News & Analysis
US Rebounds? Prosperity Around the Corner?
America overcomes the debt crisis as Britain sinks deeper into the swamp ... Britain has sunk deeper into debt. Three years after bubble burst, the UK has barely begun to tackle the crushing burden left by Gordon Brown. The contrast with the United States is frankly shocking ... The latest report on "Debt and Deleveraging" by the McKinsey Global Institute shows that total public and private debt in the UK is still hovering at an all-time high. It has risen from 487pc to 507pc of GDP since the crisis began ... The ordeal of belt-tightening will be grim, dragging out for a generation if Japan is any guide. The Japanese at least began their post-bubble debacle as the world's top creditor nation with a trade super-surplus and a savings rate of 17pc. Britain has no such buffers. It is a very different picture in the US where light is emerging at the end of the tunnel. American banks, firms, and households have been chipping away at their debts, more than offsetting Washington's double-digit deficits. The total burden has dropped to 279pc, down from 295pc at the peak of the boom. Households have purged roughly a third of the excess, roughly tracking the historic pattern of post-bubble deleveraging. – UK Telegraph
Dominant Social Theme: The US is really doing well. It only appeared to be doing badly. And President Barack Obama is doing better and better ...
Free-Market Analysis: Every now and then our favorite mainstream journo, Ambrose Evans-Pritchard, runs off the tracks. Evans-Pritchard makes the case (see excerpt above) that Britain is not recovering from the 2008 financial crisis but that the US is on the way up.
Say what? As a publication that covers dominant social themes of the power elite – the fear-based promotions that frighten middle classes into giving up power and wealth to globalist constructions – we would point to this sort of article as a good example of power elite rhetoric.
We are not accusing Evans-Pritchard of purposefully writing an article that buttresses Anglosphere power-elite themes. In fact, he's an acute observer of the economic scene and has written a steady stream of great articles about the increasingly hopeless position of the euro and even the European Union itself. But in this case, whether or not he is aware of the larger promotional picture, he certainly has written an article that fits into a trend we are observing.
Taken at its broadest brush, we tend to believe the powers-that-be want US President Barack Obama re-elected. This is because evidently and obviousy he is "their" man. They've put a lot of time and energy into making him seem presidential in our view. They've awarded him the Nobel Peace Prize (!); they've ensured massive, positive coverage of him and his positions in the West's bought-and-paid-for mainstream press. Something funny is going on with this fellow. Once he's re-elected, if he is, we may soon know more ...
And they do seem to be moving on the re-election front. We became aware of it at least three months ago when more and more reports of the US "recovery" began to be issued. These reports featured a dropping jobless rate along with increased economic activity.
Now Evans-Pritchard has discovered a McKinsey Global Institute report that apparently contrasts the UK unfavorably with the US. Evans-Pritchard seems suddenly convinced that the US is handling its "recovery" a lot better than the UK. Here's some more:
Tim Congdon from International Monetary Research said US banks were never as damaged as claimed and now have the highest capital ratios in over thirty years. The rate of loan write-offs has dropped from 3.2pc to 1.9pc, a faster improvement than after the financial crisis of the early 1990s.
In hindsight, the US property boom was was remarkable modest compared to what happened in Spain, or what is happening now in China now where the house price to income ratio in Beijing, Shanghai, and Shenzhen is near 18. America's ratio peaked at 5.1 and is already back to its modern era average of three.
Personally, I am coming to the conclusion that the US crisis in 2008-2009 was largely a case of botched monetary policy and could easily have been avoided. The growth of M3 money -- which the Fed stopped tracking thanks to a young Ben Bernanke -- was allowed to balloon in the bubble, then collapse in 2008.
Europe's crisis is more intractable, with far greater levels of bank leverage and vast intra-EMU trade imbalances. But botched monetary policy is a big part of the story there too. The ECB let M3 growth overheat, then let it crash in 2008, then crash again late last year, dooming Club Med to Sisyphean torture and certain asphyxiation.
Where to start? The capital ratios that Evans-Pritchard speaks of are electronic digits and have no applicability to the traditional backing of "honest money" – precious metals. If one is comforted by the idea that banks have accumulated electronic fiat digits under force of law, then one will think US banks have made "progress." But one could make the opposite argument as well.
He claims the US property boom was actually remarkably "modest" – but we remember that at one point the US Fed had to drop tens of trillions into the US and the world's economy because the entire banking system was freezing up. Tens of TRILLIONS.
We've estimated central banks – especially the US Fed – have probably backstopped the world's financial system with funds in excess of US$50 trillion by now. That doesn't sound like a modest crisis to us. It wasn't a real-estate crisis, either, but a crisis of central banking fiat money. It was ultimately a crisis of the dollar reserve system.
And we've long maintained the dollar reserve system basically died in the past three years. It is no more. When you have to prop up your financial system with a US$50 trillion injection of money-from-nothing, you don't really HAVE a financial system anymore.
In any case, the Internet has played its part as well. As we've pointed out for years, the moral authority of central banking has eroded, especially in the US where millions, even tens of millions, are aware of the trillions that the US Fed has spent propping up the world's financial system.
When the elites cannot make a moral argument for their actions then the system itself begins to look despotic. That's what is happening now. Someone who's lost his home, job and family will not easily accept an explanation that the banking system receives its trillions for the sake "stability."
Add to this, in the US anyway, sociopolitical guarantees – according to economists – of something in the area of US$200 trillion and you have a system that is nothing like Evans-Pritchard's characterization. It is NOT a stable system at this point. Certainly, the US is NOT facing a "remarkably modest" crisis.
The symptoms of instability go beyond the economic, however. There is a good deal of social unrest in the US – as there is increasingly in other larger states, especially China. And while the US of late does not have a cultural affinity for violent revolution, there are evident and obvious forces at work destabilizing the current "empire."
The forces, of course, are being generated by the country's inherent support for its one-time republican form of government. Various freedom-oriented movements such as the Tea Party movement and a massive coalition supporting libertarian-republican presidential candidate Ron Paul are radically shifting the cultural conversation.
The current US empire is in a sense both socialist and fascist, from what we can tell. Its million-plus intelligence employees are mostly concerned with spying on US citizens. The Anglosphere power elite that wants to run the world has always looked on the US as its primary problem.
This handful of elite families that control central banks around the world have used their trillions to build a shadow government in the US and elsewhere that mimics traditional government but has entirely different goals. In the 21st century, however, this shadow system of burgeoning global governance has been found out by those who have created websites and blog sites on the Internet with the purpose of reporting on their societies and economic situations.
What has emerged is far different than the story that the mainstream media explained to Western populations in the 20th century. Bereft of its controlled media, the elites have not been able to counteract a flow of real news and information.
Over time, the elites' shadow system of governance has become a more palpable reality. In the US alone, sophisticated blog-observers such as Catherine Austin Fitts have pointed out an up-to-US$1.5 trillion black budget of unreported and diverted funds that are going to various unacknowledged projects probably of military or military-intelligence import.
The US has perhaps 1,000 overseas military bases and is fighting probably a dozen covert or public wars and threatening more of them. Internet reporting increasingly shows us that financial statistics presented by the US government, especially the federal government, have little or no applicability to reality.
The US is not just an empire – it is apparently an empire in the service of the Anglosphere one-world conspiracy. The wars that the "US" is fighting now are the capstone of the New World Order. The electorate has little idea of why they are being fought or why they are taking so long and maiming so many.
The US and the West itself is not actually run by its citizens anymore and probably hasn't been (at least in the case of the US) for about 100 years. Small-bore elections and small-bore economic and the entrepreneurial activity have little impact on the larger power structure, which is animated by huge corporate, banking and military enterprises run out of the City of London, Washington DC, Tel Aviv and apparently the Vatican.
To indicate that the US economy is "bouncing back" is to make a statement that is devoid of reality, in our view. The unemployment rate in the US is probably 20 percent or greater, price inflation is far greater than is generally stated and whole cities (Detroit) are being torn down as US industry continues to move abroad, thanks to such malicious managed trade treaties as CAFTA and NAFTA.
Here's what's going on – and Evans-Pritchard is not, in our view, reporting on it, for some reason, not this time anyway. The powers-that-be apparently want to re-elect Barack Obama – and from now until election day US citizens may be exposed to a steady diet of "economic recovery" news.
But after the re-election of Barack Obama – who is not what he appears to be – the globalization of the West and especially the US will continue apace. We shall discover the "recovery" is not quite so substantial as it has been said to be.
Instead, there will be a continued effort by the elites to hollow the US's and the West's economy in order to bring the economies of the developing world and the US into rough parity. This is all part of a larger process inherent in creating an equitable new world order – from the point of view of the elites, at least.
Conclusion: US "recovery" has little to do with it and is, in fact, beside the point.
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Posted by samson on 02/01/12 09:40 PM
Evans-Prit.of The City of London's office of disinformation & propaganda,is
covering us w/manure again. The COL also has propagated that Romney is the
most feared Republican Obama could face, using the inverse psychological
position to coerce Repub voters to nominate Romney. The ONE WORLD POWERS win,
whether Obama or Romney win the presidency, as both have been groomed to
enact their continuing Socialist agenda. This STRATEGY has been true since
Pres. Truman.
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Posted by alexsemen on 01/24/12 12:29 PM
Ja speedygonzales there are only 2 honest and responsible country in Europe ( read world): "Island and Hungary ! I know very well Hungary and I saw that after 2004 /EU it was every year spiraling downwards. Just because of Bruxelles and EU.
I love Hungary and I admire that folk and their intelligence.
God bless Hungary and Island !
Maybe , there is chance ! Maybe ... .
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Posted by speedygonzales on 01/24/12 11:58 AM
Solidarity with Hungary - against EU dictatorship! The Orban government is punished for going against the international financial capital
Hungary shows that the old left-right distinction, which had to 1989/90, broadly speaking, their validity has outlived its usefulness. The government Orban, although nominally on the right has, de facto, the most decisive measures carried out against the financial capital of Europe - that could have been earlier described as left. Also for our libertarian friends Orban offers good lesson: It is started in the nineties, as neoliberal privatizers. Since he is in power, however, he used the state to interfere in the economy, in the best sense. The practice is still just the best teacher.
The Orban government has initiated three things that they have made ??a hate object of international finance capital:
a) a tax reform has decided that the foreign capital, especially finance capital, to fund more requests than domestic, manufacturing.
b) that by law the foreign banks that have in recent years, foreign currency loans given to Hungarian citizens, forced to renounce part of their debts, resulting only from the rise in the respective foreign currency (mainly Swiss francs) against the forint . This is really the best Keynesianism, for the benefit of the citizens!
c) the so-called independence of Zentralbnk replaced by a real independence. This is good because the previous "independence" was only a mask for the uninhibited access to the Hungarian Central Bank, the ECB, which is the alienation of the Hungarian National Bank of Hungary's national interest. Under the new law, the National Bank is still independent of government transfers, but their peak is defended on Hungary and its interest. A matter of course! The FAZ is outraged, however, that the swearing-in that conflict was not disputed that the Hungarian National Bank "is also a member of the General Council of the ECB" is. The EU and banking interests are for the Eurocrats to the national interest, and anyone who resists, how Orban is declared a rogue.
Current pressure on EU-Hungary, is that the country needs financial support from the EU after the international financial capital has withdrawn capital. . The EU, however, denied new loans. The argument that Hungary's economy shaky, is threadbare: Hungary's debt has risen in the last six months to just 82 percent of economic output, which is only slightly above the German level (c. 75%) and far below the Italian (125%) or even Greek (150%). The difference: Grichenland Italy and do everything that the international financial capital will, and by now have the appropriate Government. Orban but wants to remain independent.
All other arguments against the Orban government - human rights abuses, press censorship, threats to independent judiciary - on the other hand are not important. Not that the action at all is not true! But there are internal affairs of Hungary, who have foreign countries and the EU Commissioners to tackle anything. Who is stupid to understand is that although the Left, which incites diligently against Hungary, in cooperation with Springer Press, Brussels Politburo and London City.
Click to view link
Translated by google.
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Posted by Don from the Republic of Lakotah on 01/24/12 02:05 AM
@dave jr
The chimera neither needs nor seeks my permission for anything. So who is it fooling with fear based memes, if not itself?
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Posted by dave jr on 01/24/12 12:27 AM
Yes, but the "Chimera" doesn't live without permission, and therefore has no motivation, obsession or fear unless you give it. Stroke this chia pet if it serves as a usefull crutch.
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Posted by Don from the Republic of Lakotah on 01/23/12 11:48 PM
@dave jr
"horn in on the banksters game."
LOL. You'll need to grow the requisite antlers first for that move.
Perhaps the chimera's own fearful ego motivates its obsession with fear based memes.
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Posted by amanfromMars on 01/23/12 10:55 PM
And whenever so few realise the folly of stoking old fears and extending old methods of human control, in a world laid bare of secrets with fields of leaked information of a classified nature, is the global canvas prepared for painting with nothing but wonderful truths/unambiguous words.
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Posted by dave jr on 01/23/12 10:11 PM
Oh, I didn't mean to horn in on the banksters game. I simply recognized where my own fears eminated from. I have found that I can challenge my ego and cause my fears to dissipate. As a result, I find myself to be different than I thought I was, and less manipulable. I like it better this way.
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Posted by Danny B on 01/23/12 09:55 PM
Most of this recovery BS is from the cheerleaders who are trying to attract [and keep] capital here in the U.S. There is a huge flow out of bonds and equities and Big, Bad, Bald Ben Bernanke is trying to attract it. There is reportedly $ 1.5 trillion sitting on the sidelines. That's not to say that banks and GOV won't flat out steal the money anyway. The Japanese had all their savings stolen from the Postal bank. It's just that it is a bit harder to steal when it is in a bank deposit.
In wide reading, you see an attitude from bankers that, OF COURSE, the taxpayer HAS to bail out the banks. Like it's a natural law. Here's a quote from Mauldin.
"This means that hundreds of billions of Euro losses at their banks which will have to be bailed out eventually by the taxpayer"
Click to view link
The guy on the street doesn't listen to any cheerleading. He KNOWS that he lost his job and house.
"The Olenick analysis arrives at a total close to the Goodman range. Using a more narrow definition of what constitutes shadow inventory, he estimates 9.8 million homes are in bank inventory,"
Click to view link
Our POS POTUS is firmly in the pocket of the bankers and they like it that way.
Click to view link
There just might be a black-swan flying towards out POTUS. The constitution gives NO definition of a natural-born-citizen. It defers to Blacks law. Blacks Law is very clear; BOTH parents have to be born in the country of office. This hasn't gotten any traction yet,,, but , it still might.
Click to view link
The COMEX could very well go "naked" and this could very well create a firestorm before the election.
The Greek bondholders have drawn a line-in-the-sand and this could very well trigger a default,,, which would vaporize European banks in about 10 hours.
There are a lot of possibilities that could derail Obummer. The PTB will just have to change horses in mid-stream.
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Posted by Don from the Republic of Lakotah on 01/23/12 09:18 PM
@dave jr
"Our own ego is our devil."
This particular story actually articulates the City of London bankster-warrior-mockingbird-media chimera's ego trip. Creating money from nothing pales in comparison to playing God by creating reality from nothing. (The chimera's ego confuses its own simulacrum with reality.) Up is down, black is white, good is bad, and that's the way it is. Or was.
At this point the chimera believes its own press releases for it loves to hear the sound of its own bark emanating from mockingbird-media vocal chords. The chimera's angry at the Inet for teaching it the meaning of the word "no."
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Posted by dave jr on 01/23/12 05:05 PM
To fullfill the self is to do what you know you can do. Grandeur aside, serve yourself. Happiness like butterflies can not be owned, but you can sit amonst it.
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Posted by dave jr on 01/23/12 04:59 PM
"Why vie for the center?"
That is , be yourself; and be happy with it. If not happy, maybe the problem lies with not fullfilling the self?
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Posted by dave jr on 01/23/12 04:53 PM
"It is an uncomfortable situation where you have to admit to being either dishonest or stupid"
Yes, to be stupid is to stand in a place where you do not belong and for as long as one persist there, is an act of dishonesty. Don't believe in invisablity. A target is defined by concentric circles. Why vie for the center?
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Posted by TimurTheLame on 01/23/12 04:20 PM
You are much too kind to Mr. Evans Pritchard. He has bills to pay and has to sing for his supper. It is an uncomfortable situation where you have to admit to being either dishonest or stupid. A healthy paycheck helps ease the discomfort. Aren't we clear on the MSM issue in these pages?
Having said that, yes I agree that the telegenic teleprompterian will be in charge (ha!) for another four years. Didn't the Bible counsel something about not switching horsemen in the middle of an apocalypse?
A sitting president has too many election tools in his bag of tricks. War of course would be the sledgehammer. Maybe after he tables a budget he could be nominated for another Nobel Prize, this time in economics. How could this possibly be any more ridiculous that the peace one?
Of course the range of oafs that are vying for the privilege of losing to a failed sitting president lowers the bar considerably. The only wild card could possible be a third party candidate who could harness the youth vote, the true patriots who can still think and that progressive element who got suckered in the last time and are really angry watching the White House turn into Uncle Tom's Cabin.
That then is my rant of the day. I feel somewhat better already... ...
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Posted by dave jr on 01/23/12 04:08 PM
No takers? Then are we all insane? Would the world be better off if we could acknowledged that? Our own ego is our devil. Can you see why we need not be afraid?
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Posted by dave jr on 01/23/12 02:54 PM
What do we know about the Iranian oil bourse, supposedly formed a few years ago? When it comes to the fundamentals of living on this planet, what/who can we trust? Without defining that, how can we can define sanity.
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Posted by fabien_hug on 01/23/12 02:27 PM
"Instead, there will be a continued effort by the elites to hollow the US's and the West's economy in order to bring the economies of the developing world and the US into rough parity". I also think that's the hidden agenda.
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Posted by c.martel on 01/23/12 02:07 PM
Right on!
The Obama administration has no interest in recovery! It is readily apparent that their interest lies in securing 4 more years in which to fulfill goals to, as you say ... hollow out the U.S. economy in order to bring it into parity of the developing world, with the larger goal being an equitable new world order.
God save us!
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Posted by laceja on 01/23/12 01:59 PM
Well, John D, that should surely set off some clanging alarm bells in London City and New York. If Iran can show they don't really need those, oh so valuable US Dollars, how long will it be, before the rest of the world want's to follow suit. Hope everyone is keeping their powder dry.
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Posted by dave jr on 01/23/12 01:57 PM
Is it because the master has become a backwardisation, inbred, burdensome dumb F*ck example of a human being? I don't hate you, I feel sorry for you.
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