Accusing Putin of what we do

Fiasco . . .

 

Zionazi Victoria Nuland and the Obama administration planned a coup d’etat of Ukraine, after Viktor Yanukovych back tracked on a deal with the EU to bailout the insolvent state.

This was all documented on tapped cell phone calls between Nuland and America’s ambassador to Ukraine, Geoffrey Pyatt, where Nuland tabs Arseniy Yatsenyuk as the next prime minister, which he indeed became.  In another tapped phone call, Estonia’s Umas Paet reveals to Catherine Ashton, High Representative for Foreign Affairs and Security in the EU, that the same sniper or snipers wounded both Ukraine police and demonstrators during the Maidan protests.  He not surprisingly suggests that such facts be further investigated by the EU.

Ashton does not provide a reply.  Indeed, the EU has remained entirely mum on the fact, well established, that fascist elements were involved in the violent protests.  Whereupon Vladimir Putin moved to defend the strategically important Naval Base at Sevastopol, lest it fall into the hands of fascists.  Yet, this move to defend a strategic military base, and which has resulted in little bloodshed is deemed more egregious an act than the United States’ invasion of Iraq, half a world away and far from U.S. borders.

Dumb founding and amazing, but that is precisely what Barack Obama maintains.  From the very moment the U.S. launched “shock and awe” in Iraq, international law ceased to exist just like after Czechoslovakia and Poland in 1938-9, the League of Nations ceased to be a viable organization for the enforcement of international law. 

I do not hear Barack Obama calling for George W. Bush, Dick Cheney, and Donald Rumsfeld indictment before the International Criminal Court, though surely as many experts in international law (e.g., Francis A. Boyle at the University of Illinois)believe the triumvirate committed the highest of international trespasses—a war of aggression—on the dodgy advice of the Neoconservatives.   Yes, Putin violated international law, but let’s be honest; the U.S. did as well in Iraq, and then held a trumped up election just like Crimea.

 
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Paper confetti

The handwriting on the wall . . .

 

 

“Run From Paper Money,” Buffett Warns

By MONEY MORNING STAFF REPORTS

With the Fed still pumping billions into the U.S. economy, further ravaging the dollar’s value, Warren Buffet issued a harsh warning to investors:  “Run from paper money.”

The world’s most famous investor delivered his blunt advice in a riveting interview on CNBC, saying investors should fear the dollar because it will be “worth less and less over time.”

“Paper money has a lousy future,” Buffett said, adding that Americans should run from it as fast as they can.

Read entire article here.  For readers of the Darkerside this will not come as news, but for the ostriches with their heads in the sand: BEWARE.  The most likely consequence of the Federal Reserve’s Quantitative Easing to infinity will be debasement of the currency, something you also see at the end of empires like Rome, that also debased its coins at the end.  As noted many times previously, paper currencies without exception fail through their issuance to excess.  The dollar will be no different.  When the dollar fails so will the bond market and there will be a depression like no other—no fiat currency printed since Kublai Khan has escaped this fate.  Buy gold!  The secret to success is to miss the first 10 percent move and the last ten percent move in the market and take the 80 percent in the middle.  In my humble opinion we are in the last 10 percent blow off top.  Warren Buffett did not get rich chasing the last 10 percent move.

Distorted communication

Conspiracy theory . . .

 

With the exception of Harvard graduates like Cass Sunstein who don’t believe in conspiracy theories, conspiracy theory is the proposition that powerful people will conspire (i.e., plan in concert) to advance their interests in the face of opposition.  Hardly a revelation—except to I guess people from Harvard.  

I am a conspiracy theorist because: 1) I believe powerful wealthy people do exist, and 2) they will get together to advance their own particularistic interests (e.g., the Bilderberg Group confabs). 

Once in a while even the goombahs will get together to advance their interests, like the Munich Beer Hall gang of Ernst Röhm and Anton Drechsler or Dmytro Yarosh and Oleh Tyahnybok today in the Ukraine. 

Frankly, those who don’t believe conspiracies exist are terribly naïve. 

The problem with conspiracies is that they lack transparency and mask conflict of interest.  What delegitimizes such actions is that they do not emerge out of the public sphere and warranted unconstrained discussion. 

They are specifically resorted to because the parties that wish to advance their interests know their actions could not withstand the scrutiny of open discourse in the public realm.  Conspiracies, in short, are means of deception.

Conspiracies are thus a form of coercion designed to deceive.  Strategically conspiracy is nothing more than a means to realize one’s interests in the face of opposition in contradistinction to unrestrained discourse to determine what those interests should be or a consensus theory of power. 

A nation is powerful when they can agree uncoerced as to what their interests should be.  That means conspiracies are not to be desired, not that they do not exist.  Now Mr. Sunstein wouldn’t know anything about deception, would he?

Moon beams from heaven

Bubblenomics in California . . . again

 

According to Trulia, a real estate website, California’s home prices are among the most stretched relative to income in the country.  Again, this is because Federal Reserve lax monetary policy has created another bubble in the Golden State.  I’ve suspected this for quite a while.

The median family income in the state is a little over $58,000/year.  The median home price is over $400,000.  This is nearly double the $203,000 price for a home under a normal 7 percent interest rate that is affordable for such an income.  I do not think the Fed can keep interest rates low enough for the median family income to be buying $400,000 homes.  Meaning I think the housing market here will again run up against the wall of reality in an economy that is producing essentially low wage jobs paying below $15/hr.  In point of fact, 40 percent of all new jobs are below that level.

This additionally has big implications for the jobs numbers, since nearly 1/3 of all employment in the last jobs report was created in California.  Meaning the job creation numbers are not reflecting a broad based improvement, but the excesses of Fed largesse in reigniting a real estate bubble here in California.  Claims that it is different this time is pure malarkey.  It will pop, and my analysis suggests that it will be done like that in 2008 by the fall of 2015.

Having added even more bad debt the plunge will be even more scary and long lasting.  My guess: the Republicans will retake the White House in 2016. 

Splash!

Diving platform . . . $100 trillion debt

 

Since 2007 world debt has grown to a whopping $100 trillion. 

That’s up some 43 percent. 

In fact, that’s about 67 percent greater than the world’s annual GNP.  I’m going to hazard a hunch that that debt is largely never going to be repaid. 

Given that irrefutable fact what rationally will have to be done to reanimate consumption under this enormous debt burden? 

The tiny nation of Iceland provides some answers.  You’re going to need debt forgiveness or a debt jubilee.  Then you’re going to require currencies be backed by some commodity or resource to prevent issuing of debt based money in excess of actual growth. 

And finally, you must have perp walks for the banksters to prevent future moral hazard.  I would also add that the central banks must be prevented from entering the precious metals market since real price discovery here, provides a warning sign to market participants of lax monetary policy. 

Price level

The above is what lax monetary policy looks like empirically.  This is what is eroding real wages.  For the banksters, the trick is to make their profits quickly (like flipping houses) and then turning what they know will be debased currency in the near future into a tangible asset that will hold its value.

The performance of the U.S. economy for the average American was better before Richard Nixon closed the gold window in 1971, than after.   For just about two hundred years Americans from one generation to the next could expect a rise in their standard of living; that is, an advance in real per capita income.

Real wages were higher and prices stable until the banksters persuaded Nixon to close the gold window and allow the currency to float.  Concomitantly, the banksters began to rig the precious metals market so that it did not provide true price discovery and unmask their inflationary scam.

Stable prices promoted rational calculation and greater investment in productive activities.  There is absolute certainty the economy performed better under the framework of free markets minus the machinations of the Federal Reserve to rig markets for its bankster cronies.

Speculation is particularistic, to the advantage of the banksters while free markets would have long ago reined in the excesses on the One Percent Club.  Workers were simply better off.   The U.S. is failing because of market distortions—pure and simple.  And while not politically correct to say, Protestants simply produce a more prosperous society, though not necessarily a cavalier one.

There is something to be said for Mardi Gras.

 

POP!

China reports bank runs today . . .

 

The Sheyang Rural Commercial Bank in Yancheng yesterday and the Rural Commercial Bank of Huanghai today were both stormed by depositors demanding the return of their money.  Unfortunately, Chinese banks have loaned out billions of renminbis to developers that now sit idle and vacant, a virtual replay of the the subprime crisis here in the U.S. in 2007-2008.  There is just too much bad debt that will never be repaid.  It’s over.  Similar to my opinion of the U.S.  It can be dead capitalist walking as long as the Fed bails out the too big to fail banks, but the banksters are only compounding their eventual pain because they will destroy the dollar.  I do not think the Chinese wish to destroy their currency since they have ambitions of making the yuan a reserve currency.  Good luck with that if they don’t even have the discipline to limit their creation of money through real estate loans.  Their one saving grace:  the Chinese are stockpiling gold to back their currency.