Economy Rigging 1

IRELAND AND THE DEBT BONDAGE January 30, 2011

Filed under: Uncategorized — bashstreetkidjailbreak @ 10:16 pm

ANON :

The solution to this problem is the following, it is difficult, everyone will have to pull together, but read this first: http://bit.ly/gsPO8Y

“…Dr Roubini argued that compelling senior bondholders to take pain was part of the solution to the financial bind in Ireland.

“You have to have a whole programme that leads to fiscal austerity that leads to stabilisation of the public debt, which resumes economic growth and competitiveness, so the challenges the country is facing are very difficult.

Dr Rogoff, a professor of economics at Harvard, said Ireland had “good fundamentals” outside the debt problem and said most of the country’s growth story was real. For any incoming government, the task would be to maintain that and not undermine it.

However, he said it will be difficult for Ireland to avoid some form of debt restructuring. Asked if he was referring to sovereign or bank debt, he said “I’m afraid it might be the sovereign debt”, since the sovereign had guaranteed bank debt.

“It’s not reasonable to say that senior bank bondholders should get bailed out and I think it undermines the whole sense of justice, the whole social fabric in Ireland and elsewhere to have these massive bailouts,” he said.

He acknowledged the view of the European authorities that senior bondholder haircuts were “very dangerous” but the questions that arose were what was in Ireland’s interest and what was in Europe’s interest.”

“There may be contagion. The question is how long can Ireland take the pain that’s necessary? A year, two years? Maybe. But three or four? Countries outside of Romania maybe, under Ceausescu, really haven’t done this and so it’s possible but it’s very demanding.”

Also, Daniel Gros of http://www.ceps.eu/ made a similar point when interviewed on Morning Ireland, that we have a choice between long term Ceaucesco like austerity and a short 2 yrs sacrifice.

We couldn’t do the following if we did not have good fundamentals, good export led growth, good agri sector, good corporate footprint. Because our manufacturing base has been decimated, its possible impact on that side of our economy is negligible.

We need to reset the economy.

Because banking debt has become sovereign debt and because of this we are within perhaps 2 yrs of a default, we need to do an orderly default right now.

This means we have to leave the euro, it no longer has a future for us for the foreseeable future, at least 10 years, plus rising interest rates in Europe can catapult Ireland over the edge, even if we chose not to leave, but to stay. Also, leaving the euro would provide a solution to the peripheral problem from the European perspective.

PuntNua or adoption of sterling as a currency to follow the euro could form the basis of bilateral support from the UK as we go through the process.

The process would be similar to the Icelandic one. Debt restructuring would include burning senior bondholders. We would need interim support and aid from allies everywhere including close neighbours.

The economy could be reset in as short a time as two years. But prospects for growth would be tremendously high thereafter.

 

IS EGYPT UPRISING SOMETHING ELSE ? January 29, 2011

Filed under: Uncategorized — bashstreetkidjailbreak @ 4:47 pm

For the first time in human history almost all of humanity is politically activated, politically conscious and politically interactive… The resulting global political activism is generating a surge in the quest for personal dignity, cultural respect and economic opportunity in a world painfully scarred by memories of centuries-long alien colonial or imperial domination… The worldwide yearning for human dignity is the central challenge inherent in the phenomenon of global political awakening… That awakening is socially massive and politically radicalizing… The nearly universal access to radio, television and increasingly the Internet is creating a community of shared perceptions and envy that can be galvanized and channeled by demagogic political or religious passions. These energies transcend sovereign borders and pose a challenge both to existing states as well as to the existing global hierarchy, on top of which America still perches…

The youth of the Third World are particularly restless and resentful. The demographic revolution they embody is thus a political time-bomb, as well… Their potential revolutionary spearhead is likely to emerge from among the scores of millions of students concentrated in the often intellectually dubious “tertiary level” educational institutions of developing countries. Depending on the definition of the tertiary educational level, there are currently worldwide between 80 and 130 million “college” students. Typically originating from the socially insecure lower middle class and inflamed by a sense of social outrage, these millions of students are revolutionaries-in-waiting, already semi-mobilized in large congregations, connected by the Internet and pre-positioned for a replay on a larger scale of what transpired years earlier in Mexico City or in Tiananmen Square. Their physical energy and emotional frustration is just waiting to be triggered by a cause, or a faith, or a hatred…

[The] major world powers, new and old, also face a novel reality: while the lethality of their military might is greater than ever, their capacity to impose control over the politically awakened masses of the world is at a historic low. To put it bluntly: in earlier times, it was easier to control one million people than to physically kill one million people; today, it is infinitely easier to kill one million people than to control one million people.

Zbigniew Brzezinski

 

 

HERE READS THE POINT OF ECONOMICS January 28, 2011

Filed under: Uncategorized — bashstreetkidjailbreak @ 2:19 pm

BY NEW YORK TIMES : Edward L. Glaeser: The Moral Heart of Economics – NYTimes.com

Edward L. Glaeser is an economics professor at Harvard and the author of the forthcoming book “Triumph of the City.”

Economists often present a cold public persona, emphasizing dollars and sense over the rousing rhetoric of moral argument. But by appearing as technocrats who seem concerned only with the bottom line, we allow ourselves to be portrayed as people without a sense of right and wrong.

Two weeks ago, I wrote about ethics and economics, calling for appropriate steps that economists could take to disclose conflicts of interest. Today, I focus on a larger issue: the complaint that economics is a discipline without a moral core.

Modern economics began with Adam Smith and the Scottish Enlightenment, a movement full of ethical debate by thinkers like David Hume, Francis Hutcheson and Lord Kames. Smith himself, who followed his teacher Hutcheson in the chair of moral philosophy at the University of Glasgow, wrote “The Theory of Moral Sentiments,” which included such ideas as “to feel much for others and little for ourselves, that to restrain our selfish, and to indulge our benevolent affections, constitutes the perfection of human nature.”

As Smith moved from moral sentiments to political economy, his focus changed from the perfection of private nature to the improvement of public systems. Most economic writing since then has typically shied away from offering moral advice to individuals and instead focused on improving public institutions and policies.

But that shift doesn’t mean that there isn’t a deep moral tenet – a belief in the value of human freedom – at the core of our discipline.

Some economists made that belief explicit. In the 18th century, Smith wrote, “Every man is, no doubt, by nature, first and principally recommended to his own care; and as he is fitter to take care of himself than of any other person, it is fit and right that it should be so.”

In the 19th century, John Stuart Mill asserted, “The only freedom which deserves the name is that of pursuing our own good in our own way, so long as we do not attempt to deprive others of theirs, or impede their efforts to obtain it.”

In the last century, Milton Friedman offered “freedom is a rare and delicate flower” and “a society that puts equality — in the sense of equality of outcome — ahead of freedom will end up with neither equality nor freedom.”

Economists, like Friedman, often made the case that freedom had instrumental value — it achieved other aims, including equality and prosperity. But no one should doubt that Friedman and Mill and Smith saw freedom as a fundamental good, a thing to be valued for itself. That is, after all, how freedom is treated at the very heart of economic theory.

Because our teaching is so mathematical and formal, it’s easy to miss that we start by making a huge leap, that is basically moral, not mathematical.

Teachers of first-year graduate courses in economic theory, like me, often begin by discussing the assumption that individuals can rank their preferred outcomes. We then propose a measure — a ranking mechanism called a utility function — that follows people’s preferences.

If there were 1,000 outcomes, an equivalent utility function could be defined by giving the most favored outcome a value of 1,000, the second best outcome a value of 999 and so forth. This “utility function” has nothing to do with happiness or self-satisfaction; it’s just a mathematical convenience for ranking people’s choices.

But then we turn to welfare, and that’s where we make our great leap.

Improvements in welfare occur when there are improvements in utility, and those occur only when an individual gets an option that wasn’t previously available. We typically prove that someone’s welfare has increased when the person has an increased set of choices.

When we make that assumption (which is hotly contested by some people, especially psychologists), we essentially assume that the fundamental objective of public policy is to increase freedom of choice.

Our opponents have every right to contend that economists are unwisely idolizing liberty, but they err by saying we sail without a moral North Star.

Economists’ fondness for freedom rarely implies any particular policy program. A fondness for freedom is perfectly compatible with favoring redistribution, which can be seen as increasing one person’s choices at the expense of the choices of another, or with Keynesianism and its emphasis on anticyclical public spending.

Many regulations can even be seen as force for freedom, like financial rules that help give all investors the freedom to invest in stocks by trying to level the playing field.

The belief in freedom does, however, create a predilection for human interaction and trade. As Friedman wrote, “The most important single central fact about a free market is that no exchange takes place unless both parties benefit.” For many economists, defending free trade isn’t just about gross domestic product; it’s fighting for core values of freedom and human interdependence.

As Smith said, “To give the monopoly of the home market to the produce of domestic industry, in any particular art or manufacture, is in some measure to direct private people in what manner they ought to employ their capitals, and must, in almost all cases, be either a useless or a hurtful regulation.”

Economists are often wary of moral exhortation, as many see the harm so often wrought by arguments that are long on passion and short on sense. But don’t think that our discipline doesn’t have a moral spine beneath all the algebra. That spine is a fundamental belief in freedom.

ITEM 2

ANON :

This Smaghi fellow is no friend of Ireland or the EU. Even Merkel is prepared to discuss the European Insurance Policy being sold to Ireland. It can’t be called a bailout anymore since every bondholder and economist knows that we will default at a given point, probably in 2016.
For the banking vested interests, led by their rottweiler ECB chums, to expect us to pay a 100% interest mark-up on a loan where 20% is retained by the lender to maintain the AAA rating of the bonds issued to raise the money is the sort of credit-craic that got us into this shambles in the first place.
We need to go back and go back hard with people who know what they are talking about. Whatever about a national government, we need a national monetary committee chaired by David McWilliams and staffed by experts in international finance to deal with these pawnbrokers.
Incidentally, wasn’t it grand to see FG and the ILP engineer the finance bill through the Dáil? Talk about Irelands Pontius Pilate moment. Now Leni gets blamed for everything, Ditherer gets away with waxing lyrical about stadiums and a FG/ILP government wrings their hands about austerity, whilst crying “It wasn’t me Guv, honestly”. Complete chicanery.
And now it turns out that NAMA is selling back discounted loans to agents of those who produced the original bad debt so they can generate cash to pay off the massive legal fees.

 

GOODBYE ECONOMICS HELLO POLITICS, DAY I January 26, 2011

Filed under: Uncategorized — bashstreetkidjailbreak @ 2:43 pm

COMMENT : Goes without saying but I will say it .

The political system is a corrupted system. It is linked into subsystems and long lines of narratives going back into history with loadsa skeletons in closets / crimes yet to be uncovered.

Controllers of power and wealth stand play gatekeeper.

The system, the systems in place, the man made systems in place used to distribute the wealth and resources amongst our society are bent.

The political system s in place world wide are bent out of shape to fit in with higher powers and influence stemming back decades and centuries.

Politics is a system locked down by the owners of production.

On the upside though, society will be redeemed by stronger powers using alternative systems, systems which are not bent and hold the power to make anew.

The political system is merely an arm to a body plutocratic system.

I reckon focus energies on the *achilles heel* of the bent global private banking behemoth and pull it down I say.

Politics and eejits with posters going up pleading for ur vote is a panto of no real significance.

Investigate the *achilles heel* posters, come on, lets conduct a forensic examination of such precision and effectiveness, find the achilles heel and topple over the private global banking giant on its arse.

On its arse I say, lets do it, lets kick its butt and slam dunk its arse into oblivion.

ITEM 1

Max Keiser on the *global banking Ponzi* scam robbing the wealth of the average worker.

 

ITEMS OF DAY / COWEN WATERLOO January 22, 2011

Filed under: Uncategorized — bashstreetkidjailbreak @ 10:02 pm

# A special report on global leaders: The world’s water-coolers | The Economist

# What a difference a day makes – The Irish Times – Fri, Jan 21, 2011

# http://www.businessandleadership.com/economy/item/27929-imf-says-interest-on-loan-c?utm_source=twitterfeed&utm_medium=twitter

# Corporatocracy – SourceWatch

# Barack Obama: We Must Embrace Globalism And The Emerging One World Economy

# The hypocrisy of ‘America’s’ democracy

# http://pakalert.wordpress.com/2009/11/10/house-of-rothschild-no-one-can-understand-what-has-happened-to-the-planet-without-reading-this/

# http://www.phibetaiota.net/2011/01/review-prophets-of-war-lockheed-martin-and-the-making-of-the-military-industrial-complex/

# The EDGE Questions: 13 Years of Futurism by Cultural Luminaries | Brain Pickings

# The myth of ‘American exceptionalism’ implodes | Richard Wolff | Comment is free | guardian.co.uk

# EU Debt Crisis – Germany Studying Possible Greek Restructuring – CNBC

# William K. Black: ‘An Economic Philosophy That Has Completely Failed’

# Is it right that the State must pay 5.8% on bailout funds whilst NAMA is lending billions to developers at 3%? « NAMA Wine Lake

 

 

ITEMS OF THE DAY / PRINTING PAPER MONEY AND GETTING AWAY WITH ITS FRAUD January 19, 2011

Filed under: Uncategorized — bashstreetkidjailbreak @ 4:11 pm

WILLS COMMENTS :

So how do the controllers of the means of production get away with print rolling the paper money fiat fraud and it doesnt collapse into a pile of rubble. Well it requires a ‘confidence trick* of some sort. Below is its mechanism.

“OTC and exchange-traded (Derivatives)

In broad terms, there are two groups of derivative contracts, which are distinguished by the way they are traded in the market:
Over-the-counter (OTC) derivatives are contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary. Products such as swaps, forward rate agreements, and exotic options are almost always traded in this way. The OTC derivative market is the largest market for derivatives, and is largely unregulated with respect to disclosure of information between the parties, since the OTC market is made up of banks and other highly sophisticated parties, such as hedge funds. Reporting of OTC amounts are difficult because trades can occur in private, without activity being visible on any exchange. According to the Bank for International Settlements, the total outstanding notional amount is US$684 trillion (as of June 2008).[7] Of this total notional amount, 67% are interest rate contracts, 8% are credit default swaps (CDS), 9% are foreign exchange contracts, 2% are commodity contracts, 1% are equity contracts, and 12% are other. Because OTC derivatives are not traded on an exchange, there is no central counter-party. Therefore, they are subject to counter-party risk, like an ordinary contract, since each counter-party relies on the other to perform.

Exchange-traded derivative contracts (ETD) are those derivatives instruments that are traded via specialized derivatives exchanges or other exchanges. A derivatives exchange is a market where individuals trade standardized contracts that have been defined by the exchange.[8] A derivatives exchange acts as an intermediary to all related transactions, and takes Initial margin from both sides of the trade to act as a guarantee. The world’s largest[9] derivatives exchanges (by number of transactions) are the Korea Exchange (which lists KOSPI Index Futures & Options), Eurex (which lists a wide range of European products such as interest rate & index products), and CME Group (made up of the 2007 merger of the Chicago Mercantile Exchange and the Chicago Board of Trade and the 2008 acquisition of the New York Mercantile Exchange). According to BIS, the combined turnover in the world’s derivatives exchanges totaled USD 344 trillion during Q4 2005. Some types of derivative instruments also may trade on traditional exchanges. For instance, hybrid instruments such as convertible bonds and/or convertible preferred may be listed on stock or bond exchanges. Also, warrants (or “rights”) may be listed on equity exchanges. Performance Rights, Cash xPRTs and various other instruments that essentially consist of a complex set of options bundled into a simple package are routinely listed on equity exchanges. Like other derivatives, these publicly traded derivatives provide investors access to risk/reward and volatility characteristics that, while related to an underlying commodity, nonetheless are distinctive”

Its the disinfecting of the OTC contracts into Exchange traded ones that should be of urgent priority to the G20 and the rest of us.

OTC represents a possible cataclysmic mess if not brought to heel. There is omerta chinese walls surrounding these on a worldwide basis.

Our own banks have not accounted for CDS trading and they are only referred to in a minuscule way in the inquiries from Honahan et al into our banks.

 

 

ITEMS OF THE DAY January 18, 2011

Filed under: Uncategorized — bashstreetkidjailbreak @ 10:20 pm

Better than Zero

OUR SYSTEM OUR STRUCTURE OUR ILLUSION | Documentary Heaven | Watch Free Documentaries Online

The Martin Luther King Conspiracy Exposed in Memphis by James Douglass