Quantum Pranx


Archive for January 2011

Inflation, inflation everywhere, and not a drop to drink

leave a comment »

by CIGA Pedro
from Jim Sinclair’s jsmineset.com
Originally posted Jan 30, 2011

Jim Sinclair’s commentary: CIGA Pedro clearly outlines how the demise of the dollar is the demise of much more. Greenspan gave away more than anyone knows. Gold is your only insurance policy against things we cannot control regardless of the wild fluctuation of the price. We must be our own central bank.

AT LAST, THE DOUBTERS HAVE NOWHERE TO HIDE. The world is starkly revealed as an interconnected political economy force, and not as a disparate grouping of various nations, some authoritarian, some choosing democratically agreed upon policies, creating policy choice and thereby shaping of political outcome. Greece, Ireland, Tunisia, and now, the fulcrum of the Arab world, Egypt, stand as testimony. They are countries caught up in the machinations of a monetary policy to debase the world’s reserve currency.

All “he” wanted was some inflation, a little inflation to get America and the west out of the deflationary spiral caused by the failure of financial instruments (a.k.a. OTC Derivatives) and un-payable government debt – but he can’t get it. Everywhere it rages, but the place he wants it is home. So it erupts in global food prices and manifests itself in the attempts to bail out stone dead banks on the backs of the marginal economic player: the post-destruction of the middle class. Most of the world has no savings to get through difficult times. Most of the world cannot “hedge” inflationary outcomes. Those outcomes appear quickly and change realities violently. The inflationary reality is their reality – the difference between starvation and survival.

Read the rest of this entry »

The Bears explain the Bank Bailouts

leave a comment »

The Bears are back (hooray!) with further enlightened discourse, this time on a subject ever close to our hearts: the hows and whys of how the American people ended up paying for the failure (and looting) of the [criminal] banking system…

Geithner does not see global inflation as a concern

leave a comment »

by Tyler Durden
Originally posted Jan 28, 2011

Further confirming that America deserves each of its elected officials, in this case a Treasury Secretary whose intellect is increasingly put into question with every single utterance out of his mouth, was Tim Geithner’s statement from Davos earlier that inflation on a global level is “not high on the list of concerns” although probably while looking at pictures of tear gas being fired at protesters in Tunisia, Algeria, Yemen, Morocco and now Egypt he added “emerging markets across the world are certainly ‘feeling some pressure’.”

IF BY PRESSURE, HE MEANS REVOLUTIONS, THEN HE IS CERTAINLY SPOT-ON. As for Egypt’s soon to be deposed leaders, Timmy has four words of advice: please kill the dollar. “Geithner told the World Economic Forum that emerging markets could manage their inflation problems better if they loosened their currencies’ links to the dollar, a measure that economists say would lead in most cases to an appreciation against the greenback.”

And there you have it: America continues keeping the world hostage courtesy of the dollar’s reserve status, able to export inflation at will knowing that the US consumer is irreplaceable, and the only recommendation we have to the world is to continue devaluing the dollar (yes, a weaker dollar means stronger opposing non-dilutable currencies), an act for which we are sure the US middle class thanks him.


More on the inane banality emanating from the vocal orifice of the tax cheat:

As for the U.S.’s own fiscal problems, Geithner admitted that the current position is “unsustainable in the long run” and needs to lay out a credible, multi-year path to sustainability. He bemoaned the fact that the U.S. political system lacks any mechanism to enforce this.

Geithner expressed confidence that the recovery has taken root in the U.S., pointing to clear increases in private investment and job creation over the last 12 months. Without explicitly endorsing them, he referenced consensus forecasts of between 3.5% and 4% annualized growth for the U.S. for the near term, and a “tighter consensus” that the jobless rate will fall to below 8% by the end of next year, from around 9.6% at present. He noted, though that the U.S. was “consigned to a tragically moderate” recovery and an accordingly slow decline in joblessness. Speaking Thursday, HSBC Holdings PLC chief economist Stephen King had noted that although an annualized growth rate of 3.5%-4% appears healthy enough, it’s below the 5%-7% that the U.S. has seen at a comparable stages of previous recoveries.

Read the rest of this entry »

Elite desperation over failing Middle East Psyops

with one comment

by  Anthony Wile
From The Daily Bell
Originally posted January 29, 2011

Once again, the power elite manipulates the Middle East for its own gain. It is a dangerous game, especially in Egypt, which controls the Suez Canal. Because of the violence, gold is up and oil, too. And just as I finish writing this article, the UK Telegraph has released an extraordinary story. It claims that the United States leadership not only secretly backed the current uprisings in Egypt, it was actively aiding and abetting the protestors. Hello rewrite!

“AMERICA’S SECRET BACKING FOR REBEL LEADERS behind uprising,” the article reads. It explains that The American Embassy in Cairo helped a young dissident attend a US-sponsored summit for activists in New York. “On his return to Cairo in December 2008, the activist told US diplomats that an alliance of opposition groups had drawn up a plan to overthrow President Hosni Mubarak and install a democratic government in 2011.”

What an expose! Unfortunately the story is developed from cables recently leaked by WikiLeaks. And here at the Bell, we don’t trust WikiLeaks. Julian Assange himself may be an asset of Western intel. Of course, from the perspective of Western intel, tying Egyptian yearnings for independence to WikiLeaks may have seemed a brilliant stroke. Perhaps they believe it provides both WikiLeaks and the American ruling establishment with enormous credibility: Each can be seen as supporting freedom.

But on a deeper level, it reveals the desperation and the unraveling of this entire operation. The Anglo-American power elite has apparently decided to destablize the Middle East in order to create regulatory democracies with an Islamic tinge (an arrogant assumption in my view). The ultimate goal is to butress the war on terror and deliver enhanced authoritarianism to the West – and the Western middle classes that are always the targets of the elite.

But as usual, the Internet has apparently upset elite plans. How does one run a “black ops” of this magnitude while being exposed in real time? In fact, WikiLeaks could have released these cables at any point. They did it yesterday, apparently. It is as if the collective hand of the elite has been forced.

Read the rest of this entry »

Audio Slide Show: Pictures from Cairo’s Protests

leave a comment »

Obama’s Speech and America, Inc.

leave a comment »

by Nomi Prins
Originally posted January 26, 2011

Watching Obama deliver his State of the Union Speech last night, reminded me of all the rah-rah quarterly meetings that we had to attend as Managing Directors at Goldman, where senior management would remind us all of how great we were, and if there were any areas of competitive weakness relative to our adversaries at other banks, all we had to do was step up our game, innovate and globalize (or something like that.)

Obama wasn’t delivering a summary of what has, or is, going on for most Americans last night, no such negative status report. And, if you didn’t expect him to, he gave good speech – full of reminders of how it is America’s destiny and the American dream to be great and powerful, “robust democracy” that we are.

There was a massive pink elephant in the room called reality though. So, when he waxed proud when he said, “We are poised for progress. Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing.” I had a different reaction.

My reaction was wtf? Two years after the worst recession? After? Really? What about the 26 million people unemployed or underemployed in the country?

What about the 4.4 people applying for every job, compared to the 2.9 people per job after the 2000s recession?

What about the 4.4 million jobs that should have been added, just accounting for a population coming of job age alone, forget any kind of growth, compared to the fact that instead, the job pool declined by a quarter of a million people in the past two years, because the time required to get a job is at record highs?

Read the rest of this entry »

Empty Promises: Five reasons why Obama’s State of the Union Address was completely wrong about the economy

leave a comment »

from The Economic Collapse
Posted originally Jan 26, 2011

Please read this in conjunction with the preceding posts by JS Kim on the subject of education. And then wonder at the complete disconnect between two prevailing perspectives… –Aurick

Barack Obama’s State of the Union address sure sounded good, didn’t it? There were lots of solemn promises, lots of stuff about America’s “bright future” and a line about how we are now facing this generation’s “Sputnik moment” that will surely make headlines all over the globe. But we all knew that Obama gives a good speech. That has never been the issue. What the American people really need are some very real answers to some very real problems.

SO WERE THERE ANY REAL ANSWERS IN THE STATE OF THE UNION ADDRESS? Well, he promised that America will “out-innovate, out-educate and out-build” the rest of the world. He also pledged that America will become “the best place in the world to do business” and that the government must “take responsibility” for our deficit spending. But does all of this rhetoric mean anything or is all this just another batch of empty promises to add to the long list of empty promises that Barack Obama has already made and broken?

The American people certainly don’t need any more empty promises. Millions of American families have been pushed to the edge of desperation by this economy. There has been a lot of talk that the economy is “turning around”, but in many areas of the country the employment situation continues to get even worse. Payrolls decreased in 35 U.S. states during the month of December. The truth is that the number of “good jobs” produced by the U.S. economy continues to shrink. In fact, only 47 percent of working-age Americans have a full-time job at this point.

The American people are not going to buy this “economic recovery” as long as unemployment remains at epidemic levels in so many areas. Just consider some of the stunningly high unemployment rates in some of our most important states: Nevada – 14.5%, California – 12.5%, Florida – 12.0%

So did Obama propose anything substantial that will actually create real jobs? No. Instead, all he had to offer was just a bunch of empty promises. It is almost as if he believes that a really good inspirational speech will somehow make things better. The following are just a few of the empty promises Obama made during his address to the nation….

Empty Promise #1: America will “Out-Innovate” the rest of the world and this will create more jobs

During the State of the Union address, Obama promised that the United States will “out-innovate” the rest of the world and that this will create more jobs. Oh really? Perhaps we could create some more cutting edge products like the Apple iPhone, right?

After all, Apple iPhones were one of the most wildly successful American technological innovations of the past decade.  Surely this is the kind of innovation that Obama would like to see more of. Well, do you know that iPhones are manufactured in China by workers making about 293 dollars a month? (and that was after a big raise).

But it isn’t just the Apple iPhone that is made overseas. The truth is that almost all high technology products are made outside of the United States. In 2008, 1.2 billion cellphones were sold worldwide. So how many of them were manufactured inside the United States?  Zero. Not only that, another fact to note is that manufacturing employment in the U.S. computer industry was actually lower in 2010 than it was in 1975. So exactly how is more “innovation” going to produce millions of U.S. jobs if all of the high tech manufacturing continues to be shipped out of the United States?

Read the rest of this entry »