*** 1-Feb-14 World View -- Syria 'peace talks' end in recriminations and accusations
This morning's key headlines from GenerationalDynamics.com
- Syria 'peace talks' end in recriminations and accusations
- Eurozone continues spiral into deflation, with 12% unemployment
- Three bankers commit suicide in one week
****
**** Syria 'peace talks' end in recriminations and accusations
****
Supporters of Syria's president Bashar al-Assad demonstrate in Geneva on Friday (Reuters)
The so-called "Geneva II" Syria peace conference in the Swiss town of
Montreux ended on Friday with no agreement on peace, no agreement on
humanitarian aid, and no commitment to another meeting. According to
UN envoy Lakhdar Brahimi, who was conference leader:
<QUOTE>"Progress is very slow indeed, but the sides have
engaged in an acceptable manner. This is a modest beginning on
which we can build.
The gaps between the sides remain wide; there is no use pretending
otherwise. Nevertheless, during our discussions, I observed a
little bit of common ground – perhaps more than the two sides
realize or recognize.
Things have gone so far down that they are not going to get out of
the ditch overnight."<END QUOTE>
The Friends of Syria, a Western alliance that backs al-Assad's foes,
said, ""The regime is responsible for the lack of real progress in the
first round of negotiations. It must not further obstruct substantial
negotiations and it must engage constructively in the second round of
negotiations." The U.S. State Department said that the Syrian
government "continues to play games."
Syria's deputy prime minister, Walid al-Moallem, gave two reasons for
the failure of the conference:
<QUOTE>"[One reason was] the non-seriousness and non-ripeness
of the other side and its threat of blowing up the meetings many
times and stubbornness on one issue as if we come here for one
hour to hand them over everything and return and this indicates
the illusions they live.
The second reason was the US flagrant interference in the talks
and the tense atmosphere through which the US wanted to cover
Geneva meeting by its actual appearance and its flagrant
intervention in the meeting affairs were also reasons that made
the talks don’t lead to tangible outcomes."<END QUOTE>
Brahimi says that a new meeting is scheduled to begin on February
10, but the Syrian delegation denies that it's agreed to attend.
Debka's subscriber-only newsletter (sent to me by a subscriber) says
that its intelligence sources are telling quite a different story.
Debka, which sometimes gets things wrong, claims that the meeting in
Montreux was just for show for the media, and that the real
negotiations are going on at a meeting in Bern, with representatives
from the U.S., Russia, Syria, and Syrian opposition representatives.
The Mideast Arab countries, Saudi Arabia, Qatar, Oman and the UAE,
were not invited. I found no confirmation of this story anywhere, so
make of it what you will, Dear Reader. Daily Star (Lebanon)/AFP and Syria Online (Damascus) and Debka
****
**** Eurozone continues spiral into deflation, with 12% unemployment
****
As we wrote several weeks ago ( "9-Jan-14 World View -- Eurozone plummets into deflation"
), the eurozone inflation rate has been falling
steadily for over a year, raising very real concerns that the eurozone
is headed into deflation. The statistics for January are out, and the
eurozone CPI was just 0.7%, substantially lower than the 0.9%
predicted by expert economists. This raises more alarm bells over
deflation, which is often the precursor to a major economic
depression. As long-time readers know, Generational Dynamics predicts
that we're headed for a deflationary spiral and a major global
economic crisis, the worst of which is far from over. CNBC
****
**** Three bankers commit suicide in one week
****
It's hard to know what to make of this, but three bankers
have committed suicide in the last week:
- Gabriel Magee, 39-year-old VP of JP Morgan's technology
department, jumped to his death from the roof ot the bank's European
headquarters in London.
- William Broeksmit, a 58-year-old former senior executive at
Deutsche Bank AG, was found dead in his home, also in London, after an
apparent suicide.
- Mike Dueker, the 50-year-old chief economist at Russell
Investments in Washington state, jumped over a fence and fell down a
50-foot embankment, in an apparent suicide.
It's well known that suicides occur most often around the Christmas
holiday season, so it's possible that the timing of these three
suicides was coincidental. But it's also true that a number of
bankers and investors jumped to their deaths during the Great
Depression, usually from hotel rooms, and that the overall suicide
rate today has surged even higher than during the Great Depression
(usually because of unemployment). A financial crisis sends many
people to financial ruin, but more than that, a financial crisis
exposes a lot of crime, particularly embezzlement.
John Kenneth Galbraith described what happened during the Great
Depression in his 1954 book, The Great Crash - 1929, as
follows:
<QUOTE>"In many ways the effect of the crash on embezzlement
was more significant than on suicide. To the economist
embezzlement is the most interesting of crimes. Alone among the
various forms of larceny it has a time parameter. Weeks, months,
or years may elapse between the commission of the crime and its
discovery. (This is a period, incidentally, when the embezzler has
his gain and the man who has been embezzled, oddly enough, feels
no loss. There is a net increase in psychic wealth.) At any given
time there exists an inventory of undiscovered embezzlement in --
or more precisely not in -- the country's businesses and
banks. This inventory -- it should perhaps be called the bezzle --
amounts at any moment to many millions of dollars. It also varies
in size with the business cycle. In good times people are
relaxed, trusting, and money is plentiful. But even though money
is plentiful, there are always many people who need more. Under
these circumstances the rate of embezzlement grows, the rate of
discovery falls off, and the bezzle increases rapidly. In
depression all is reversed. Money is watched with a narrow,
suspicious eye. The man who handles it is assumed to be dishonest
until he proves himself otherwise. Audits are penetrating and
meticulous. Commercial morality is enormously improved. The
bezzle shrinks.
The stock market boom and the ensuing crash caused a traumatic
exaggeration of these normal relationships. To the normal needs
for money, for home, family and dissipation, was added, during the
boom, the new and overwhelming requirement for funds to play the
market or to meet margin calls. Money was exceptionally
plentiful. People were also exceptionally trusting. A bank
president who was himself trusting Kreuger, Hopson, and Insull was
obviously unlikely to suspect his lifelong friend the cashier. In
the late twenties the bezzle grew apace.
Just as the boom accelerated the rate of growth, so the crash
enormously advanced the rate of discovery. Within a few days,
something close to universal trust turned into something akin to
universal suspicion. Audits were ordered. Strained or
preoccupied behavior was noticed. Most important, the collapse
in stock values made irredeemable the position of the employee who
had embezzled to play the market. He now confessed.
After the first week or so of the crash, reports of defaulting
employees were a daily occurrence. They were far more common
than the suicides. On some days comparatively brief accounts
occupied a column or more in the Times. The amounts were
large and small, and they were reported from far and wide. ...
Each week during the autumn more such unfortunates were reveled
in their misery. Most of them were small men who had taken a
flier in the market and then become more deeply involved. Later
they had more impressive companions. It was the crash, and the
subsequent ruthless contraction of values which, in the end,
exposed the speculation by Kreuger, Hopson, and Insull with the
money of other people. Should the American economy ever achieve
permanent full employment and prosperity, firms should look well
to their auditors. One of the uses of depression is the exposure
of what auditors fail to find. Bagehot once observed: "Every great
crisis reveals the excessive speculations of many houses which no
one before suspected." [pp. 132-35]<END QUOTE>
We have to remember that today there's a tremendous undercurrent of
what we might call "unreported crime" going on. Thousands of bankers
purposely created and sold trillions of dollars in fraudulent
synthetic securities backed by faulty subprime mortgages, and not a
single person has gone to jail for these crimes. If there's an
increase in suicide rates among bankers, then it's possible that some
kind of Karmic retribution is taking place. We'll have to wait and
see what's going on. Bloomberg and Business Insider and Global Research (May 2013)
KEYS: Generational Dynamics, Syria, Bashar al-Assad, Lakhdar Brahimi,
Friends of Syria, Walid al-Moallem,
eurozone, deflation,
Gabriel Magee, William Broeksmit, Mike Dueker,
John Kenneth Galbraith
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