Even the Chinese Know It

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Editor’s Comment:


The Financial Times ran an article 2 days ago about the Chinese being encouraged to spend more aand save less. I’m no fan of China’s political system, or even its economic policies (which come to think of it are the same thing, as Von Mises points out). As we look around the world and see Iceland prospering, China’s growth slowing to a mere 8% while our REAL GDP is still negative or by the reckoning of most economists, headed into downward territory. These propering countries who have concentrated on stmulating the rate of commerce (i.e. the economy) are the countries that are reducing debt (Iceland is now at the point where more than 25% of household debt has been eliminated not with spending fiscal stimullus money but with pressure on the idiots that got us into this messs- the banks.

Then look at the countries who are effectively governed by the banks, directly or indirectly— like US and Europe. They stand in stark contrast to Iceland and China. We are headed into what is called a “double dip” recession as though we would have hands up with ice cream cones in them, but the truth is that these recessions is literally taking food, medicine, and clothes off the table while they send their children into schools that are no longer able to teach and are located in neighborhoods that are less safe from criminal activity and the occoasional warehouse fire all because of “austerity.” Such neighborhoods are also less familiar and less appealing than the ones they got thrown out of after being tricked into using a home in which generations of their family grew up as the source of cheap capial encouraging, cajoling and pushing them with literally midnight visits to get them to sign on the dotted line to purchase a defective, fraudulent loan products whose purpose was to fail.

As we look at those countries who have adpted the politics and economics of austerity (“less spending” or “spending cuts” as it is known in the U.S.) the consequences could not be more clear — austerity, spending cuts, less spending, get the government out of the way are all slogans  that are leading us into disaster. And they are all spoken by people who are owned and controlled by the banks. And at the risk of offending my readers with political statements, Obama was exactly right when he said that the purpose of government was not to turn a business profit like Romney said he did (my sources tell me that Mitt was a figurehead running for president and they were making him look good, not that he was actually of any value). Obama correctly points out that government’s purpose is to maintain a society in which everyone gets a fair shake and a fair shot at the brass ring. Thus government is not for the rich who already got wealthy but for those who have not yet  achieved wealth. And this is because history teaches that no society has ever endured without a strong middle class.

This country needs to revive its economy by having more people spend more money. The obstacles to that are that too many people have no money, no  credit and no jobs. This is the time to divert the corporate welfare of farm subsididies and oil subsidies and the like to those programs that will give all our citizens a fair shake and a fair shot at success.

Like Iceland, the way to increasing the value of our currency, the way to prosperity is to reduce household debt. And the biggest item here that not only decreases household debt but increases household wealth is to return the homes that were wrongfully foreclosed and not to give a pittance of money to the victims with a slap on the wrist to those who stole the home with a credit bid when they were not only not the creditor, but they had never invested a dime in purchasing the loan. That used to be illegal. Wait a minute, it still is illegal. So why are we allowing the banks to continue this charade and why does the government, including Obama’s administration, drag its feet in taking apart these monsters that destroyed our economy? Why is the administration assume that the 7,000 OTHER banks and credit union wolld not prosper and enter into tacit agreements to keep the government afloat while we wait for the stimulus to take effect?

There is no expert or pundit that says we are wrong. All the banks have been able to do is to roll out doomsday sayers who say that if we follow the law we will be headed for disaster. Well take a look.  Disaster is here. And the Dow Jones Industrial Average is not a proper indicator or substitutute for people who can’t put food on a table that is now located in a dwelling that the rest of us would not even consider — their car.

We choose instead to protect the banks at all costs and we call that austerity because where else is the money going to come from except the banks who siphoned it out illegally? That is our policy, our politics and our economics. And while our soldiers risk life and limb because their country called them to duty, their families were being foreclosed, some at the precise moment they were taking a shot in the leg or heart for us. Is this the society we sent them to fight for?

19 Responses

  1. Neil, Amen, and Amen! God help the real people of our country to really SEE the evil that is so rampant and now openly accepted as normal, and to turn back to the Creator for our leadership. One has to be physically, mentally, and spiritually blind not to recognize that “they ” do not intend to, and cannot keep any of their promisses, and that we are running fast toward the cliff’s edge. As for me and my house, we shall worship and trust the Lord.

  2. For those who don’t know Kasich, he is anti-union, anti-woman, anti-freedom and very, very much in JPMorgan’s pocket. He is also… the next Blagojevitch. Not surprising: it’s written all over his face.

    [Breaking] Andrew Manning’s attorney confirms FBI investigating of Kasich, allies
    On May 17, 2012 · 13 Comments ….

    Two months ago Portage County Republican Party Chairman Andrew Manning asked the FBI to look into allegations that Manning had been asked to withdraw as a candidate for the state Central Committee race and in return he would be “given influence” over state government appointments. Manning’s attorney just confirmed that the FBI is looking into the charges.

    In an email received minutes ago, Attorney David R. Langdon released this statement on behalf of Manning:

    “FBI agents interviewed Andrew Manning last week. He answered questions about the statements in his affidavit, which he sent to the Justice Department in March of this year, that top allies of Gov. John Kasich offered him special influence over gubernatorial appointments if he agreed not to run for the state GOP central committee.”

    He will have no further comment until the investigation has concluded.

    Manning’s request to the FBI and local law enforcement was the first in a series of complaints claiming Kasich and his allies used intimidation, threats and promises of influence in order to get their own people on the State Central Committee to vote out former Committee Chairman Kevin DeWine.

    While Manning’s complaint focused on Governor’s office employees Ben Kaiser and David Luketic, as well as Alex Arshinkoff (Summit County GOP Chairman) and Bryan Williams (Ohio Board of Education), other complaints have since surfaced against the Governor’s closest allies Doug Preisse and Jai Chabria as well as Mary Taylor and her chief of staff.

  3. Ok. So, JPMorgan is now admitting to 5 billions from the London debacle. (Meaning that Jamie boy is lying through his teeth and understating it by at least 200%, imo)


  4. Regulators cracking down on JPMorgan and going through the books.


  5. JPMorgan selling 25 billions in assets to “soften the blow” of the 2 billion London loss. The math doesn’t make sense and tells me that we’re talking about a hell of a larger “blow” than just 2 billions…


    This is so exciting!

  6. J.P. Morgan Targeted in Japan Probe
    5/29/2012 3:11:02 PM WSJ – US Business
    J.P. Morgan Chase faces a new regulatory headache, as Japan’s securities watchdog probes a company employee for possibly leaking insider information.

  7. Extinction of the blood suckers… Couldn’t even find anyone to merge with. Know why? The end of BIG lawfirms. The end of dualism and “adversarism”. The beginning of world cooperation.

    I once worked for one of those majore lawfirms that “imploded” in 1995. Parker, Coulter, Daily and White in Boston. All the little peons like me got nothing and were let go in 10 minutes. Partners fought it over for months on end. They even got into fist fights. In the end, everybody sued everybody else. Peons sued partners because they needed their unemployment benefits. Partners sued each others. That was very funny to watch. If I recall, one or two croaked from Heart attacks during liquidation. Talk about “intense”!

    Dewey & Leboeuf Files for Chapter 11 in Record U.S. Law Firm Collapse
    May 29, 2012
    Share on emailEmail ThisPrintNewsletters.
    inShare.3..ArticleComments.The crippled law firm Dewey & Leboeuf LLP filed for chapter 11 bankruptcy protection Monday night and will seek approval to liquidate its business after failing to find a merger partner, marking the biggest collapse of a law firm in U.S. history.
    Once one of the largest law firms in the U.S., Dewey has been hit by the loss of the vast majority of its roughly 300 partners to other firms amid concerns about compensation and a heavy debt load.

    Dewey had warned employees earlier this month of the possibility the firm may shut down, and a person familiar with the matter had told Reuters that the firm was considering a bankruptcy filing.

    “Dewey’s failure is rocking the industry in the sense that most firms are saying to themselves, if Dewey could go down, could we?” Kent Zimmermann, a legal consultant at the Zeughauser Group, said in an email Monday night.

    Dewey said in a filing it had decided to wind down its business following unsuccessful negotiations with other law firms to strike a deal. It said it would ask about 90 employees to remain on staff to assist in the liquidation, which it expects to be completed in the next few months.

    Negative economic conditions, along with the firm’s partnership compensation arrangements, created a situation where its cash flow was insufficient to cover capital expenses and full compensation expectations, Dewey said.

    “During the first quarter of 2012, the firm was confronted with liquidity constraints that led to the precipitous resignation of over 160 of the firm’s 300 partners by May 11,” the New York-based firm said.

    Dewey listed liabilities in the range of $100 million to $500 million, according to the filing. It had already terminated 433 of its 533 New York employees earlier this month, according to the state’s labor department.

  8. @Pie,

    I know. It’s coming down. But read today’s WSJ and you’ll have a big laugh: they’re all in denial. They’re all trying to make their last buck and cash in as fast as they can. WS is trying to pawn whatever it can as fast as it can, getting rid of risk, (or investing in high, quick return risk, whichever rocks). Look at how frantic Llyod’s is. A real laugh!

    Obama has seen the wind from the get go and i now believe that he was in the know from the get go. Why risk making enemies by intervening in something that’s been in the works since 2003 and losing money needed to run in 2012? Naw, he wants in as part of the solution.

    As I said, Romney might need to get a real job soon. His paper money ain’t carry him. He’s gona become one of us. I pity him, though. He doesn’t know what that’s like. At least, we do. We’re so much way ahead of the game!!!

    That’s what happens when one country becomes immensely rich by pillaging everyone else. It’s called divine justice! Nowe I know why I’ve kept hanging on to that notion: it does exist! So, the future will belong to those who are able and willing to travel and settle in other countries. better freshen up on that foreign language you guys learned in HS and never practice… ‘cuz anywhere you’ve ever gone on vacation was posh hotels just like here.

  9. Wall Street is delusional. Rather than ask the right question: “Can American bankers ruin the world economy, shamelessly enrich themselves, reverse centuries of stability (somewhat), steal jobs, steal pensions, steal houses, buy government and courts and systematically deny due process to anyone not in agreement?”, they go after China and the remnants over there of Goldmans Sachs’ infamous reign for over 100 years.

    I’m telling you… Wall Street is afraid and is trying to make everyone out to be the bad guys except the real culprits. Ain’t gona work anymore. And in the meantime, banks are scrambling to make a last kill from the Greece debacle. Blood suckers. Vultures. They will hang!

    May 29, 2012, 9:55 AM.
    China Puts Laws of Economics Under House Arrest.

  10. @enraged remember we were chatting about China offering trade in Remnimbia / Yuan on every corner of the planet already. Today they went right next door to Japan and created the Yen / Yuan conversion rate. 7/2/12 = conversion @ 21.

    Dollar loses reserve status by 5/2/14. The insiders are in the NO!

  11. […] Read More: Even the Chinese Know It […]

  12. Neil—or whomever—can we in CA somehow use the Aequitas Report to sue to overturn our illegal foreclosures?


  13. In the last week, two people “of my political party, for 50 years” – called to ask for a signature on a doc to put someone on a ballot and be a precinct captain.

    I told them both that I would be helping anyone who stood up for the people in the Foreclosure War, regardless of party.

    Why isn’t anyone ‘stepping up’ ? Because of the Goliath Five banks’ influence ?

    Money is not flowing because everyone is scared of what is still to come – or has come and they are fighting to get property back – or are awaiting for a prima-donna bank to decide for or against them.

  14. @swarm

    It’s impossible to “pay down a debt” if there are no jobs…as a result of banks and Wall Street ponzi’s…

  15. Here it is. And check out the latest world resignations/arrests.

    Following are today’s headlines. I have been saying for a while that the dollar was gone. BRICS and FMI have signed an accord. BRICS is now demanding to have more weight at the World Bank and don’t forget who was chosen to become head of the World Bank. For what I believe to be the first time, it is an Asian guy instead of an American Jew. Coincidence? I don’t think so.

    Do you believe me now? Next will hear of a worldwide moatorium on debts, dismantlement of our banks, establishment of a world currency (or of a world standard), etc

    BRICS flay West over IMF reform, monetary policy Reuters, 29 Mar 2012 | 03:42 PM

    BRICS nations to promote trade in local currencies
    Ashok Tuteja
    Tribune News Service

    New Delhi, March 29
    Determined to end the hegemony of rich Western nations in navigating global economic policies, the BRICS nations today signed two key accords to promote trade among them in their local currencies and explore the possibility of setting up a development bank for mobilising resources for infrastructure and sustainable development projects.

    (L-R): Brazilian President Dilma Rousseff, Russian President Dmitry Medvedev, Indian Prime Minister Manmohan Singh, Chinese President Hu Jintao and South African President Jacob Zuma hold copies of the BRICS report after its release during a plenary session of the summit in New Delhi on Thursday. Tribune photo: Mukesh Aggarwal

    In a clear attempt to seek democratisation of multilateral financial institutions, they reaffirmed that the heads of the International Monetary Fund (IMF) and the World Bank be selected through an open and merit-based process.

    “Furthermore, the new World Bank leadership must commit to transform the bank into a multilateral institution that truly reflects the vision of all its members, including the governance structure that reflects the current economic and political reality,’’ the BRICS (Brazil, Russia, India, China and South Africa) leaders said in the ‘Delhi Declaration’ adopted at the end of their day-long summit.

    “The agreements signed today by development banks of BRICS countries will boost trade by offering credit in our local currency,” Prime Minister Manmohan Singh said in a media statement at the end of the meet, attended by the Presidents of Presidents of Brazil, Russia, China and South Africa.

    The Master Agreement on Extending Credit Facility in Local Currency and the Multilateral Letter of Credit Confirmation Facility Agreement are being seen as a major step towards replacing the dollar as the main currency for trading amongst the five nations.

    On the political side, there were hardly any surprises in the declaration as, contrary to apprehensions, the leaders of the five emerging economies arrived at common formulations on Syria, Iran and Afghanistan after a brief debate during their closed-door meeting. The BRICS’ stand on Syria and Iran will obviously not go down well with the Western nations which have been on a collision course with these two countries.

    “We express our deep concern at the current situation in Syria and call for an immediate end to all violence and violations of human rights in that country. Our objective is to facilitate a Syrian-led inclusive political process, and we welcome the joint efforts of the UN and the Arab League to this end,’’ the declaration said.

    China and Russia had vetoed the US and the Arab League supported resolution against Syria at the UN Security Council last month on the grounds that it amounted to a regime change. India had, however, backed the resolution.

    Russian President Dmitry Medevedev warned against interference in the internal affairs of any nation, saying it has the potential to destroy the dialogue process.

    On Iran, the declaration said the BRICS countries felt that the situation in the Islamic republic could not be allowed to escalate into a conflict, the disastrous consequences of which would be in no one’s interest. At the same time, they felt that Iran has a crucial role to play for the peaceful development and prosperity of a region of high political and economic relevance.

    On Afghanistan, the BRICS countries supported the global community’s commitment to the war-ravaged nation, enunciated at the Bonn International Conference in December last year, to remain engaged over the transformation decade from 2015-2024.

    The emphasis at the BRICS meet, however, was on economic and commercial cooperation among the five member-nations.

    There was a pressing need for enhancing the flow of development finance to emerging and developing countries. The World Bank should give greater priority to mobilising resources and meeting the needs of development finance while reducing lending costs and adopting innovative lending tools, the declaration said.

    The BRICS countries also welcomed the candidatures from the developing world for the position of the President of the World Bank.

    Development bank

    Reaffirm that the IMF and World Bank heads be selected through an open and merit based process
    Explore the possibility of setting up a development bank for mobilising resources for infrastructure
    Arrive at common formulations on Syria, Iran and Afghanistan
    Support the global community’s commitment to the war-ravaged nation, enunciated at the Bonn International Conference

  16. @swarm,

    I posted something this morning on another page about BRICS, IMF and the World Bank and how the reversal has picked up speed. It is completely out of our hands.

    Iceland was a test tube and it worked. A worldwide moratorium of debts, change of currency and/or standard is where we are heading at a fast pace. As I said, Jamie boy should start wetting his pants by now. And they better start visualizing life without empty billions and enormous, usurped power. Since We The People abdicated our sovereign authority over a 100 year period, someone else is taking it.

    Natural reversal of things.

  17. Dear editor

    Pleeeease don’t quote Obama about the purpose of government. He is a “sounding brass, signifying nothing”

  18. Neil, I believe the number one problem is that the neo con conservatives and democrat progressives are running the show and forcing the REMAINING MAJORITY to choose one or the other out of fear.

    The democrat progressives demand debt forgiveness, the neo con conservatives scream “get a job”, or, “get a second job”.

    The real answer is interest rate forgiveness on existing debt as long as consumers agree to PAY DOWN their debts.

    NOBODY but myself has taken this position because it seems that almost everybody is being drawn into taking a side that is either too conservative or too liberal.

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