'The Parasites Are Eating The Host'
By Susie Madrak Saturday Feb 07, 2009 6:00pmWell, now I'm really depressed. From Naked Capitalism, a disturbing piece (via Corrente):
Willem Buiter, who has some expertise in dodgy debtor nations, has a typically insightful post today, "Fiscal expansions in submerging markets; the case of the USA and the UK."
Despite the dry title, what is noteworthy is that Buiter discusses in some detail how corruption, both in the government and society, limits policy choices. Put simply, diseased leadership has trouble pulling a country out of a debt crisis because no one trusts that they will do the right thing (and frankly, why should they?).
Buiter makes a compelling case that lack of credibility has real costs, and uses it to bolster his argument that the US and UK should not go on the kind of whole hog spending spree that most orthodox economists are demanding right now. He thinks a currency collapse, a scenario that most would dismiss as impossible for the dollar, is in fact probable at higher deficit levels in part because creditors and investors know the US and UK lack the discipline to trim the sails soon enough.
While Buiter does not frame it this way, in effect he is saying that the downside of doing too little (deep recession and/or very sluggish growth) is preferable to doing too much (high inflation and the risk of collapses in major currencies.
But the most important aspect of the post is not the policy implications, but the fact that a Serious Economist has finally said that the lack of scruples in America and Britain has gone beyond the tipping point, and is going to exact high societal costs. The parasites are eating the host. I hope someone out there is taking notice.
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The Democrats and GOP's debate is disingenuous and doesn't even make real points, if you want to know what the real issues are look at these 3 links. It's pretty important
Dr. Paul on the Senate Stimulus "Compromise"
http://www.youtube.com/watch?v=1grSrasToHI
Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"
http://finance.yahoo.com/tech-ticker/article/...
Marc Faber: Stimulus will be a disaster
http://www.youtube.com/watch?v=Zy1NFhOtNNY&fe...
Thanks Susie for posting this
Yeah, someone is noticing - the host! Unfortunately, the parasites are still in smorgasboard mode.
And them damn parasites just can't seem to get enough.
I hope everyone is taking notice.
Save yourself and your loved ones, for no one else will.
I have been reading this blog for a while, not for political commentary or information, but for entertainment. Reading this site is like being in the crowd at a professional wrestling match. The whole game is rigged and I just come here to watch the body slams and fixed drama.
The real news is that that there is a terrifyingly excellent chance that the stimulus package will be a train wreck. Yes, the people mentioned by the second poster have been talking about this for years, decades even.
Hopefully, more people will take a critical look at this package. It is good to see some common sense working its way into the mainstream.
about the pony that, between two hay stacks, starved to death because he could not make up his mind which hay stack to eat from.
OH NOES, don't drink the stimulus kooool-aid!
OH NOES, if we do NOTHING we is doooomed!
Meh. It is Saturday night, and Col. Kilgore is gonna go have a beer and flirt with the barmaid. Maybe I'll get lucky. And things will look better in the morning.
This is a Kleptocracy.
The 'Bailout' is the greatest transfer of wealth in history. From the bottom being transferred up.
The Bungling but mainly Swindling Banksters are being enriched beyond their wildest dreams.
Buiter while he praises creating a 'Good Bank' says that the rest of the Banks need to be re-capitalized.
Really, I object. They say they are capitalists, let them behave like capitalists. Capitalists and their investment banks have going bust for hundreds of years.
Let them go bankrupt and the market will do the rest.
The government can buy the good assets and create good banks.
There is no moral legitimacy in impoverishing the entire country to enrich the few by buying or guaranteeing their bad assets, whatever the ploy.
The most egregious of these ploys is the paying of Credit Default Swaps at face value to speculators. While the underlying security holder has some claim of legitimacy with CDS, were I accede to the fundamental bailout premise, which I don't, the speculators deserve nothing. Gretchen Morgenson here.
As for the 'Stimulus', there are innumerable things that have gone begging for years while we enriched the war profiteers.
A number of these things should be done, but not tax cuts.
Cutting the 'Defense Budget' in half is one of them.
But as Buiter rightly points out, the credibility of the UK and the US to make the tough choices later is highly dubious. Default or monetization, choose your poison.
Stay tuned for the Bank Bailout Bill Part Deux. There is still some money in kids piggy banks that the bastards haven't stolen.
I was amazed to learn about these "instruments" and even more astonished that none of these financial geniuses ever thought they would be a problem, but I guess greed provides wonderful blinders.
The chilling aspect of it was, as I understand it, you don't even need to own the security to bet on it, and the insuring institution doesn't have to have enough assets to pay the value if the security tanks. Oh, and there is no transparency or regulation on this multi trillion dollar market. Gee, what could possibly go wrong there? I agree, the speculators deserve nothing.
Corruption is an outcome of political cowardice. The amount of energy required to stand up to the status quo is huge, and very few electeds appear to have that kind of gutsy determination.
I don't know where Biden and Dodd were when CDOs and CDS's (credit derivative swaps) were implemented, but apart from naked short selling, it's hard to imagine two more corrupt -- and corrupting -- economic forces.
The predators have eaten the host.
If you wanted to subvert the US economic system, CDOs would be an ideal vehicle. And the corruption has spread really, really fast.
I completely agree that speculators who used CDOs and CDSs deserve no money. Some were just stupid; others were surely deliberately criminal.
Fixing the economy is definitely related to ethics, to courage, and to vision. The economics are a symptom of underlying unethical conduct and unrealistic expectations.
this paranoia...this hurtful, worrisome, angst about corrupt society and government. Let's rid ourselves of this voodoo apparition that still haunts our souls. There's a new sheriff in town. He's appointing cabinet level watch dogs to track the progress of the tax payer money spent with a level of transparency unheard of and unprecedented in American history. His site Recovery.org will go online immediately after the bill is signed. What more could we ask?
This is the first leg of a multi-leg stool approach to making real, effectual, sustainable change in government and society. Obama's doing it! Don't stand in the way of progress and change that will ultimately correct the errors of our immediate past administrations. This is not the status quo. It is the stimulus that gives us hope!
Or post? NOBODY is doing this complete cheerleading stage anymore, even on the most left of blogs. It is quite obvious to everyone, no, it isn't as bad as it could have been with another Repuglican, but damn...this isn't change. If you truly think it is, then all you are going to have left is.....well...change.
never thought about it in that light before. That's a really good albeit frightening point.
...will just be back in a couple more months (or sooner) asking, no, demanding, another $ trillion.
and they'll threaten some even more urgent disaster if we don't give it to them
They are playing the Ultimate Protection Racket.
DICK just did that the other day (threaten, that is).
is passing their version of stimulus. We will pass ours as well. It's not - as some imagine - a transference of wealth to the super-rich. It's the first step of many steps to reach the goal of recovery. We're not alone in this course of action. America has the duty as the last and only remaining superpower to lead the way and to get over the hurdles of the past. Keynesian economic philosophy has never fully been tried out. Obama will do it. Geithner will introduce his open and transparent plan Monday so we can see what's coming. Get on board people. Can we move away from the fears of the past? Yes we can...
They refuse. Putin instead is cutting spending.
He's all about his pipelines and attacking the US when we appear weak...
The Russians Are Coming
Putin said Russia wants to build a new gas pipeline to the Pacific and China that would parallel a new oil pipeline on Russia's Far East coast.
In the mean time, Russian President Dmitry Medvedev thinks the existing financial system is ineffective and is suggesting making the ruble a reserve currency. He expressed his opinion to journalists at the G8 summit in Hokkaido, Japan.
Russia’s prime minister Putin called on China to abandon the US Dollar in its trade, according to zaobao.com. He pointed out that with the global economy based on the Dollar, serious problems had emerged. Russian newspaper Kommersant reports that Putin welcomed use of Ruble and Yuan for mutual trade, after making similar suggestions to Belarus and Vietnam.
Source: http://www.rferl.org/
Russian currency should be the currency of choice, and other nations agree with them, put that final nail in the coffin.
different party. Does Russia owe us something? So a country circles the wagons around themselves in view of the insane thuggery of the u.s. in the last 8 years (and counting), the world economy is drowning thanks to the fiscal insanity of invading other countries for their resources and corporate wild greed.
How uncooperative to not join in dangerous self-destruction!
Self protection is sane behavior in this world climate.
You sound like you're hawking a new brand of toothpaste.
Russia is used to living on beets and cabbage. We're not.
Every superduperpower goes down. Who will be next?
Russia has English speaking internet televsion. Gives a good picture on the television on the TV out on my video card. I watch it once in a while, usually ½ hour of watching at the top of the hour for the Russian perspective on the news.
The two economic issues I recall is that Russia has put a 15% tariff on imported autos to support their domestic producers, and that the ruble has dramatically fallen against the dollar. I *think* I heard something about a “2nd” bailout of their banking industry.
Pop this in media player and you got the live feed.
http://streaming.visionip.tv/Russia_Today
can I get a hit of whatever it is you are smoking?
"He thinks a currency collapse, a scenario that most would dismiss as impossible for the dollar, is in fact probable at higher deficit levels in part because creditors and investors know the US and UK lack the discipline to trim the sails soon enough."
I feel like I'm totally alone here. The deficit can be mitigated just by raising taxes on the rich. Yes, raise taxes on the rich right in the middle of a depression. It won't dent the economy in the slightest way.
The bottoms of the pockets of the super rich are completely separate from the economy. Clinton reached in there with both hands and jobs still soared.
We are giving the super rich trillions.
There is not a tax increase high enough to offset what we are giving them.
I haven't heard Obama mention raising taxes on the rich, or Kucinich, or Krugman.
Cuz they wouldn't dream of suggesting it.
Let me say categorically.
I have never seen a soak the rich plan that I didn't think worthy of some serious consideration.
Raise the Capital Gains tax so it mirrors income tax and at the very least put the upper income brackets back to where Clinton had them.
There.
Whenever a government has the nerve to increase taxes on the rich, they also, increase the bastards tax credits as well, so it works out better for them in the long run.
the only thing we have to fear is OUR GOVERNMENT!
"we has met the enemy, and he is us!"
h/t Pogo Comics
oh and heres a tip we survived on corn bread beans and fried taters during the real great depresion!
Beets and cabbage, corn bread, beans and fried taters; so far I don't see a down side, I love all of those.
amen brother its finger lickin goooooood!
For over two years I have posted the writings of Christopher Story over at www.worldreports.org and while some seemed amused, the story itself speaks the truth about what has been really going on. In fact, Mr. Story updated this evening and the story about the Queen of England canceling a pre-planed trip to the Abudabi and Dubai yesterday that was to take place this March has to do with what is happening with banks such as Citibank.
Obama is be played by his closet advisers that are in fact working against him. They include the Clinton/Bush crime nexus with the aid of the likes of Alan Greenspan who according to Story was arrested this week. The arrest had to do with the movement of trillions from a holding account at Citibank to Dubai. These funds were to reliquify the worlds banking system and the old guard is doing everything in their power to see Obama fail we the American people.
It is a breath of fresh air for a mainstream economics writer to come forward with regard to why he believes this world wide financial tragedy is happening. But the story behind the story can be read this evening at www.worldreports.org.
Perhaps old man Bush had always wanted to live a self fulling prophesy and I hope he gets his wish considering all the pain he as well as the Clintons have caused. Hie words " If the American people ever knew what we were up to, they would hang us from every lamp post in Washington". It long past time to grab a rope!
I told people that Bush should be patted down as he leaves the White House, see if there's any bailout money in the lining of his coat. People thought I was being funny.
www.worldreports.org. Just updated this evening.
Many economists argue for the stimulus, saying that it'll curtail unemployment and the decline in the economy. They say that if we don't, the increased decline in the economy caused by no stimulus would reduce tax revenues, to a level approaching the costs of the stimulus, along with more people unemployed then would be with the stimulus.
Unfortunately, while we're distracted with athletes taking bong hits, and 6 year old allegations of steroid use, we're not being told the nitty-gritty of the stimulus. I think what we're going to get is a dumb stimulus. I am absolutely opposed to bailing out shareholders of the banks that got us into this mess.
Another issue that the corporate media is keeping from us, while not stimulus related, would greatly improve the economy, and that is health care reform. In this time of unemployment, we need to tell our representatives that they should vote for Medicare for All, or we'll vote to not continue their employment. Pass H.R. 676.
This is the closest that this site will ever come to admitting that both Republican and Democrat politicians are working against the interests of average people and that the rot in the entire political landscape today is so systemic that solutions proposed always have the end result of further destroying what is left of this once great land. It identifies deep corruption as the key, something many people cannot accept about American politicians which is dangerously naive at best. Financial interests run this country, and they are running it into the ground. Predatory capitalism has consumed everything it can on this planet and now is in the death throes of its last desperate gasps. This is the reality everyone in America needs to deal with, even the banksters: our current way forward equals death, destruction and unrecoverable decay not just for America, but for the planet.
I also believe that until the banking system is not just reformed but leveled in its current form and those involved at the highest levels overthrown from their positions of prominence in our society, no amount of money, real or otherwise -- like the printed stuff the Fed keeps issuing that serves to devalue any money we might have -- will solve any of our problems.
The problem is that the average American is in complete denial about what is going on around them, so mezmerized are they by the pablum fed to them by the mainstream media. Average Americans are living with a 50 year old paradigm of what America is today, which is assisting the political classes with their easing this country into facism. Obama, who chides the banking classes for paying themselves grotesque bonuses just as he prepares to sell another bailout to the American public, represents everything that he claimed to run against: empire, greed, torture and more bloodshed in the name of peace. Just look at his cabinet for confirmation of that. He's just the salesman. (Everybody knows that Presidents don't actually run anything anymore, they just speak for their masters.)
We are not being told what is going on on purpose. If people fully comprehended what was going on, there would be a revolution. We are instead being dumbed down with triviality in order to keep us compliant, easily led and lethargic.
But as more and more people are disenfranchised through poverty, by police state brutality and by the obvious lies spoon-fed to us each day, there will be a growing tide of anger and rebellion that may yet curb the growing tide of monopoly, scientific feudalism and immorality. Whatever happens, 2009 will be a year of transition for all of us as we discover and develop the paradigm that will guide us into what will be a very different future. It may be a future of freedom or one of absolute slavery, but it will, most definitely be a new world.
You can take that to the bank, if you trust them enough.
"But as more and more people are disenfranchised through poverty, by police state brutality and by the obvious lies spoon-fed to us each day, there will be a growing tide..."
If that tide doesn't come in, if leadership (business, political, etc.) doesn't start working in the best interests of the majority, if our state defaults on the inalienable right of "life" by quashing universal healthcare, then perhaps there is only one solid solution.
We stop providing exploitable Morlocks to support these Eloi (borrowing from HG Wells).
In other words, working- and middle-class people stop reproducing, so that at least in the short lives we have we know we had a bit of an influence, a smidgen of power by stopping a never-ending cycle of the few bleeding dry the many.
Maybe it's time for the elite's offspring to become the next generation of soldiers, of exploited incomes, of demoralized labor, and of potential denied.
once predicted the eventual--and inevitable--collapse of capitalism. This philosopher was vilified by people whose agendas were both selfish and devious. However, for those who have read Karl Marx without a knee jerk "I hate communism!" response, current socio-economic events are not surprising.
Marx recognized that as we humans evolve, we will progress through economic behaviors that mirror our macro-level mental and emotional maturation. Those who denigrate his vision of "From each according to his ability, to each according to his need," are simply not able to grasp the bigger picture he envisioned (let's not argue whether we humans are indeed capable of the kind of spiritual gnosis that could erase hierarchy and greed from our social, political, and economic interactions--why is this vision any less real than our species' current world view?).
Over 6.7 billion people worldwide are competing for Earth's "limited resources." Yet, less than 460 individuals control better than 45% of said resources. THIS is the grim actuality of our world economy. How we define our economic behavior is of no consequence in the face of this blatant inequity.
The world's wealthiest people want the rest of us to remain mired in ignorance and bipartisan bickering. As long as we are complicit in maintaining the status quo (especially, by chasing that ubiquitous and meaningless wealth carrot), the uber wealthy can continue to enjoy the fruits of our labor without ever having to raise a finger.
One final observation: the banks will always, always, always, always, always, always--did I mention always?--always make their money.
Funny thing,
human capital is about 50% of a nations wealth, natural resources is about 25%, but economists have no actual explanation for the remaining 25%, that they can prove.
A couple years back, some economist claimed it was made up for the most part by trust between govt. and populace (sorry, can't provide the link), pointing to the scandinavian countries as an example. Admittedly, we in Norway have massive oil reserves, but Sweden, Finland and Denmark don't, (Iceland is another story, due to recent events I suspect, not much trust left there)
This led to less amount of resources that had to be used to control and check everything, for increased welfare/wealth for most/all.
Also, due to stricter regulations placed on banks in the late 80's here, after the predatory lending practices during the 80's gave way to a bank crisis, the only bank packages, bailouts, here are in fact govt. guaranteed loans so far.
There will be some increased spending on infrastructure, roads, railroads and the like, but at least that is an investment.
The process is now well beyond the public's control, as the elections of 2006 and 2008 clearly show. The parasites are working overtime to convert your savings, such as they are, into government obligations. Meet the new boss, same as the old boss, etc.
That said, you need to just sit back and ask yourself a question of deep philosophical import: "What would Michael Phelps do?"
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