Australian career diplomat Ex EU Ambassaor: Expect a total financial meltdown

James Cumes wrote this article with a view to speculating how the next President will cope with an expected financial meltdown. In my opinion when faced with the entrenched electoral system that exists, how could anyone who is produced as a president, do anything. The economic fault lines are so deep, that only (a peaceful) revolution could help. No amount of tax returns or interest rate didgery doos will help. The authour does portray a faulty system, and takes heed with predatory capitalism and “free” markets. But he has chosen not to be on the lunatic extremes in calling for a complete overhaul, although he hints at it. Which leaves one left to waffle about Obama, Hillary and McCain. While Obama seems the nicest of the three. The problem is the system. As the dollar collapses, he’ll still be obliged to be shouting about Iran. Even though he knows better. It seems to me that a crashing dollar can be the only evidence of a meltdown. And the world might be surprised how it can survive without the US. …European banks and non-bank financial institutions have been showing similar signs of weakness and distress. Moreover, the prospect is for the global finance industry to endure waves of defaults on credit cards, car loans and corporate loans. “We believe we’re entering Phase II,” said a credit analyst of Dresdner Kleinwort. “The liquidity crisis has eased a little, but the real credit losses are accelerating. The worst is yet to come.” [...] But discussions of fundamental issues and of how to reform the financial system have been lacking. Almost invisible is the problem of how to handle what must now be seen as the almost inevitable, virtual meltdown of the system. That meltdown is now well on the way and can only intensify in the months to come. We have seen little acknowledgement that such a collapse was always inherent in the financial system that evolved since the early 1980s and even more robustly in the last decade. The rolling thunder of the gathering financial storm will be even more foreboding from August when the presidential election campaigns gather full momentum; and the lightning flashes will follow ever more closely on the thunder by the time the elections are held in early November. By the time the successful candidate moves into the White House next January, financial devastation may already have swept through the American and global economy like a tornado…. James Cumes is a former Australian ambassador to the European Union and Australian representative at the United Nations [ and a former high commisioner] more biog here.

www.atimes.com/atimes/Global_Economy/JG02Dj03.html

Authour of America’s Suicidal Statecraft: The self-destruction of super power (Paperback)

We made the rules and lost the game.

Remember the Thatcher revolution. That was the apparent onset of the power of the multinational. It created 2 or 3 decades of growth. The financiers at that time manipulated the value of the Pound so much, the nation state of the UK caved in. And that victory was repeated in Sweden, whole nations held to ransom by the world of finance. And these battles between nation and finance were enacted quickly within days or a week or so. Now we find ourselves in a consesus of doom. Everyone is anticipating an end to the era we are in. Those in power might fret about calls for justice, but they are still in power, every minute of every day right now. The whole shabang is creeking, weather, resourses and wars. Increasingly debates on internet forums focus on the Industrialists, on the multinationals. The speculators (read: financiers) are singled out as responsible for rising food and oil costs. Well none of the above are going to relinquish power gracefully. Over at peakoil.com people are planning for the future, when there will be no factories and no work. If it does unfold, it will happen very fast. In 2000, the Artgentina economy collapsed, and it happened virtually overnight, and literally took place in a few days. http://www.peakoil.com/fortopic35752.html It would seem that everything but everything is made from oil, our food (fertiliser) our computers and everything else. . the consequences would be unimaginable. Permanent fuel shortages would tip the world into a generations-long economic depression. Millions would lose their jobs as industry implodes. Farm tractors would be idled for lack of fuel, triggering massive famines. Energy wars would flare. And carless suburbanites would trudge to their nearest big box stores, not to buy Chinese made clothing transported cheaply across the globe, but to scavenge glass and copper wire from abandoned buildings. Source As much as I am anti war, the military at home can also be a frightening spectre, in a society in chaos, the military would be the first to be called upon to insure order. But with incompetants in power, possibly because they have been compromised by the lobbies, there is room for fear. Self sufficiency and social networks are a good way to think. Being in the States would frighten me, so many weapons, and people prepared to use them. Anyway some form of collapse of life as we know it, is approaching, whether through peak oil, over lending, greedy warmongers or whatever. Ironically one commenter on the above forums speculated that because of the impending meltdown spirituality, friendliness and happiness will increase. The problem is now before it happens. When there is decreasing amounts to go round. Buying a large amount of rice would be a good idea.

Let’s start a war

Let’s start a war.
A/ When there is nothing left to lose…
B/ It would be difficult not to look guilty
A/ We are going under anyway
B/ The people wouldn’t put up with it.
A/ We can get a couple of people to sink a ship.
B/ Better to go through a recession.
A/ No they’ll be clamouring for trials and commissions.
B/ So what happens after the ship sinks.
A/ And its more than a recession that is coming.
B/ Sinking a ship isn’t enough.
A/ And this time we don’t want any internet.
B/ We need a plan.
A/ We just don’t like to see the others succeed.
B/ Our entire system is going down.
A/ Let’s make a natural disaster, a Tsunami, ya, no, well we’ll have to destroy something.
B/ A gas attack?
A/ Now you’re thinking!
B/ It’ll be the fear of God
A/ We need a low level war that steadily expands and carries on for years.
B/ Ya, better start soon.

Citigroup beyond repair

The significance of Citigroup could not be underestimated.

Wikipedia: According to Forbes Global 2000 in March 2007, it is the largest company in the world with total assets of US $2.2 trillion, as of December 2007

Talking of Citigroup is akin to talking about western imperialism, like talking about the pentagon or Bush’s White House. And yes it is a friend of Israel…

What goes down with the US dollar?

What goes down with the US dollar.
Spin goes down (Advertising Companies), Imperialism, Corporate/brand loyalties evaporate. Suddenly ‘thou shall not worship false Gods’ rings true. No media figures, that means no modern deities.
Banks, financial institutions, working in the City, no more. That means an end to credit cards, bank loans and mortgages.
Bric a brac, garage sales will be a growth industry.
The back biting will be deafening, trying to apportion blame.Cars with no fuel.
Somehow the US will split up. Even if it keeps its federal structures. It will in reality be a load of fiefdoms. Or more commonly known as Gangs.
The infrastructure has already long been neglected, now it’ll be the turn of advanced weaponry, like the concerns were when the soviet union broke up.
There isn’t much justice now, there will be far less after there are only more fiefdoms and nepotism.
The people will vent there anger at the wealthy. Somehow the entire echelon of politicians will be so unpopular they’ll run for their lives.
The goal posts will be moving. the wealthy would be grateful if even the communists could create order from the lynchings. Probably Islam will stand tall with some social programs.
If the crash comes before the November elections, surely (out of the three) Obama would be the only hope. As the other two could only polarize, being such apparent apostles of the rich.
The end of trickle down capitalism. Out of chaos will be opportunities for the opportunists, but that will be short lived. The wrath of a people is too large.
The rest of the world will suffer a little, but in fact be strengthened.
The empty properties will be occupied. Gone will be the sacredness of the private landlords.
Now, writers should end on a positive note:
With the decline of the current oligarchy and the military oil complex, will come some self examination and hopefully less self righteousness.
And there will be a return to a sense of community, which is only natural for us humans.

There is a more scientific prognosis here: Draining national prosperity
www.atimes.com/atimes/Global_Economy/JE07Dj02.html

Foodstamps anyone?

Foodstamps anyone?
Central banks reserve funds to be kept secret. Which banks to be bailed out will not be publicised. This suggests insolvency.
Inflation will disguise the lowering value of houses. Only if the prices were expressed in purchasing power would they be revealing. If houses go down ten per cent and there is inflation of ten per cent, then houses have really gone down twenty percent.
Lend lend, print print. Pass laws, all of which are stop gap.
The real issues are: lack of wealth creation, that is everything being outsourced.
There will be anger on the street.
And there aren’t any alternatives being offered. Just patchwork.
The whole debt/lend/borrow economy is the general malignancy. And the global free trade which means own the factory, the transport and lend to the consumer. Somehow it is not sustainable. A fortune being spent on wars and security, and no one in power saying, ’stop’!
The unfolding food crises is new, and it is going to cause a rethink.
Maybe Capitalism has peaked.
Can our leaders (not our politicians) think of a new way.
A social welfare system is going to be required. A compassionate idealogy. The golden handshakes aren’t helping anyone.
And taxes going up or down, are also not a solution. A new system is needed. Take a look at communism, capitalism, democracy, religion, take the best from each, and put it in a blender.
The powerful now rely on a human’s weaknesses and fears. But if everyone should get together, in a show of anger, then it all be torn down.
No more bio fuels, no more GM, no more reliance on free market principles. It is a case of going back to market intervention for social reasons.

Credit crises armegeddon

http://iraqwar.mirror-world.ru/tiki-read_article.php?articleId=162510

Commercial Banks Heading for Huge Derivatives Losses- Credit Crisis Turning into Credit Armageddon
By: Money_and_Markets on: 22.04.2008 [16:12 ] (468 reads)