Written by Jeff Nielson Tuesday, 08 October 2013 12:47
A question being asked more frequently than ever by informed readers is “what happens next?” This is understandable, and not a reflection of these individuals becoming either more curious or simply more obtuse.
Rather, our fraud-saturated, non-transparent economies (and markets) have grown still more opaque. This is primarily accomplished by the ever-increasing falsification of economic data; first in the U.S., and now across the Western industrialized world. Proof of this lying-with-numbers comes empirically, via our permanent, near-zero interest rates across the West.
No government in History (other than Japan) has ever taken interest rates this low for such an extended period, for one gigantic, obvious reason. A near-zero interest rate – i.e. free money – is quite obviously the most-extreme (and most-reckless) form of economic stimulus which could ever be devised…except for “QE” itself.
As has been explained previously; near-zero interest rates/free money are the economic equivalent of a defibrillator. What has happened in the U.S., and across the West after five years of continuously defibrillating these economies? Nothing.
What happened after Japan defibrillated its economy for 5 years? Nothing. So it defibrillated it for another five years, and another, and another. After a quarter-century what do we see in Japan? After twenty-five years of monetarily defibrillating its own corpse-economy; the corpse is still a corpse. What a surprise!
Five years ago; the U.S. (the ring-leader of current, Western insanity) assured the world that “it could never become another Japan”. It was correct. The U.S. (and the other Western Deadbeat Debtors) are far worse than Japan.
Japan merely defibrillated its economy with 0% interest rates, alone. The U.S. has brought the world something far, far worse: “QE” (and 0% interest rates). This is “money”(?) conjured out of thin air, and (unlike all the other $trillions of near-worthless U.S. paper) all of this “QE” paper is not even “backed” by debt. It is merely Monopoly Money, in every sense of the words.
Readers need to understand that a (permanent) 0% interest rate has the effect of force-feeding huge sums of free money into an economy – hence the obvious metaphor of a defibrillator. Meanwhile, “QE” is the process of conjuring vast quantities of utterly worthless currency.
Combine the two insanities, and the product is obvious. The U.S. (and the other, Western suicide-jockeys) have been force-feeding vast quantities of totally/absolutely worthless paper into their own economies – and the global economy. It is a “Ponzi scheme” in the truest sense of that expression.
Why (ultimately) have all of these $trillions in new paper failed to “stimulate” these Western Deadbeat economies? Because you can’t stimulate economies with worthless paper.
Written by Jeff Nielson Thursday, 03 October 2013 13:55
As a media entity for whom “subtlety” is generally a dirty word; Bloomberg can be remarkably indirect when tasked with delivering an unpalatable message about its Friends. After merely a few weeks of (manipulated) price-weakness in the precious metals sector; these Straight Shooters had no qualms about unequivocally declaring a “bear market” in precious metals – a message which is bluntly repeated every time it mentions the sector.
Yet whenever it attempts to describe one of the endless acts of Bankster fraud, all we get are long, meandering dialogues, where (somehow) the words “fraud” or “crime” are never, ever used. It displays a similar, mealy-mouthed reluctance to deliver the bad news about one of its “BFF’s” : the U.S. Republican Party.
The Republican Party is now the Anti-Business Party.
It’s a very simple message, yet watch how Bloomberg struggles in its own attempts to deliver that eight-word communication. We start with the headline of their new, back-stabbing missive:
Republicans Are No Longer The Party Of Business
It is a title which informs readers what the Republican Party is not, when with precisely the same number of words it could have stated what the Republican Party “is”. No nation on Earth is more binary in its thinking than the USA. “If you’re not fer us, you’re agin us.”
If one is not “left wing”, they must be “right wing” (and vice versa). It’s not simply that the Political Center does not exist in the United States, it is that it’s a concept which is beyond the comprehension of virtually the entire population. So if a particular U.S. political party is no longer “for” business, then (inevitably) it must be “against” business. Yet the closest Bloomberg gets to delivering its binary verdict is this:
“They’re the party of antigovernment.”
A rather hilarious, Orwellian spin, in that the Republican Party is “government”; one half of the Two-Party Dictatorship, to be precise. Of course what Bloomberg what have liked to say is that the Republican Party is “the Party of small government”, but that’s a message which even the propagandists in the Corporate Media can no longer deliver with a straight face.
The Republican Party is the party of Big Military. The Republican Party is the party of Big Subsidies (to really Big Business) – and the big “kick-backs” that go with them. The Republican Party is the party of Big Security-Machine (i.e. “Big Brother”).
Not only does this Big Government require lots and lots of Drones, it requires gigantic amounts of tax dollars. The New Republicans love to spend money, they just hate collecting any (tax dollars) to pay for all their Big Government plans.
But don’t accept my word (or even Bloomberg’s) that the Republican Party is the Anti-Business Party. For decades, when discussing the Republican Party and the U.S. Chamber of Commerce; the phrase “two peas in a pod” would have been understatement. And the Chamber of Commerce is “business”. Yet witness the obvious displeasure (if not disgust) as Bloomberg quotes the vice-president of this mouthpiece of the business community.
“A government shutdown is economically disruptive and creates more uncertainty for the U.S. economy,” says R. Bruce Josten, the Chamber’s executive vice-president of government affairs. “We’re disappointed this has happened, and we urge Congress [i.e. Republicans] and the administration to work together immediately to find a path forward on the [continuing resolution] and debt limit to remove any threat to the full faith and credit of the U.S. government.”
The business community can grin-and-bear-it with mediocre government. It can survive bad government. But it cannot survive (for long) with a totally dysfunctional government, overrun by Berserkers whose only goal is to obstruct, undermine, and sabotage. Read between the lines, and the message from the Chamber of Commerce is crystal-clear: “the Madness must end.”