Articles & Blogs - International Commentary

In Part I; readers received most of the brutal truth about the rapidly deteriorating and nearly hopeless situations facing the major economies of the Western world. Our nations are all either bankrupt or insolvent, and ruled by corrupt governments who long ago stopped serving the interests of their own people.

Worse still, from past experience (i.e. their own corrupt mismanagement) we have seen that most of the dominant Opposition parties in these regimes have also been bought-off. So in most major Western regimes, our “elections” are now little more than exercises in shuffling the deck-chairs on the Titanic.

There is zero possibility of our “leaders” ever initiating any positive reforms on their own. The only new policy they have attempted (since the crisis they created) was so-called Austerity. With all Western economies suffering from the worst revenue crisis in history; we have all of these myopic, Traitor governments doing nothing but hacking-and-slashing spending (on people).

As I immediately explained in my own writing; this was deliberate economic suicide. It was the equivalent of a doctor “prescribing” a diet for a patient already suffering from severe anorexia. As with putting an anorexic on a diet; all this economic suicide accomplished was to escalate the collapse of these economies. And as I predicted, all of these economies are in the process of abandoning Austerity.

This means that the only remaining “plan” from our Traitor governments is more of the same. Exactly what created all of our fiscal/economic problems: ever-increasing printing and borrowing. Meanwhile these (bankrupt) governments refuse to even attempt to increase revenues; because the only entities with substantial quantities of taxable wealth are their Masters: the monopolies, oligopolies, and ultra-wealthy Oligarchs who lurk behind them.

At the same time; our revenue-starved governments are handing out more-and-larger corporate subsidies than at any time in history – while these corporations sit with more cash than at any time in history, and brag about their profit-margins. There is no longer even an attempt to hide this corrupt double-standard. “Austerity” for the people; more-and-bigger hand-outs for the monopolies and oligopolies.

And nowhere is the corruption worse than in our financial sector; realm of the Western financial Mafia. Their largest single “business” (by dollar value) is laundering dirty money for the world’s drug cartels, terrorists, and any other criminals with large piles of cash. These Big Banks are caught in this money-laundering now on virtually a weekly basis; mostly originating from the Wall Street cabal. Not only is this crime syndicate never punished for its crimes; the U.S. Attorney General has publicly declared he will cover-up all their illegal acts.

While money-laundering may be the biggest, single money-maker for the banksters; their principal activity is manipulating markets. This is done primarily through two, entirely illegal endeavours: influencing markets with gigantic, paper bets in the (hidden/unregulated) shadow-markets of their derivatives casino; and via simply rigging markets with the Pied Piper software known as trading algorithms.

Thanks to “high-frequency trading”; manipulating markets has become significantly easier than shooting fish in a barrel. There is no longer anything either “free” or “open” about our corrupt markets, they are merely crime scenes.

We now have our parameters:

1) Total economic predation/parasitism from the monopolies and oligopolies which now saturate virtually every niche of the global economy.

2) Absolute political corruption, with no hope of legitimate government over the short term.

3) Completely corrupt markets, which are no longer “functional” in terms of the primary purpose of all markets: to regulate supply and demand by facilitating open commerce. “Price” is no longer the product of supply and demand; but rather it is the result of a crime.

How can positive change be made in such an utterly hopeless context? The populations of Western societies must revert from being Serfs, and remember how to act like Citizens.

Articles & Blogs - International Commentary

In attempting to remedy any particular problem; human beings are generally resourceful creatures. Thus when we tackle a particular issue and fail to come up with an adequate solution it is generally indicative of one of two flaws: defective execution of a plan, or a failure to correctly/completely define the problem.

Tactical problems in attempting to implement a particular strategy are an inevitable byproduct of being imperfect creatures, living in an imperfect universe. It is the thinking behind the phrase “trial and error.” When we attempt to plot some new course of action we hope to “get things right” in our first attempt; but (rationally) we don’t necessarily expect to do so.

Conversely, the failure to correctly design a solution because we originally failed to fully/correctly diagnose the problem is unforgivable. It is proverbial cart-before-the-horse thinking: attempting to “do something” before we even understand what we should be doing.

It is the numerous, serial failures in properly diagnosing the problems facing our economies (and societies) which has brought us directly to the dismal state of affairs in which we exist today.  Let’s first explicitly spell-out this current, economic catastrophe.

Most Western economies are hopelessly insolvent, and many are plainly bankrupt. Putting aside the monstrous, absolute size of these debt-mountains (such as the $200+ trillion in debts/obligations of the U.S.), and the terminal debt-to-GDP ratios of these governments; the behavior of these governments proves they are bankrupt.

Both the U.S. and the EU are now directly printing money merely to ‘pay’ the interest on their debts – i.e. “monetizing debt”. It is universally understood that monetizing debt is the last refuge of bankrupt sovereign debtors, before bankruptcy is imposed upon them by frustrated creditors.

Monetizing debt, and the currency-devaluation which always/automatically accompanies it is an open attempt to defraud creditors by “repaying” them with debauched currency worth only a fraction of what was originally lent to them. Since the Crash of ’08, it has ceased to be a question of “if” Western nations would be forced into bankruptcy (and Debt Jubilee), and become only a question of when. Debt-monetization is the exclamation point on this conclusion.

The major Western currencies (the dollar, pound, and euro) are already effectively worthless, which can be conclusively demonstrated in logical/mathematical terms. Sadly, however, these are only symptoms of the primary dilemma confronting us.

In the nearly 2 ½ centuries since the Industrial Revolution gave birth to the rise of the modern ideology known as “capitalism”, the theorists who have promoted its virtues have always attached a caveat of warning. We could never allow the existence of corporate, economic entities known as monopolies and oligopolies.

For centuries; it has been universally understood that monopolies and oligopolies are not only predatory and parasitic, but relentlessly corrupting influences on our governments and societies in general. It is why the “anti-trust” laws which have always existed in our societies have always been among the most rigidly and strictly enforced regulatory regimes in our entire system…at least they used to be.

Approximately a generation ago; a collection of foolish, corrupt, or simply weak governments across the Western world just stopped enforcing these laws – all in the name of the euphemism “globalization”. What was the driving force behind this globalization? The monopolies and oligopolies which had already managed to infect our economies.

The result of a single generation of globalization? The entire global economy is now almost completely overrun with monopolies and oligopolies. In an economic system where not one of these abominations should be allowed to exist; we have nearly total saturation. And what has this resulted in?

Unprecedented levels of structural unemployment exist across the Western world. Somewhere in excess of 60 million employable people in Western societies are not allowed to work. This is because our labour markets are deliberately structured to prevent these people from working. Proving the lack of good faith of our governments are the mammoth lies they tell us in providing their official unemployment “statistics”.

Articles & Blogs - International Commentary

Among my many pet-peeves concerning the business news reporting by the mainstream media is the apparent inability among this entire cadre of writers to either perform or even comprehend simple arithmetic. Nowhere is this mathematical illiteracy more-flagrant than with mainstream babble about “China’s slowing economy.”

More and more frequently, this is coupled with suggestions or outright accusations that China’s government is exaggerating its economic data. Let me deal with this second issue before the first.

Sadly, all governments exaggerate their economic statistics to some degree. Indeed few (if any) other writers spend as much time as myself in highlighting this lying-with-numbers. Here the “undisputed Champion” is the U.S. government.

There are too many examples to choose from; however I’ll restrict myself to a single, familiar anecdote. In the same month last year that the World Bank reported that “global food inflation” had spiked to an annual rate of 120%, the U.S. government reported literally “0% inflation” that month in the U.S. (and in June as well). Readers can judge for themselves the plausibility of food-inflation being at 120% “globally” (in our era of “globalization”); while total inflation was supposedly at absolute-zero among the obese U.S. population. Did nobody eat that month – or the month before?

Meanwhile, the inflation-rate is the basis for many other calculations, among them U.S. GDP. Governments must subtract the rate of inflation out of their GDP calculation; or the GDP estimate is exaggerated by the full amount of that inflation. A “garbage” inflation number must result in a “garbage” GDP number – and to precisely the same proportion/degree.

Thus no government in the entire world exaggerates its GDP estimates more than the U.S. government. So when the U.S. media (in particular) piles-on with all of its “China lies” propaganda about Chinese GDP; one might suggest that people who live in glass houses shouldn’t throw stones.

We are left with the premise that while China’s government undoubtedly does exaggerate its economic data; the level of exaggeration is (at worst) no worse than our own – and arguably less. No one is suggesting that China’s economic growth isn’t out-pacing the Western world. Governments with real economic growth have much less need to lie than those simply pretending that their economies are growing.

We can either simply throw out all economic statistics, and be left with no signposts at all in gauging economic performance relatively, between nations, or we can use the data given – adding our analytical “asterisks” where necessary.

In analyzing the growth of any individual economy; the most-relevant number is not the percentage change, but rather GDP expressed as an absolute, dollar-figure. This is the concept which is above the limited mathematical skills of the mainstream media. Why is this a crucial analytical distinction?

The key lies in another analytical concept beyond the ken of the mainstream media: dynamic analysis – including changes over time – rather than the infantile static analysis which is the specialty of these charlatans. This is best illustrated through hard numbers.

Articles & Blogs - International Commentary

Definition of insanity: performing the same act again and again, but expecting a different result.

Obviously this is a colloquial “definition” of insanity. However, at the very least it is an unequivocal demonstration of abject stupidity. Choosing to repeat failure is utterly indefensible behavior.

What do we see with our politicians, bankers, economists, and media talking-heads? Bludgeon your way through all of the obfuscation; and we see that most of our economic problems are derived directly from two, failed policies: excessive money-printing and excessive debt.

Yet what are the only two “solutions” for these problems being proposed by Western governments (and their apologists in the Corporate Media) today? Even more-extreme money-printing, and even more-extreme debt-creation. Putting out the fire with gasoline. Insanity.

Has anyone actually paid attention to any of the so-called sovereign “bail-outs” which have occurred over the past five years? In every instance it has involved lending vast sums of money to hopelessly insolvent governments.

Supposed I owe $10,000, but require a “bail-out” because I can’t service this debt; and my Rescuer lends me another $5,000. Please explain to me how I’ve been “bailed out” when I now owe $15,000? Obviously if I couldn’t make payments on my debt when I owed $10,000; it’s mathematically impossible to do so when I now owe $15,000.

I haven’t been “bailed-out.” Instead, my bankruptcy has been temporarily delayed, but at the cost of a much larger bankruptcy down the road. This is precisely the opposite manner in which this is handled in the private sector.

In the private sector (unless you’re a Too Big To Fail bank); insolvency is resolved as quickly as possible – with either a genuine “restructuring” (i.e. less debt rather than more) or a formal bankruptcy proceeding. It is universally understood that this is always the process which minimizes economic losses (and the misallocation of resources).

But this is only the foundation for our insanity. On top of this initial layer of insanity; we have multiplied this quest for self-destruction with (arguably) even greater insanities.

What is the only, possible valid reason for repeating a strategy which has already failed repeatedly? We conclude that “the Plan” itself was valid, but the execution of that plan was faulty. In which case, the only sane course of action is to get different people (hopefully better) to attempt to execute the Plan.

What do we see instead? Employing the same Cast of Clowns (Criminals?) who have already failed repeatedly to remain in charge of executing the Plan – expecting that this time the Clowns will perform admirably. Employing the same Cast of Clowns to repeat a failed strategy which is universally understood to be the precise opposite of what they should be doing.

Alternate definition of insanity: expecting the same people who screwed things up originally to “fix” their mistakes…by continuing to make the same mistakes.

Articles & Blogs - International Commentary

Ever since our governments perpetrated the Cyprus Steal roughly three weeks ago (the first of their “bail-ins”), I have been exploring the ramifications of this crime. My apologies to readers for any redundancy since then; however it has been necessary to cover this subject in a methodical manner in order to precisely and conclusively illustrate that:

-- The Cyprus Steal was a premeditated act, plotted (at least) 18 months in advance; which included warning the Big Money to move their wealth out of harm’s way

-- Many/most other Western regimes already have their own “bail-in” rules firmly in place

-- The entire premise of the “bail-in” (i.e. confiscating money from peoples’ accounts) is flawed and fraudulent; meaning there could never be any rational or legitimate reason for this policy – making it a simple act of theft

Having established each of these points in previous commentaries; it’s now time to bring this analysis (in general terms) to a culmination: pointing out that the “bail-in” rules already in place do not merely contemplate stealing from bank accounts, but rather stealing any/every kind of paper asset from “the financial system more widely.”

The language used is unequivocal, the intentions beyond doubt. Why is it so much easier in retrospect to point out a “crime” plotted (at least) 18 months in advance? Because the bankers put out “policy papers” the way most people pass wind. Few if any of us have the luxury of wading through the endless pages of these documents merely to separate “hot air” from more of their devious (and illegal) plans.

It is now clear that the “centerpiece” of this planning is a policy paper issued by the Financial Stability Board in October 2011, entitled Key Attributes of Effective Resolution Regimes for Financial Institutions. The relevant language is spelled-out in Section 6:

6.3 Jurisdictions should have in place privately-financed deposit insurance or…a funding mechanism for ex post recovery from the industry of the costs of providing temporary financing to facilitate the resolution of the firm. [i.e. continuing to prop-up insolvent banks]

Obviously the only possible way in which deposit insurance could be a “mechanism for ex post recovery” is if these bankers/governments are stealing from peoples’ bank deposits. However, lest anyone holding bonds, pension funds, or other (paper) financial assets has been lulled into a false sense of security in thinking that only bank accounts are at risk, Section 6.5 should instantly torpedo that complacency:

6.5 As a last resort [the expression the Banksters began using back in 2008 when they began all this monetary insanity]…some countries may decide to have a power to…recover any losses incurred by the state from unsecured creditors or, if necessary, the financial system more widely. [emphasis mine]

The “financial system more widely” means any bank account, any bond, any pension, any equity; or more simply any paper one has in any financial institution.

Who/what is the “Financial Stability Board”? It is a very exclusive club. How exclusive? You can only join if you’re a Western Central Banker. It is the (official) voice of Western central banks, and thus it is above the mere “laws” enacted by our subordinate governments.