My latest and best:

Click to view link

"gurgle, gurgle

(*Remember "Celtic Tigers"? Now we have "PIIGS". Markets make opinions. Dont let anyone ever tell you otherwise.)" .... Posted by ScuzzaMan on 9/23/2010 3:55:17 AM.

ScuzzaMan, whenever the markets and systems are rigged for spivs, ... and more than Vince Cable knows a nest of such paper tiger vipers when he speaks of them .... is there always a glitch which turns into a vulnerability which morphs into an exploit which delivers a crash and metadata meltdown and triple A AIR&dD Attack from Astute Allied Alien Sources and Forces?

Daily Bell, Do you think Governments and nations and religions are being held to petty ransom by the controllers and issuers of counterfeit wealth invented out of thin air and masquerading as paper currency and electronic credit which can be then pimped as debt to be repaid to enslave the ignorant masses to the arrogant few, who would perversely not think that it is a crazy thing to get caught doing, and sending the military to die and kill needlessly defending, just so that paper money rules rather than special intelligence services and forces ..... with a Beta Satellite Network of Advanced InterNetworking Source?

[blockquote]by amanfromMars
on Thu, 09/23/2010 – 08:43
#599347

Tyler, Hi,

Whenever you have your markets tied to a computer program which ignores and/or protects against negatively impacting, real time floor input and sentiment, have you a rigged game which will crash catastrophically with a beautifully crafted worm/virus, which may or may not be a Stuxnet creation .... Click to view link

Forewarned is forearmed, but there is nothing you can do to prevent a correction of a corruption and perverse artificial manipulation, by smarter beings, and why would any supposed Intelligence want to try, in order to perpetuate a myth which would then be a global scam, in support of the overthrow of free market wishes with a computer program delivering false PROMISes.

There's bugs in the system and they're gremlins of colossal extraction stealing wealth wholesale from the nation.

Click to view link [/blockquote]

I'd hesitate to prescribe "the" problem – unfortunately we live amongst a large set of multiplexed politico-economic problems – but one problem that the EU suffers from, and is now manifest in the straits in which the "PIIGS*" find themselves, is the problem of perverse incentives.

The Greeks riot, killing people, and are bailed out with cheaper loans than the cheap loans that got them into trouble in the first place. The Irish impose "austerity" on themselves and are now paying more to borrow than are the Greeks.

Does this constitute a perverse incentive?

It seems to, to this observer.

This problem besets many of the well-intentioned "solutions" proffered by the usual suspects to the problems caused by their previous solutions. It's an ever-decreasing circle, a down-the-drain spiral ...

gurgle, gurgle

(*Remember "Celtic Tigers"? Now we have "PIIGS". Markets make opinions. Dont let anyone ever tell you otherwise.)

@John Danforth and DB:

Yes, I agree and also agree with DB's comment that austerity includes raising taxes. The latter I didnt mention because govs always find an excuse to raise them: after all, the beast must be fed.

The problem with cutting back spending is that people are not likely to simply swallow. Most overspend and pay back time is ignored and push forward in time " until the day comes the man with the hammer strikes. And the reaction of government is to blame it on insufficient and greedy markets " hence, more control is needed! That means a bigger gov, more centralized control and exactly the opposite of what should be done in my view.

I am in the EU, and see the shift towards a communistic-like regime (regulatory democracy as DB calls it). Unfortunately, most people don't see it that way, or are simply happy with a "providing" gov.

"If we understand you correctly, (always a consideration) we've written this before, you know." ... Reply from the Daily Bell

Why are they still there then, milking and bilking systems and slave units? It suggests you are an impotent voice, wasting everyone's time here, DB. You can surely do better than that, if you wanted to. Need a hand or three or more?

"I understand the point that austerity is a punitive affair, more or less being a set-up where the country is suckered into borrowing and spending way too much, only to have the flow of money suddenly stopped, and punitive interest payments going to bondholders." ... Posted by John Danforth on 9/21/2010 7:34:08 AM

That set-up you have described is parasitic fractional reserve capitalism as pimped by fiat currency banking, John? And you surely knew that.

Austerity is caused whenever the money taps are turned off but that only causes the mob to realise who the real enemies of the state and United States are .... in their feather nests and ivory towers, and that makes them increasingly vulnerable to popular irregular and unconventional repercussions/personnel adjustments.

And how refreshing of the Daily Bell to declare the EU a self-serving scam to personally enrich its Imperial Executive and Republican Guard Storm Troopers.

And re Posted by Edward Ulysses Cate on 9/21/2010 3:20:17 PM, the times have changed and surely now the ditty should start ...."Times readers used to run the country, ..."

Reply from The Daily Bell

"And how refreshing of the Daily Bell to declare the EU a self-serving scam to personally enrich its Imperial Executive and Republican Guard Storm Troopers."

If we understand you correctly, (always a consideration) we've written this before, you know.

Some people keep repeating the mantra that devaluing is better option then austerity measures. Is this so? Austerity measures are equal to devaluing. Both measures stand for belt tightening the difference is only which portion of the population is going to tight the belt. When one currency gets devalued then the absolute purchase power is reduced, which equals to wage reduction. There is one little secret in devaluing the banks which made the majority of the bad loans and are responsible for the crises get off the hook and have to repay them back with much cheaper currency on the expense of the whole population who is going to be punished severely. Austerity is better option because the government can selectively distribute the burden and protect the poor, when devaluing affects everybody and the social cost are too high and unacceptable.

@ DB

"The 'village idiot' is often the one who sees the most and understands the best." Not in this case.

Then answer me this DB, why is world arranged in such a manner, with the PE on top, and the Great Unwashed below? Well, in actuality, the Great Unwashed are on top and the PE is below, so never mind.

@ Bionic Mosquito

Thanks for appreciating my comments. Being an idiot is quite the high-wire act. The only safety net is me being an idiot.

I resemble that remark.

@Clayton

"It is appalling the extent to which so many educated and, one supposes, intelligent people are still waiting to see what "solution" the government is going to come up with make their lives meaningful and secure. It is this passivity in the culture that seems so at odds with the requirements of the times."

I have found this quite true, and even worse. Educated and supposedly intelligent people believe the government a) will find a solution, and b) has the people's best interests at the heart of their plans.

When asked to explain this "faith" of a solution, there is no answer, kind of like faith in a god. When given countless examples of where government has shown exactly the opposite of the people's best interest...blank out, followed by yelling or becoming an enemy. Somehow I am the one being cynical, and they are the ones being rational. I have concluded that unless one shows some skepticism towards government, the topic is often best avoided amongst friends.

@Weeble

The "village idiot" is often the one who sees the most and understands the best, while at times has difficulty (on purpose, perhaps?) conveying his thoughts to the rest of us. I always appreciate your comments, even the ones I don't quite understand!

Now I am limited to my 240 or so words...a real benefit to all on this site.

Reply from The Daily Bell

"The 'village idiot' is often the one who sees the most and understands the best."

Not in this case.

My goodness there is a lot of fluffing going on today; like a word porno. I am so glad I am regarded as the village idiot. No expectations of intelligence; freedom to write on the outside of the envelope, then fold it up into a V2 shape, fire it out on to the net and see when it runs out of fuel. I am nothing. But I want to be something. Please hear me out, please?

A few months ago, I bought my last batch of gold. It is now 3% higher than it was. Do I care? No. A few weeks ago it was 1% lower. Whatever it costs, it is always a good deal, as you can buy it with debt. Go figure!

Lucy wants a 60" LCD TV worth maybe $5000. I said: "well if you want that TV, then I get to go out and buy another batch of gold" (with cash, cash). She grinned. She knows I will do it, so she said nothing. She wants that TV. By the way, I initially said: "why don't you just move the chair closer?"

Now, I heard a friend say a long time ago that the Jews were always getting kicked out of the country they were living in, so they needed portable wealth. They were "into" gold anyway, so it was natural that they set up shop at the new location and purchased wisely, using gold, rather than trading in their donkeys (I asked Click to view link for a spell check, but it came up with "donkies," but I digress.) I guess Jews were pegged as the rich guys at the new spot, as they had to convert their stash of gold to the things they needed. Imagine a new guy rolls into town with a couple of bags of gold, buys a variety store, then works smart, and like a dog until he is so rich that the townsfolk think something is up, so they chase him out of town.

Anyway, my posts seem to be limited to 40 lines in My Crow Soft Word, so I must wind up. (I think it is a communist plot.)

If this economy goes to hell in a handbasket, the only thing I will have that is worth anything is gold and hard assets. If I am lucky, my house, of which I own 65%, may have its mortgage "lost in space without a helmet on" and no-one comes a claimin'. But that is wishful thinking.

Anyway, if we have to travel to a better place, then Lucy will carry all the bags, and I will carry the gold . . . and the 9 mill insurance policy.

@Leonardo and DB,

Thanks for the responses. If 'austerity' means 'less public sector spending', then it is not only necessary to avert disaster, it is the only right thing to do. I understand it will be painful for those employed off other people's taxes and debt to lose their jobs, but there is no justification for continuing as things are. The correction will come one way or the other. Either government gets its boot-heel off the necks of the people, or the currency will eventually collapse.

Do you agree?

[PS: Leonardo, there is a colon in your post! I'm pretty sure it's a dash with a space before and after that gets converted to a quotation symbol. The work-around is to omit the spaces.]

Reply from The Daily Bell

Austerity in this case means raising taxes aggressively as well. Obviously we don't agree with public sector spending - but "austerity" is not what it seems. Return to a private market gold and silver standard - without a central banking mechanism - and the public sector will subside naturally.

@ Lila:

It is appalling the extent to which so many educated and, one supposes, intelligent people are still waiting to see what "solution" the government is going to come up with make their lives meaningful and secure. It is this passivity in the culture that seems so at odds with the requirements of the times. The mindset does not have that spark. There is a lot of complaining, but when I put out alternative action plans, they just drift into a fog of apathy. In the face of far greater challenges, our ancestors demonstrated remarkable vigor, independence and fortitude. Perhaps, we have been too steeped in MSG, GMO, high fructose corn sirup and aspartame.

When I am asked what we would do if in fact the State just melted away, I reply that we would do what was necessary. Asked what that would be, I can only reply that the answer would be in the facts of the moment, which I am confident we have the mental wherewithal to base sound judgements upon. Here is where having faith in oneself is essential. Here is where the fearful life is an obstacle of the first order.

We must make it a top priority to point out at every chance we can the character destroying properties of the Welfare State. It is easy to point out the hideous nature of war. But the meddlesome rescuer is a much more subtle target. I hope to have some time this Winter to begin a book on this topic.

Keys to us, my dear DB? My view, in all modesty, was definitely fueled by the many excellent articles you published, sharpened by so many astute posters, like Clayton, Lila Rajiva, John Danforth, Avenist, and all whom I forgot to mention.

And it's just a view, not necessarily the right one " but I hope it prompts further thinking among everyone who cares to read your articles and the commentary.

[PS: for some reason a colon in my text is converted into a quotation symbol]

@John Danforth

I consider your posts as of high caliber, and it's my pleasure to share my view on this austerity dilemma. Maybe it's of help, although it's a view, not the one and only explanation.

Govs systematically overspend, and this can be continued as long as GDP shows growth. They have always the trick of a modest money inflation (say 1-2%) which erodes their debt automatically; a kind of fake GDP growth, stealing from their poor citizens.

Central banking, as DB tells us, is at the core of the problem as they manipulate this money inflation. It's a high level Ponzi scheme, in fact. At a certain point in time, people cannot spend more and the economy begins to sputter. The well-known business cycle kick in, and GDP doesn't grow but shrinks.

Now what happens to the debt? Forces are deflationary as demand has shrunk, and the debt becomes a dangerous situation because the gov gets less income from VAT and from income taxes, and at the same time their debt increases (due to the deflation).

Austerity seems necessary to reduce the debt, but it will not help because if people stop spending less VAT is received. Check the situation in Ireland at the moment where austerity doesn't match up with debt reduction, so they come in an "eternal" down spiral. That's why other call for "stimulus", not "austerity".

But in this scenario the Ponzi scheme is just inflated further (imho) and the inevitable bang will just be bigger. In fact, govs are positioned between a rock and a hard place. So, it's just a matter when, not if, the system totally collapses.

Gold and Silver are the remedy the world needs, as this is real money and any match to the gold standard will limit the Ponzi scheme spiral. Eventually the world will go back to this " but I am afraid I will not live long enough to see it happening.

As DB answered, people are more and more dependent for their living on large structures that take away their freedom and push them into apathy, at least for the short term. Revolutionary forces will develop " my guess is 2015/16 " with WWIII a not unrealistic possibility.

The EU will see a lot of social unrest as a reaction on their instability of the money, lost of trust in the EUR, and cultural differences will play up. Note that some dominant social themes are set up already to prepare for this (e.g., Peak Oil " peak is "expected" in 2015.

Also, the authority over the Panama canal will no longer be USA by then. The Shia/Sunni time bomb may very well escalate " and this is where the oil is, providing the excuse for military aggression in the Middle East. But I am drifting off.....

Reply from The Daily Bell

Wow, we'll just hand you and Danforth the keys ...

In searching to find out who owns the Telegraph, I came across this ditty, and just sharing it for a quiet chuckle.

Times readers run the country,
Telegraph readers think they run the country,
Guardian readers wish they ran the country,
Mirror readers would run the country
-- if the Times readers didn't run it already,
Mail readers don't know who runs the country,
Express readers don't care who runs the country,
and Sun readers don't give a damn who runs the country
as long as her measurements exceed 38-24-36.

This, and who owns these newspapers, is found here.
Click to view link

Reply from The Daily Bell

Thanks for the ditty and links. Great site!

See BBC article below ...

Click to view link

Telegraph empire in tycoons' grip

Lord Black resigned when irregularities came to light
Billionaire twins David and Frederick Barclay have bought a controlling stake in Conrad Black's media empire.
The Barclays have agreed terms to buy Lord Black's 78% stake in Hollinger, which owns titles including Britain's Sunday and Daily Telegraph.

They have now made a takeover offer for the whole of Hollinger.

Lord Black - ousted as Hollinger chairman amid allegations, which he denies, of financial irregularities - said his papers would be in "caring hands".

@ DB

"Many good mainstream financial reporters take eminently sensible stances on numerous issues but then, unfortunately, cannot find it within themselves to confront the reality of central banking ' that is it a money-fixing exercise that inevitably distorts the larger economy with ruinous consequences."

This seems the key statement of your article. There's that Hegelian tactic again of showing two points of view, each with some essence of truth. In this case the message is, in effect, "the EU is still an experiment, but wise folks are studying the best course of action."

Of course, the fundamental lynch-pin of Elite control -- central banks -- is never discussed. Seems this is a recurring theme in your articles -- Elite patterns are stubborn things, aren't they?

Reply from The Daily Bell

There are dominant social themes and sub dominant ones. The justification of reasons why a handful of people can print money at will, along with the meme of the necessary government, the inevitable war and the "fairness" of state justice are all massively important themes. Many of the rest are sub themes, thought we often don't identify them as such.

The last line might have been something like this twist of a well-known phrase: Do PIIGS fly?

@DB @Clayton

Thanks for taking on the formidable Ambrose Evans-Pritchard...who is so right most of the time, and then, suddenly, so wrong. It cannot be simply happenstance. It is co-option.

Public "austerity" might be fake and one-sided, but in the mid and long term it will be better than more CB stimulus.

The population has been bought off.
It cannot but be good for it to be weaned, even abruptly, from its dependency.

Sacrifice is necessary " not for the sake of the economy (to h*** with the economy) " but for our own sakes. We sacrifice dependency to gain self-reliance and a free conscience.