Sunday, June 10, 2012

Going Down?

Greetings good citizen,

Happy SUNDAY to you all, which makes today’s lead story that much more interesting.
Spain to Accept Rescue From Europe for Its Ailing Banks

European finance ministers promised up to $125 billion in aid, which they hope will quell rising financial turmoil ahead of elections in Greece next week that could roil world markets.

We can only speculate as to the effects this would have had on the world’s markets if it had occurred on a ‘normal business day’.

Intuitively speaking, you’d have expected a ‘sell-off’ like you’ve never seen before, because the whole ‘euro’ situation just got that much worse…but that’s not how the (idiot) traders see things. They’d take the ‘they’re doing something about it’ side of the coin and drive markets up to dizzying heights (for absolutely NO rational reason, simply sticking your finger in the dike DOES NOT ‘fix’ the dam.)

Spain is in the exact same leaky canoe as Greece. It doesn’t have the infrastructure base needed to support the debt load that is being forced on them. So loaning Spain money to pay for bankers losses only make the hole in the euro-zone that much deeper.

The thing that strikes you in the eye is just how much ‘self-congratulations’ are going on behind the idea of announcing this as a ‘Done Deal’ on a Sunday?

You can rest assured that SOMEBODY thinks they are being too clever by half!

Yet you know the markets will ‘react’ to this news tomorrow.

The ‘quiz’ awaiting us is which side of the fence are YOU on?

Do you side with me and bet markets will rise (because action, good, bad or indifferent ALWAYS makes the markets rise)

Or will you go with the rational approach and opine markets will ‘sell-off’ because no matter how you slice it, this is ‘Bad News’?

Somehow the markets are able to blatantly ignore serious negative developments, like this one here:
Affirming Slowdown, China Reports Second Month of Scant Economic Growth

Growth in industrial production, retail sales and investment in fixed assets like factories and office buildings was little changed from April.

Time for another ‘quiz’…(show of hands now) who is surprised to see ‘stagnation’ in the Chinese economy?

Hey, yeah, you in the back, not a regular reader, eh? NONE of my readers have their hands up!

When you pauperize your customer base it only stands to reason that sales, er, ‘taper off’.

If the corporate owned media has been ‘semi-truthful’ about one aspect of the ‘Greater Depression’ it has been their acknowledgement of ‘slack demand’.

Ironically, this last sentiment segues nicely into the last tidbit for your consideration today

BUT I’m not done ‘speculating’ about what a long term slow down in China means for the rest of the world.

How do you ‘fix’ slack demand, good citizen?

You know; you give out raises!

So why are our politicians so fucking clueless?

Oops, my bad! I keep ‘forgetting’ that our politicians work for their campaign contributors (a.k.a. the people who would have to fork over the raises…)

This poses the question of why we don’t have politicians hanging from every lamp-post but the answer to that one is because they are the nominal boss’s of ‘the men with guns’.

See what a fine job the ‘founders’ did of thwarting change?

Although they do have my sympathy, the founders were ‘terrified’ of the prospects of the church ‘hijacking’ the newly founded government.

In a not too humorous aside, these forces are still waiting in the wings almost 250 years later!

But this still doesn’t answer the question of how stagnation in the world’s workshop is going to affect the global economy?

So we whip out our Econ-101 books and have a gander at ‘business basics’.

And it says, right there in black and white: All businesses are totally dependent on ‘cash-flow’.

We have a special name for enterprises that don’t attract sufficient cash flow; we call then ‘bankrupt’.

Which is to point out, good citizen, that as things continue to ‘slow down’ the number of ‘viable enterprises’ will continue to the population continues to expand.

Now I’ll pull the trigger on our final news item, because it is ‘indicative’ of our worsening plight:
Forced to Early Social Security, Unemployed Pay a Steep Price

The recession and its aftermath have forced many older people who are out of work to draw Social Security earlier than they had planned.

Um, that is only half of the story. There is a regular ‘rush’ going on to collect SSI ‘disability pensions’.

Employers are, er, ‘fussy’ about who they hire. If you have a bald head or a slight limp (for whatever the reason) chances are good your application will be ‘circularly filed’ before your backside waddles out of sight.

And you can’t blame them, employers prefer kids (especially if the work is ‘physical’.)

If you look like you’re over FORTY, you’d better have an amazing resume or you’re NOT going to get hired.

Mostly because there isn’t enough work out there to keep the people already working there busy.

This is largely due to our commerce system the same commerce system that allows the criminals among us to ‘buy’ the legal outcomes that suit them.

An unjust society can not stand.

It is high time we restore ‘justice for all!’

Thanks for letting me inside your head,


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