Divining the News (DTN)

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Posts Tagged ‘Credit crunch

Money will cease to function as a meaningful commodity Sunday Times

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I was in Dublin last weekend, and had a very real sense I’d been invited to the last days of the Roman empire. As far as I could work out, everyone had a Rolls-Royce Phantom and a coat made from something that’s now extinct. And then there were the women. Wow. Not that long ago every girl on the Emerald Isle had a face the colour of straw and orange hair. Now it’s the other way around.

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Everyone appeared to be drunk on naked hedonism. I’ve never seen so much jus being drizzled onto so many improbable things, none of which was potted herring. It was like Barcelona but with beer. And as I careered from bar to bar all I could think was: “Jesus. Can’t they see what’s coming?”
Ireland is tiny. Its population is smaller than New Zealand’s, so how could the Irish ever have generated the cash for so many trips to the hairdressers, so many lobsters and so many Rollers? And how, now, as they become the first country in Europe to go officially into recession, can they not see the financial meteorite coming? Why are they not all at home, singing mournful songs?

 

It’s the same story on this side of the Irish Sea, of course. We’re all still plunging hither and thither, guzzling wine and wondering what preposterously expensive electronic toys the children will want to smash on Christmas morning this year. We can’t see the meteorite coming either.

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Written by morris

December 15, 2008 at 10:29 am

Millions of Monkees

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I came across the following story on Guerrilla News Network posted on bacchuss blog. Being a lover of monkeys, and always on the lookout for a good analogy, I thought it would be worth sharing:

Once upon a time a man appeared in a village and announced to the villagers that he would buy monkeys for $10 each.

The villagers, seeing that there were many monkeys around, went out to the forest and started catching them. The man bought thousands at $10 and, as supply started to diminish, the villagers stopped their effort.

He next announced that he would now buy monkeys at $20 each. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even further and people started going back to their farms.

The offer increased to $25 each and the supply of monkeys became so scarce it was an effort to even find a monkey, let alone catch it!

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Written by morris

December 10, 2008 at 10:50 pm

The ending of the Jewish financial system

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How can a free market economy fail? Simply based on supply and demand.

Because it was not a free market economy.
Supply and demand is an intrinsic law of nature.

2_great_depression

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Written by morris

December 8, 2008 at 12:21 pm

Meltdown: It is the Jewish system that is under threat

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It is widely acknowledged that Jews are getting the blame for the economic crisis, whether the Jews are to blame or not, it becomes de facto reality.

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If I could vote for an Islamic ruler I would!
I wouldn’t pray, and wouldn’t go to a mosque, but when i look around now, at the perverseness of our society, I think anything would be better. Crime and perversion have become bold flags of pride.

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A famous psychologist Eric Fromm discussed alienation in the concrete jungle, and now it is all happening on the back of fundamentalism and deflation. That is pretty depressing…

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The Credit crunch was encouraged in order to deprive the oil producers of money, but even with all sorts of agreements with other rulers, The Russians, Chinese and the Gulf states. The people were forgotten. Suddenly Marx’s prophecy of the underprivileged rising sounds plausible. And isn’t time moving fast!

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Written by morris

November 22, 2008 at 8:43 pm

Pirates, Jews and Islam. Extortion, Nationalism and Socialism

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We lived through boom cycles, and generally had a good old time, the modern era turned us into neophytes, enjoying everything new that came along.

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After the 2nd world war it was discovered putting gun powder on agriculture made it grow quicker, from then on we (that is, the industrialised countries) were never short of industrial food.

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The capitalist boom bust cycles continued, and inflation also had its swings. Interest rates were the main method of controlling, or reacting to the economy, and although effective, there is not always a consensus on how they should be used.

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But interest rates and fiat money are forbidden in Islamic law, although profit sharing is okay.

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Now we peruse the charts and graphs, it is all fading before our eyes. The fiscal monetary system we all knew, started looking unreal, and it started to break down. At which point trade suffered, Letters of Credit and other traditional banking tools were hard to secure.

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Written by morris

November 21, 2008 at 1:35 pm

Wouldn’t a Debt amnesty cure the Credit Crunch?

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Year Amount it took to
equal $1 in 1913
1913 $1.00
1920 2.02
1925 1.77
1930 1.69
1935 1.38
1940 1.41
1945 $1.82
1950 2.43
1955 2.71
1960 2.99
1965 3.18
1970 3.92
1975 $5.43
1980 8.32
1985 10.87
1990 13.20
1995 15.39
2000 17.39
2001 $17.89
2002 18.17
2003 18.59
2004 19.08
2005 19.73
2006 20.18
2007 20.94
2008 21.57
Source: Bureau of Labor Statistics.

The Shrinking Value of the Dollar

The CPI inflation calculator uses the average Consumer Price Index for a given calendar year. This data represents changes in prices of all goods and services purchased for consumption by urban households. This index value has been calculated every year since 1913. For the current year, the latest monthly index value is used. In 2008, for example, it took $21.57 to buy what $1 bought in 1913. Note that in 1920, it cost $2.02, and declined in 1925 and through the 1930s, illustrating the effect of the Great Depression, when prices slumped. Prices did not pass $2 again until 1950.  Source

Debt amnesty to cure credit crunch.

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If all debts were canceled we could at least pick up where we were before the crash.

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All debt personal and corporate and sovereign.

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The wealthy who live in a mansion, would still be wealthier than those without a mansion. But all Mortgages would be canceled. Someone who spent 30 years paying off their mortgage would see their neighbour who has only lived there and made payments for a year get to own their place as well.

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Some countries would benefit more than others. Pakistan, Iceland and the Ukraine would be happy to forget their debts. And of course the USA.

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At first you might think China, Russia and Europe could be upset to lose the value of the bonds they are holding. But: China could say, ‘we have industrialised, we still have the factories, and we are still better off than we were’. Russia also has seen its fortunes rise over the last decade.

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And anyway, how much chance do Russia and China have of ever getting their dues for the bonds they hold? And the dollar has to devalue sooner or later, and probably such a big devaluation that the foreign dollar holdings would be greatly diminished.

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Europe anyway seems to be a big owner in the Fed, and has through its intimate ties with the US, shared in the easy life the US created through deregulation, the Subprime and massive borrowing.

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Even personal debts to the credit cards, and to one another are cancelled at a specific date, say with ten weeks notice, so everyone has time to come to some understanding and settlement.

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The international money system has a jewish feel to it, and it is a credit that the whole world has adopted this globalised system with Stock Markets and Credit cards. Until an alternative system can be found, we are stuck with it. Rather than play it all by the rules, so that all the books can be balanced, which seems to ensure a 1920s type crash. Why don’t we just start all over again. The gap beteen rich and poor will not be as great as it currently is. And scrapping all debt makes as much sense as the Fed pumping trillions into the world economy, and to seemingly little effect.

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No one in the civilised world wants a recession, this is a way to avoid it.

Written by morris

November 12, 2008 at 4:43 pm

Credit Crunch: The loser now Will be later to win For the times they are a-changin

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This crash is going to be so big, it is already visible in the shops, there is less on the shelves, and some shops have closed, it is also the end of the speculators as powerful figures.

They made it clear with the assanine bailout that they are responsible for our economic situation.

Their institutions might remain, but they will lose their right to wage wars, to control law makers, and to have any pretense of a social conscience.

And the demise of Mainstream media. The mouth organ of the wealthy, kaput, kaput, kaput. All seen for the empty words they shovel.

What will replace the bankers, hedge funds and financiers? Will power revert to the landowners? To marauding gangs? Will a fascist leader appear? Might xenophobia take over?

Only a few decades ago, it was the landed gentry that held the power.

The cities will become more dangerous, A UK think tank has already predicted this. This is from the Telegraph:

Home Office warns Downing Street. The economic downturn is set to lead to more crime, fewer police, more illegal immigration and a rise in far right extremism, a leaked Home Office letter reveals.

The document claims there will be an increase in “hostility” towards migrants as people question the financial assistance newcomers are given by the state.

By Andrew Porter, Political Editor 03 Sep 2008 Source

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So, back to basics? Communities, small towns? Artisan work? Cottage industries? Farming? Even city farming, in the gardens and on rooftops like in the second world war in England. Food is really expensive now.

Although the credit crunch has stopped the rise in food prices in the developing countries. (eg. Bangladesh, Cameroon, Egypt and Yemen)

Recession, credit crunch, financial collapse – Not a moment too soon for some

The sudden end to cheap loans and lax lending policies have put a break on spiralling food prices and given a respite to those struggling to pay for basics such as corn, rice and bread. Source

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Given the threat to our health that modern living has created, maybe the health profession will offer employment.

Change is ahead, just around the corner, it’ll more likely be sudden than linear.

Spain today offered relief to those who can’t afford their mortgages. It is only extraordinairy that that wasn’t the first concern as the credit crunch started to bite. It is anyway small relief compared to what is being given to the banks.

Spain offers mortgage relief to 500,000 workers

MADRID, Nov 3 (Reuters) – The Spanish government said on Monday it will allow unemployed workers [and pensioners] to delay making half their mortgage payments for two years as it seeks to cushion the impact of rising joblessness and the economic slowdown. Source

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The politicians will suffer, as they seem more concerned with business than people. Somehow we need to throw off the idolatry of business, of the division of labour into specialists. And realize ourselves as holistic multi talented individuals that we really are.

Maybe we will rediscover our ability to trust one another.

This blog has suggested that the financiers orchestrated and facilitated the crash in order to stop the transfer of wealth to the oil producers.

Karma should now intervene, and the US can be cast adrift from Europe and from Asia. In fact Europe And Asia are in one land mass, there are trains and roads connecting them together.

All we need now, is for the great USA to take its troops home.

Written by morris

November 4, 2008 at 11:54 pm

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