Tuesday, July 30, 2013

Once Again Crime Pays In The Plutocracy: JP Morgan Admits To “Lying & Stealing” In Energy Market Manipulation Probe And Is Rewarded

I swear to God, I never thought I would live to see these times.  Never.  I knew these days were coming.  I wrote they were coming before the collapse.  I wrote specifically what would cause the collapse.  Everything in this country touched by a politician has been completely f$$$$cked up!  And I mean everything.  I never, in my wildest nightmares, could have envisioned these days.   That such blatantly criminal activity is actually rewarded.  

Another topic I have posted ad nauseam about, Wall Street’s manipulation of energy, that financial shills, politicians, investment advisors and other morons in the dumbed-down corporate state said was not actually occurring.  Well, JP Morgan just admitted it.   Not only that but they get to keep all of their profits from doing so and no one is under any kind of criminal investigation.   The board room of JP Morgan made these decisions.  Point blank.

Video here.  Lying and Stealing;  the journalists own words.  Their reward?  Keep your profits, no criminal investigation and pay this measly pittance of a fine.

Honestly?  And, I’m being completely serious, Adolph Hitler and the Nazi Party had nothing on Democrats and Republicans.  At least he provided some delusion of prosperity while running Germany off of a cliff.   The criminogenic culture in our plutocracy is truly obscene.   There isn’t even any pretending anymore that a rule of law or morality or human decency exists.  Yes, the Nazis killed millions of Jews in atrocious and unforgivable crimes against humanity.  But, then what do you call the crimes of denying people health care?  Feeding them toxic foods?  Pumping them full of toxic drugs?  Denying them jobs?  Denying them any type of living wage?  Enslaving people into a system of debt?  Bilking people of very limited means through energy, food and commodity extortion?  Spying on people?  Torturing people?  Waging war on the world with troops in nearly 40 African countries, 700 bases around the world and untold misery?  What the hell is that?  How many people died because of food price manipulation around the world?  Or how many people live in misery in refugee camps from Iraq or Syria or elsewhere?  How many millions have have been tortured, maimed, killed or displaced by the military-industrial complex?  How many?

The people of this nation are generally just and decent people  as are most people everywhere.  The megalomaniacs, predators and psychopaths of the corporate state are truly Godless.  They are disconnected from their humanity.  The world that their acting out has created is literally destroying humankind.  Life as we know it is clearly defined by energy forces.  This truly is a time marked by the forces of darkness versus light or good versus evil. 

posted by TimingLogic at 1:51 PM links to this post

Monday, July 29, 2013

India’s Central Bank Steps In To Stop Rupee’s Slide And A Trillion Yuan Flee China’s Banks.

First off, I wanted to note some very heartwarming news that I’m sure most people saw since it hit the headlines of every website in this nation yesterday.  That is, 4 in 5 Americans deal with poverty, welfare, joblessness, etc at some time in their life.  This at a time when American corporations are reporting record profits or record wealth.   At the same time I think it’s important to note that Marie Antoinette, err Obama, obviously has no problem with 4 in 5 Americans eating cake while he lives like royalty off of other people’s money and labor.   What is that again about moochers and looters?  Given 4 in 5 Americans deal with poverty some time in their life, he and others in the self-appointed ruling class live like kings and queens off the backs of people who are, or have been, impoverished or are living paycheck to paycheck.  And that poverty is created by the self-appointed ruling class.  Does anyone actually listen to what Obama or anyone else in Washington says anymore?   I don’t think so.  At least no one outside of the bubble.

It’s newsworthy that the Bank of India has stepped in to the foreign exchange markets to try to stem the slide in the rupee.  Most likely, because if they didn’t the rupee may collapse.  Something to consider when contemplating the future of the yuan.   The rupee is a quasi-pegged currency.  China’s currency is also pegged in the foreign exchange markets.   The rupee has dropped substantially in recent months and at some point the yuan is likely to drop as well for the exact same reasons.  The reality is every currency in the world would collapse were it not compared to something else.  But, that’s not how the system works. 

It’s fair to say all of the BRIC nations are now in economic crisis to varying degrees.  And it will get much worse.   I wrote this outcome would happen for the BRICs years ago when the supposed experts would have laughed at such a future.  This outcome was guaranteed and if one understands economics, it was predictable. 

All of those corporations who moved various business processes and software businesses to India just saw their investment fall by a substantial percentage in the last handful of months.  Remember, one of the long term theses on here is that this cycle can be defined as the end of big.  And with the move in the rupee, big just got a little bit smaller for those corporations. 

China is most certainly the biggest Ponzi scheme ever.  And it was created mostly by American and European capitalism in cahoots with the communists.  Corporate capitalists love communism and fascism or any other ism that allows them to only be subservient to the state.  As noted on here many times, European and American corporations loved the Nazis up until World War II.  Some even loved the Nazis during World War II.  Any form of state violence or any ism  is embraced by private for-profit capital because then all they need to do is bribe the state rather than deal with labor aka democracy and all of those fussy things like living wages, environmental protection, employment opportunities for all of democracy, safe working conditions, poverty, benefits, community investment, etc.   That is why democracy in America is dead.  Corporate capitalism killed it.   If we want democracy back………..

China’s bad debt and banking problem has been ongoing for over a decade now.    Today the number of nonperforming loans is certainly almost as large as GDP and larger than their foreign exchange reserves.  No one can really prove anything given the lack of transparency but regardless, as noted on here for many years, China is broke.  They just don’t realize it.  Yet.  But China is starting to realize the yuan is headed south against the dollar, something discussed on here for years even though financial, economic and political “experts” told us the yuan is headed higher.   The economic crisis in China has reached such massive proportions that the shenanigans used to mask them are so hilarious they almost aren’t even believable.   It’s arguably a bigger shell game than Wall Street.  Well, but Wall Street is still the biggest financial bubble in history. 

This reporting by Gordon Chang makes the US look like Camelot.  And the dollar comparatively looks like the best investment out there.   I said comparatively.  And that is how this system works.  It’s not about virtue, it’s about which pile of dung smells better.   Too many people don’t understand this concept of neoliberal’s deregulated capital and trade.

It appears China has exhausted the largest stimulus package in history. (as a percentage of GDP)  And now once again they are at a tipping point - their capital bubble crashed years ago and it appears their consumption bubble has finally crashed.   So, what is now the biggest crisis facing the communists?  Civil unrest, which I wrote was coming many years ago.  What’s going to happen if there is no demand for all of those goods they are producing?  They are being boxed in every time they try to dump goods at below production costs by both the U.S. and Europe.  Essentially, capitalism is a continuous trade war.   Now, it’s in the open and states are slapping each other with tariffs, quotas and fines. 

If you are China, how do you stimulate employment and create jobs to deal with prospects of civil unrest?  Well, there is only one thing left.  And for that we look to the Nazis, the British, the Japanese, the Soviets and the U.S.   That would be military production.  What better way to guarantee employment and economic opportunity than the endless overproduction of centrally-planned military expenditures?  Unlike an economy created by demand for goods and services by citizens, centrally-planned military overproduction has no limits.  That is, until the rot of repressive, corrupt central state control collapses.  The state can produce, produce and produce some more when it comes to weapons.  Because the state guarantees an endless demand for violence.  Look at the U.S. today.  We spend more on our military than the rest of the world combined.  We have police armed like paramilitary storm troopers.  We spend untold billions spying on our citizens.  And then we have the crux of the issue.  We have the largest air force in the world.  And we have the second largest air force rotting in the desert because we have overproduced so many planes that we can’t begin to even use a fraction of them.   Ditto with the navy and army.  You know, like the Nazis, the British, the Japanese and the Soviet did.  Well, and the British and Russians still do. 

We shall see if China takes the same route thus guaranteeing the U.S. military-industrial complex its next boogeyman needed to maintain its power.  Or so it thinks.  It’s obviously the easiest way for the communists to maintain power while dealing with the prospects of rising civil unrest and unemployment.  Or so it thinks.

Remember, one of the long term theses in here is that we are in a war cycle.  And I wrote that before any of these shenanigans by the U.S. were unleashed upon the world.  Truth transcends time.  Some things are predictable. 

posted by TimingLogic at 11:54 AM links to this post

Saturday, July 27, 2013

Newsworthy Links From A World Of Madness

1o years later in Iraq – mass displacement, birth defects and cancer.  The US knew that depleted uranium shells would cause cancer and birth defects in Iraq.  This is premeditated murder that the state classifies as legalized murder or war.  These are heinous war crimes against innocent people.

The United States War Department (Later renamed Defense Department.  I’m sure for propaganda reasons.)  has invaded nearly every country on earth

Weed killers tied to depression in farmers.  Once again, industrial farming is headed for extinction.

Monsanto’s Roundup and Birth Defects: Is the public being kept in the dark?

In Detroit’s ruin, law firms see land of opportunity.  Once again the financial predators, who by the way were bailed out, and the predatory law industry racket are slobbering over other people’s misery.  The people who will suffer the most are those least able to afford it.  The predators who will make the most are those most able to afford it.  In other words, this is more class warfare courtesy of the Godless corporate state.   Bailouts for all of the predators but no bailouts for We The People.

Commodity traders ripped off society more than banks to the tune of $250 billion.   This study is most certainly well too low.   I believe the number is most likely ten to twenty times this number when one adds in all financial manipulation of all commodities.  Most people didn’t know who Marc Rich was when Bill Clinton pardoned him and there was an outrage.  He was one of the biggest financial predators in history and was on the FBI 10 most wanted.  A scumbag extraordinaire.  What did Clinton get in return?  Wouldn’t we like to know.  Rich founded Glencore which is probably the biggest commodities manipulator in the world.   Rent-seeking Glencore has created hundreds of paper billionaires and  millionaires by manipulating and extorting consumers of commodities.   It’s no surprise they went public in London, which is the neoliberal tax haven capital of the world for economic criminals.

Yemeni reporter who exposed US drone strikes freed from prison after jailing at Obama’s request.  Those who still worship their savior Obama refuse to see reality.  George Bush may be a saint comparatively.

Richard Wolff on the contradictions of capitalism that led to  Detroit’s collapse.   It wasn’t white flight that was the demise of Detroit but private, for-profit capital flight.  With public aka democratic banking and public money Detroit never would have been in this crisis.  Never.  Democratic money and democratic banking would have investing in human and community development rather than creating the  impoverished economic injustices that led to the 1960s riots.  Private, for-profit capital or capitalism leaves death and decay in its wake.

IRS employees concerned about being enrolled in ObamaCare.  All politicians and government workers should be made to eat their own shit.  Then we would get true health care justice and reform rather than the bloated, bureaucratic, crippling ObamaCare.

Senators promise 50 years of secrecy on tax ideas.  Democracy is dead.  It cannot survive without transparency.  Who do these assholes think they are?  Is representative government as we know it in the final phases of extinction?  Quite possibly.   This is not self-rule. 

White House tries to lower record low corporate taxes even further for US companies.  US corporate tax rates are the lowest in over 60 years as noted on here before.  They may be the lowest in history.  Obama keeps shoveling more mandates and taxes onto Americans while removing accountability for corporate masters.  Our tax burden is far greater than 1776.  And the dynamics are almost frighteningly similar to a corporate empire, endless military interventions to extend that empire and taxing the poor to pay for this class-based system of crimes we call capitalism.

Tiny nuclear reactions inside of fluorescent bulbs.  I’m a firm believer there is something to cold fusion.  And possibly something here as well.   We just don’t understand much of anything when it comes right down to it.

Crop Pollination Exposes Honey Bees to Pesticides Which Alters Their Susceptibility to the Gut Pathogen.  A just-released research paper on Colony Collapse Disorder.  While we don’t know if this is the end-all of scientific research, it makes perfect sense.  Manmade poisons weaken the bees immune system and leave it susceptible to pathogens.  The exact same dynamic is happening in humans. 

Scientists watch death spread through worm thus challenging current scientific beliefs about death.

Decapitated worms can regenerate their brains and memories stored inside.  While no conclusions can be drawn, I have had experiences that make me wonder if memory is sometimes stored in tissue rather than the brain.  Science really knows almost nothing.  Scientific truth is a matter of relativism or the concept of greater and greater truth as opposed to the concept of absolute truth. 

Social connections drive positive emotional health.  The Godless corporate state destroys communities and connections and encourages society to act on behalf of the self.  Selflessness and altruism have always been key to our survival.   It is one reason why capitalism and the corporate state will die.

2014 Chevrolet Impala best sedan Consumer Reports has ever tested.  I wrote the auto industry was likely to go bankrupt well before anyone thought it was possible.  And I wrote that they would rise from the ashes and become powerhouses again.  The auto industry may be headed for a double dip but US car manufacturers are now arguably the best mainstream producers in the world.  Unfortunately Obama extracted such extreme wage cuts that American auto workers are often living in poverty and unable to buy the products they make.

Are probiotics the new Prozac.  New discoveries about wellness and the human microbiome are obliterating modern medical science.

Pill Poppers documentary.   In general, pills aren’t making us better.  They are making us sicker.  Some medicine may be necessary even though all drugs are considered poisons by the human body. Sometimes we have to deal with those poisons aka unknown and known side effects because of humanity’s lack of knowledge about how to encourage the mind and body to heal itself.  But we are well past that into being drugged into a zombie stupor by rent-seeking drug companies who have a pill for every conceivable condition, many of which are simply made up.   The psychiatric community adds countless new maladies to the DSM manual every time it is revised.  Most of those are complete and utter nonsense courtesy of corporate pill-pushers and other conflicts of interest.

posted by TimingLogic at 7:08 PM links to this post

Friday, July 26, 2013

Department Of Injustice Investigates Wall Street Pigmen’s Manipulation Of Industrial Metals

Pigman

Again, something written about on here for years but denied by the renter capitalists.  There is absolutely no doubt that crimes against humanity have been involved in the financial manipulation of energy, industrial metals, foodstuffs, gold, etc.   And now after the commodities cycle appears close to collapse and Wall Street has successfully screwed everyone we can, we see the DOJ opening up inquiries.  (And here where the cronies at the Federal Reserve re-examines Wall Street’s involvement in commodities markets that the Fed granted Wall Street.)  Really?  Why waste our time?  No one is going to be prosecuted.  Politicians gave the banks cover in the first place.  Wall Street is now trying to sell its warehousing business.   The warehouse business, for those who don’t follow this at all, is used by Wall Sreet and European banks to buy physical commodities, store them, create artificial scarcity by controlling delivery, ramping prices in the futures market and then extorting businesses and countries.  This was partially behind the Egyptian uprising because food became unaffordable.  This activity by hedge funds and banks has led to murder, mayhem and death.  It’s no different than corporate state drone strikes.   The Federal Reserve, other regulators and politicians created this. at the behest of their corporate masters.

This ties in with one of my long term theses that greater and greater control is needed to keep this rigged and inherently unstable complex system we call corporate capitalism from destabilizing.   The banks accomplished this greater and greater control through rigging the rules to the economic game.  That guaranteed their future increase in profitability.  Those days are over.  How do I know that?  It’s simple.  Democrats and Republicans, Chinese communists, European Union bureaucrats, etc, etc, etc, have sufficiently f*cked up their respective economies and societies so much with layer upon layer of meaningless red tape and rigged rules that has been building up for decades that their actions today have diminished returns on economic and social outcomes.  Or, in most cases, the returns are now actually negative.  One example is Obamacare that has now halted full-time hiring.  It’s not the only dynamic involved but it certainly is a driving factor. 

When you ask a politician to deal with an issue, you get a political answer.  Since politics is an institution of the ego and is thus driven by control, you get a control-driven answer that subverts discovery and truth.  And that means ultimately failure. 

The only way to end this madness is to take back our power and personal responsibility to create the world we want to see.  To undo the mess created by the most self-aggrandizing, incompetent, unenlightened minds in our society; politicians. 

Education?  Health care?  Economic rights?  Prison reform?  Wars on terror, drugs, illiteracy?  Food?  Energy?  The Constitution?  Privacy?  Freedom?  Human rights?  Debt?  Nonliving wages?  Our nation’s defense?  Politicians have f*cked everything up.  Limited government, the rule of law and enumerated powers are part of our system of constitutional ideals for a reason.  Because our founding fathers were dealing with what we are dealing with.  The class-based British corporate capitalist empire.

The real investigation that should be taking place is a completely transparent, public one into the Democratic and Republican Parties to expose their rigging of the system for  Wall Street’s endless graft.  Graft enabled by Clinton, Gore, Bush, Cheney, Obama, Biden, Congress and the Supreme Court.

posted by TimingLogic at 8:56 AM links to this post

Wednesday, July 24, 2013

The World’s Biggest Ponzi Scheme Is Unraveling As China’s Manufacturing Output Falls To 11 Month Low … Or Worse

No surprise here.  For all practical purposes China’s economy is in contraction regardless of the GDP numbers being released.  Services really just don’t matter.  You can pay someone to jump rope all you want.   Or run political campaigns, or lobby government, or trade derivatives, or pay actors to make CIA-funded or manipulated films, or do each other’s laundry, or report the ministry of propaganda’s “news”, or spy on citizens, or clog the courts with endless red tape, or serve McDonald’s Happy Meals.  Err, am I talking about China or the U.S.?   I’m not sure there is a lot of difference.  Regardless it’s all meaningless overconsumption make-work. 

This is likely the first time since the Great Depression that the entire world has printed negative production in the same year.  We had a dip in late 2008 and 2009 in various economies around the world but that was driven by the fact that financial markets completely froze and producers couldn’t get their hands on any capital to buy raw materials, pay electricity, pay workers,  pay shippers, etc.   That is not the case in 2013.   Corporate capitalism’s endless make-work has simply run out of overconsumption demand. 

I have to wonder how accurate this PMI data is for various reasons.  Not the least of which is GDP that is reporting over 7% growth.   GDP is likely negative unless we are simply measuring inflation running rampant with negative production.   Another reason to doubt reality is that China’s manufacturers have been fudging export sales and invoices as noted on here before.  They are doing this to convert their holdings out of yuan and into convertible currencies courtesy of the communist central bank.  ie, A lot of informed people in China want to get their holdings out of the country or out of yuan and have found that fudging company exports is a very profitable and easy way of doing so.   Because the yuan isn’t convertible, they are essentially screwing the communists by dumping yuan onto the central bank in return for convertible currencies.  The central planners obviously believe they can control capital flight and their own people by keeping the yuan from becoming convertible.  Baahaaa!   Yuan traded in for dollars, euros, etc.  are then being shipped out of the country or used to buy gold or whatever else they can get their hands on that isn’t denominated in yuan.   Dare I say, you won’t be reading this on the cover of Chinese Communist Daily or in supposed research reports from the central planners at Goldman Sachs who endlessly pumped China.

Remember, the Chinese people have lived through countless communist currency messes in this past and certainly are well more aware of the communist party’s shenanigans than we are.   Screw me once shame on you.  Screw me twice and shame on me.  I suspect the people of China are a lot smarter than their supposed leaders.  Just like  in the U.S.   That conversion into dollars is part of what reflated the U.S. housing bubble as noted on here before - accumulated dollars from China buying U.S. real estate.

As I have said consistently on here, the yuan is headed south.  To zero?  Who knows where the bottom will be.  That  Obama, Geithner and other political morons believe it is going to rise if and when China removes currency controls means what?  They are just as clueless as the communists about what is going on?  Bingo!   If the yuan falters, and it certainly will because it has been in constant devaluation for the last 30 years, that means China is going to have to overproduce and export even more goods at below cost to get their hands on the same amount of foreign currency (convertible currency) needed to keep their Ponzi scheme from collapsing.   But if they do that, foreign exchange markets will refuse to trade the world’s convertible currencies at the current yuan peg rate.  They’ll start demanding more yuan.  And more.  And more.  Can you say trade war as China attempts to dump its excess production at below cost on international markets with a falling currency to boot?   All to stem the unemployment crash that’s coming.  Who knows if this is what they will do.  But it has been what they have been doing for the better part of 30 years.   Why stop now? 

Bureaucrats do what they know has worked in their linear perceptions of reality.   So, now that the world’s biggest Ponzi scheme is starting to unravel, why would they do anything other than step on the gas even harder?   I mean, what the f*ck else is a central planner going to do?   It’s exactly what Bernanke is doing.   And Obama.  Bernanke, Obama, Boehner, the Chinese communists and China’s central bank really are the same bureaucrats that think the same way all central planners do.  That is, rigidly and linearly with an intent of exerting greater control.   

bureaucrat [byoor-uh-krat] - an official who works by fixed routine without exercising intelligent judgment.

Indeed.  And so it will be.

posted by TimingLogic at 10:39 AM links to this post

Tuesday, July 23, 2013

SEC Enforcement Chief Takes $5 Million Law Firm Job Defending Wall Street Clients He Was Supposed To Prosecute

This is an excellent article that points out the endless hypocrisy and corruption in Washington.

Khuzami never prosecuted anyone of significance in the greatest Wall Street criminal racket in history.  That is the reason why he was rewarded with a multi-million dollar job where he now will be representing the firms he was supposed to be prosecuting at the SEC.   It seems all of the pigmen end  up on Wall Street or in Washington.  That’s not a coincidence.  It’s the free market. 

posted by TimingLogic at 11:56 PM links to this post

Monday, July 22, 2013

Wall Street Pigmen In Talks With Federal Regulators To Settle Enron-Style Energy Market Manipulation

Pigman

This is a topic I have written of extensively on here.  When I first started writing of it, I would get responses that were consistent with the mainstream and political lies.  That is, there is no manipulation.  (Peak oil is part of this lie manufactured for purposes of control.  Just as were the rolling brownouts and appearance of electricity shortages created by Enron traders’ manipulation of the energy markets.  We have more excess oil in the world today than when oil was $10 a barrel in 1998 and we are headed into an energy market implosion as capitalism’s overproduction and overconsumption collapses.)   Duplicity is so systemic and ingrained in modern corporate capitalist society that it becomes difficult for most people to actually tell what is real anymore.  The dystopian reality has been building for decades. 

As noted on here before, it was Wall Street that enabled Enron.  Wall Street firms were involved in countless secret settlements with the government for their participation in Enron’s energy extortion racket that went so far as to murder Americans whose death was the result of their inability to pay their artificially-inflated electric bills during heat waves.   Enron traders minted gazillions off of the back of unsuspecting American citizens.  Enron’s massive increase in revenue and profits were driven solely by large increases in paper transactions rather than any underlying delivery of goods or services needed by businesses or consumers.  Ahem, just like Wall Street.   That worked until the schemes collapsed under their own fraud and Enron was exposed to be a house of cards.

It was Wall Street that pushed for energy deregulation in this nation that ultimately resulted in Enron’s energy market manipulation and now their involvement in the same manipulation.  And what has it gotten us?  Utilities run by incompetent bureaucrats who have used taxpayer funding to bilk society for investor class returns while creating an unstable energy grid that lacks investment, acquisitions that removed competition,  massive increases in energy-related costs because utilities are now laden with debt and the extortion racket of energy price manipulation that levies an untold tax on every American.  But today I get dozens of offers clogging up our postal system from countless shell corporations.   Their game?  They want to be the paper front company that sells me my energy even though they actually don’t make any of it.   Useless make-work that is a result of energy market deregulation that benefited no one other than the energy manipulators, Wall Street.

When I was a kid, municipality-owned energy plants and providers were everywhere.  They were owned by the community, they invested in the community and they provide power cheaper than the criminal rackets we see today.   Yes cheaper.  They have all disappeared.  They were all bought up by the corporate-owned utilities and financial firms whose primary intent is profit at all cost.   Bilking democracy.  Enron’s crimes never went away.  They just moved to Wall Street courtesy of politicians.  

Reuters shows the disclosure of JP Morgan’s electrical utility holdings.   It also notes, “JPMorgan officials have refused to talk about the plants they currently have an interest in for competitive reasons. Some of the plants are owned by units of JPMorgan, while others are under "tolling" agreements under which the bank supplies fuel and sells power on behalf of the plant's owner. “

What is going on when Wall Street bank own our public utilities and have sourcing agreements to buy and sell commodities and products on behalf of these same utilities?  And how can a corporation refuse to be transparent with the government regulators?  It’s really quite simple.  As I‘ve noted countless times on here, Wall Street is a predatory, class-based extortion racket.  They insert themselves into any and every supply chain they can to extort their cut.   Obviously they can only do so with the blessing of politicians who rig the rules for this corporate state graft.  They are really no different than the Gambino crime syndicate or the street gang thugs in Detroit who both use terror to insert themselves into the supply chain for prostitution, drugs, gambling and other predatory activities.  

JP Morgan pigmen, who lied to public officials under oath, in deal to settle Enron-type energy manipulation racket.   What is a bank doing in the energy markets using taxpayer money and taxpayer backing?  This while the media is almost nonexistent on this and other serious issues worthy of criminal investigations and possible indictments. 

Nothing reflects any type of reality in the corporate state.  It’s all a perception based on deceit and lies.  Deceit and lies created with willful intent. Asset prices, financial assets, energy, food, propaganda, political wrongdoing, manufactured wars and on and on are manipulated into the biggest graft bubble in the history of the world.   And the people of the world are all the marks in this class-based con.

We need a public banking system that serves human development and the needs of democracy and not private profit, private interests over the public interest, greed, politicians, demagogues, megalomaniacs, predators and psychopaths. 

posted by TimingLogic at 8:00 PM links to this post

Sunday, July 21, 2013

Unprecedented Evil Manifests Itself: The Richest 300 Persons on Earth Have More Money Than Poorest 3 Billion

“……The time has come to destroy those who destroy the earth.”Revelations 11:18

I suppose that verse has timeless remembrance for me because it is my birthdate.  I find it more than appropriate for the global awakening we see today.  An awakening that I wrote was coming well before any of the crises we see today ever revealed themselves.    Don’t be so certain that the future is always a mystery - Truth transcends time.  

What kind of person can take and take and take?  Then take even more without a care in the world for the misery and destruction left in their wake?  Can take so much that they knowingly leave indescribable death and destruction in their wake?  Can take well beyond anything they would ever need for a life of abundance?  A person of  true evil.  A person disconnected from their mind’s higher power and the human values of empathy, dignity, mercy, equality and compassion.  A Godless person.   

A picture is worth a thousand words.   Whether they are shanty towns in North or South America or Asia or Africa, this type of picture (at the above link)  is repeated time and again.  We are living through a time that is like no other in human history.  A time of incredible abundance offered through science,  technology and human achievement.  Yet a time when nearly all of humanity has been beaten into nothingness and subsistence of barely living beyond the most repressive form of class-based slavery imaginable.   Billions are denied the fruits of their own ability and the achievement of their brothers and sisters around the world by what is truly unprecedented evil.   And I do mean evil in the truest sense of the word. 

Today we see the evil of unprecedented class warfare perpetrated by class-based, private for-profit capital and the corporate state.  Class tyranny, corporate capitalism and the corporate state are destroying our planet, destroying the natural world, destroying human divinity, destroying the earth’s abundance, destroying our communities and creating untold emotional and physical misery everywhere.  That emotional and physical misery extends far beyond the human realm to the natural world.  All of this has happened unnecessarily.  All of it has happened consciously and with willful intent.   Conscious willful intent of evil acts against the world.  These are certainly end times for class-based, private for-profit capital, the corporate state and the global misery and repression we see.  

One cannot serve both God (Truth) and mammon.  Private for-profit capital and the corporate state are almost certainly dying.  Forever.  And possibly its tools of enslavement, money and debt, as well.

Karma is really nothing more than a self-correcting or stasis-driven state of consciousness.  Our current state of consciousness is so unstable that it simply is not sustainable.  Truth cannot be denied or repressed.  This complex system we call our planet is destabilizing at an incredible rate.  There is no way to control what is happening.   As in any inherently unstable complex system, once it reaches critical mass it must devolve into some lower order state of stability or even collapse.   And that is what is happening.  We are seeing a devolution of modern corporate capitalist society. 

Karma is effectively the dynamic of Newton’s third law applied to human consciousness - for every action there is an equal but opposite reaction.  Those who are oblivious to the suffering around them, who would go so far as to pretend it doesn’t exist or even support ego-driven policies that create, perpetuate and appease it, will always see the world around them eventually correct against such willful arrogance, self-centeredness, evil and delusion - karma. 

“If you truly loved yourself, you could never hurt another.” -- The Buddha

“Truly I say to you, to the extent that you did it to one of these brothers of Mine, even the least of them, you did it to Me.” – Jesus of Nazareth

The ego’s perception of the separateness and the subsequent self-glorification of the self is indeed man’s original sin and the foundation of all evil in this world.   The ego’s endless fear-based violence only exists through its perceptions of separateness.  Without the ego’s perceptions of separateness all acts of violence against the self and against others disappears.  All life is interconnected.  All life is one. 

Were I to guess as to how karma would resolve itself for these 300 people and the system they created and willfully perpetuate, they would lose everything.  All that needs to happen for that to become a reality is that all money becomes irrelevant, useless or worthless.   Then all perceptions of wealth simply vanish.  Land ownership, property, assets and class all become irrelevant.  There are countless dynamics under which this could occur.  Some of them manmade, some of them not.  But regardless, were this to happen all perceptions of wealth, power and control over an unstable complex system would simply disappear. 

Karma truly is a bitch. 

posted by TimingLogic at 9:26 AM links to this post

Friday, July 19, 2013

Another Victim Of The Godless Corporate State - The Once Great City Of Detroit Lies In Ruins As It Files For Bankruptcy

The governor is Michigan is a political dope.  His speech about the bankruptcy is laced with snippets of truth wrapped in a bow tie of deceit.  Corruption and incompetence within the city of Detroit followed their crisis.  It didn’t create it.  The city couldn’t deliver services not because of corruption or incompetence but because of a lack of funding due to economic collapse.  Detroit itself then became the home to endless promises of self-aggrandizing political whores who used their positions of power for cronyism and looting.  Just like Washington.  There is no doubt Detroit is a horrendous mess.  There were broad daylight carjackings near an major business I used to frequent in the 1990s.  By the 2000s the city was a literal post-apocalyptic war zone.   That said, if I had an M1918 Browning Automatic Rifle, I might consider moving to Detroit.  The seeds of democracy are becoming very evident in patches of the city.  Not because of anything politicians anywhere have done but just the opposite.  Because the people are retaking responsibility for their survival in the face of Democratic and Republican Party repression that has driven the people to Detroit literally to the edge of extinction.   I do mean literally.

Detroit’s situation is very interesting and some day I’ll put up an very esoteric post on this and other cities that ties into many socioeconomic dynamics discussed on here.  Let me just say this for now re some  snippets of a Labor Day post I have reposted over quite a few years.  This is the same city that 40 years ago was one of the most wealthy, economically-vibrant cities on earth.  Taken from a post of mine some years ago:  “The Detroit metropolitan area may have the highest concentration of world class scientific, engineering and industrial talent focused on the essence of making things of any comparably-sized metropolitan area in the world. The regional research university powerhouses across the midwestern states have the largest industrial research budgets in the United States. Ohio's universities actually hold the top distinction with Michigan not far behind.”    This is one of the reasons I have remarked if I were buying real estate, it would be in Detroit.  Detroit is simply choking under the corporate state’s repressive corruption, dumbing-down of our nation and rejection of science, reason and human achievement.  This violent repression, often covertly violent through megalomania’s pandering and demagogy and its endless unfulfilled promises it never could keep and marginalizing government handouts rather than economic justice, empowerment and freedom, enforced by Washington political idiots like those in the current White House.

Today Detroit has greater than 50% unemployment and horrendous underemployment of whatever remains of the other 50%.  Detroit looks like a city right out of a Mad Max dystopian horror movie.  It is literally a horror to drive through what were once beautiful and vibrant neighborhoods.  The city has literally been reduced to Social Darwinism’s natural selection.  ie, Those most willing to stomp on the face of their fellow man are guaranteed survival.  You know, just like corporate capitalism and politics; the two institutions of control that are responsible for Social Darwinism.  But rather than that natural selection dynamic happening in the corporate board room or halls of politics where thugs wear a suit and a tie, in Detroit it’s happening on the streets where thugs fight for control of their capitalist drug and turf wars.  But, it is no different.  Detroit is simply a reflection in the mirror of the Godless corporate state. 

Many Americans who live in their insulated suburban bubbles can’t even begin to imagine an American city can look like this.  They, we, all of us, have forsaken our nation and our brothers and sisters around the world by supporting this patriarchal, class-based, political-economic system of victimization and violence.  There are thousands of cities like Detroit in the U.S.   Thousands.  And thousands more neighborhoods in thousands of other cities.  But now the shine is off the dime.  The political propaganda goggles no longer produce desired results.  Dare I say Barack Obama was the last pandering demagogue our nation will ever see as president?

As noted on here ad nauseam, 2008 was not a financial crisis.  Nor was it a recession.  It was the beginning of the end.  For the future of humanity, that’s a very good thing.

posted by TimingLogic at 9:15 AM links to this post

Thursday, July 18, 2013

Yemen Passes Law To Criminalize U.S. Drone Strikes As Acts Of Terrorism

Hmm, words like drone strikes are terrorism, drone strikes subvert the rule of law and children suffering from PTSD-type symptoms due to drone strikes never seemed to be a concern voiced by the Godless corporate state or the brain dead mainstream media.  Apparently the sovereign people of Yemen whose human rights are being shit on disagree.  

Of course, our supposedly “Christian” leaders (often fanatics using the cover of religion to perpetuate their own megalomania and evil as noted at the link) channel pacifist Jesus of Nazareth as they plan their drone strikes.  I can almost hear them now as they prayDear Jesus, our Savior and Lord, please allow this illegal and immoral mission of violence to successfully murder our enemies without due process or the right to face their accusers in a transparent court of law.  And if we kill women, children, the elderly, or people on our list who are guilty of no crime, or terrorize innocent people in the process, we still know our cause is righteous and just.  And that we do your will of killing in your name of mercy and compassion.  We honor your virtues by staining your name with the blood of our enemies.  In Jesus’ name we pray………  Hoorah!

I’m so thankful our government is spreading freedom, social justice, economic justice, virtue and nonviolence around the world. 

Yemen reminds us that resistance to the assimilation of the dumbed-down, Godless corporate state Borg isn’t futile.  Captain Kirk ain’t dead yet.  Or was that Picard?  

The corporate empire is waning incredibly rapidly as global informed consciousness clearly has obviously passed its tipping point.   Empire’s only weapon to maintain control in a destabilizing world is the use of greater and greater force and violence.  Be that spying, war, military spending, propaganda, debt, selling weapons to thugs, threats, bullying, secret dealings, unjust prosecutions, unjust laws, massive red tape to rig the system, bribery, outright lying or whatnot.  These and other forms of violence (In this case, patriarchal violence)  are the only method through which corporate empire can survive as the world continues to destabilize at a staggering rate.  Of course, the arrogant aristocracy here and around the globe is still in their bubble of telling the rest of us to eat cake.   No one is better at that than the finger-pointing hypocrite Obama. 

Is anyone even listening to them anymore?  Seriously? 

posted by TimingLogic at 8:13 AM links to this post

Tuesday, July 16, 2013

China Collapse Update And China’s Equity Market Return Over The Last 20 Years Is 1%

The communists in China are starting to have a hard time keeping the lid on the reality that is their massive economic mess.  “Experts” generally want to tell us their issue is debt.  Well, that is, if they still don’t believe there is a mess.  Debt? Schmet!  The fundamental problem in China is NOT debt.  Not to say that debt isn’t a form of predatory state-based enslavement and violence.  It is.  But debt can be forgiven, wiped away or paid off in a sustainable economy.  The issue is, as noted on here ad nauseam, that China is in a capital bubble.  That has led to massive, unsustainable overproduction capacity.  Massive.  Not to mention the massive ecological damage created in the build out of this bubble.   There’s enough production capacity in many sectors of the Chinese economy to supply the world’s needs ten to twenty times over. 

All you needed to do to open a steel mill in China is to be the brother-in-law of the local communist official.   You can wipe away debt.  But, if demand for production collapses or doesn’t meet anticipated demand, that means a massive loss of jobs courtesy of the bullwhip effect talked about on here.  In other words, the greatest economic shock to any supply chain is that furthest removed from the customer.   Global supply chain shocks are coming as noted on here many years ago.   Frankly, they are likely to be broken permanently in most cases. 

China’s issue is not debt but it’s going to be the massive unemployment created due to the massive overproduction capacity.   Well, and the massive state-directed movement of rural peasants into urban areas needed to create this system of overproduction.  Did I say massive?  The communists are likely to have massive social unrest in urban areas.  Possibly even see many of these new centrally-planned cities or neighborhoods abandoned in a return to sustainable rural living.   Um…  that is not likely to be a China-only phenomenon as noted in many of my corporate capitalism posts.

China’s capital bubble has already collapsed as noted on here before.  That happened in 2008.  It has tried to reflate its economy with massive, unprecedented stimulus that flowed into domestic overconsumption.  It found a home in overconsumption because that was the only way to save its massive overproduction.   That is why we now see a massive debt bubble in China where one was never apparent until relatively recently.   It’s why real estate and autos, both consumption items, have exploded with unprecedented inflation since 2008.  Sometimes running over 200% per annum in certain Chinese markets.  The debt was taken on by a society encouraged to overconsume in order to stop the collapse of its capital system.  That is impossible.  Because the capital bubble is far larger than any ability to consume its overproduction. 

Sound familiar?  lol  This bullwhip dynamic and the collapse of China’s capital bubble will almost certainly be exacerbated as Europe and the U.S. collapse or recapitalize their economies or both.  (In that order.)  Although that recapitalization almost certainly will not look anything like past capitalist efforts at doing so.  ie, It will likely be driven by fundamental demand for basic necessities rather that what private, for-profit capital wants us to overconsume.  And it won’t be because of neoliberal comparative advantage that makes it cheaper to hire a corporate slave in the U.S. for a nonliving wage than in China, although the corporate state is seeking this outcome as a rebalancing act to the global corporate capitalist Ponzi scheme.

I have been well out in front of the China issue for a very long time.  Well ahead of anyone else in economics or finance that I am aware of.  Oftentimes when writing of the coming demise of China such a position was mocked because their economy seemed invincible at the time.   Just like Wall Street seemed like invincible masters of the universe before their collapse.  Those who think with their eyes are almost always wrong.   Observational science is more often junk science than anything else because the world is seldom, if ever as it seems.   That’s one reason why economics is such a miserable failure. 

China’s outcome, to some substantial degree, was preordained a long time ago.  It’s just a matter of picking the top.  The top was 2008.  And I wrote very close to the peak that their equity market was on the verge of collapse as the communists had lost control of their economy.   

Some years ago I showed an absolutely ludicrous analysis that projected China’s GDP would grow to $123 trillion in the next 25 years.  An absurd bastardization of reality that is so typical of the pervasive dumbing-down of science and reason that we call the bureaucratic corporate state.  Now anyone other than the fool who wrote that article can see with their eyes that something is very wrong in China as reality begins to reveal itself.

We have never seen anything like what is going on in China on such a massive scale.  Never.  When have you ever seen real estate prices rise 200% in a year in such a large economy?  The collapse is going to be brutal and likely unprecedented, thus as noted on here many years ago, may lead to war, starvation, massive crackdowns, revolution, etc.  We could even see nation fragmentation across the many ethnic/cultural boundaries, etc.  (Although I believe Edward Snowden’s revelations may have been so profound to possibly preclude global war as a possible outcome.)    Whatever happens, the corporate capitalist investment in China by western companies is at substantial risk for loss.  That could be communist nationalization, a bust in consumption demand, trade wars, etc.  Just like Nazi Germany and the western capitalists who re-armed and rebuilt Nazi Germany only to see it all be lost.  Again, discussed on here before.

While I haven’t noted it on here, I have written elsewhere that China’s electricity numbers for 2009, 2010 and 2011 were flat to down at 3.4 trillion kilowatt-hours depending on what quarter we were talking about.  The economic data during that time showed substantial growth.  Something isn’t right.  Either the economic data is a lie, the energy usage is a lie or they are both a lie.  The statistics coming out about China’s exports were recently documented to be a massive lie as noted on here some months ago.  We know tens of thousands, if not hundreds of thousands of factories in China have closed.  China manipulates what its citizens and the world see.  Substantially much more than even the propagandized U.S.   Here, the truth is available if one is willing to do the diligence and open their mind.  There, the Ministry of Propaganda has nearly complete control and can  bar journalists from reporting on economic crises.   Here the state just investigates journalists to intimidate them from reporting the truth.  Well, if we back up even further, the state allowed the corporate takeover of journalism and the widespread ending of investigative reporting replaced with infotainment and talking mouthpieces who believe news is promoting government talking points.  So, most journalists in this country today are just competent enough to read a teleprompter.  You know.  Like Obama.  Get them out from beyond their teleprompter and their true competence shows through.

What will happen when China sees massive unemployment as globalization’s corporate capitalist make-work overproduction and associated overconsumption unwinds?  

I find it ironic that the Chinese communists may have actually embraced corporate capitalism just as it was in the process of  dying.  That by the time communist central planners decided they wanted to embrace the economic system that supposedly defeated the Soviets, they sealed a fate of their own destiny.  Communism’s central planners who embraced corporate capitalism’s endless need for more make-work overproduction…..  A marriage of two bureaucratic, predatory statist “ism’s” made in hell.

Title link here.

By the way, believing that wealth comes from money used to make money is preposterous.  ie, China’s equity market returns.  Believing you can buy a financial asset and sit back to watch it grow without having any responsibility to the underlying economy to create sustainable wealth is a recipe for doom.  And doom it will be for this global system.

The cycle of volatility continues.

posted by TimingLogic at 9:31 AM links to this post

Saturday, July 13, 2013

The Global Economic Crisis, The Gold Market Crash And Why The Gold Futures Market Is Probably In Backwardation

I try to put up unique, indepth perspectives that often aren’t available anywhere else.  And I think most people interested in gold and the gold markets will find this piece very unique and accurate.  Especially the second half of the post that is specific to the future of the gold market.   I have written gobs of posts on money and gold.  Never should the two topics cross paths.   Gold is not money.  It may have been money when robber barons and feudal lords ruled the world through violence (gold’s scarcity) but it surely isn’t money today.  I have not always been bearish on gold as a tradable asset.  In fact, within just a couple of days of the absolute bottom in 2008’s gold collapse, I wrote that the only assets I saw at that time that looked attractive were gold miners.  They roared higher for years after that.  I’ve generally been right about the direction of gold in my posts but haven’t been the most accurate at projecting price targets.  These are two different disciplines that require different factors in their analysis.  Regardless, you will never see me write that gold should be used as democratic money.  I have written a litany of detailed posts explaining why any such notion is completely preposterous and plays into the hands of a feudal monetary system as gold always has been. 

One of my most recent posts was that gold could conceivably go to zero if this system completely unwinds.  And the futures market is pointing to that very possibility right now.  Not to zero, per se, but continued downward pressure as liquidity becomes more valuable than gold.  Now there are many ways to interpret the backwardation that is taking place in the gold futures market, and since no one has a clear view of all of the participants, all of the events and all of the data, no one can be write authoritatively of every factor involved.   But some things we do know for certain.  One is that we are in the midst of a massive unwinding in the gold futures market.    Massive.

As noted on here a few times, the gold futures market is levered to the hilt.  Many hundreds of times.  It is one of the most levered markets on earth.  But then being the 1% who own the vast majority of the world’s gold are only able to manipulate reality for the 99% through leverage itself.   The gold futures market leverage is no different than the leverage of other renter capitalism shenanigans.   It is Wall Street, corporate capitalism and the financial economy behind this and all other leverage.   And just like the housing producers and real estate speculators, many of whom went to zero or nearly to zero in 2008 for their exposure to the financial leverage in the real estate market, we could easily see the same dynamic develop in the gold market as it unwinds.   In fact, given gold’s massive leverage, both in the futures market and in wildly-levered central banks, the outcome could be much more severe for gold.  In other words, gold miners, speculators and central banks could all easily end up defaulting or heading very close to zero or bankruptcy or some equally catastrophic outcome. 

I would probably consider Professor Antal Fekete, a mathematician and  formidable critical thinker, as the most eminent gold expert I know of.  Although I certainly disagree with his notions of gold as money, he is not an unthinking gold shill as many gold speculators are.   But he does have ideological tendencies when it comes to the topics of gold used as money.   Fekete is generally driven by critical thought, rationality and reason in his thinking, something often missing in the cult worship of the gold religion.  Fekete recently talked about the gold futures market and its backwardation.  None too surprisingly, he rejects the conspiracy theories of over-manipulation of gold as a reason for its collapse just as I have in prior posts.   He also remarks that the price of gold, rather than headed for over $10,000 or more, is likely headed for extinction.   His view of extinction and mine may vary but the end results aren’t that far apart if we get to the point of this system completely freezing up.  It’s key to remember when cult worshippers hoot and howl about gold prices going to the moon, their remarks are driven by beliefs, emotion and ideology rather than rationality, logic and qualitative-quantitative analysis of macro and micro factors affecting the world today.  They simply follow an unyielding ideology that there can be no other outcome than the one they worship.

Now Fekete’s conclusions are both different and similar to mine.  Mildly different in the sense that he believes gold will eventually only be transacted through barter.  I have noted that if this system fails, and money with it, gold too will go to zero.   That outcome means gold can only be transacted through barter.  If money doesn’t become meaningless, then I could still see the possibility of a barter economy for gold as its only method of exchange.    None of this means a dollar crash is imminent as so many believe.   I have been consistent.  A global currency crisis is coming.   And with it, a violently rising dollar.  Just like 2008’s violently rising dollar.  Currencies don’t need to drop to experience crisis and as noted before, as long as the dollar is the world’s reserve currency, it will not collapse.  At least not until the world would be in some post-apocalyptic reality.  I’m not so certain of that as most gold advocates are.   The status quo toast?  Absolutely.  A Mad Max world?  Doubt it unless the status quo drags us into global war.   Anyway, who said the dollar will be the currency crisis?  It could be the yuan, the ruble or all currencies as I have remarked.  In other words, this global trade settlement system is the problem.  Most likely the currency crisis will be global and that means affecting all major currencies.  All major currencies are dying to some degree anyway.  All currencies could become essentially useless.  By the way the dollar is rising quite substantially in 2013 and is at its highest level in years just as anticipated on here.  How great that will be for corporate state profits, employment and tax revenues?  Not.  

Our views are similar in the sense that he now recognizes that we are in the biggest financial bubble in the history of the world as I have noted on here ad nauseam.  In fact, it has always been a basic supposition for many of my analyses.   That means we both appreciate that outcomes will be incredibly out of bounds, nonlinear or with a fat-tail distribution.  How nonlinear is it to believe the gold futures market could disappear as Fekete believes is likely?   (Umm…  This bubble has been building for over 30 years so let’s do away with the finger pointing at Bush or Obama or Clinton or Obama or…..  They are all complicit.  And if you are still hoping that some politician is going to save us from what they ignorantly and incompetently created, good luck with that.   They don’t have the intellectual capability to even understand their incompetency let along allowing civil discourse and citizen government work to actually create solutions.  Awaken to your emotional servitude to your masters and recognize the worthiness of your own abilities to think beyond what political dunces and corporate bureaucrts tell you.)

Putting aside our differences in what democratic money is, because gold is clearly not and never has been democratic money, many of his recent conclusions match with what I have been writing for the last eight years.

The gold miners in the gold futures markets have seen their hedging positions unwind by 94% in the last nine months.  94%.  Unheard of.  Fat-tailed distribution.  Nonlinear.  Without precedence.  And those positions were levered to the hilt as were the opposite side of that trade, the long-side, gold financial speculators including Wall Street banks.  We are making history as I type this.  The gold futures market is exhibiting many behaviors never before seen.  Additionally, gold is now in backwardation in the futures market.  Something that has seldom happened.   Maybe never happened with this type of environment.  The downward pressure on future prices of gold is very intense because of this massive speculative unwinding.  There may be other factors, or maybe not, but let’s stick with known facts rather than some paranoid conspiracy theory ungrounded in any facts.   So, it doesn’t matter how much gold China or Russia’s central banks have been buying because the un-levering of hundreds of times of leverage in the futures market is driving the price of physical gold lower. 

Now remember there were zealots telling us that the action in the paper market would never affect the price of gold.   I said on here a long time that was nonsense.  The price of gold only reached $1900 because of paper demand and paper leverage in the futures markets.  It created a recursive, self-reinforcing upward bias as contracts were opened beyond the limits of physical gold.   The speculators forced the exchanges into buying more and more gold at higher and higher prices as they would the futures market ever higher.   This is a speculator’s bubble.  And when that paper leverage collapsed, the price of physical gold went with it just as has been proven over the last nine months with the change in the paper market.  Once again, gold zealots and their religious ideology proven wrong.

This current situation in the gold market is eerily similar to real estate’s unwinding back in 2008.  Future prices or backwardation of real estate continued for some time because of that unwinding.  Forget about the fact that there are also carrying costs associated with real estate that would make future contracts more expensive in a normally-functioning, liquid market.  Just like gold.  The price of real estate could have dropped to levels not seen in decades were the bleeding not stopped by central banks providing liquidity.  Ditto with gold.  Someone needs to provide liquidity to the gold market or risk further declines as I noted on here in a prior 2013 post.  That means the massively corrupt, massively overleveraged central banks of wildly corrupt nations like China and Russia must keep buying gold if we are ever going to have any chance of holding prices here. (I have noted many times on here that the price of gold is a proxy for liquidity.  That it is now collapsing is a sign that money is draining out of the global economy at a faster rate than 2008’s collapse, as noted on here many times over the last year. )

With the gold futures market unwinding at such extreme levels, we have likely seen the peak price in gold.  In other words, unless we see a re-levering of unparalleled derivative leverage re-applied to the gold futures market, the financial predators will likely never be able to produce the synthetic demand necessary to retake this cycle’s gold price highs.   Can you imagine re-levering gold up from a 94% collapse with synthetic leverage in this environment?  That would require a nearly 2,000% future increase in gold market leverage.  This at a time when global liquidity is collapsing and the gold miners are writing down their assets just like the housing market did in 2008.   They are not going to be re-levering this bubble to the same extreme.  That likely means ever.  Forever.  Certainly, financial manipulators could mount a countertrend rally to root out gold futures market shorts.  That rise could be swift and violent but this would likely be very temporary and not driven by sustainable liquidity.  In fact, with leverage collapsing in gold, that move could come at any time buyers may step in.  That is, if they even have the liquidity and stomach to step into changing macro factors affecting gold. 

This dynamic in gold is no different than physical housing or real estate and the incredible leverage of packaged mortgage securities or the paper market.   Neither the physical or paper real estate market has re-levered to any substantially-comparative degree after its 2008 collapse.  The damage the real estate unwinding created will last for decades or longer.  So too could the damage to gold miners and gold speculators be lasting and deep with this unwinding. 

The Fed has again enabled another bubble in real estate but it is substantially narrower and smaller in price as breadth and depth of liquidity has diminished greatly due to economic and speculative losers.  We can plausibly expect any future rally in gold or attempt to re-leverage gold to follow the same path.  That is, unless there are future unforeseen dynamics that would re-liquefy the gold market to levels of previous synthetic leverage or artificial demand.  That certainly is not likely given the world is awash in debt, leverage, central bankers running out of bullets and economic collapse.  Liquidity has never returned to most of the economy in the last five years.  And it never will until this system is fixed, freezes or collapses.  Ditto with gold.  Or corporate profits.  Or the entertainment industry-service economy-consumption-military industrial complex, state power bubbles that are peaking.

Now I also wrote years ago that there would be a time that China, Russia and others would likely become net sellers of gold as they needed to raise liquidity as their economies and currencies collapsed.   When that happens, we’ll likely get another punishing leg down in gold’s price.  If nothing else, as their currencies and economies start to unwind, they will no longer be large buyers of gold.  That will put downward pressure on the physical gold market just as we are witnessing downward pressure on the paper or futures market today.  A worthless yuan or ruble won’t buy a lot of gold.  Or anything else.  Of course, the same could be said for dollars. 

As I have noted before, the yuan and many other currencies are already worthless.   The communists just don’t realize they have burned their currency to the ground.  Yet.  That collapse is already starting.  After 200%+ annual inflation in parts of the Chinese economy, an unprecedented dynamic in an economy so large, and propagandized trade and economic data that has not been indicative of real economic activity, the communists are finally running out of propaganda bullets.  Of course, so are the U.S. and Europeans in their levered schemes. 

We are seeing commodities, emerging market currencies and emerging market financial markets starting to collapse in 2013.  Some markets have been butchered including South Africa and Brazil as two examples.   Counterparty risk is rising rapidly and no where is that rise more rapid than between corporate states.  Something that I have been writing will come to pass before this cycle ends.  This rise in risk is substantially tied to China’s inability to continue to manipulate the reality of their economic catastrophe as emerging market currency and financial market valuations are dependent on commodities trade with China.   That could also be behind the recent rise in bond rates around the world in the last few months.  ie, As I wrote half a dozen years ago, China won’t stop buying U.S. bonds because they want to but because  they will be forced as their economy and currency implodes.  This does not bode well for future purchase of gold by China’s central bank.

By the way, remember all of this is happening with the most accommodative central banking policy in history.  With tens of trillions of dollars of bailouts and endless money printing.  Money printing that has allowed gold speculators and manipulators to drive the price of gold into the stratosphere with unprecedented futures leverage.  Central banks are not the solution.  They cannot and will not fix this crisis.   They are part of the the problem as configured.   A society’s money and banking should never be controlled by private, for-profit, debt-driven interests. 

As a reminder I have written for years that I expect the U.S. to default or monetize much of its debts and that 2013 was my estimate for such an act.   We still have six more months of a world deteriorating very rapidly.  I could make an argument that 2013 is the most important turn date in the last 4,000-5,000-odd years but regardless, we shall witness whatever happens together.   (I’ll share a little more about this later.)

Now, going back to my post I put up well before the 2008 collapse on what was going to happen with countries, companies, consumers, the military-industrial complex, the state, investors and financial markets.  I wrote exactly that the entire world was going to unwind.  Or, if you prefer, unravel.  And global trade would collapse.  Interestingly, Fekete just wrote that global trade is going to collapse.   We already got a whiff of this in 2008.  But for this to happen permanently, corporate capitalism has to collapse.  And that is what we are witnessing around the world today.  The amount of trade we see in the world is many factors beyond what is needed for sustainability because of corporate capitalism’s need to create endless overproduced make-work and associated overconsumption.  There is no way for central banks or politicians to provide the liquidity and solutions necessary to stop the reset.   The leverage is literally  unquantifiable in scale and breadth.   And it’s not debt-based or monetary leverage in most circumstances although we certainly are in the midst of a tyrannical debt bubble.  It also includes gold.  And yet it’s leveraged schemes of other sorts of mistruths, deceits and lies go well beyond renter or financial capitalism.  Monsanto, as just one example, is not levered to debt or money or financial leverage.  It is levered to an illusion of control enforced by corporate state corruption.   Ditto with countless thousands of corporations in every industry and in every nation.

Temporary liquidity stopped the collapse of financially-traded assets in 2008 but that mirage will ultimately disappear in the gold market, real estate, corporate profits, the military-industrial complex, the state, the investor class, etc.  Company assets, many companies, state institutions, etc. may survive in some form but we are in the midst of the largest transformation in social history. 

So while Fekete sees the gold futures market as possibly disappearing, I would certainly state that this is a plausible possibility.  In fact if capitalism dies, the stock market and other funding mechanisms for capitalism will likely disappear as well.  Again noted on here before.  Fekete talks about gold maintaining some intrinsic value as money through barter.  As the old saying goes, you can’t eat gold. (Take your God-given rights from the predators who steal them.)   I certainly believe barter is a distinct possibility in the future but not necessarily in some post apocalyptic world.   That said, I am dubious of gold barter becoming any type of mainstream reality in any widespread exchange for goods or services.  Maybe barter to use gold to make a cover for the golden calf’s idolatry of worldly greed and attachment.  Or a boat anchor.

If I have been writing that one day money will disappear permanently, how else would one gain access to food and shelter other than some type of barter or quasi-barter system?  I actually have two posts written on this topic that I just haven’t put up yet.  It will explain how elegantly such a system could work.  How much would your quality of life increase if you never had to spend a waking moment worrying about where the money would come from to provide food, shelter or health care?  That day will come for humanity.  It’s just a matter of when. 

What may be more likely is that money and gold will become irrelevant in many regards.  We may even witness money disappear permanently as noted on here many times.  That may be five years, two years or twenty years or two hundred years but it’s coming.  And I think the circumstances exist that it might happen in my life time.  Money is an institution of the ego and thus is used as a form of control that subverts discovery and truth.  

As noted on here many times, this cycle is the definitive cycle on failures of institutions of the ego - corporations, politics, political parties, empire, the state, manipulated institutions, money, capitalism, gold, etc.    That’s a very good thing.  When the ego and all of its faulty beliefs and control-based institutions are subsumed or destroyed or reset, truth and discovery rise from the ashes.  And with it a process of enlightenment occurs.  Unfortunately, enlightenment is a violent and invasive process for those who are rigid thinkers and have well-developed faulty  belief systems that are shattered in the process.

posted by TimingLogic at 9:36 AM links to this post

Friday, July 12, 2013

As Globalization Collapses Boeing Thinks It Has Airbus Boxed In

Recently at the Paris Air Show Boeing arrogantly stated that it believes it has Airbus by the tail.   This is similar to the kind of arrogance Airbus displayed back in 2000.  One of my long-time theses on here is that globalization is collapsing.  If that happens, air travel will implode.  Permanently.  Boeing is likely on the cusp of a major wakeup call.  It’s the same type of wakeup call that Airbus experienced in 2000 at the peak of the Internet bubble.   I remember thinking in 2000 when they launched the massive A380 that has the ability to seat over 800 cattle, that the top had to be in.  That plane has been a big bust that will never pay for itself.   Airbus could never even exist without massive European government subsidies.

Boeing is an engineering powerhouse in spite of the fiascos it had with its 787.  Those issues were because of the massive incompetence of senior management in their meddling with world-leading engineering and production systems.   The method through which plane subsystems were sourced from around the world was a clusterf*ck of massive proportions that is typical of the bureaucrats who created globalization.  Half a dozen years ago, the Wall Street Journal or New York Times, I can’t remember which, had a full page article on the mess Boeing management had created with the outsourcing of the 787 design and production process.  Boeings engineers and technicians clearly articulated to management before this endeavor was undertaken that it would end in disaster.  A little bit of I told you so that resulted in massive launch delays that certainly cost the company more than it ever conceived it would gain by spreading subsystem design and assembly around the world rather than controlling it through rigorous engineering processes already in place within Boeing.

Boeing still has teething problems with the 787.  While I am not privy to the extent of the engineering issues they are experiencing, I have to wonder where this all ends given the management-created mess Boeing engineers had to clean up.  Did they finally right all of the issues that wrong-headed management decisions created?  Regardless, I can’t believe a twin engine jet was granted transatlantic flight routes so early into production.  Today, a 787 apparently returned to Heathrow after starting its transatlantic flight.  I think I’ll take the subway, thank you. 

Right now Boeing’s stock is trading at a multiple of 64x enterprise value to levered free cash flow.  That is insanely staggering.   It’s almost unbelievable but typical of the massive bubble we are in.   This company is priced at a level that is probably about 8-10x what the average stock was valued at in 1929 before the market collapsed 95%.   If global demand for Boeing’s products drops substantially, and that includes its massive corporate welfare program of the military-industrial-police state overproduction, Boeing investors are going to be handsomely rewarded with obliteration. 

posted by TimingLogic at 7:28 PM links to this post

Thursday, July 11, 2013

Oliver Stone: Our Country Was Born In Rebellion Against The Tyranny Of Unchecked Power

Might I add class-based power that is an afront to democracy and liberty.  Title link here. 

The madness gets more unbelievable every single day.  You talk about f*cked up.  This is right out of some dystopian thought crimes horror story.  Insider threat?  There is no insider threat other than that of political parties and politicians, the military industrial complex and corporations who have committed high crimes and misdemeanors against the sovereign people of this nation.   Snowden?  Manning?  Kiriakou?  Ludicrous.  There must be a provable willful intent to aid an enemy or mens rea to be prosecuted under an act of espionage.  There is no way this is provable in any of these cases.   Prosecuting them under the guise of espionage is an act of state terrorism and lawlessness.  It is the coercive bullying by employing all of the force of the state in an effort to defeat discovery, transparency, accountability and true justice. 

The endless asinine behavior of the aristocracy in Britain and France at the time of the Age of Enlightenment (the French and American Revolutions) don’t have anything over the ignorant arrogance and tyranny of modern-day politicians.   

posted by TimingLogic at 8:50 AM links to this post

Wednesday, July 10, 2013

Stopping The Trans-Pacific Partnership And Corporate Capitalism Crimes Against Humanity

Bill Clinton and Al Gore are substantially responsible for the criminalization of global trade.  The size, scope and ultimate state brutality of the 1999 Seattle WTO revolts was suppressed by Amerika’s corporate state media.  As if right on time, the next crypto-fascist Democratic president has been planning something that will make Bill Clinton and Al Gore look like saints.  An update on the corporate state crimes against humanity perpetuated by the current White House.

posted by TimingLogic at 7:13 PM links to this post

Corporate Terrorism Alert: Wal-Mart Threatens To Leave D.C. If A Living Wage Law Is Passed

The human mind has only two intents in everything it does.  The intent of control and the intent of discovery and truth.   Threats have an intent of control.  Terrorism is an intent to control victims through the use of threats, coercion and force that instill fear in its victims.  Bullying is a form of terrorism.  Corporate bullying is a form of corporate terrorism.  State bullying is a form of state terrorism.   

Don’t let the door hit you in the ass on the way out.

posted by TimingLogic at 3:27 PM links to this post

Tuesday, July 09, 2013

The U.S. Learned How To Spy From The Original Predators In The European Aristocracy

Update: sort of off topic but this audio excoriation of NSA college recruiters is absolutely brutal and very worthwhile.

As noted on here in one of my “state” posts it’s preposterous to believe the U.S. is the only state spying on everyone.  Every state spies.  It’s in their DNA.  Violence provides the state with purpose.  Violence is the only method through which the state exists and spying is clearly a form of violence. 

Don’t believe any of the political nonsense out of Europe about being surprised by U.S. spying.  The hypocrisy of European political toadies is a thin veneer of deceit deflecting from the real truth.  That is, the U.S. learned to spy from the European aristocracy.   State and corporate power in Europe contributed substantially to two world wars.  Two world wars that were started in Europe by the European aristocracy.  We can be assured that it was more than the Nazis gobbled up by the CIA that taught us how to spy, deceive and manipulate.   The British and French were masters at deception and spying before our nation was even born.  There are countless tales of European state-based terrorism and spying on our soil during the American Revolution and Civil War.  In fact, there are some reports coming out now, although still unsubstantiated, that Europe and the U.S. are spying on each other’s citizens to avoid the issue of constitutionality and legality.  (  Video of story here. )  ie, If I spy on your citizens and you spy on mine and we secretly exchange data, there is no issue of legality of spying on people in our own nations. 

Does it make you all warm and fuzzy that former East German and fascist destroyer of modern Europe, Angela Merkel,  may be spying on you as an American citizen?  Well, and much, much more including spying on our own public officials, military officials, judges and presidential candidates.  For what reason?  Probably the same reason J. Edgar Hoover ran a Gestapo-like organization at the FBI – so the CIA and the military-industrial complex can bribe and control politicians and our democracy.  This would be completely consistent with the National Security Act that came into existence in 1947 that made the U.S. a permanent war state.  (How do we know Obama wasn’t a candidate hand-picked by the CIA as absurd as that may sound?  He certainly is the most CIA-friendly president I am aware of.  In actuality, we know nothing because of unprecedented secrecy of the state.  Now that doesn’t mean we go all paranoid and start creating  conspiracy theories but frankly anything plausible is possible.)

Europe is and always has been the epitome of a class-based society.  Corporate capitalism originated in Europe under feudal, repressive corporate empire.   Then it became how class rank, title and privilege of feudal aristocratic economic and political power were maintained as Europe evolved from feudal, repressive fiefdoms of birthright rank and privilege to some modicum of democracy. 

The European aristocracy continued to hook citizens up to a plowshares to till the fields, even after democracy came into being.  But European elites continued to keep the vast majority of the abundant harvest and with it, they kept class-based political and corporate control that subverted true freedom and democracy.   On the other hand, at least that is more than has generally ever happened in the U.S.   In the U.S. the aristocracy beats their beasts of burden until they are no longer able to plow the fields.   What few social uplift programs and social safety nets we had and what few buttresses against private for-profit capital were gained through violence and loss of life.  Those social uplift programs and social safety nets were generally bludgeoned by private capital decades ago. 

European aristocracy, having much more experience at being cunningly-deceitful predators, learned that feeding, housing and providing basic medical care for their beasts of burden allowed them to maintain their title, privilege and fortunes with little resistance.   Giving the appearance of some freedom pacified revolution seeking true democracy and freedom.  They hide their slavery in plain sight.   But we see the true reality today.  Given the choice of democratic reforms that would benefit European societies and increase true freedom and empowerment of all people, yet must take much of the control away from class-based aristocratic predators to accomplish this, we see a fascist, brutally-repressive Europe that will do anything to maintain its class rank and keep the jack boot of the state on the neck of those it impoverishes.   That includes creating 25-65% unemployment and the gutting of programs needed to keep people from starving.  Europe just announced a new record unemployment rate in the last week. 

The statist predators in Europe and every other class-based society are no different than in America.   Whether it’s Nazi Germany, the British empire, the French empire, the Khmer Rouge, the modern day European states, Canada (the 51st and second most inconsequential American state because they don’t even get the appearance of voting) , Mexico (the 52nd and most inconsequential American state), Australia, Saddam Hussein, the American empire, the Japanese empire, the Soviet Union or Communist China, they are all the same.   The state  always grants itself aristocratic rights and takes whatever power it believes it can get away with.  If the state in the U.S. could declare outright war on its citizens like is happening in Europe, I have no doubt it would.   They are all violent predators that use the force of the state to maintain their title and class privilege.   And we can be assured that they are all spying on their citizens and everyone else.  It’s preposterous to believe anything else.  That includes each other within the same country.  

As an extension of that violence,  they use spying, the military-industrial complex and their statist laws as much to control us as to protect their aristocratic rank and title.  And they always have and always will until democracy does away with class and class privilege.  War, like capitalism, is a class-based, state-enforced form of violence used to protect those who have from those who don’t.  Or to stop those  who want to have from those who already have.  That includes citizens within their  own nation.

Now we find out that not only Britain but France has a vast surveillance network.  (That they too will almost certainly deny on some level.)  Is this really an surprise?  The only surprise is that anyone believes it is a surprise.  Certainly elements of the Stasi still exist within the German state and I would expect them to be one of the most prolific states at spying and Snowden tells us as much.  They certainly are the most prolific on mainland Europe at spreading covert economic and financial violence. 

All of Europe is still embroiled in aristocratic violence still clinging to power even after the fall of feudal Europe. 

posted by TimingLogic at 9:03 AM links to this post

Monday, July 08, 2013

Paulson’s Gold Fund Down 65% This Year

Many hedge fund managers, Wall Street traders and the like  made a name for themselves by minting money in the last two decades when renter or financial capitalism really gained eminence thanks to Reagan, Clinton and Bush II.   Making big bets regarding the future is the only way Wall Street firms are able to actually produce outsized profits.  But the reason they have been successful in this strategy is that they front-run liquidity provided by the Federal Reserve, which is essentially a privileged insider’s racket, they manipulate financial markets through state-endorsed corruption and they front-run policy changes in Washington that are intended to produce outsized financial rewards.  They are able to front-run policy changes in Washington because their endless political bribery allows them to write the policies.   Maybe John Paulson earned his money the old-fashioned way.  But he and most others are starting to look rather dull in the last handful of years. 

Now that we are in a nonlinear world crony capitalism and insider information no longer is reliable form of generating profits because Washington, the Federal Reserve and Wall Street no longer have any control over the economy.   A long-time thesis on here is that the hedge fund industry is going the way of the Dodo bird.   Without all of that free money served up on a platter by politicians and central banks, that would have already happened.  It’s only a matter of time.

Anyone can make money when the game is rigged in their favor and they are handed endless supplies of free money.  But without cronyism and the insider’s game, the real abilities of Wall Street are starting to shine through.  Our emperors have no clothes.

Bloomberg story here.

posted by TimingLogic at 12:23 PM links to this post

Saturday, July 06, 2013

Capitalism’s Terrorism In Bangladesh

As one reads this story in Der Spiegel it doesn’t take much imagination to remember the days of yore in American and European factories.  How private capital was a form of endless abuse of the economic rights of western democracies.   Oftentimes it too lead to large accidents and death.  For some short period of time American and European workers organized against the tyranny of private, for-profit capital and many enjoyed some share of the pie in the wealth created.  Wealth created in large part by their labor.

How our nation and other nations would be different if “public” companies were really publicly-owned rather than being owned by private class, rank and title as they are today.  ie  The shareholders to corporations were actually all of the citizens of any democracy not just those private interests who have accumulated its wealth and power for whatever reasons.  Certainly, the vast majority of public companies never would have qualified to receive democracy’s capital and thus wouldn’t even exist.  And there would be no need to organize against private for-profit capital and corporate power because dividends and surplus value would be governed by public capital aka democracy.   Companies like this one in Bangladesh and untold tens of thousands of others who prey upon humanity and the planet would then never exist.  

1,100 people needlessly died because of the endless terrorism that is the king’s private for-profit capital.   Who weeps for these victims of private capital’s terrorism and their families?  Was this or the other thousands of examples on the front page of every newspaper in our nation as was the terrorism of 9/11?  No.  These are the nameless faces of the people who, under duress and lack of economic and human freedom, make our cell phones, clothes, gadgets, auto parts and on and on.   Yet we have no idea who they even are and the corporate state clearly wants it that way.  This truly is nothing comparative to private, for-profit capital’s endless crimes against humanity - war, misery, terrorism and death over hundreds of years.  How many dead due in some large part to private, for-profit capital?  Over one hundred million?  I think certainly much more.   Both world wars were to some large degree created by private, for-profit capital.   How many lives enslaved to exploitative and predatory suffering and indignity?  Billions. 

No human being should ever have to suffer the indignity, economic slavery and death that the people of Bangladesh experienced.  Modern science and the monetization of science, including productivity, has created a world of abundance so that no person on this earth should ever have to yield to repressive exploitation and suffering.  Public capital would transform the human experience and the natural world in more ways than are imaginable.

Title link here.

posted by TimingLogic at 7:23 PM links to this post