Monday, December 5, 2011

Instant acting Kool Aid

Greetings good citizen,

The Dow opened up 125 points this morning driven (presumably) by ‘Happy talk’, which of late has been, er, ‘overly-optimistic’.

Then there’s the “What the fuck have YOU been smoking?” disinformation reserved for Arab Spring and other ‘convenient fictions’

Finally there’s this bull shit (which is on par with instantaneous acting Kool Aid.)

Are ‘investors’ so unhinged that they are confusing the ‘death spiral’ of the Euro-zone with just another ‘bag ‘em and tag ‘em’ rip-off scam?

What is this, the seventh time the Euro-zone has had to be ‘bailed out’? (this year..)

How deep does this rabbit hole go, good citizen and will we ever find the bottom? (which appears somehow connected to our ability/willingness to pay…)

Is a ‘new charter’ the answer (when it appears nobody can afford the old one?) It is highly unlikely a ‘new charter’ will provide more, er, ‘lenient’ terms and conditions than the original.

Would, er, ‘economic blending’ (similar to the US) ‘solve’ this fiscal crisis?

Mr. Williams of Shadow Government Statistics provides us with some insight on the subject

December 4th, 2011

There Is No Sudden Economic Recovery, Just Bad-Quality Numbers and Deteriorating Labor Conditions

Latest Jobs Level Still Well Below Pre-2007 and Pre-2001 Recession Levels

November Unemployment: 8.6% (U.3), 15.6% (U.6), 22.6% (SGS)

Money Supply M3 Annual Growth at 2.7% in November

Potential Euro Disintegration Is Nothing Like the Looming Dollar Collapse 

The very first ‘bullet point’ demonstrates the failure of the unified US system of commerce has had in mitigating, much less curing the general economic malaise globalization has visited upon the world.

Economics 101 good citizen, you cannot live in an economic desert (thus anything that makes that desert worse is, by necessity, ‘bad’!)

The second bullet point only makes the situation that much more dire…labor force participation is still below the 2001 level…so what are the media fucktards crowing about an economic recovery for, to make Obama look bad?

I just walked away for a moment (to walk the dog) and that successfully derailed the rant I was going to unleash on what could politely be called Bush’s third term…(and he’ll get a forth [term] if the useless Democrats don’t dig up a challenger, pronto!)

Let it suffice to say we can only wonder why nobody in the ‘corporate owned media’ has picked up on the fact that labor force participation is so low?

Could the answer be as simple as ‘corporate owned’ and if you report what the man signing your paycheck doesn’t like, not only will the subject not make publication but neither will you!

Now to dot the i’s and cross the t’s we have this story from Jesse of the Cross roads café fame:

"A dollar-denominated deposit made in foreign banks or foreign branches of U.S. banks. Depositors sometimes transfer their funds to European banks in order to take advantage of higher interest rates. The Eurodollar is one type of Eurocurrency. Eurodollars are US currency deposited in banks outside the United States but not always in Europe. Certain debt securities are issued in eurodollars and pay interest in US dollars into non-US bank accounts. Eurodollars are a form of eurocurrency."

I think the term Eurodollars outgrew its origins, as it had come to refer to dollars held overseas outside the jurisdiction of the Fed and the US Federal Government. It started as a movement by certain entities to hold their assets outside the Fed to avoid freezing and seizure of assets, but it become much more broadly used as the dollar grew into the global reserve currency.

So to avoid confusion, Eurodollars will refer to any US dollar held as foreign currency as defined by the BIS. M3 Eurodollars will refer to the discontinued series by the Fed which estimated the dollars held overseas at branches of US banks.

I would agree with the Fed that their definition had become quaintly irrelevant to the markets. I estimate that today the M3 eurodollars represent less than a third of Eurodollars held around the world.

Okay, so what we’ve got here is a world kept on ‘life support’ via ‘creative accounting’.

Um, some (see the Automatic Earth’s 1,000th post) don’t think the global economy will make it to Christmas!

Since all money is ‘funny’ I’m pretty sure they’ll muddle through until the New Year, then they’ll pull the plug (and blame it all on the Mayans!)

As I have stated repeatedly, NONE of this should be/ NEEDS to happen.

Lenders made bad loans, they should suck it up and suffer the consequences.

Given the extremely ‘unstable’ nature of (more for me) capitalism, the whole system should be scrapped and a new one erected…with an eye towards leveling the playing field!

The world is going to come unglued attempting to pay the imaginary debt demands of people who already have more than they can spend!

Does that sound ‘right’ to you?

I didn’t think so.

Thank you for letting me inside your head,


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