9-Aug-11 News -- World stock markets continue their dramatic slide
Repeating October 21, 1929
** 9-Aug-11 News -- World stock markets continue their dramatic slide
** http://www.generationaldynamics.com/cgi ... b#e110809b
** 9-Aug-11 World View -- Riots and looting spread across Britain
** http://www.generationaldynamics.com/cgi ... 09#e110809
More Arab states recall envoys from Syria
Contents:
"World stock markets continue their dramatic slide"
"Repeating October 21, 1929"
### World View - Riots and looting spread across Britain
"Riots and looting spread across Britain"
"More Arab states recall envoys from Syria"
"Philadelphia imposes 9 pm curfew on teenagers"
"Japan releases China's trawlers fishing in Sea of Japan"
"N. Korean government earns cash from hacking S. Korean online games"
Keys:
Generational Dynamics, Wall Street, European Central Bank,
Chris Matthews, Bill Maher, price/earnings ratio,
Keys:
Generational Dynamics, Britain, David Cameron, Syria, Bahrain,
Kuwait, Saudi Arabia, Philadelphia, Japan, China, North Korea
9-Aug-11 News -- World stock markets continue their slide
Re: 9-Aug-11 News -- World stock markets continue their slid
John, it appears the establishment of the US has become a danger to the Republic itself. The comments out of the mouths of Geithner and Obama are almost like something you would hear out of the mouths of the Hitler administration, the big lie told over and over again. The Establishment is Goebels. Now I am not saying Obama is Hitler, but Hitler probably didn't tell the people his evil intentions, but instead his propaganda, which is what much of the establishment of Germany wanted him to spew. Are they that stupid to stand in front of the world and say in one breath that a responsible country pays its bills, lend me some more money to do so? A lot of people are blaming the threat of default on the Tea Party when in fact default and August 2 had nothing in common unless Geithner wanted it that way.
The problem is what you say, that the economists don't know what the hell they are doing because they don't know what the hell is happening. Some people talk about paying down the debt or even paying it off, not knowing that the treasury debt is our money, thus money would disappear. Not 1 in 50 men and women in the Congress have a clue how debt economics work. Obama must have some clue as he knows his only chance for re-election is to continue to run the country off the cliff, in hopes it holds up long enough for re-election. This is a dangerous man and his people play the race card if you don't agree with him. I was banned from a venue I posted for years for referring to one of his female backers as a NAZI, but that was how she was acting, like the rest of the country had no voice. Just like when they passed the health care bill, unread. Who wrote it with all the Gestapo IRS tactics in it?
The real problem is the world is out of credit. We have inflated assets that have been inflated with excessive credit and with profits that exist from the same excessive credit. The problems going forward is that one can't continue to lend another money they can't pay back to vendor finance the corporate structure. The middle class is drained in a wide scale basis. Home equity is gone. Corporate profits can only exist if the profits are constantly re-invested in the economy and not siphoned off to inflate more corporate paper. Buying paper assets isn't capital spending, but trading assets. As the chips pile up on one side of the table, chips can't continue to come from where they don't exist. Every dime of money in circulation, a small group of people draw an income out its very existence. The bottom half of the economy has been sucked dry and has nothing to provide for the profits to be claimed by the upper half. We can pretend to have profits though if the government and banks create debt and the Fed help in financing it and give it to the under class, who pass it onto the corporations. This is called the corporate state, a pretty name for fascism.
Maybe the true situation begins to come clear. Krugman works for the NYT. The NYT is situated in NYC, home of the big banks. The big banks can buy treasuries with their own credit, essentially getting the interest income to put on their books for free. If the government can't continue to prime the pump, the free money eludes the banks, doesn't pass through the system to the corporate speculators and the gig is up. Only this is the front end. The back end is the rest of the world isn't going to allow the US to continue to do this forever and one day it will merely collapse, just like the PIGS in Europe. We can always print money? No, we can roll out toilet paper with pictures on it, but we can't expect others to take it.
My final point is that if this money dries up, the pressure to keep asset prices high will lessen and the credit that inflates the earnings will not be available. So, we have a good chance of not only falling to a lower PE, but a lower level of earnings as well. This, in itself will reverse the leverage in the system, as the paper itself will carry with is less in future value redeemable in the present.
The problem is what you say, that the economists don't know what the hell they are doing because they don't know what the hell is happening. Some people talk about paying down the debt or even paying it off, not knowing that the treasury debt is our money, thus money would disappear. Not 1 in 50 men and women in the Congress have a clue how debt economics work. Obama must have some clue as he knows his only chance for re-election is to continue to run the country off the cliff, in hopes it holds up long enough for re-election. This is a dangerous man and his people play the race card if you don't agree with him. I was banned from a venue I posted for years for referring to one of his female backers as a NAZI, but that was how she was acting, like the rest of the country had no voice. Just like when they passed the health care bill, unread. Who wrote it with all the Gestapo IRS tactics in it?
The real problem is the world is out of credit. We have inflated assets that have been inflated with excessive credit and with profits that exist from the same excessive credit. The problems going forward is that one can't continue to lend another money they can't pay back to vendor finance the corporate structure. The middle class is drained in a wide scale basis. Home equity is gone. Corporate profits can only exist if the profits are constantly re-invested in the economy and not siphoned off to inflate more corporate paper. Buying paper assets isn't capital spending, but trading assets. As the chips pile up on one side of the table, chips can't continue to come from where they don't exist. Every dime of money in circulation, a small group of people draw an income out its very existence. The bottom half of the economy has been sucked dry and has nothing to provide for the profits to be claimed by the upper half. We can pretend to have profits though if the government and banks create debt and the Fed help in financing it and give it to the under class, who pass it onto the corporations. This is called the corporate state, a pretty name for fascism.
Maybe the true situation begins to come clear. Krugman works for the NYT. The NYT is situated in NYC, home of the big banks. The big banks can buy treasuries with their own credit, essentially getting the interest income to put on their books for free. If the government can't continue to prime the pump, the free money eludes the banks, doesn't pass through the system to the corporate speculators and the gig is up. Only this is the front end. The back end is the rest of the world isn't going to allow the US to continue to do this forever and one day it will merely collapse, just like the PIGS in Europe. We can always print money? No, we can roll out toilet paper with pictures on it, but we can't expect others to take it.
My final point is that if this money dries up, the pressure to keep asset prices high will lessen and the credit that inflates the earnings will not be available. So, we have a good chance of not only falling to a lower PE, but a lower level of earnings as well. This, in itself will reverse the leverage in the system, as the paper itself will carry with is less in future value redeemable in the present.
Re: 9-Aug-11 News -- World stock markets continue their slid
Wild bounces up should not make people think all is well.John wrote:My reason for posting this data is because what we're seeing these days appears to be very similar to what happened prior to the 1929 crash, especially the wild volatility, and the calm assurance of some analysts that the worst is over.
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