Every time more people get discouraged, the government’s jobless number improves!

    Lie #2. “Unemployed workers seeking full-time jobs who are forced to accept minimum-wage or lower paying part-time jobs are also not unemployed.”
    In other words, based on the government’s definition …
    If you’re a laid-off policewoman delivering newspapers for two hours a day, or …
    If you’re a former sales manager, greeting shoppers at Wal-Mart on weekends …
    You’re not counted among the jobless!
    But if you think that’s strange, consider this:
    These lies are so enormous and egregious, the government has tried to address the outrage by quietly publishing another unemployment rate, dubbed “U-6.”
    This number is never headlined in the press. And the party in power never mentions it.
    Why not? Because it’s one of the ugliest and worst-kept secrets of our time.
    I’m talking about an official government number that does include some of the part-time and discouraged workers, and that reveals an outrageously high U.S. unemployment rate of 15.1%.
    Lie #3 began about 18 years ago during the Clinton administration. Back then, officials at the Bureau of Labor Statistics were counting virtually all discouraged workers – those who had given up looking for jobs because there were no jobs available.
    But one day, they decided to STOP counting anyone who had given up looking for more than a year.
    So here’s the deal:
    If you’re out of a job and you gave up looking for work 365 days ago, you’re still counted as a “discouraged worker” and you’re still among the 15.1% that the government admits are unemployed (based on their less known U-6 number I mentioned a moment ago).
    But if you gave up looking 366 days ago, based on their cockamamie scheme, you’re not “discouraged” any more. As far as they know, you’re so happy, you could be dancing in the streets!
    Now do you see why I say the government is lying about jobs?
    And these are not just trivial factoids that no one cares about. It’s among the most important financial, social, and political problems of our era.
    I repeat:
    According to Williams’ estimates, if you include all discouraged workers – just as the government itself did before 1994 – the true unemployment rate in America is 22.5%!
    That’s nearly THREE times worse than what the headlines say. And it’s even higher than the unemployment of the PIIGS countries in Europe, which are now suffering from massive sovereign debt disasters.

    • bonbon

      Excellent! I too do not believe a single word from the BLS, the jobs are imputed from a mathematical model!
      I like Max Keiser’s report recently on the case of a semiconductor engineer’s wife who asked Obama to respond on why no job could be found. Like Monti of Italy he implied the jobs are there. MK points out they are, in Bangalore!
      The liars in Dublin are amateurs compared to D.C., but take lessons from the master.

    • Deco

      The unemployment statistics in the US contain several different measures of unemployment. The minimalist measure is extremely dodgy, and under-reports the true scale of the problem.

      John Williams was the senior most statistician in the US government and he has extremely serious reservations about the entire process, by which unemployment and the Consumer Price Index are measured in the US.

      The stuff you hear in the mainstream “support our advertising sponsors, and trust us when we tell you good things about them” media, amounts to deliberate misrepresentation.

    • Colin

      Thanks for that Conor, didn’t know that’s how they measure unemployment there. What they should count is the number of immigrants who are now returning home to their native countries, a bit like Malachy and Angela McCourt returning to Limerick with wee Frankie in the 1930s.

  17. Deco

    Punk Economis is excellent. Full marks.

    The EU financial system is about to go “pear shaped”.

  18. Deco

    If credit is an addictive substance, causing delusions of wealth propsperity, then the ECB has decided that the patient needs continued sustained addiction, rather than withdrawl.

  19. Realist

    Congratulations David.

    You finally said what is the root cause of booms.
    Central banking with fractional-reserve banking helped with sovereign debt bond issuance.

    Now, just to correct all other mistaken views you had in recent articles and you will be healed :)

  20. bonbon

    Champagne, known in insider circles as Bubbly, is very apt, causes terrible hangovers.

    These “rallies” are getting shorter and shorter-lived. This means we are approaching a barrier. Each bubble, exponentially bigger than before leaves an expanding economic crater when they “pop”.

    Some here confuse “bubble”, “rally” with “boom”, which causes all sorts of endless argument.

    Almost none have ever lived in a physcal economic boom, during the Bretton Woods era, know nothing else than bubbles, and oppose the very measures needed to boom, which we must, to repair the cratered economic landscape.

    Perversely the very explanation of this looting, which rightly gives finance a really bad name, is used to oppose any conscious measure to control it, as if this will spontaneously “order-out-of-chaos” happen.

    Public Virtue will never appear from the Private vice of punk banksters printing money for their friends, looting via carry-trade.

    What is entirely missing is a message to deal with what is going on. Economics is not limited to a mere description of numbers, neither a mere extrapolation or deduction.

    One gets the feeling that the cartoon is laying the groundwork of first understanding what is going on, but then a vacuum when it should point to strategy.

    Is the object simply to get young people to accept the explanation?

    • bonbon

      The “moral” of the punk economics story closing statement, “enough, don’t say you hav’nt been warned” is not enough.

      First who is being warned, the punk banksters or their their breakfast, people?

      Banksters will not change because of this, but it appears to put the moral weight on powerless individuals, without saying the way to deal with this is not to implore, rather to nationally impose a bank-splitting using the power of the sovereign nation-state. That has been discredited so far as the elected betrayed it.

      So a perverse play-out : take away the only tool that people can use to change this, and simultaneously impute blame.

      This can do nothing except perpetuate the very vice moralized about.

      What is going on here????

      • Realist

        Government –> control/paying central banks –> fraction-reserve banking system
        Government –> Law –> control Banks
        Government –> Police, army –> control Banks
        Government –> bailout banks

        What is needed is:
        1. Separation of money creation from the state (as state used to print it all the time to support wars, financial crises, …)
        2. Removal of central banks and fractional-reserve system (where actual printing taking place and credit expansion)
        3. Adoption of proper banking based on legal laws (e.g. not using people’s money in current accounts left there for safe keeping, …)
        4. Reduction of public sector and governments so one they nothing is left there.

        • dwalsh

          Governments do no control central banks.
          It’s the other way around.

          • bonbon

            This argument has been going on over a few threads now.

          • Colin

            Reminds me of Michael Portillo’s question at the end of one of his railway programmes recently, where he was discovering the history of the railways in the city of London square mile, Fenchurch Street and Liverpool Street Stations. Apparently, in the 1800s, railway building was also a ponzi scheme, and many people lost a fortune in it. However, as Portillo gained access for the cameras to the old magnificent buildings which were banks in their heydays, he looked over towards Westminster, no more than 2 miles away, and posed the question to the camera, I wonder which of the two is the more powerful, I’ll let you answer that one?

          • StephenKenny

            Railways all over the world were the tech bubble of the late 1800s, but they weren’t a ponzi scheme.

            Many investors lost their shirts, but the countries gained railway infrastructure, for both industry and passengers.

            The financial industry has been allowed to become, to a large extent, a ponzi scheme, at exactly the same time, and in the same way, that Enron was allowed to become one in the late 1990s.

          • bonbon

            Right about ENRON. Then Arthur Anderson did the accounting, today it seems GS, but since PriceWaterhouse hired the AA staff after it was busted up I suspect PWC are in the game too.

            Good Ponzi schemes need creative accounting, on and off balance-sheed, right?

          • Realist

            OK, let’s assume you are correct, that nowdays governments with all this law and enforcement, including police and army cannot do anything to the banking sector and the banking sector owns them or control them.

            Who put into laws that fractional-reserve banking is legal ?
            Who brought the central bank into existence ?
            Why in the last 3000 years all banks were raided by kings, governments and such ?
            Who printed all that money during the wars ?

            Is democracy broken as our governments are controlled by bankers so voting does not make any sense ?

          • Realist

            It is really hard to fight against central bankers and government officials on this discussion board.
            All your solutions to problems is to give more money to the government and I cannot disagree more.

          • bonbon

            Central bankers are not the problem. Irrational “order from chaos” beliefs are, a belief in magic, invisible hands, free-markets, equilibium, zero-sum games.

            Identify the common thread running through all of these. That’s the problem.

            In this way bankers are straw-dogs. Sure they need control, but the other belief is even more dangerous.

          • Realist

            “Central bankers are not the problem”

            This sums the root cause of our disagreement nicely.
            Even David is showing above for the first time that is exactly the problem.

          • bonbon

            I said central bankers are not the problem, they can easily be reined in with Glass-Steagall and be real poster boys of honesty.

            The more deadly problem is belief in “magic of the markets”, “spontaneous order” at the core of all 3 – Hayek,Friedman,Keynes. This is Nietzschian fascism or more precisely imperial economics.

          • Realist

            What you are saying is that people are stupid and politicians and economists in high places are smart to decide for all of us.
            We are seeing how that worked in the last 3000 or so years so no need to stupidify all of us.

            Hayek was the only one against centralization of power and that all economic knowledge can be centralized. And he was correct.
            The state always abused the printing press, and you can see that whenever is some crisis aka war or financial one.

          • bonbon

            What I said, yet again, is clear enough. We do not need magic. We need a science driven economy, where people organize very large projects, with 20-year stable funding, to rebuild the economic ruin of the magicians.

          • Realist

            Who are those scientists, name them please ?
            What school of thought are they from ?
            Where are they going to be based, central bank, government, …. ?

          • bonbon

            When we begin to hire people for the Science Driven Economy, there will be 1 rule “no magicians need apply”, which rules out all Hayek/Mises/Keynes/Friedman applicants, 99% of bankers, and most “scientists”. Which leaves very few indeed.

            Funny how that rule puts bankers in the same boat as Mont Pelerin stringers?

          • Realist

            You are not going to choose anything for me nor other people.
            We are all well capable of choosing what to do.
            We do not need your scientists, that ruined everything already, thanks.
            You can go to Mars on your own expense.

        • dwalsh

          The Federal Reserve Act was drafted by the major American (and European) banking families on Jekyll Island.
          The bankers drafted and funded its passage through the Senate and Congress…because it gave them complete control of the American currency and economy and ultimately of the Global Reserve Currency.
          The Global Reserve Currency is a private currency.

          • bonbon

            Right, an attempt to prevent Hamiltonian banking, national funded missions for essential projects like TVA, NASA, NAWAPA….
            FDR, JFK had to move against the FED with Reconstruction Financing. Even Lincoln’ Reconstruction hit the same issue.
            Anyway under Glass-Steagall banks behave themselves.

          • Realist

            Under Glass-Steagall, between 1933 and 1999 was no any crisis ? Are you sure ?
            There was no printing of money, no inflation, nothing happened wrong around the world ?

  21. Yeah well, while the Idiot Rallies are in full swing, In the meantime….the global fascist coup continues and a 88 billion Dollar deal is prepared to control the global resource supply chain on mining products and more. A year ago I wrote about it here on DMW, now it is turning into reality…


  22. Grey Fox

    So the wheel just keeps turning.
    The deal in Greece goes through.
    The ISDA calls it a “Credit Event” and not a “Default” as it should be.
    The Big 5 US banks which hold 97% of the Insurance on the CDS’s don’t have to pay out ‘cos it is not a “Default”.
    There is now a “NEW” 1 Trillion sloshing around (and ten Trillion after Fractional Banking Magic).
    So the Boyo’s who lost out on Greece have plenty of opportunity to get back their losses a hundred fold.
    And to pop that Icing on the cake roll on QE3, Equity markets rally off into the distance along with Gold Stocks.
    What bloody reccession!!!!
    Wahoo..happy day’s are here again….la la la la la
    Nothing can stop us now…or can it????
    Anybody?? Anybody????

  23. dwalsh

    I believe it is a managed crisis with global strategic aims (New World Order). This is just a minor temporary re-inflation of the debt bubble to prepare for the next stage of the operation.

    In Europe, as we know, the intention is to force and fast-track federalisation; initially as non-democratic central fiscal control. This is already well advanced. The increased sovereign debt which will be generated by this latest pumping/printing operation will increase the pressure on the nations to submit.

    Notice the ECB will only lend to bankrupt banks for usury or speculation. There will be no cheap money for productivity or employment. This will do nothing for nations or their citizens. The only beneficiaries will be the bankers and financial speculators who manage the pumping operation.

    The zombie outfits that get this almost free money will quickly leverage it geometrically. Then they will begin pumping and circulating it among themselves; the aim being to siphon-off as much as possible of the principle as real cash into their personal accounts (as profits & bonuses) in the form of commissions and service charges. The ultimate outcome for the nations will be increased sovereign debt.

  24. redriversix

    This entire Financial and Government crisis along with continuing military instability throughout the World IS entirely planned and what is happening is the desired result of years of planning by the Corporate Elite.

    Unless the people decide to take peaceful action , the path we are on is the one we and our children should and will get use too.

    Debating individual skirmishes is pointless , the whole world picture needs to be studied and dissected , questioned and politicians pounded with queries.

    This current “idiot rally” is purely driven by debt and the printing of valueless money around the World.It may last till the end of March or until Greece collapses.But as I said above , it is a skirmish , where is the game now ?….what has it moved on to ?

    Why are we not doing anything ?

    Why is it Okay for politicians to lie to us on a daily basis , Why are we so cooperative in the dumbing down of our News and Media ?

    Why do Gilmore and Co prattle on about Vatican Embassies and Social Welfare Fraud instead of concentrating on the saving of this nation and the protection of its people, your Family ?#


    Debt Slavery
    menial jobs
    minimum rights
    Breakup of our Health system
    The breakdown in Society
    The rise in prescriptions for anti-depressants , the rise in alcohol addiction.FEAR , TEARS , STRESS , SUICIDE ,FAMILY BREAKDOWN.The utter dumbing down of our society through T.V , Internet , Glossy Magazines , media etc.

    How can Fine Gael have been right 90% of the time in opposition and wrong 90% of the time in Government.How can sensible people suddenly turn 360 degree’s and get it so wrong……………it makes no sense.whatsoever…………the only conclusion I can come to is that Senior Civil Servants run this Country and indeed many of the Western Nations now.

    Banks are still in Charge. Banks still decide what is best for us.
    We need action The best form of action we can take is a financial strike against the Banks which will have them on their knee’s within 6 months

    IMF is a corrupt organisation……do your research.U.N is a corrupted organisation…………Do your research.

    The U.S now seems to be the biggest exporter and financier of international terrorism I can remember…….Do your research………….

    Or don’t bother your bollix doing anything ….

    • Deco

      The next general election is set up perfectly for a smattering of small local parties to take seats from FG/ILP.

      Perhaps resignation to the inevitability of a hammering, makes it easier for Phil Hogan to disband various layers of local government. Whatever their faults, there was some democracy there, with replacement of local clowns by other clowns as a real option. There seems to absolutely none with at all with the quangoes, with all Ditherer’s ministers cronies stuck all over the place on them.

      They need to be progressively dismantled.

      Too much bureacracy, and not enough leadership.

  25. redriversix

    What can you do , David ?

    writing 3000 words a week is great but can you help ?

    • Deco

      He is leading us to understand economics better.

      That is a very important task. The intellectual revolution, precedes all others. And it’s quality decides on how useful, the following revolution will be.

      If it is lousy, you end up with disaster, as occurred in the Marxist revolutions of the Twentieth Century.

      This centiry, let us do much better at reforming the system, and providing decentralized improvement, based on consent and respect – not coercion.

  26. G-Rod

    American Employment numbers may well be fudged.
    “I wouldn’t get anywhere near the champagne,” Jared Bernstein

  27. redriversix

    Btw the year Reagan ran for re-election in the U.S , IN 84, unemployment dropped than as well…………

  28. bonbon

    I posed a question above on the perverse effect of describing accurately what is going on, while depriving viewers of a way forward.

    I begin to see that that is when a huge fight starts. Various Friedman/Hayek/Keynesians pounce like, I must say, crazed dino’s on any creative human way forward.

    It becomes impossible to debate then in any civilized way.

    I think DMcW, very understandably, knows this from personal experience.

    If one confronts the core irrationality of certain economic theories, raw irrationality breaks out. In a way this is an amazing trap. It is a kind of packaged psychosis, delivered by training. I think the LSE has gone a step further than Naomi Klein’s excellent 2007 encyclopedic reference, and found a way to train students in induced schizophrenia, while looking o.k. in Armani suits.

    I am amazed at the refinement.

    Perversely appeasing this irrationality, makes punks out of us, destitute punks.

    No-one would want unprepared naive students to run into these intellectual guns.

    So I think any cartoon videos would be very useful if they showed the reality of what it is like to confront the icons of this system. Prepare them for the sheer backlash so they are not derailed.

    That would be a service to people who are maybe hiding.

    • redriversix

      Studying Friedman at the moment and his wicked ways in the sixties and Seventies with the Chicago Boys…..the Nazi’s would have been so proud of him.

      He gets economic Nobel prize for works in southern America, Chile , Argentina , Brazil etc and AMNESTY INTERNATIONAL get Nobel peace prize for highlighting torture,kidnapping etc in same Countries in the same year as Friedman……..1977

      U.K Q.E Bank of England to print 50 Billion pounds this week …………out of thin air , but someone will pay interest on it……….

      • bonbon

        Right!. But to go to the core of Friedman’s widely spouted thesis is to confront distilled fascism. Same with Hayek, and Keynes. One has no choice but to confront this by name. Naomi Klein did this up to a point.
        One does not confront encapsulated psychosis, the irrationality at the core of all the above luminaries, with psychosis. One has to go after the inhuman bestial, or bestialization, of apparently respectable academically dry theories.

        The fact that these are standard curriculum at LSE shows where fascism springs from – Empire which has always maintained power this way. And after all Eire has direct experience over centuries.

        I think this will not be stopped by merely marching, specific banners that make it clear we will not be mere passive culled beasts for them, are needed. That means ideas.

        The prime idea is Glass-Steagall – encapsulated human creativity to deal with encapsulated psychosis.

        • Realist

          Hayek cannot be put together with people he fought the whole life against, especially Keynes.
          Today’s econopmy is Keynes economy.

          Please tell us who is your idol or school of thought so we can talk name to name ?

          • bonbon

            Hayek put himself together with those by forming the Mont Pelerin society. They got on wonderfully.
            So what common agreed basic idea could hold such apparently opposing luminaries together?

            Well none other than “spontaneous order”, pure irrationality.

          • Realist

            Keynes was never in any association with Hayek and was neved in Mont Pelerin.

            By 1947, Hayek was an organizer of the Mont Pelerin Society, a group of classical liberals who sought to oppose what they saw as socialism in various areas.

            Not sure what is wrong in opposing Socialism ?
            Are you socialist bonbon ?

          • bonbon

            Keynes’s original Treatise was published in 1930′s Germany because no one else would, with a preface that only a total-state could do it.
            Hayek’s thesis is pure facism. Thus the 2 are in perfect agreement. Cosy.
            Not to mention Friedman or Mises…

            We are dealing with fascism, spread far and wide. Most are afraid to name what is happening to them as fascism. I wonder why?

            I am neither for or against “socialism” but Marx’ stuff suffers from a basic flaw.

            I have had no bad personal experience with “socialism” so am not violently reactionary. Maybe I would be if so, and fly to Friedman. Still it is a reaction.

          • Realist

            Please find me any relevant resource/link where Hayek and Mises are named as fascists ?

            You lied above about Mont Pelerin and you did it again.

          • bonbon

            No lie. It is fascism, a distilled post WWII concoction.
            And Keynes seen as a Fabian “socialist” fits well with Mont Pelerin now a Fabian subsidiary. So there is really no difference : Keynes, Hayek, Friedman all fascists. It must be said.

            Nice that the new Greek resistance movement mentioned below is against economic violence. Exactly what the above preach, never mind the Troika and GS.

          • Realist

            You are just getting more and more ridiculess with saying more and more lies, without any reference.
            You are just too dogmatic, who cannot argue properly.
            You are just making me stronger to refute all your nonsense even more from now on.
            The most I hate is people who will clearly lie, without any argumentation.

          • bonbon

            The argument was in a previous thread, and it bores people. So back to the present and the future…

        • redriversix

          Naomi made it clear to me it was fascism.

          The next time we see Glass-Steagal act is if and when the smoke clears and not one day before it.


        • bonbon

          Go for it, put up a banner and watch what happens. This is the nerve to hit. This is what they are afraid of.

          Be extremely uncooperative, unpredictable, tenacious.

          If Glass-Steagall seems impossible, then it is the action we need.

    • Realist

      Hayek is against money printing and government control over economy and money supply.
      What you are saying above is that you are for money printing and government control over economy.

      This is why I am opposing you fully.

      • bonbon

        What Hayek is for, not the negativity, is more relevant.
        Right now “money supply” has increased dramatically, all done by private organizations.

        • Realist

          Private banks controlled by central bank that are controlled by governments!!!!!
          Laws given to them by governments.
          Governments financing debt through the banks.
          AIB, BOI, … all nationalized and now under government control.

          • dwalsh

            Those banks were nationalised because their owners and operators bankrupted them…
            You have a genius for getting things precisely back to front

          • Realist

            They were saved as they have it garanteed by their beloved governments and central banks.
            This is the way how fractional-reserve banking with central banks functioning.
            They knew somebody will save them and they were reckless.

            And they were all better off than us, people, politicans with huge salaries and pensions, bankers with the same.
            What is left is the debt for all of us to share, while share prices of BOI and AIB wiped mainly us, people of course who invested in their shares.

  29. grougho

    I agree 100% with your sentiment,
    For our part we are trying in a small way to do something. “Fermoy says no” meet every week and do a protest march through the town, usually we are only 30 – 50 people, but it makes a difference and everybody agrees with the protest!, elsewhere in cork ballyhea are doing the same, almost for a year already, occupy in cork, dublin, galway etc are also doing their bit. we all need to play our part. come join us at 12.30 catholic church car park on sundays, alternatively start your own.

    • redriversix

      Thanks groucho

      Glad to hear its going well , if I get a few euro for petrol somewhere I would be delighted to walk with you in Fermoy , I like Fermoy,it would be good to get away for a day



  30. Why don’t we just stop using banks ?

    • Realist

      Banks lost the trust of people.
      This is why people started developing new ways of borrowing and lending money directly:

      But I cannot see them overtaking big guys who have the unlimited cheap money supply from the central banks and government laws to protect them.

      Also, any salary you earn is paid to some current account, and there as such used and abused by fractional-banking system expanding the credit.

      • redriversix

        you can request , in writing to be paid by draft or cash.


        • Realist

          Thanks redrivesix.
          Good idea, unsure my employer will agree with such at all.
          I remember my first company did not pay me till I get my bank account open.
          Not sure how much work will it be to get all direct debits and things get sorted :)

          • redriversix

            Its not easy realist , but its worth a shot

            DDs can get sorted in a day and you will even save money you did not know you were paying out.!

            Best of luck

          • Realist

            Thanks redrivesix,
            It is at least possible task and not mission impossible like not paying taxes to our beloved government.
            At least you have the option of not dealing with banks.

    • redriversix

      Hey Zaphod ,did that three years ago,!works just fine

      postal orders , pre-paid Credit Cards and a biscuit tin , family and I survive just fine after firing my corrupt Bank [ in writing ] !!!

      Best RR6

      • Grey Fox

        RR6, I am happy for you and the fact that you have some piece of mind and I mean that sincerely but, you should have access to banking/commerce on a level playing field, we have put up with the “norm” the “status quo” for too long, if we managed to step outside the box once and looked at something as simple as the contract on a mortgage:
        1. Everything is stacked in the Banks favour
        2. They risk nothing
        3. Can charge more when they feel like it
        whereas the borrow who is most likly uneduacated in banking/commerce matters us expected to sign up to a contract and have the foresight of 20 – 35 years and all the eventualities which may arisem when you step back and look at it, it is so unfair, biased and inequitable but the bank has the law on its side and we are all adults of sound mind, what a load of B@%&*X
        I know or a couple of court challenges coming up over the next few months which just might blow this wide open if the litigants are not co-opted or bought out.
        We live in hope that one day the bankers might outsmart even themselves.

        • redriversix

          Hi Grey Fox,

          Everything WAS stacked in the Banks favour.

          The only thing they can use now and with some great success is Fear.!

          your right , they risk nothing , between debt insurance and re-insurance , they have nothing to lose.This is also aided by fear promoted by Banks towards customers , yes folks.. that’s right you are or were customers.

          They CAN charge what they like as long as people like me took it on the chin for years…….then I said no more and the rest is history.

          I do have a very simple view on this as I spent years listening to crap from accountants [who I was paying ]and Bankers who charged hefty fee’s , would tell me how complicated everything was and that I had to play the game , I would be queried for stating it was just debits and credits and profit and loss , everything else is crap………………….

          Banks have now outsmarted themselves and the people have far more power then they realize , they just have to say no more and use the tools that are available to them.and no longer be afraid of poor credit ratings or judgement’s.

          People need to accept our Banks are corrupt , our Government has no control and will do what they are in told.

          People must realize they are worth more than some faceless corrupt Banking
          corporation.They get bailed out, but people can suffer ?…..no more I say.

          I have been to Court several times , Grey fox and as long as you do the best you can and keep good records you have nothing to fear.After a while it becomes quite amusing when you arrive with no legal council and they arrive with a team of 5 or 6 and you ask them for a copy of a piece of paper and they freak out trying to find it and most times they can’t.

          Fear is no use,you cannot eat it,it will not clothe you or your family , it will not educate your children , it does not help your health or your marriage , it will not keep you warm or help your decision making……Fear is useless to man or beast so get fcuking rid of it…TONIGHT.

          Several years ago we were left with nothing………thankfully I still have most of it left !!!!!!!!

          End of lecture, Tomorrow is the start of the rest of your life ,don’t waste it worrying about corrupt Bureaucrats !


          • Grey Fox

            I concur absolutely, I have had my first success as a lay litigant and looking forward to my next in a couple of weeks, you are right when you prepare properly and you stand as a mere man in the court you have the element of surprise and the truth on your side (honesty is paramount) you cannot stumble when you are uttering the truth, the wigs believe you are two nil down before you start until you drop a bomb on them using their own rules, it is a priceless feeling and believe it or not the Judge feels the need to advocate on your behalf and I sense, takes some perverse pleasure in seeing the smug lawyers he deals with on a daily basis taken down a peg or two by a “mere layman”. Knowledge is power and anybody can arm themselves.

      • I use to have a current and a business account with BOI, re-named the accounts to BOI SUCKS BALLS and GO FCUK YOURSELF :)
        Now I use cash, the gov gets none, fcuk all, I refuse to fund the bstards.

        • redriversix

          Man , if everyone did that for six months this crisis would be history !

          People need to take back control from these international highway thieves.

          We would still have problems ,that’s life, but at least they would be OUR problems

  31. Deco

    Fellow contributors and readers please support the defence of the internet as a forum for intellectual freedom.


  32. Lord Jimbo

    RSA Animate – Crises of Capitalism

  33. bonbon

    Greek Composer, the 86-Year-Old Mikis Theodorakis, Forms Resistance Movement

    A new resistance movement has been created in Greece, the Unified Democratic People’s Resistance (ELADA), founded by Greece’s most famous composer, the 86-year old Mikis Theodorakis, and fellow-octogenarian Manolis Glezos. Glezos began his resistance activities against the Nazi occupation, as a 15-year-old, when he climbed the Acropolis and took down the Nazi flag from the Parthenon. Today the resistance is against the new Nazi occupation by the international financial oligarchy.

    At ELADA’s founding event last week in Athens, both declared that Greece was passing through a “national tragedy” and therefore they were responding to the “national need” for “a nationwide resistance movement against the economic austerity.”

    Theodorakis declared that Greeks are now living under “a status quo of [economic] violence” and therefore the only answer to blackmail by the financial elites is “resistance and solidarity.”

    “We shall unite our hearts and thoughts,” he said, adding that he and Glezos have launched this movement despite their age, because they are “kids who never give up.” Glezos declared the new movement is not a political party, to run in elections, but is an effort to “unite the Greeks” and is open to “everyone who wants to participate.”

    Another speaker at the founding was Giorgos Kasimatis, a Professor emeritus of Constitutional Law at the University of Athens, who declared that the new movement aims at “creating new political powers against economic oppression,” and warned “When people are impoverished, the government is obliged to reject paying the debt… When the loan agreements are [constitutionally] illegal and the debt is outrageously big, then part of the debt can be rejected as odious and illegal.”

    ELADA’s Coordinating Committee issued a call for mass demonstrations in a statement signed by Theodorakis and Glezos, polemicizing that because the government and parliamentary parties continue “to adhere to the pernicious designs of the troika and lead the country in decline and the people in misery and squalor, there is only one answer: General uprising!

    “We call on the part of ELADA, for Greece and the Greeks to resist, to rise up and overthrow [the Troika's] plans, to take part in the demonstrations organized throughout Greece. We call on Athenians to flood this afternoon to protest a large single center of the capital from Omonia to the Syntagma. Now is the time for resistance and struggle.”

  34. Paris75013

    Lord Jimbo, thanks for the link to

    RSA Animate – Crises of Capitalism.

    Well worth watching.

  35. bonbon

    U.S. Vulture Funds Gorge on Lehman Corpse

    Today’s DT has a story, which pretty much speaks for itself:

    “Four large American hedge funds — Elliot Associates, King Street, CarVal and Baupost — now stand to make billions of dollars in profit from Lehman. They have snapped up big tranches of the bank’s debt at knock down prices in one of the biggest vulture swoops in history…”

    “Vulture funds typically buy up debt of poor nations when it is cheap and due to be written off and sue for the full value of the loans plus interest. The tactic has attracted controversy since the investment firms mostly target poor countries whose debt has been written off by richer governments.”

    Although the article doesn’t mention it, this was exactly the tactic that Argentina stopped cold with the Kirchner unilateral haircut in the early 2000s; and it is a major component of what is going on in Greece today.


    A cartoon of Vultures drinking fine glasses of bubbly over a rotting corpse is needed.

    What table manners, never mind the cooking!

  36. Philip

    Reading an snippet on the US/UK and Ireland -(I think it was Dan O’Brien on last saturday’s IT) about how recent legacies in economic histories have led to the huge disparities in income we see today. For example, in the US and the UK where we had large manufacturing derived middle classes which have now been wiped out leading to a minority and rich service industry class in the IT, Banking etc who are 10s of times better off than their blue collar equivalents. In Ireland, we never had manufacturing – meaning the disparities are not there. We simply do not have a blue collar middle class.

    So back to the article. Yes, the US jobs scene is unbelievable and not tenable – and it is the same or getting worse across the big countries in the EU and the UK. And the 1 Trn play is just that. A play that’ll fizzle because the fundamental wealth creation factors are gone or out of balance. You have to have a balanced level of primary/ secondary and tertiary industral sectors or your economy in sunk. You cannot have an economy that just has restraunts or banks (UK’s problem).

    As I indicated before, standard expectations on having growth for progress is now being fundamentally challenged. We are heading to a paradigm shift in Information technology and I believe energy generation. Banks, Manufacturing, Employment as we know it – is history.

    Had fun reading this. Looks like abundant clean energy is possible and has been for a while – but the corruption and self interest is now coming under pressure.
    http://www.opednews.com/articles/1/Cold-Fusion-is-Here-It-s-by-steve-windisch-120202-446.html I expect the Malcolm McClures to be dishing cold water over this :)

    I think the real paradigm shift will be for the couragous among us. You guys taking the fight to the courts – You are our future. Best of luck.

    • bonbon

      What worries me about this energy discussion is how they attacked Fleischman & Pons in the 90′s.
      F&P never claimed abundant cheap energy, rather certain nuclear reactions were occurring which standard nuclear chemistry could not account for. For instance only 1 palladium mine source worked, something involving crystal structure.
      So the media hype, first to expect an instant energy bubble (champagne), second to use it to crush hot fusion (now going ahead at ITER, NIF) with no champagne.
      But the real issue is that QM fails. A real bad problem for the standard model guys. F&P were pointing to this failure and drew the wrath of “academia”.

      I personally have seen how nasty those can turn at a CERN conference. An unbelievable outburst, and incredible nasty attack on a Greek physicist in front of a packed auditorium. He merely reported a Centaur cosmic ray event beyond anything CERN could generate for 10,000 SFR!

  37. Vertical Global Monopoly operates from tax haven “Zug” in Switzerland

    Due to the actuality of events, here is just a little follow up to my Glencore IPO articles on DMW from last year. Sorry, I have no way to look up the WordPress database and link to them, but perhaps some of you remember.

    Both, Glencore and Xstrata operate from Zug, how convenient. This 90 bn dollar merger creates a monstrosity of the largest vertical monopoly possible, the biggest mining company and the worlds largest commodities trader in one entity. This is total control from raw material to trade, and make no mistake, we do not talk metals only here, but equally oils, and food products.

    Now, I am not going to bother you with spread sheets, statistics or other mathematized insights, just some common sense. This is the other side of the coin of the globa heist that is camouflaged as initally a “banking crisis”, then flipped into “sovereign crisis”, none of them describe the truth, none of them reflect what is really happening here.

    It is all to be found in the context of resource scarcity and shifting global power dynamics.

    x x x x

    Xstrata: Alloys, Coal, Copper, Nickel, Zinc, Technology

    Countries of operation:

    Argentina; Australia; Brazil; Canada; Chile; Colombia; Congo Brazzaville; Germany; Ireland; Mauritania; New Caledonia; Norway; Papua New Guinea; Peru; the Philippines; Spain; South Africa; Tanzania; the UK; and United States of America;

    CEO, Mick Davis http://www.ujia.org/who-we-are/whos-who/910/mick-davis/


    Listed on the London Stock Exchange (Top 20 on FTSE 100) and Swiss Stock Exchange.

    Glencore: Zinc, Copper, Lead, Aluminum, Ferroalloys, Nickel, Cobalt, Iron Ore, Oil, Gas, Coal, Coke, Grains, Oils, Oilseeds, Cotton, Sugar.

    Countries of operation: 30

    CEO, Ivan Glasenberg, http://www.whoswhosa.co.za/ivan-glasenberg
    No.2 on Forbes Australia’s richest with estimated 7,2 billion USD cash net worth.

    Listed on the London Stock Exchange and Honkong. Glencore’s IPO was the largest on record on the LSE.

    x x x x

    The main beneficiary of this merger will be Glencore, who currently holds 34.5% in XStrata, in KATANGA (Copper and cobalt) 74,4%, in MINERA RESOURCES (Nickel) 70,5%, in PRODECO (Coal) 100%, in CHEMOIL ENERGY 51.5% and many more.
    The combined revenue of both companies will be in the region of USD 210bn. Both companies operate from Zug in Switzerland.

    Perhaps you should also consider that some privileged investors, and only them, will make an enormous windfall profit on this merger.

    x x x x

    My friend “Panos” – name changed – from Greece, I know him since two decades, he left Europe, and he went to Australia this weekend. The things on this planet that counted most for him was his family and the little business that provided for him, his wife and two young children.

    During the past six months, I spare you epic details, he lost everything that ever meant something to him, including his family.

    There are millions of people like Panos, they have no voice, they have no say, they are the acceptable collateral damage to the handful of players and those who are silent and chose to keep their heads down in submission.

  38. Deco

    Latest update.


    It is serious, when somebody from a country that is persistently stuck with the bill, and which has a zero tolerance for political corruption makes this remark. It is an honest reflection on the unsustainability of the current process.

    Maybe, if the Greeks were treated honestly, and respectfully, we might get a practical resolution that will enable the Greeks to reform their society, and at the same time reduce the instability that is coming from Greece ?

    Everybody agrees that there is a civic responsibility deficit in Greece, most of all the Greek citizens.

    Perhaps if Greece got elections, referenda concerning key points of their future, and the chance to clean up the Greek state, putting an end to preferential deference from authorities to those with power/money, we might see Greece conquer this debacle ?

    It all comes down to insiders versus outsiders.

    Really, the solution to Greece starts not with bossing the Greeks around and bullying them, but with treating the Greeks in a respect, and being honest about the debacle.

    This is so obvious, it is just infuriating listening to all the “news coverage” and news about news, and news about non-news.

    • bonbon

      It comes down to those Inside the Euro and Outside.
      There is life after the Euro!

      Farmers Can Supply 94% Of Domestic Demand If Greece Returns To Drachma

      The president of the Greek farmers association declared that if Greece is forced to return to the drachma, then “the Greek people will not go hungry.” Speaking at a conference in Thessaloniki organized by the Panhellenic Confederation of Unions of Agricultural Cooperatives (PASEGES) on Feb-4, the organization’s president Tzanetos Karamichas said, “We have to stop undermining Greek agricultural production and terrorizing people about not having enough to eat if the country goes bankrupt,” he said. “We can surpass self-sufficiency, create new wealth, and support the country.”

      Citing a recent study, Karamichas said it was clear that the Greek agricultural sector adopted a sound agricultural policy it would be able to meet 100% of the country’s needs. This study demonstrates that Greece was able to supply 94% of domestic demand for basic agricultural products in 2010. Domestic production covered on the average 99% of domestic demand in 2010, including 82% of domestic grain demand in 2010, while domestic production could only supply 32% of Greece’s demand for soft wheat, it supplied 171% of the nation’s demand for rice production. As for fruits, especially citrus, in which oranges production exceeded the 167% of demand, and lemons only yielded 67%; most lemons are covered by imports, especially from Turkey. The production of other fruit products on the average supply 128% of domestic demand. Domestic production of legumes only covered 39% of demand, that could be easily expanded.

      Domestic livestock production covers 73% of domestic demand, with beef covering 30%, and sheep 94%. Domestic dairy production is able to cover 80% of domestic demand, with production of feta cheese alone averaged at 147% of total domestic demand. Honey and eggs supply 92% and 91%, respectively of the country’s needs.

      Greek agriculture suffers from the policies of the European Commission which is designed to benefit of the cartels and not the farmers and consumers of member nations.

  39. gizzy

    Maybe the powers that be will eventually do the right thing when they have exhausted all other possibilities

    • bonbon

      By that time there will only be an economic crater and nothing to do the right thing with!

      Anyway the world does not work that way.

  40. David you sound like a fourteen year old boy struggling with an uncomfortable erection while watching Debby Harry on TOTP aka 1979 as the idea that there might be some positive movements in the economy is giving you cause for false joy. YouTube ‘Cool Hand Luke You Gotta Get Your Mind Right’ … and I mean RIGHT!’ It is seven seconds of wisdom and will make you piss your pants laughing. Shades of growing up in Catholic schools where misery is the only form of spiritual companion. We are all in misery now and do not have the means nor the energy for globetrotting and then preaching to the converted

    You are bullshitting boy and wishing the future was something other than what is actually in store. Another insider blowing hot air and smokescreens, cashing in and unwilling to face the fact that most of your countrymen are suffering day after day. You are an intellectual waste of space but hey I like you. You are a nice guy but you have corrupted yourself. Please save yourself before it’s too late. Do you still pay your taxes here or like Bono do you have an offshore accounts to handle such Goddam inconveniences?

    Do you enjoy paying your taxes elesewhere while preaching to us ignorant and unwashed bog trotters. You have really lost the run of yourself this time I am afraid. One look at the geo political situation tells us that the west is fucked but you are denying it. But hey war can regenerate the ‘business cycle’ and we can just keep the printing presses running. You are out of your tiny fuckng mind with all this false optimism. Is the psycopath Obama paying you write this tosh? Hey Dave, just look at the statistics for poverty and unemployment in your dear ole USA and fucking waken up man

    You are lying in my mind and if you are not lying then you are just incredibly fucking stupid. This is insulting man and you sound like one of the pricks in the Irish gov’t who are consistently lying though their fucking teeth to make it look and seem that the Irish establishment morons are in anyway capable of thinking this thing out for themselves. Even if they had the wits to know what is going on they don’t have the balls to utter one independent thought. They kick the unemployed as all Thatcherite governments do and rags like the Indo dance to their vicious tune. They are an arrogant bunch of blueshirts who hate the people who voted for them and they do not want the people to speak

    Varadker – ‘Referendums are undemocratic’. Who do these fucking wankers think they are and why are you not asking the same questions Dave? Do you suggest we all just bend over and get raped by this crowd of fascist bastards? Grow a pair will you?

    We all loved Debby Harry but we all have to move on and get get a grip my bhoy! Were people seriously suggesting that you run for office? You have less balls that the lovely Debbie and it would take a helluva PR team to convince the people that you are electable. Then again if you follow the American model you will find out that with enough dosh and a serious lack of scruples it should be possible to go get even Daft Mattie elected knowing this idiotic and stupid electorate

    I liked this article the first time I read it but after thinking about the utter shite you wrote I felt compelled to come back and ask you just who the fuck do you think you are peddling this crap to naive and unsuspecting minds. You are on tv so you are a man to be taken seriously haha. And you actually get paid for peddling this nonsense!

    There are charities in Ireland right now asking people to donate shoes in case others can do with the hand me downs. What fucking planet do you and your idiot followers live on?

    Ooooh! Do I buy gold this week or just water the soup down to last another day? Really. What a bunch of fucking wankers the Irish are. Full stop.

    Growth, growth growth lads. It sounds like an ad from one of those imported 80s porn mag ads promising amazing powers of penile enlargement beyond the laws of chemistry, phhysics and biology. Another analogy for the idiot boom. Growth will make men of us all. Like spinach, growth makes men of iron and there is no man on this earth who is the equal to the mythical fighting Irishman

    Is growth all you care about? You analyse your data all day long, as little boys with fetishes
    usually do (trainspotting) and then write up on your observations, put a spunky and sassy twist on it and then call it serious journalism! Get a fucking grip

    Look up the Scottish Micro Brewery called ‘Brew Dog’. You’ll love it Dave. It’s spunky, sassy and sexy beyond repair. They have the stronest beer on the pla pla planet that you can purchase for 40 pounds a 330 ml bottle as a special present for a good mate. The Scottish diaspora are mad for it apparently

    I call this writing a washout and I can come to only one conclusion – that you are writing for an middle class audience who is well heeled and who have a lot to lose if they make the wrong call regarding what they do with their hard earned stash. Pink Floyd – Money. You are all about money Dave and the types who care about money more than community and you have travelled so far from your roots that you have lost contact with your humanity. In other words Dave I can’t really believe a word you say. You and Bono claim to be Irish and I am just a simple immigrant. I am more Irish than the likes of you boy. You are a celebrity bullshitter and while I wish I could say you were a man who was in touch with the people clearly I think of you as the opposite

    If anyone believes otherwise and cries ‘Ooooh someone insulted David’ then fucking pity them for being so thick and servile. For god sake Dave be the man you should be and make someone proud of ye. We all need a hero but tis been many a long year since we saw one of them

    You wanna be Ireland’s Max Keiser Dave?
    Then call in people who understand media, bullshit and where bullshit comes from. Professionals.

    Im off fishing but I may stop in a few weeks time to see what the craic is and to hear what the guys are saying. The guys are what make this blog what is is. Never forget that Dave.

    • redriversix

      Pauldiv ,
      That makes things pretty clear , pity most of what you write is true.I do find it frustrating sometimes reading about “theory” where their is so much practical experience on this blog that could be used better and yes I include myself in that….I cannot figure out why David does not do more to help , with his knowledge and experience he could achieve a profile for those seeking help and change in a week , what would take the likes of me 3 years.I have asked David for help or a meeting , both, on this site and by email , never get a response ,not even a automated one like Dail Eireann use.But I like the site so I can read about people who are changing and shaking off fear , like Gizzy.That is always a positive for me.

      David can remind me sometimes of a Battalion Commander or a General circling the Battlefield in a Helicopter at 10,000 directing the Battle but doesn’t want to get his feet wet or too close to the ground in case he gets too familiar with the troops he is ordering to their fate.

      Its a pity really as I really thought David could help , but as I said above

      “writing 3000 words a week is great David ,but can you do more to help” ?…………no reply

      Take care of your families

      Fear is not a fact , forget about it


      • OK lads,

        You think I am something I am not. I am an economist who writes about the world as I see it. Thats it. I am not a politician and I’d don’t have the qualities that you might have thought I had.

        Sorry for not being what you want me to be. I mean that.



        • I agree with you David .So what you are best at only.

        • bonbon


          The things you report are actually going on.

          Keep reporting.

          We have plenty politicians. I am sure some read these reports.

        • redriversix

          I beg to differ David , you are who you are.you are influential and you could make a difference

          Thank you for your response


        • Dorothy Jones

          Hang on a second here David…..why are you sorry?
          Everyone has their own agendas, some are really good on this blog, but it is unfair to expect you to fulfill these.
          I made that mistake myself by egging you on to ‘stand’ last year [a thousand Mrs. Doyles, remember that! :):):)].
          For lay people like me, your work over the last decade has helped me in some part to understand the workings of the world way away from my own little rockpool.
          It’s difficult to stand up and be counted, you do just that. Maith an fear! Dorothy

        • Malcolm McClure

          David: Your article in today’s Indo was the first thing mentioned by Ivan Yates on Newstalk @ 7:03 this morning.

          Keep up the good work.

        • Colin

          I always find that the people who ‘have a problem (any kind of a problem)’ with David, are those who did not listen to him in the early days. In other words, if you are stuck with huge negative equity, you clearly never listened to David, so why blame him? Why not email Bertie, McCreevy and Harney and send them emails of how you feel about overpaying for property?

          David is entitled to make a living and do what he wants to do as much as anyone else who reads his articles. He certainly does not need to answer to anyone here. If you can’t stomach that, then what on earth are you doing here posting?

          Irish liberal lefties keep forgetting David is a capitalist. Perhaps they could convince Richard Boyd Barrett to set up a website and get him to post two articles every week?

        • You could make a huge difference if you were true to yourself. You have the means, the knowledge and the timing is perfect. You ‘radicals’ who flock to Kilkenomics are out of touch with the people, you know it and you’ve had 4 years to make a difference. Yet the masses are becoming more stupid and more inclined to watch Coronation street and Sky Sports. What are you for? Why do you exist? Why are you on tv?

          However real bravery is only for people of exceptional integrity and we know they don’t make them like that in Ireland now. There was a time when men put their principles above everything but now they are intellectual prisoners hiding behind a wall of denial that will only make them ill one day or perhaps even make die of shame

          I think you are probably happy writing for the media and selling your books. That’s fair enough

          You are a media pundit and everyone perceives you as being ‘outspoken’

          Many people would like to see someone take a stand but there is not one politician capable of uttering an original thought

          Half of the journos in this country are ignorant tossers and lying through their teeth while taking editorial direction from their capitalist masters. Who are you kidding?

    • bonbon

      Inspiring bold John Barleycorn!
      What dangers thou canst make us scorn!
      Wi’ tippeny, we fear nae evil;
      Wi’ usquabae, we’ll face the devil!–
      The swats sae ream’d in Tammie’s noddle,
      Fair play, he car’d na deils a boddle.

      Tam O’ Shanter misjudged just how dangerous it can be!

    • StephenKenny

      David McWilliams has many virtues, but he is not a political leader. He’s interesting, has an ability to engage a broad church in a subject that is famous for it’s dullness, but he’s no political leader. Every week there’re two new articles, superficially different enough for readers to come back again and again, but always on the same broad theme.

      In a world in which it now seems to be perfectly acceptable to kill other country’s leaders, impoverish their populations, and ‘restructure’ their national assets, I would think that a consistant stream truth that perceived reality is starting to join, is very effective.

  41. bonbon

    Greece Continues To Show Euro in `Debt Spiral’

    The suicidal austerity against which Greeks are battling for their nation’s life, far from being the fantasized “debt and deficit reduction plan”, is pulling the whole Eurozone into a “debt spiral” for which Greek figures are only typical.

    A report from the EU’s statistical agency Eurostat on Feb. 6 showed that Greece’s debt, already in the third quarter of 2011, rose to 159.1% of its GDP, from 138.8% of GDP one year earlier.

    Eurostat reports the ratio is “projected to have risen further in fourth quarter 2011.” To 200%, perhaps? It was at 90% in 2009 before the first bailout and “debt reduction” drive began. This is why all banks and other financial “players” know quite well that repayments on this spiralling debt are going to be defaulted on, by both countries and banks — the debt is not payable. What is shown by these figures for Greece is equally true for Portugal, Ireland, Spain, Italy — for that matter, for Denmark, France, and Britain: debt retirement by austerity and more bailout debt is impossible.

    In a footnote on the collapse, German industrial production underwent a large and “unexpected” drop in December, by 2.9% from November.

  42. bonbon

    Another Brazen Scheme: Escrow Account for Greece To Prioritize Paying the Debt First

    Merkel and Sarkozy yesterday presented another murderous idea for how to guarantee cash flows from the Eurozone’s bankrupted former nation-states into the bankrupt banks — a priority “escrow account” for making sure that debts are paid first. To that, the Greek government would then no longer have any access.

    This proposal had been included in the last working paper of the German government, in which an austerity commissioner had been proposed. The “alternative” was the escrow account. The Greek Parliament would have to decide that the debt service has priority over all other payments; only after that, could the country decide on further spending.

    Insane German government circles told {Der Spiegel} that this would de facto be a guarantee to prevent default on international credits and would “strengthen the credibility of Greek consolidation efforts.” The German Finance Ministry representative said that a similar clause is already being included in the Spanish constitution.

    The {Financial Times Deutschland} comments today, that neither this nor any other of the brutal austerity demands will be fulfilled, since they mean the complete loss of budget sovereignty, which no country could ever agree to. Merkel keeps coming up with such ideas, knowing they don’t work, because then, it’s the Greeks who would be guilty for their insolvency and exit from the euro. And the Greek politicians can profile themselves as patriots, resisting these demands, according to this spectator’s view.

    Apart from such sophistical arguments, the reality is that the country is going through an extreme social upheaval and convulsion, faced with the threat of real extermination. And this is located completely outside the virtual reality in which politicians and press alike have hysterically wrapped themselves.

  43. bonbon

    Greek Founders of Anti-Troika Resistance, Mikis Theodorakis and Manolis Glezos, Issue Appeal to the Peoples of Europe

    “Sixty-five years after the defeat of Nazism and fascism, European people are today confronting a dramatic threat, this time not military, but a financial, social and political one. A new ‘Empire of Money’ has been systematically attacking one European country after another in the last 18 months, without facing any substantial resistance.”

    So begins a call to action by Mikis Theodorakis and Manolis Glezos, who have just formed the new anti Troika movement, United Democratic Peoples Resistance (ELADA).

    The four-page manifesto, released at the end of last year, warns that Europe faces the threat of a new “financial fascism,” that “wishes to eliminate any notion of state in Europe…. It aims at making Europe and the world regress into a state like the one before 1945, or even before the French Revolution and the Enlightenment….

    “In ancient times, the abolition, by Solon, of the debts which forced the poor to be slaves of the rich, the so-called Seisachtheia reform, laid the foundations for the birth, in ancient Greece, of the ideas of democracy, citizenship, politics and Europe, the foundations of European and world culture.

    Struggling against the class of wealth, the citizens of Athens led the way in the constitution of Pericles and the political philosophy of Protagoras, who declared that ‘Man is the measure of all things.’

    “Today, the wealthy classes are attempting to avenge this spirit of man: ‘The markets are the measure above all men’ is the motto that our political leaderships willingly embrace, in alliance with the devil of money, as Faust did.”

    After tracing the financial crisis of 2008 back to the last four decades of continuous deregulation and globalization, the manifesto calls for a “new European New Deal,” and for an immediate end to the “attack against Greece and other countries of the EU periphery; we must stop the irresponsible and criminal policy of austerity and privatization, which leads directly to a crisis deeper than the one of 1929.”

    The statement calls for the radical restructuring of public debt “across the Eurozone, particularly at the expense of the private banking giants. Banks must be re-controlled and the financing of European economy must be under national and European social control.

    …We must ban the uncontrolled financial derivatives, which are the spearhead of the destructive financial capitalism, and create real economic development, instead of speculative profits.”

    The manifesto lashes out against the euro system, stating: “The present architecture, based on the Maastricht Treaty and the WTO rules, has established a debt production machine in Europe. We need a radical change of all Treaties. We urgently need a change of paradigm; a return to the stimulation of growth through the stimulation of demand, via new European investment programs, a new regulation, taxation and control of international capital and commodities flows; a new form of smart and reasonable protectionism in an independent Europe, which will be the protagonist in the fight for a multipolar, democratic, ecological, social planet.”

    Has Greek history, thought been completely banned in Irish Schools? Who here has heard of Solon?
    Michael D. points to the anti-intellectual Tiger culture which has been the downfall.

    This is Europe speaking!

  44. Deco

    Mish Shedlock gets to the bottom of the latest Sarkozy plan, with an interesting theory for explanation of what Merkozy are attempting.


    We should understand this perfectly well. It has similarities with the Anglo strategy being instructed on us.

    • bonbon

      That’s the “escrow” swindle reported above with remarks from FTD and Der Spiegel.

      Amazing but predictable – the financial system has a reptilian character.

    • Dorothy Jones

      Why would Greece accept the the escrow account idea to pay back the loan, it is completely bonkers.

      Deco, could you spell out the parallel with Anglo? Please?

      Wiki on escrow:

      an arrangement made under contractual provisions between transacting parties, whereby an independent trusted third party receives and disburses money and/or documents for the transacting parties, with the timing of such disbursement by the third party dependent on the fulfillment of contractually-agreed conditions by the transacting parties, or
      an account established by a broker, under the provisions of license law, for the purpose of holding funds on behalf of the broker’s principal or some other person until the consummation or termination of a transaction;[1] or,
      a trust account held in the borrower’s name to pay obligations such as property taxes and insurance premiums.
      The word derives from the Old French word escroue, meaning a scrap of paper or a roll of parchment; this indicated the deed that a third party held until a transaction was completed.[2]

      • Deco

        We are forced into borrowing money from the Troika, and forced to give it to the bank bondholders, while we are stuck with the repayment responsibility. In reality, we should have defaulted on unsecured bondholders.

        Greeks are being forced to borrow, so that they can make a repayment, when realistically, they should be defaulting on the repayment.

  45. bonbon

    Merkel Goes Overboard Campaigning for Sarkozy, Creates Consternation Among Socialists

    According to press reports, Merkel is refusing to meet with Socialist Presidential candidate François Hollande, while campaigning for incumbent Nicolas Sarkozy. Yesterday, “Merkozy,” as they are known, granted their first joint TV interview to French and German TV journalists, and Merkel has announced more joint appearances with him, explicitly for the campaign.

    Sources at Berlin’s Foreign Ministry are not happy about this, especially the refusal to meet the head of the main opposition party, which is the diplomatic standard. It is highly questionable whether Merkel’s antics are going to help Sarkozy, however: Many French voters are reportedly not amused that his speeches continually drone on about “l’Allemagne” (Germany).

    Meanwhile, Germany’s Social Democrats have announced that they would support Hollande in turn, although that creates certain problems in this crazy circus, since he has already announced that he would not honor the EU fiscal pact.

    About the Merkozy joint TV interview, {Der Spiegel} writes that both sounded like “Ãœber-presidents,” or “unofficial presidents of Europe,” when they appealed to Greece to fulfill all the conditions for paying its debt, saying that Portugal, Ireland, Spain, and Italy are also going through “hardest reforms” (Merkel).

    Both Merkozys dripped unctuous pathos, with perverse definitions of Europe and historical responsibilities, e.g., to kiss bankers’ butts. Sarkozy said that both he and Merkel are “coming closer together, to create in the heart of Europe an immense zone of stability, also towards India, China, and Brazil.”

    France and Germany indeed deserve better than these two gruftis.

  46. Mark Walsh

    DWalsh, finally…..finally someone stepped up to the plate and addressed the true nature of the beast. I am amazed how the majority of people still deny the existence of the NWO.

    How many YouTube videos of US Presidents (or British PM’s) announcing to the world the introduction of, aims of and the steadfastness of the NWO before people wake up from their self induced comas?

    If you’re middle class (aka the new poor)and refuse to understand and accept that you’re part of the NWO plans for impoverishment; your bad. Own it.

    History has a habit of repetition clearly demonstrating regime change (make no mistake, we live under regimes) only come about when the middle class can take no more and join the already impoverished working class to effect sweeping change.

    We deride decent men and women that advocate change for the good and betterment of society. Our mob mentality is precisely that which Irish elites prey upon.

    Ironically our preoccupation with our own individual economy dominates household agenda. Our “cute hoor” and “saving face” mindset goes into autopilot during austere times. Amazingly we abandon collective thinking, the purpose of which is common prosperity.

    Finally, as the nation began crumbling around our ears; as our government, senior civil servants and bankers conspired to socialize private debt, I asked myself what would it take for the Irish people to take to the streets in an Icelandic or French Revolution fashion.

    I concluded only the sight of the British Army patrolling our streets and the Union Jack flying over government buildings would spark such an event.

    Today I’m not so sure.

    We proudly fly the flag of another financial occupier; one that is inflicting equal if not greater damage than its 700 year predecessor.

    It’s high time the Irish tail wagged the Eurozone (NWO)dog.

      • bonbon

        Link blocked in Europe. Anyway all GOP candidates, and Obama are most assuredly now part of the transatlantic oligarchy. As I posted recently the UK Column clearly states Britain has recolonized the USA.

        • Mark Walsh

          bonbon, the recent 5-4 split decision by SCOTUS in Citizens United v. Federal Election Commission is the death knell to US democracy.

          Corporate America can legally obliterate any and every politicians’ chances of election/re-election should they not toe the line.

          NWO once again trumps/tramples the citizen.

          In matters GOP v Dem’s, I believe it fair to say that both parties are permanent bedfellows of NWO. They spar every 4 years to create the illusion of differing viewpoints but once elected they apply NWO goals and objectives.

          In all fairness at least the GOP are overt about it, they don’t care what accusations come their way. The Dem’s are the ones to watch out for; they do it in a non-invasive manner, but get the job done nonetheless.

          Just look at the current POTUS or Pres Clinton, they have complied with every NWO goal & objective.

          The only recourse left for the US people is civil disobedience…..we’ve all seen how that is treated. (pepper-spray video in UC Davis)

          We have Von Rumpoy and Barroso on this side of the Atlantic carrying out NWO objectives and we cant even vote them out….nor did we vote them in..

          Talk about a bloodless coup…

          • bonbon

            I except Clinton from the list for many reasons, but Obama is more GOP than they are. Kerry and even Hillary have submitted to the Obama who wants to start war with Russia and China. The military buildup is massive.

            Obama is the British Empire in action.

    • bonbon

      A big mistake, to “misunderstimate” NWO. It is not new, is only disorder, it is global.

      It’s the British Empire. The 4th incarnation of an oligarchical principle we fought against.

      KISS principle : We are again under imperial rule as Greece well and fully understands.

      The sun is setting on the British Empire right now, and it is prepared to go for full scale thermonuclear war, with Obama at the red button.

      Any other euphemism is hysterical denial.

      It seems safer to point to Merkozy, while a pair of proper “leprechauns”, than to point to the old same enemy.

      The UK is also under this ruinous hand, Scotland wants to break free.

      Economists must immediately break free – the Imperial academic theories are bread-and-butter, or should I say “peace porridge hot, peace porridge cold, peace porridge in a pot 9 days old”.

  47. [...] Read the original article here:  ’The Champagne is Flowing Again’ [...]

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