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Hutchinson looks ahead: The draining of national prosperity By Martin Hutchinson The first quarter Gross Domestic Product rise of 0.6% was greeted with considerable relief by most Wall Street commentators; they had expected the chaos in the housing market and the banking system to have pushed the US economy into recession. This was unreasonable; the huge monetary stimulus currently being hurled at the economy was always likely to prevent immediate recession, while the fiscal stimulus of the $110bn rebate package is likely to prop it up through July or so. Beyond that, the future becomes less clear: at some stage the monetary and fiscal stimulus must run out. As I have frequently written, monetary conditions have been pretty lax since 1995. It had been becoming difficult to determine how lax since March 2006, when the Federal Reserve stopped reporting M3 money supply, the measure used by the European Central Bank and other monetarist organizations. However the St. Louis Fed, which for the decade until April was run by the monetarist William Poole, has constructed its own measure of broad money, Money of Zero Maturity, which is a reasonable proxy for M3; it consists of M2 plus institutional money market funds minus small time deposits. Like M3, MZM began to expand excessively in early 1995; in the 13 years to March 2008 it grew at an average annual rate of 8.88%, compared with growth in nominal GDP during that period of 5.25%. Thus monetary policy, however measured, has been excessively expansionary since 1995, in the sense of expanding the money supply faster than output. As I have written previously, the inflation-creating effect of this excessive monetary expansion has been suppressed for a decade by the Internet, which has had a similar deflationary effect through enabling outsourcing to cheap labor countries that the railroads and refrigeration did in the 1880s through allowing cheap agricultural produce from the Midwest, Canada, Australia and Argentina to be shipped worldwide. From the beginning of 2008, however, monetary expansion has sharply accelerated. In the three months to April 21, the latest data available, MZM expanded at an annual rate of no less than 28.7%. This extra-rapid expansion is not surprising – the Fed has been terrified that the US financial system was about to collapse, and has been making funding available in large quantities in a variety of ways. Indeed on May 2 the Fed, concerned about the credit card financing market, allowed banks to use credit-card-backed AAA bonds as security for Fed loans – needless to say this involves yet more monetary expansion and further risk to the taxpayer. Monetary stimulus of this extraordinary magnitude will have an effect, it has to. Other countries have also been expanding their money supply excessively. The European Central bank has allowed euro M3 to expand by 11.1% in the three months to March 2008, following an increase of 11.5% during 2007. As in the United States, this increase is much faster than that of nominal GDP, and it had been continuing for several years, with annual growth rates of 7.4% in 2005 and 10.0% in 2006. Of the major emerging markets, China and India have both been operating expansionary monetary policies and now have considerable inflation problems. Vietnam too has been surprised in spite of its rapid growth by inflation surging towards 25%. Only in Japan, where “broadly-defined liquidity” has been increasing at rates in the 3-4% range in 2006-08, has monetary policy been reasonably consistent with low inflation. Monetary stimulus generally works with a lag of several months at a minimum. Thus it is likely that the extremely lax monetary conditions of the past few months have not yet produced their full effect. Nevertheless it is remarkable how rapid has been the advance of energy and commodity prices, with the Reuters CRB commodity price index up 24% since the Fed began its misguided interest rate cutting campaign on September 18 last year. It is also remarkable how feeble growth in the United States has been. With the Fed essentially printing money as fast as it could, the US economy grew only 0.6% in each of the fourth and first quarters. Since the US population increases by around 1% per capita, the economy has thus been in a per capita recession since September. In the first quarter indeed, even ignoring population growth, the economy was only pushed above the flatline by increases in inventory and government spending, both detrimental to economic output in the long term. Over the next several months, it is likely that current trends of feebly advancing GDP and soaring commodity prices will continue. Certainly the stock market seems to think so; it has recovered nicely from its mid-March low and is now above the levels when the crisis hit last August, even though earnings in the financial sector, representing more than 40% of total US earnings before crisis hit, have essentially disappeared in the last two quarters. The Fed may not currently intend to push interest rates down further, but it has already forced them more than 2% below even the thoroughly fudged statistics of inflation produced by the Bureau of Labor Statistics. It is perhaps disappointing for bears that a crisis may not occur immediately, but there can be no question that the vigorous monetary and fiscal medicine administered by the Bernanke Fed and the George W. Bush administration will have its effect. Indeed, far from declining in the second quarter, as has been confidently predicted, Gross Domestic Product may even tick up a bit, boosted by monetary and fiscal stimulus, perhaps to around 2% or 1% after population increase has been taken into account. At some point, a crisis will arrive. Inflation in the eurozone, China and India is already at levels deemed unacceptable, while even Japan has positive inflation for the first time in many years. In the United States, the producer price index increased 6.9% in the year to March, while that for crude goods increased more than 30%. Like a bowling ball swallowed by a python, that inflation will move through the economic system and eventually be reflected in consumer prices. Indeed, it may already be showing up there; the seasonally unadjusted consumer price index for March was up 0.9% (an annual rate of around 11%) and only a heroic seasonal adjustment of 0.6%, double the next largest seasonal adjustment for any month in the last ten years, brought the figure down to an acceptable 0.3%. The Bureau of Labor Statistics explains on its website that its seasonal adjustment methodology changed in January; should it be the case that this is being used to suppress consumer price inflation, even the dozier members of the media will come to notice after another couple of months have passed. In any case, it is likely that by the latter part of 2008, consumer price inflation in the US will be running at more than 10%, and that even the heroic mavens at the BLS will be unable to suppress that information completely (though on past form they will undoubtedly try.) There will come a point at which the irresistible force of gradually increasing GDP and continually optimistic stock market will meet the immovable object of consumer price figures that can no longer be ignored. At that point, the US will suffer not merely a monetary crisis but a political crisis. President George W. Bush, with his refusal to see recession, Treasury Secretary Hank Paulson, with his background in an institution, Goldman Sachs and a market, the Wall Street of 1995-2007 that together bear a very substantial responsibility for the problem, and Bush’s appointee Ben Bernanke, with his continual insistence that inflation is imminently about to disappear, will be discredited by reality and unable to provide leadership. Awkwardly, it is more likely than not that the crisis point will occur before November, so there will be no fresh-faced President-elect to take control of the situation. Almost certainly, it will prove impossible to put the entire US economy on ice until January 20, 2009, so the financial markets themselves, probably the Treasury bond market, will take control. With the US Treasury’s funding need in the fiscal years 2008 and 2009 already around $500 billion in each year, hiccups in the bond market have an almost immediate way of making themselves felt. To avoid a collapse in the bond market and a catastrophic decline in the dollar as foreign central banks withdraw their money, short term interest rates will have to be raised very quickly to at least 3% above the then prevailing level of inflation. That would imply a level of 7-8% today, but probably considerably more by the time the crisis hits. Once interest rates have been raised, inflation will not decline immediately, but nor will the US descend into a re-run of the Great Depression. There will be a lengthy and grinding recession, probably persisting throughout 2009 and into 2010, with GDP declining maybe 4-5% from top to bottom and inflation coming definitively under control only towards the end of the period. On the other hand, the dollar will stop being weak, since US interest rates will be internationally attractive, and the US balance of payments position will swing back sharply towards balance as US consumption and therefore imports decline sharply. The US savings rate will also increase, allowing the country to finance new capital investment from domestic resources, and giving it once more a substantial capital cost advantage over the emerging markets with lower labor costs. The wild card will be politics. It is not yet clear who will be the next President, and it is abundantly clear that this pretty unpleasant economic environment will dominate that President’s first two years in office. As happened to Herbert Hoover, it will be possible for the new President and/or Congress, through misguided protectionist or anti-capitalist policies, to make things sufficiently worse that a Great Depression Mark II ensues. Since none of the three remaining Presidential potential candidates has a firm, well thought-out commitment to economic policies that would alleviate or solve the problem, and all have tendencies that might exacerbate it, the safest choice is probably to go for raw intelligence, and hope that the new President can learn on the job. Which is as close as this column is going to get to an endorsement! This article appeared today on the http://www.prudentbear.com” title=“Prudent Bear”>Prudent Bear webiste. Martin is the author of Great Conservatives. Comments:2
Posted by j on Tue, 06 May 2008 07:56 | # If I understand Hutchinson’s criterion, he is saying “vote Obama”. 3
Posted by 357 on Tue, 06 May 2008 12:43 | # All three remaining presidential candidates’ economic policies are right in line with the globalist agenda (coincidence?). As I see it, we, in the West, are going through a process in which our standard of living, by careful design, is being steadily eroded. The Globalists’ (i.e., the international socialists) plan is to redistribute our resources/wealth throughout the world and eventually drive the middle-class right down to third-world living standards. The wealth will be concentrated and controlled by a few, and the working masses will subsist at various levels near poverty. All the evidence is in plain view right in front of our faces. So, there’s no unveiling of any deep dark secrets here .... 4
Posted by Fred Scrooby on Tue, 06 May 2008 13:40 | #
If he is, he’s not the only one giving that impression. Actually, the author of the Vdare.com article I linked says he intends to vote for the Constitution Party candidate, Chuck Baldwin (who writes a column for Vdare.com, incidentally), not for Obama. But his article is correct in what it implies, namely, Obama is the least bad of the three major contenders. All three will continue Bush’s race-replacement immigration scheme to exactly the same degree, all will appoint the weirdest most wacked-out extreme-pathological-degenerate society-hating assholes (in other words, Jewish for the most part) Supreme Court Justices, all will continue domestic policies carefully designed to purge white people and change those who remain into Negroes, Mexicans, and Chinamen in the shortest possible time, all will strive to further entrench wealth-concentration in the hands of the oligarchs, middle-class annihilation, and the new religion of Judaeo-Holocaustian Race-replacementianity to the same extent. There’s only one difference: Obama will be a tiny bit more resistant to staying in Iraq and getting into Iran than the other two: the other two will take their marching orders straight from Neocon-Central and Haliburton without question, whereas Obama might, just might, balk ever so slightly, might drag his feet a little, might pout or begin to ask quesions as to how necessary nuking Iran is, what purpose it would serve, stuff like that. So with Obama at least there’d be that miniscule difference for the better. 5
Posted by 357 on Tue, 06 May 2008 14:21 | # “In any case, it is likely that by the latter part of 2008, consumer price inflation in the US will be running at more than 10%, and that even the heroic mavens at the BLS will be unable to suppress that information completely (though on past form they will undoubtedly try.)” This is undoubtedly is the reason why the limit for purchasing I-Bonds has been reduced from a total of $60,000 per year ($30,000 in paper, and $30,000 through Treasury Direct) to $5,000 from each source for a total of $10,000. http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm 6
Posted by 357 on Tue, 06 May 2008 17:02 | # >>“Since none of the three remaining Presidential potential candidates has a firm, well thought-out commitment to economic policies that would alleviate or solve the problem, and all have tendencies that might exacerbate it, the safest choice is probably to go for raw intelligence, and hope that the new President can learn on the job.” Well, IMHO, Hillery is a socialist, and B. Hussein is a communist at heart; therefore, Juan McCain is the best choice. At least he appears to demonstrate some semblance of an economic conservative. But there’s that nagging question about his explosive temper. Can we trust an ill-tempered Commander in Chief—who spent 5 years in the Hanoi Hilton undergoing constant brainwashing by the communists—in charge of our nuclear arsenal? This presidential election is truly frightening! http://www.opinionjournal.com/editorial/feature.html?id=110007600 7
Posted by Voice on Tue, 06 May 2008 18:11 | # There is no way they can raise interest rates like Volcker did in 1980. Bernanke knows that they only way to save this baby is to inflate as he is past point of no return with the hope that the rest of the central banks inflate with him. The ECB and Bank of Japan are playing ball for now and the ECB has drawn a line in the sand with the Euro at 1.60 but this will change as inflation begins to crush them as well. Japan is already facing food shortages and spiking food costs. The problem he has is this great multicultural hell world that has been created by credit is some of the players holding trillions will dump $ reserves(China 1.8 trillion and Saudi 1.4 Trillion) that will trigger the $ crash. The only way to protect your wealth as the dollar crashes will be with Gold or Silver. Hold it physically in your home. Don’t trust someone to store it for you. These guys below are great and trustworthly. Get Silver Eagles and Gold coins of your choice. Also, get some “Junk” silver of 90% Silver content in dimes and quarters at your local Coin Dealer for smaller purchases. Pre-1964 is the 90% stuff not the later dated coins. Silver and Gold just pulled back by govt intervention so timing is perfect before the coming dollar crash. BTW, the Best Junior Goldmine that is ready to go into production that is going to soar is Minefinders. MFN is stock symbol. They are solid and I have researched them thoroughly. 8
Posted by Englander on Tue, 06 May 2008 19:49 | #
If that is the plan, then how do the elites think they’ll manage to sustain their position at the top? That situation sounds like a recipe for revolution to me. 9
Posted by 357 on Tue, 06 May 2008 20:23 | # “If that is the plan, then how do the elites think they’ll manage to sustain their position at the top?” They’ll try to sustain power by implementing a cashless society controlled under a ruthless police state. Can anyone deny we are moving in that direction? “That situation sounds like a recipe for revolution to me.” Me too. 10
Posted by Voice on Tue, 06 May 2008 20:44 | # Englander The Internationalists/Elite/Global Financiers(whatever else you want to call them) are selling into the volatile Bear Market rallies that we are having here in the US. The dupe money managers who control trillions of dollars of pension funds, mutual funds etc initially exercised some caution when it started to unravel last summer, and took a portion of their holdings out of the market and like sheeple are beginning to pump money back into the system consisting of the nations savings(not too mention alot of foreign sovereign wealth money) The Elites are quietly getting their wealth transferred to commodities so when the “crack up boom” that Von Mises and the Austrian school of economics predict, they will have control of a large percentage of “wealth” left to them and come in and buy up the assets at a fractions of a cent on the dollar! At the same time, the Central Banks(who are controlled by the aforementioned) are suppressing the precious metals(especially the traditional money metals Gold and Silver) so they can accumalate so the sheeple won’t see real money skyrocketing against the paper crap the central banks keep on printing out of nothing. So when we see the Chinese and the Arabs say “enough is enough” and they start dumping their reserves and refuse to buy any of our T-Bills etc that is when the shit hits the fan. We will see a mass dumping of dollars and our $ savings, pensions will be wiped out. Completely worthless. Blood in the streets. Anarchy. The Global Markets will take a huge hit but they won’t collapse like we will. We will have hyperinflation and chaos and the Amero. The Elites will have tons and tons of Gold, Silver and Oil. At this time, when Americans’ life savings have been wiped out , they(Elites) will gracefully accept the Gold standard..Hahaha..Jokes on us(Ron Paul isn’t a kook now!). Who owns all the the Gold and Silver?? The same bastards who we behind and benefitted from the printing of the money..Hehehe…but not OUR stuff at Fort Knox and in the Federal Reserve( that shit has all been squandered and sold and they won’t even tell a Ron Paul led bill to tell us how much there is).no no no..The Gold and Silver will be tucked quite snuggly in their personal portfolios.. Not very funny is it? Buy Gold and Silver now! 11
Posted by 357 on Tue, 06 May 2008 21:56 | # Englander, if you have a copy of “The Bell Curve,” please review Chapter 21 - “The way We Are Headed” 12
Posted by torgrim on Tue, 06 May 2008 22:27 | # This, “game” is the same process that started right after WWI and the farm depression of 1920. Everytime this boom and bust happens it leaves the Nation poorer. The wealth created by the pioneers, inventors, farmers, those that actually produced wealth, has been stolen. Each generation seems to experience this transfer of wealth. Notice how this “cycle”, or wave is compressing, in time? Instead of a generational time sequence it became a ten year event, now even closer as, the wealth becomes more and more compressed into fewer entities. 13
Posted by James Bowery on Tue, 06 May 2008 22:57 | # Why bother pushing the reset button when you can just migrate? Haaretz Fri., June 30, 2006 Tamuz 4, 5766 Israel Time: 02:02 (EST+7) Questions of survival WASHINGTON - The following disparity tells us more about human nature than about the future of the Jewish world: The executive branch - the heads of the large Jewish organizations, on the whole - are optimistic and believe Judaism has a glowing future, while the intellectuals and thinkers are much more pessimistic and insist on mentioning the pitfalls and obstacles the coming years hold in store. Those who are entrusted with carrying out affairs must be convinced there is a point to what they do - and what is the point if there is no future? Two groups of Jews gathered together last weekend at Wye Plantation, Maryland for a long discussion on the situation of the Jewish people. The first group, which met Wednesday and Thursday, consisted of the heads of 15 Jewish organizations such as the Presidents’ Conference, the American Israel Public Affairs Committee (AIPAC), the Anti-Defamation League, the Union of Orthodox Jewish Congregations, the American Jewish Committee and others. In the second group were the “thinkers,” as the organizers termed them: Natan Sharansky from Israel, Charles Krauthammer from The Washington Post, former Canadian justice minister Irwin Cotler, former Jewish Agency head Sallai Meridor and many others. The Institute for Policy Planning of the Jewish People had organized this gathering. It had a somewhat ambitious aim - a strategic debate about the future of the Jewish people. In actuality, it focused on three issues: the challenge posed by Islam, the situation in Israel, and the weighty question of whether the Jewish people are on the rise or on the wane. Their conclusions, in brief: The future is unclear. And in greater detail: There are many risks, and it is time to roll up our sleeves. The institute and its heads - Dennis Ross, Prof. Yehezkel Dror, Avi Gil, Avinoam Bar-Yosef - are already doing their homework. One of the papers that was prepared in advance and presented to the participants in the conferences was that written by Dr. Shalom Wald. He chose 14 well-known historians, from Thucydides to Gibbon, Spangler, Toynbee and Kennedy, and examined their theories concerning the circumstances in which civilizations flourish or collapse. Then he tried to examine how these theories can be applied to the context of the Jewish people. Several of his conclusions provoked disagreement. For example: “Getting all Jews into the same shape and country, even if it is Israel, as recently advocated by an Israeli [writer, A.B. Yehoshua - S.R.] is not the best survival strategy.” Some of the Israeli participants did not like that idea. Granting official legitimacy to the Diaspora would be a mistake, Meridor said, according to some of those who participated. That would be the end of Zionism as we know it. The fear expressed that “a real decline of the West, particularly the United States, would have dramatic consequences for the Jewish people,” also led to controversy. Brandeis University president Jehuda Reinharz agreed that this type of decline can be expected “in the coming two decades” - but Stuart Eisenstadt was less emphatic about it. He believes the United States will remain the leading power. In all events, it was agreed the Jews “should strengthen cultural links with non-Western civilizations, particularly China and also India,” powers that are on the ascent. This is not a question of preference or closeness; it is a question of survival, of readiness for the future. How should this be done? That will have to be the topic of discussion in the next gatherings already being planned. Working together Abraham Foxman of the ADL says he came to the conference full of skepticism but left satisfied at its conclusion. That was the feeling of most of those who participated in the first gathering. They agree about one thing: The very gathering itself is the achievement. It is the first time the heads of Jewish organizations have sat down round the same table and sought ways to cooperate, pushing aside the competition, suspicions and sometimes even latent hostility. “If there were barriers in the beginning, they were removed,” says Malcolm Hoenlein of the Presidents’ Conference. “There is a commitment to continue working together,” says Rabbi Tzvi Weinreb of the Orthodox Union. It also was possible to sit at the same table without provoking conflicts. One of the participants said Weinre b, an Orthodox rabbi, had no problem calling the Reform rabbi, David Ellenson, up to the Torah - even though President Moshe Katsav refuses to attach the title of “rabbi” to his name. However, on the substance of the agreement to “work together” there are various opinions. Some of the participants believe it was agreed that a mechanism would be set up for “joint work in the future” while others told Haaretz that “not too much came out of it.” Nevertheless, they managed to define aims and goals. First and foremost - investing in education for the young generation. The philanthropist Michael Steinhardt put great emphasis on this point, as well as on “lowering the price of Jewish life” in America. This means lowering the price of access to synagogues, Jewish schools, cultural centers and other activities. Last year the institute held similar strategic conferences, but with slightly different participants. Then, too, in general, agreement was reached on more than a few topics. For example, that it was necessary to draw those on the fringes of Jewish civilization inward. This year, at the opening of the meeting, Bar-Yosef, the institute’s director, presented a general report on the situation of the Jewish people. One sentence from that survey can sum up the results of that agreement better than any other - “The Jewish people: worldwide zero growth.” The better-known historians mentioned in Wald’s review, particularly the earlier ones, also agreed for the most part that “the Jews will survive as a people and civilization.” But there was nevertheless one who dissented - Oswald Spangler. What kept the Jews together as a people, he stated, was “magic consensus” but, he added, this is vanishing with the years. The Jews of the Western world have assimilated into general Western culture and will disappear with it. The Jews will disappear from a historical perspective; that is inevitable, he said. There were several interesting arguments. One was over whether the Jews of America have to worry about the social welfare of the Jews of Israel. The Americans said yes - “All Jews are responsible for one another.” The Israelis said no way; leave the social problems in Israel for us to deal with. Yisrael Maimon, the government representative, proposed a partnership with the Americans in technology, education, “brain investments.” But the improvement of the lot of the poor, he said, must be left to the Israeli government. Prof. Dror also stressed the importance of investing in improving the situation of education in Israel. One of the central aims he presented was “to develop Israel into a learning-knowledge society.” Those present discussed the level of the universities in Israel and some of them even proposed the level of at least one of these institutions be raised sufficiently to attract students from abroad in higher numbers. Reinharz of Brandeis is among those who are concerned about the situation of Jewish education. The main conclusion from the conference, he told Haaretz, was that Jewish education “is the most important element both in Israel and in the Diaspora.” But an important corollary of this is that “it would be worthwhile thinking about education that is carried out in coordination.” He terms this a “core curriculum” - that is, a study program whose basic content would be taught to every Jew no matter where he or she is. Real challenge That is a real challenge, but its difficulty can be clearly seen: Who will decide on the program, who will provide the contents, how will they be agreed upon? Israel has many urgent problems, Reinharz says, and it is hard to see how it will find time to seriously deal with the future of the Jewish people. Other participants were of the opinion that the proposal would lead to quarrels and disputes. Reinharz: “Let us say we have decided there are certain chapters of the Bible that every Jew must know - how exactly will we decide which chapters these should be? Every decision of this sort takes into account values, and there will be tremendous differences of opinion between the preferences presented by the Israelis and those the Jews of the Diaspora would like, as well as divergences of opinion between the different streams of Judaism. The Reform Jews will want to stress universal and humane prophesies while the Orthodox will want to focus on particular prophesies.” The Jewish schools in America are currently undergoing renewed popularity. An almost 30 percent growth in the number of those registering - but those, as Bar-Yosef pointed out, are “mostly those who are already affiliated.” The schools have to become a center of attraction for others as well. And in all events, the question must be asked - what do these schools teach? Reinharz is concerned that the Jews of the Diaspora do not know enough about Israel. In the Jewish schools today, they concentrate on studying the prayer book and stories from the Bible, with less emphasis on history. He feels pupils both in Israel and the Diaspora should study the history of Zionism and the State of Israel more thoroughly. 14
Posted by Voice on Tue, 06 May 2008 23:17 | # Togrim You are correct.. Everyone should read this as it follows your point and my previous post… 15
Posted by 357 on Wed, 07 May 2008 00:59 | # “In all events, it was agreed the Jews “should strengthen cultural links with non-Western civilizations, particularly China and also India,” powers that are on the ascent. This is not a question of preference or closeness; it is a question of survival, of readiness for the future. How should this be done? That will have to be the topic of discussion in the next gatherings already being planned.” So much for trusting prominent Jews to be loyal patriots of the USA. 16
Posted by torgrim on Wed, 07 May 2008 01:14 | # James, sent; From Haartz, Questions of survival… Oswald Spangler- “The Jews of the Western World have assimilated into Western Culture and will disappear with it.” Reinharz- ” He feels pupils both in Israel and the Diaspora should study the history of Zionism and the State of Israel more thoroughly.” So, I guess you are correct, James, with their own words they admit that the West, is done for, and that the future for “Them” is not in the US. The “Vectorist” Theory, seems to fit the pattern of observable, repetitive cause and effect. This may be more than theory. No reset button this time folks. Voice, has made a good point. It is time to CYA. 17
Posted by Anonymous on Wed, 07 May 2008 03:02 | # Bullets aren’t a bad thing to stock up on either, even if you don’t have a firearm(and you should , if legally able and maybe even if you aren’t). Stick with common calibers: 9mm, .38, .45. 5.56, 7.62 and 12 gauge. Bullets were often in high demand during the 2005 Battle of New Orleans, no lie. 18
Posted by 2R on Wed, 07 May 2008 07:59 | # “In all events, it was agreed the Jews “should strengthen cultural links with non-Western civilizations, particularly China and also India,”
This seems to fit with James Bowery’s “Vector theory?” 19
Posted by Nux Gnomica on Wed, 07 May 2008 22:50 | #
This blog got there a long time ago:
20
Posted by 357 on Wed, 07 May 2008 23:25 | # The romance between China by the Jews has been going on for some time now: 21
Posted by James Bowery on Wed, 07 May 2008 23:59 | # Interesting read, 357, but this quote:
strikes me as wishful thinking given the role of Jews in the opium trade. I’m sure the Chinese talk about it much more openly than we do in the West. 22
Posted by 357 on Thu, 08 May 2008 12:57 | # “... given the role of Jews in the opium trade. I’m sure the Chinese talk about it much more openly than we do in the West.”—James Bowery I became aware of the extensive involvement of Jews in the trans-Atlantic slave trade only a few years ago, but was still unaware of the major role they played in shipping opium to China. I was under the misconception England was solely responsible for that entire operation. Thanks for bringing that fact out to light. Anyway, given the statement made in the article you provided on Tuesday, May 6, 2008 at 09:57 PM which reads: “This is not a question of preference or closeness [referring to China and India]; it is a question of survival, of readiness for the future. How should this be done? That will have to be the topic of discussion in the next gatherings already being planned.” I’m sure the Jewish intelligentsia is burning the midnight oil figuring out how to convince the Chinese leadership to suppress, or rewrite, any history of the Jews’ role in the opium trade. After all, they are capable of such, e.g., we hear nary a peep about the Jewish involvement in the trans-Atlantic slave trade, or their actual owning of slaves in America. Then there’s the “Holocaust”.... 23
Posted by 357 on Thu, 08 May 2008 13:12 | # On the link I provided. Click on - preview this book, then go to page 16. 24
Posted by James Bowery on Thu, 08 May 2008 15:32 | # Thanks for the cite, 357. Here is an excerpt:
This history seems to have repeated itself in the form of cheap labor addiction by Western business interests, their “substance of abuse” leading to deindustrialization, loss of control of territory and loss of the creative Yeoman class upon which most Western wealth and fecundity was founded—the economic consequences of which are now coming home to roost. Maybe the Chinese went off the reservation and figured out how to do to the West in economics what opium dealing Jews did to them socially over a century ago—by exacerbating the Jewish tendency to centralize wealth to the point of societal collapse. Its an interesting speculation that I think I’ll write up. 25
Posted by James Bowery on Mon, 18 Jan 2021 18:55 | # As per the 2008 conjecture above Jews tried to take the money and run to China, but the Likuds woke up and gave a half-hearted try to kick their addiction after circa 2014 realizing they’d been had by the Maoists. Hence Trump, “The Likud Candidate” as I called him in 2015:
December 30, 2020 “Why America Lost The Cold War With The Chinese Communists” excerpt:
From the China Uncensored interview published today “Is China Run by Gangsters?”:
The West is run by junkies and China has probably been their suppler since Mao took control just after WW II. Will the Harris Administration be able to roundup the Finklethink unleashed by the Likuds in their abortive attempt to roundup their American Jewish hardcore-junkie cousins? They’d better not count on it according to Machiavelli’s Rule:
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Posted by James Bowery on Tue, 06 May 2008 03:20 | #
No.
The problem is centralization of wealth in both the public and private sectors due to economic rent seeking in both the public and private sectors—intransigent resistance to economic justice that would obtain by shifting to a use fee for net property rights (as those are the primary service of government)—and instead insistence on the injustice of taxing economic activity for a wide range of public sector programs having little to do with protecting net property rights.
There is no solution to that problem because the entire authority structure of the West is now totally addicted to it.
Easy money policies exacerbate the wealth centralization problem. And it’s not just because, as Ron Paul is continually pointing out, inflation eats away at the middle class due to their relative financial inflexibility. It’s because [url=“http://money.cnn.com/2008/05/06/news/newsmakers/fannie.feast.fortune/?postversi>the easy money simply lets otherwise-failing financial institutions buy out their investors for foreclosure/repossession assets</a>. If those financial institutions would just sell those houses on the market, there might be some semblance of an equilibrium as housing prices dropped appropriately. But since they don’t have to pay high interest rates on the money borrowed, they just sit on those assets—tract after tract of empty houses that they refuse to even rent. They then can’t pass on the interest rate savings to consumers because, well, their wealth is all tied up in idle assets and THE WEALTH IS SO CENTRALIZED THAT CONSUMERS ARE POOR CREDIT RISKS.
The best they can do is hold <a href=“http://www.lewrockwell.com/french/french88.html”]mock foreclosure auctions[/url] at which there are nothing but theatrical bids to create the illusion of people buying foreclosed houses!
We’re in a demand side collapse.
End of story.
End of West.
Hutchinson is no bear.