Max Keiser: ….they (Goldman Sachs, JP Morgan et al) are systematically undermining the entire system. They are creating a mechanism to carve out equity and capital for themselves at the expense of society at large.
So in the United States, unemployment is skyrocketing. The uninsured is skyrocketing. The social fabric is coming unglued. You have riots all over the world…in Iceland and other countries due to this financial terrorism that was pre-meditated, on purpose and should be addressed as such.
There is a double standard. Why is the US pursuing so-called terrorists in nations like Afghanistan when they let these guys roam free on Wall Street? They’re the worst criminals of all – they do far more damage.
Interviewer: Let’s leave Afghanistan out of this…
Max Keiser: But why? It’s a great source of poppy and heroin which fuels a lot of these bankers bonuses. Let’s be frank about that.
This from the Beeb:
It’s a mystery that has got British law enforcement officials and others across the planet scratching their heads. Put bluntly, enough heroin to supply the world’s demand for years has simply disappeared.
The United Nations Office on Drugs and Crime (UNODC) describes the situation as “a time bomb for public health and global security”.
http://www.bbc.co.uk/blogs/thereporters/markeaston/2008/10/map_of_the_week_the_mystery_of.html
Jarno,
I don’t know. China would have to balance unemployment in the short term to long term interests. And I wouldn’t believe China’s mythical 7% growth rate; China reports their numbers differently than every Western country(or even Japan), and was obviously lying about their growth rate during late 2008. China announced growth even with tens of thousands of factories idled AND the announcement of lower energy usage.
The US business model that depends on high credit is broken.
If the real estate boom HAD NOT happened, unemployment would have been much higher 2002-07.
The only thing that can save the system AND be good for most Americans would be a breakthrough in energy technology lower operating costs across the board for all businesses. Otherwise, it’s just mass inflation with high unemployment for all. I thought maybe 6 months ago that sovereign wealth funds from the Middle East and Asia could just bailout the residential and commercial real estate markets….but that seems unlikely now since this would not help relieve unemployment in those same foreign countries.
Crac,
Should the Yuan become fully convertible and become the reserve currency, what challenges do you see for China? Can they handle it from the economic standpoint?
For example, #2 should improve quite a bit for China as well as any other import good or resource. But their export business will suffer tremendously. Is their population wealthy enough to consume all the goods they produce as well as all other imports and still sustain a 7% growth rate which the country needs? Does the country have enough resources to export (including technology) to keep trade balanced? Resorting to tariffs will likely undermine their effort. I would think that a country that can survive independently is the country whose currency can act as a reserve. I also think that the Cultural Revolution and lack of a consistent law has damaged the people quite a bit and are serious obstacles. I have no documentation of these, only how they have conducted themselves in world business and trade.
Thanks,
Jarno
I meant to say how COULD we leave Afghanistan out of this. Afghanistan is so tied in to the issue!
How could we NOT leave Afghanistan out of this…
There was a Dilbert cartoon a few months ago that also hinted at the drug cartel being the source of funds for the bailouts.
I have an idea they’re siphoning off trillions of dollars to fund infrastructure for an even bigger scam. Pitting productivity vs. unproductivity. Carbon credits on global, national and down to a personal level. Previously they’ve only been able to market human activity. It occured to me after the global lights out following the G20 meeting. In the name of climate change and saving the planet. There’s a market for inactivity. Possibly lynchpin of the new world order economy and it’s agenda for monitoring human activity. It could even bring about mandatory Sunday rest (global lights out), require mandatory attendence to a world church and fullfill some bible prophesies. Mark of the beast for one.
byron,
http://www.asianews.it/index.php?l=en&art=14131
“The first experiment is limited to transactions between Hong Kong and the neighboring provinces. It is also proposed that the yuan renminbi be used in 8 neighboring countries, including Russia. With these countries, agreements have already been signed for the settlement of contracts in the Chinese currency. Perhaps it is no coincidence that the news was released on Christmas Day, when Western markets are closed, reducing the impact on the dollar.”
It’s experimental. No announcement to make it fully convertible, but China is using the mere possibility as a bargaining chip.
I’ve been trying to think of what “bargaining chips” the US really has besides military might and information wars. The biggest poker chip the US has are:
1)allowing access to the largest market in the world
2)control of oil
3)control of food
#1 has kept Japan towing the American line for the last 30 years…but this trading system seems broke right now. Maybe the US offers Japan the end of General Motors, and China ownership of our overpriced commercial real estate?
Japan usually tows the western line, but never fully trusts the West as well. This is why they heavily subsidize their home ag industry because of the possibility of widespread famine (like in Germany) after the world wars. Japan has also seems to be limiting the number or nanotech patents they publish the last few years…without any apparent decrease in funding research.