Quantitative Easing For Dummies Like US

Obama Ain't Got No Seoul

Obama and his posse rolled into Seoul looking to regulate on some currency moves. To create a consensus of nations to push back on China for their currency manipulation and to push back on Germany and others for running trade surpluses. By their own doing, Obama, Geithner and Bernanke have failed. The US has been weakened and credibility, authority have been lost. Obama transformed the G-20 meeting into the G-19 vs. 1 meeting.

Bernanke is a Wolf Woman in Drag

Wolf Woman defined = A woman that you, in a drunken state, pick up in a bar, go back to her place and foolishly don't leave after the deed is done. When you awaken the next morning in a sober state and see how unattractive your bed mate is, you want to distance yourself from her so bad, you make the decision to gnaw off the arm she is sleeping on instead of moving your arm due to the fear you'll awaken her.

"With all due respect, U.S. policy is clueless. What the U.S. accuses China of doing, the U.S.A. is doing by different means,” the German finance minister, Wolfgang Schäuble said of the Fed’s decision.

"The German export success is not due to any currency tricks but rather due to the improved competitiveness of German companies," Schaeuble said. "The American growth model is stuck in a deep crisis."The United States has lived beyond its means for too long, its financial sector is disproportionally inflated and its industrial core neglected. There are many reasons for America's problems ... the German export surplus is not one of them."

"The Federal Reserve's proposed policy of quantitative easing is a dangerous gamble with only a small potential upside benefit and substantial risks of creating asset bubbles that could destabilize the global economy," Harvard University economist Martin Feldstein

http://www.reuters.com/article/idUSTRE6A50VN20101106?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28News+%2F+US+%2F+Business+News%29

http://news.yahoo.com/s/nm/20101105/bs_nm/us_global_economy

http://blogs.wsj.com/economics/2010/11/05/feds-hoenig-on-qe2-low-rates-and-future-instability/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Feconomics%2Ffeed+%28WSJ.com%3A+Real+Time+Economics+Blog%29

http://www.koreatimes.co.kr/www/news/biz/2010/11/123_75828.html

http://www.reuters.com/article/idUSTRE6A00U420101105

http://www.businessinsider.com/bill-fleckenstein-barton-biggs-qe2-2010-11

Ben Dandy to the rescue! Ben Dandy to the rescue!

Go, Ben Dandy! Go, Ben Dandy!

'Twas the Night Before QE 2

Twas the night before QE2, when all through the house
Not a creature was stirring, not even a Wall St banker louse

The stockings were hung by the chimney with care
In hopes that Ben Shalom soon would be there

Blankfein and Dimon were nestled all snug in their beds
While visions of free money danced in their heads

The Fish...it rots from its head...

I am not naive. I understand that corruption in governments, financial markets are as old as governments and financial markets themselves. But I get a growing sense of awareness that it is different this time. It could very well just be me but, I doubt it. Too many people I've spoken with, polls I've read show me there is an utter disdain with Wall St., bankers, the bailed out TBTF's, both political parties and the government itself.

Bernanke is a coward thief in the night that equates his role as the chief global currency manipulator as to playing with his own putter

Willem Buiter, chief economist at Citigroup, (talk about biting the hand that feeds you), refers to Bernanke as a coward thief due to his stealing from the US middle class, savers and retirees via his money printing, ZIRP, etc. The coward part comes from the denial from the Fed that they are manipulating the currency, devaluing the US dollar as other nations taking part in the same currency manipulation as Bernanke, do it openly. Mr. Buiter also states unequivocally that "savage austerity" is in the US's future:
http://www.zerohedge.com/article/willem-buiter-us-must-prepare-savage-austerity

Speaking to QE2, the amount there of, Bernanke muses:  "Mr. Bernanke uses the analogy of a golfer with a new putter: Unsure how it will work, he finds best strategy is to tap lightly at first and keep tapping until the golfer figures out how best to use the putter."
http://online.wsj.com/article/SB10001424052702303891804575576533845166848.html?mod=WSJ_hp_LEFTTopStories

What do Greece, Hungary, Italy, Niger and the US have in common?

All are included in nations where perceptions of corruption had deteriorated the most. The US fell from 19 to a tie for 22nd on the list, their worst ranking in the 15 year history of the study. The US barely edged out Uruguay for 22nd on the list. Iraq and Afghanistan ranked 175 and 176 respectively out of 178 nations.
http://www.transparency.org/policy_research/surveys_indices/cpi/2010/results

I think if this ranking of US corruption was done by US citizens, the US would of fared much worse. For example:

Beggar thy Neighbor or good fences make good neighbors. Fatboy reports, you decide.

"The Dollar is our Currency, but Your Problem"
US Treasury secretary John Connally to a delegation of European finance ministers in 1971

"I got some ideas on Mr. Connally. He ain't never done nothin' but get shot in Dallas."
Bob Bulloch Texas Secretary of State 1972

"Now, in my State of the Union address I set a goal of doubling America’s exports over the next five years."
Barack Obama March 11, 2010

Beggar-thy-neighbor:
A devaluation that is designed to cheapen a nation's currency and thereby increase its exports at other countries' expense and reduce imports. Such devaluations often lead to trade wars.

Breaking! Canada vows to be relentless in pressuring China to revalue the yuan

Breaking news! Canada, the great white north has vowed to be relentless in keeping pressure on China. The great white north, speaks "Canadian policy makers said they will be “relentless” in keeping pressure on China and other economies with fixed exchange rates to allow their currencies to appreciate". Here's video of the Canadian PM and Central banker making their forceful comments regarding China: http://www.youtube.com/watch?v=X-ZvAVcBIrQ

Krugman continues to make no sense

"But the truth is that if the economic situation were better — if unemployment had fallen substantially over the past year — we wouldn’t be having this discussion. We would, instead, be talking about modest Democratic losses, no more than is usual in midterm elections."

The truth is they're not. What's up with the what ifs?

"The real story of this election, then, is that of an economic policy that failed to deliver. Why? Because it was greatly inadequate to the task."

Krugman continues to argue for mo' money though the bailed out US banks are stuffed to their gills with cash. Demand is needed, not more cash on bank's balance sheets. And as Obama said "there is no such thing as shovel ready projects." So I don't see where Krugman is going with this.

Top 74 US wage earners earned as much as the bottom 19 million workers

Great to be in a recovery. Especially if you're one of the top 74 wage earners. Less wage earners in the US now then in 2005 with a decline in wages. "The number of Americans making $50 million or more, the top income category in the data, fell from 131 in 2008 to 74 last year." Good news right? The pain of the recession was spread evenly. Wrong. "The average wage in this top category increased from $91.2 million in 2008 to an astonishing $518.8 million in 2009. That’s nearly $10 million in weekly pay!" So the US went from 131 people making $50 million or more in 2008 to 74 in 2009 but those 74 saw their wages increase from $91.2 million to $518 million or ten million dollars a week!

The Bottomless Pit that is US Unemployment

The US needs to create approx. 150,000 new jobs every month just to keep pace with the new entrants into the labor force. Over eight million jobs have been lost during the recession. To get the levels of unemployment back to pre-recession levels, 300,000 new jobs would have to be created every month for the next forty eight months. Or over 200,000 new jobs created every month for the next 120 months to return to pre-recession levels
more:
"If you add in discouraged workers, the underemployed, and those working part time who would rather be working full time, the true number of unemployed is closer to 30 million, or about one in five working age Americans. Never mind the statistics that the government pumps out monthly are meaningless. They have been for decades.
The real problem is that the economy is obliterating jobs far faster than anyone realizes."
http://www.zerohedge.com/article/why-nonfarm-payroll-figures-are-meaningless

Over $26 million paid to doctors in California alone by Big Pharma to promote their drugs

In an earlier post, I provided a link to an article by Dr. Carl Elliot titled "How to brand a disease, and sell a cure." ( http://edition.cnn.com/2010/OPINION/10/11/elliott.branding.disease/) Dr. Elliot laid out the tactics used by Big Pharma to create the conditions for their prescription meds to sell themselves. He compared these tactics to those made popular by Edward Bernays and used by Joesph Goebbels.

Today Pro Publica goes deeper into this subject and lists the amount paid by Big Pharma to states and MD's alike. Not only was $26 million to MD's in the state of California but, according to Pro Publica Dr. Firhaad Ismail of Nevada received $303,558.00 from Big Pharma in 2009 and early 2010 barely beating Dr. Stephen H. Landy from Tennessee who received $302,125.00 for the top spot.

Much more information in the article including a tool to enter your doctor's name to find out if he or she received compensation from Big Pharma to promote, sell their meds.

As Bernays said "In almost every aspect of our lives whether in the sphere of politics or business in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons who understand the mental processes and social patterns of the masses. It is they who pull the wires that control the public mind."

http://projects.propublica.org/docdollars/

Treasury Secretary Geithner wins liar of the month. Congrats Timmy!

"Given all the problems with foreclosures, it might seem hard to pick a winner for the lie of the month contest. However, fraud and lies are not the same thing, but even if they were, Geithner is up to the task."


http://globaleconomicanalysis.blogspot.com/2010/10/lie-of-month-geithner-says-us-will-not.html

Tim Geithner is a liar

Treasury Secretary Timothy Geithner vowed on Monday that the United States would not devalue the dollar for export advantage

http://news.yahoo.com/s/nm/us_usa_dollar_geithner;_ylt=As0Qok3eSsiIQD0d3N7_0Cys0NUE;_ylu=X3oDMTNxcXJwcGJwBGFzc2V0A25tLzIwMTAxMDE5L3VzX3VzYV9kb2xsYXJfZ2VpdGhuZXIEY2NvZGUDbW9zdHBvcHVsYXIEY3BvcwM3BHBvcwM0BHB0A2hvbWVfY29rZQRzZWMDeW5faGVhZGxpbmVfbGlzdARzbGsDZ2VpdGhuZXJ2b3dz

I'm a Chiquita banana and I've come to say, we stole the land from Guatemala with the help of the CIA

The last post I touched briefly on the CIA/Chiquita banana/Edward Bernays overthrow of the first democratically elected leader of Guatemala, Jacoba Arbenz Guzman who in 1951 was elected with 60% of the votes. Guzman pissed the Chiquita Banana's off with his program of land expropriation of only uncultivated portions of large plantations. Owners of expropriated land were compensated according to the worth of the land claimed in May 1952 tax assessments. Chiquita banana's had claimed on their 1952 tax statements their vast holdings of uncultivated land were worth $3 per acre. Guzman's government was prepared to pay Chiquita the $3 per acre when Chiquita said "wait a minute, that land is actually worth $75 an acre" but refused to explain the precipitous jump in its own determination of the land's value. Eisenhower, fresh off his successful coup/overthrow of Iran's Mossadegh was convinced by Chiquita and Bernays to aid in the overthrow of Guzman.

In 1954, Operation Washtub was launched by the CIA at the behest of the Chiquita banana's and the assistance of Edward Bernays. Operation Washtub was a plan to plant phony Soviet arms in Guatemala, linking the Guzman government to the commies to therefore show an imminent threat to the US southern borders from the Guzman government. But, a shipment from Czechoslovakia with a falsified manifesto containing WW II era, barely functional arms was discovered and Washtub was scrubbed. This was seen as the final proof of Guzman's Soviets contacts and the coup was implemented, Guzman fled and Chiquita Brands International has gone on make a fortune. Never buy Chiquita banana's again.

 

We are human beings, not consumers.

 “We must shift America from a needs to a desires culture. People must be trained to desire, to want new things, even before the old have been entirely consumed. Man’s desires must overshadow his needs.”
Paul Mazer, a Wall Street banker 1933

"We must remember that in time of war what is said on the enemy’s side of the front is always propaganda, and what is said on our side of the front is truth and righteousness, the cause of humanity and a crusade for peace."
Walter Lippman

Most if not all of you have heard of Sigmund Freud. Many of you have heard of his nephew Edward Bernays. In his obituary Edward Bernays was referred to as "the father of public relations". Bernays felt that the public's democratic judgment was "not to be relied upon" and he feared that "they [the American public] could very easily vote for the wrong man or want the wrong thing, so that they had to be guided from above". He felt this manipulation was necessary in society, which he regarded as irrational and dangerous. Sounds like a paranoid control freak to me. An extremely wealthy paranoid, control freak.

One of Bernays' most extreme political propaganda activities were said to be conducted on behalf of the Chiquita Brands International company and the US govt. to facilitate the successful overthrow of the democratically elected president of Guatemala, Jacob Guzman. Bernays propaganda labelling Guzman as a communist was published in major US media creating public support among US citizens for the overthrow of the democratically elected Guzman. With Guzman out of the picture, this allowed Chiquita Brands to exploit the virtual slave labor in Guatemala in order to produce cheap bananas for the lucrative U.S. market. Nazi Minister of Propaganda, Paul Joesph Goebbels used Bernays' book Crystallizing Public Opinion as a basis for his destructive campaign against the Jews of Germany. In a recent article by Dr. Carl Elliot, Dr. Elliot states that the methods of propaganda used by Bernays and Goebbels are now being used by the pharmaceutical industry in what is known as "disease branding." http://edition.cnn.com/2010/OPINION/10/11/elliott.branding.disease/

Branding bacon and eggs as a "healthy" American breakfast and encouraging women to smoke cigarettes often and openly in public overcoming a then social taboo are more of Bernays' accomplishments. Following are some selected quotes of Bernays' (and you thought it was George Bush who coined the phrase "make the world safe for democracy") and links to the award winning 2002 documentary series "The Century of the Self" by Adam Curtis, which I'm sure many of you are familiar with. If not, please take the time to view this fascinating four part documentary series each running approximately sixty minutes. As you're watching, or if you choose not to watch, remember, we are human beings, not consumers. As always, thanks for reading.


"When I came back to the United States, I decided that if you could use propaganda for war, you could certainly use it for peace. And 'propaganda' got to be a bad word because of the Germans using it, so what I did was to try and find some other words so we found the words 'public relations'."

"I was at the 1926 Paris Peace conference. Make the world safe for democracy was the big slogan"

"Those who manipulate the unseen mechanism of society constitute an invisible government which is the true ruling power of our country. We are governed, our minds molded, our tastes formed, our ideas suggested largely by men we have never heard of… In almost every act of our lives whether in the sphere of politics or business in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons who understand the mental processes and social patterns of the masses. It is they who pull the wires that control the public mind."
-Edward Bernays-

Part 1 http://video.google.com/videoplay?docid=1122532358497501036#docid=6718420906413643126
Part 2 http://video.google.com/videoplay?docid=-678466363224520614#
Part 3 http://video.google.com/videoplay?docid=-4059451562019895635#
Part 4 http://video.google.com/videoplay?docid=1122532358497501036#

Bernanke is a liar and a money printer

I first heard the "liar and money printer" from Marc Faber. He wasn't speaking about Bernanke personally, what he said was "all bankers are liars and all central bankers are liars and money printers." After watching, listening to Bernanke these last few years, I have to agree with Faber. Bernanke's speech this morning hints at more money printing. As this is being done, fingers continue to be pointed at China for "currency manipulation." And what is more printing from Bernanke but currency manipulation?

Anna Schwartz: Bernanke is fighting the last war..

Published two years ago in the WSJ. Probaly the best article I've read on this subject.

"This was [his] claim to be worthy of running the Fed," she says. He was "familiar with history. He knew what had been done." But perhaps this is actually Mr. Bernanke's biggest problem. Today's crisis isn't a replay of the problem in the 1930s, but our central bankers have responded by using the tools they should have used then. They are fighting the last war.

http://online.wsj.com/article/SB122428279231046053.html