EconoMonitor

Nouriel Roubini's Global EconoMonitor

RGE’s Weekly Roundup

Check out all of the RGE analysis and EconoMonitor contributions that were published this past week at roubini.com.

RGE Analysis:

Mary Stokes and Murat Vardal analyze Turkey’s demographics, which look to be advantageous relative to many other countries, both developed and emerging, with respect to boosting potential growth, reducing stress on public finances, and the possibility of becoming the EU’s low-cost labor backyard, but there are also risks.  Please read Turkey Demographics: A Mixed Blessing. [Available to RGE Clients Only]

The Carry Trade, 2010: Following up on the global debate touched off by Dr. Nouriel Roubini’s piece on the “mother of all carry trades” in November, RGE strategists and analysts will publish two pieces of research on Monday, Jan. 4 outlining carry trade investment implications for the coming year and providing a currency-by-currency prognosis. [Available to RGE Clients Only]

 

On Nouriel Roubini’s Global EconoMonitor, Ian Bremmer and Nouriel consider the implications of Prime Minister Hatoyama’s ambitious but unrealistic goals.  See Why Japan Needs a ‘Hatobama’.

 

On the RGE Analyst’s EconoMonitor, Jennifer Kapila looks at the fragility of the Spanish financial system and property markets and considers what it will take to improve fundamentals and resolve bad assets.  See More Pain Yet to Rain on Spain.

In Canadian Housing Worries?, Rachel Ziemba examines the Canadian housing market, which has improved contributing to the revival of the Canadian economy and notes that the role of the property market in financing Canada’s return to growth is something to watch.

This week as the countdown to the New Year begins, RGE analysts present 10 themes to watch in 2010.  Don’t miss 10 for 2010.

 

On the Finance & Markets Monitor,

Pomboy: A Looming New Credit-Bust by Barry Ritholtz

Change the Bathwater, Keep the Baby by David E. Altig

Lost Decade for Stocks by James Hamilton

The Fairness of Financial Rescue by Mark Thoma

On Goldman’s (and Now Morgan Stanley’s) Deceptive Synthetic CDP Practices by Yves Smith

 

On the Peterson Institute for International Economics Monitor,

A Jobless Recovery? by Steve Weisman and Michael Mussa

 

On the Global Macro EconoMonitor,

Iraq Oil Output to Rival Saudi Arabia, if… by Ben Lando

The Prospects for Global Imbalances: A View from the IMF by Menzie Chinn

How Important is Structural Unemployment in the Current Recession/Recovery by Menzie Chinn

 

On the U.S. EconoMonitor,

Recession Slammed Domestic Migration by Rebecca Wilder

2009: The Year Wall Street Bounced Back and Main Street got Shafted by Robert Reich

Double Dip Recession and the Perverse Math of GDP Reporting by Edward Harrison

Will a New Year Bring New Jobs? by James Picerno

Government Economic Stimulus is Financial Heroin by Fabius Maximus

Why Christmas Eve? by Tim Duy

Case Shiller Home Prices: Improvement Moderating by Barry Ritholtz

What Happened to the Fiscal Stimulus Multiplier by Edward Harrison

The Power of Conventional Wisdom by James Kwak

 

On the Emerging Markets Monitor,

Is China Going off the Rails? by China Economist

 

On the Asia EconoMonitor,

The Pace of Change by Michael Pettis

 

On the Europe EconoMonitor,

Quantifying Eurozone Imbalances and the Internal Devaluation of Greece and Spain by Claus Vistesen

Hungary’s Economic Correction Still Fails to Convince by Edward Hugh

A Record Breaking Year – For all the Wrong Reasons by David Smith

28 Responses to “RGE’s Weekly Roundup”

Little SaverJanuary 1st, 2010 at 4:22 am

First in the new year (decennium).I wish everybody here a better decennium than the previous one.Honest banks, government, politicians, rating agencies, and last but not least: economists with insights based on the observation of reality rather than on theoretical models of it.

bJanuary 2nd, 2010 at 7:56 am

http://www.wepin.com/articles/afp/afp09.html.http://www.foundingfathers.info/federalistpapers/.Antifederalist No. 9 A CONSOLIDATED GOVERNMENT IS A TYRANNY”MONTEZUMA,” regarded as a Pennsylvanian, wrote this essay which showed up in the Independent Gazetteer on October 17, 1787.We the Aristocratic party of the United States, lamenting the many inconveniences to which the late confederation subjected the well-born, the better kind of people, bringing them down to the level of the rabble-and holding in utter detestation that frontispiece to every bill of rights, “that all men are born equal”-beg leave (for the purpose of drawing a line between such as we think were ordained to govern, and such as were made to bear the weight of government without having any share in its administration) to submit to our Friends in the first class for their inspection, the following defense of our monarchical, aristocratical democracy.lst. As a majority of all societies consist of men who (though totally incapable of thinking or acting in governmental matters) are more readily led than driven, we have thought meet to indulge them in something like a democracy in the new constitution, which part we have designated by the popular name of the House of Representatives. But to guard against every possible danger from this lower house, we have subjected every bill they bring forward, to the double negative of our upper house and president. Nor have we allowed the populace the right to elect their representatives annually . . . lest this body should be too much under the influence and control of their constituents, and thereby prove the “weatherboard of our grand edifice, to show the shiftings of every fashionable gale,”-for we have not yet to learn that little else is wanting to aristocratize the most democratical representative than to make him somewhat independent of his political creators. We have taken away that rotation of appointment which has so long perplexed us-that grand engine of popular influence. Every man is eligible into our government from time to time for life. This will have a two-fold good effect. First, it prevents the representatives from mixing with the lower class, and imbibing their foolish sentiments, with which they would have come charged on re-election.2d. They will from the perpetuality of office be under our eye, and in a short time will think and act like us, independently of popular whims and prejudices. For the assertion “that evil communications corrupt good manners,” is not more true than its reverse. We have allowed this house the power to impeach, but we have tenaciously reserved the right to try. We hope gentlemen, you will see the policy of this clause-for what matters it who accuses, if the accused is tried by his friends. In fine, this plebian house will have little power, and that little be rightly shaped by our house of gentlemen, who will have a very extensive influence-from their being chosen out of the genteeler class … It is true, every third senatorial seat is to be vacated duennually, but two-thirds of this influential body will remain in office, and be ready to direct or (if necessary) bring over to the good old way, the young members, if the old ones should not be returned. And whereas many of our brethren, from a laudable desire to support their rank in life above the commonalty, have not only deranged their finances, but subjected their persons to indecent treatment (as being arrested for debt, etc.) we have framed a privilege clause, by which they may laugh at the fools who trusted them. But we have given out, that this clause was provided, only that the members might be able without interruption, to deliberate on the important business of their country.We have frequently endeavored to effect in our respective states, the happy discrimination which pervades this system; but finding we could not bring the states into it individually, we have determined … and have taken pains to leave the legislature of each free and independent state, as they now call themselves, in such a situation that they will eventually be absorbed by our grand continental vortex, or dwindle into petty corporations, and have power over little else than yoaking hogs or determining the width of cart wheels. But (aware that an intention to annihilate state legislatures, would be objected to our favorite scheme) we have made their existence (as a board of electors) necessary to ours. This furnishes us and our advocates with a fine answer to any clamors that may be raised on this subject. We have so interwoven continental and state legislatures that they cannot exist separately; whereas we in truth only leave them the power of electing us, for what can a provincial legislature do when we possess the exclusive regulation of external and internal commerce, excise, duties, imposts, post-offices and roads; when we and we alone, have the power to wage war, make peace, coin money (if we can get bullion) if not, borrow money, organize the militia and call them forth to execute our decrees, and crush insurrections assisted by a noble body of veterans subject to our nod, which we have the power of raising and keeping even in the time of peace. What have we to fear from state legislatures or even from states, when we are armed with such powers, with a president at our head? (A name we thought proper to adopt in conformity to the prejudices of a silly people who are so foolishly fond of a Republican government, that we were obliged to accommodate in names and forms to them, in order more effectually to secure the substance of our proposed plan; but we all know that Cromwell was a King, with the title of Protector). I repeat it, what have we to fear armed with such powers, with a president at our head who is captain- -general of the army, navy and militia of the United States, who can make and unmake treaties, appoint and commission ambassadors and other ministers, who can grant or refuse reprieves or pardons, who can make judges of the supreme and other continental courts-in short, who will be the source, the fountain of honor, profit and power, whose influence like the rays of the sun, will diffuse itself far and wide, will exhale all democratical vapors and break the clouds of popular insurrection? But again gentlemen, our judicial power is a strong work, a masked battery, few people see the guns we can and will ere long play off from it. For the judicial power embraces every question which can arise in law or equity, under this constitution and under the laws of “the United States” (which laws will be, you know, the supreme laws of the land). This power extends to all cases, affecting ambassadors or other public ministers, “and consuls; to all cases of admiralty and maritime jurisdiction; to controversies to which the United States shall be a party; to controversies between two or more States; between a State and citizens of another State; between citizens of different States; between citizens of the same State, claiming lands under grants of different States; and between a State or the citizens thereof, and foreign States, citizens or subjects.”Now, can a question arise in the colonial courts, which the ingenuity or sophistry of an able lawyer may not bring within one or other of the above cases? Certainly not. Then our court will have original or appellate jurisdiction in all cases-and if so, how fallen are state judicatures-and must not every provincial law yield to our supreme flat? Our constitution answers yes. . . . And finally we shall entrench ourselves so as to laugh at the cabals of the commonalty. A few regiments will do at first; it must be spread abroad that they are absolutely necessary to defend the frontiers. Now a regiment and then a legion must be added quietly; by and by a frigate or two must be built, still taking care to intimate that they are essential to the support of our revenue laws and to prevent smuggling. We have said nothing about a bill of rights, for we viewed it as an eternal clog upon our designs, as a lock chain to the wheels of government-though, by the way, as we have not insisted on rotation in our offices, the simile of a wheel is ill. We have for some time considered the freedom of the press as a great evil-it spreads information, and begets a licentiousness in the people which needs the rein more than the spur; besides, a daring printer may expose the plans of government and lessen the consequence of our president and senate-for these and many other reasons we have said nothing with respect to the “right of the people to speak and publish their sentiments” or about their “palladiums of liberty” and such stuff. We do not much like that sturdy privilege of the people-the right to demand the writ of habeas corpus. We have therefore reserved the power of refusing it in cases of rebellion, and you know we are the judges of what is rebellion…. Our friends we find have been assiduous in representing our federal calamities, until at length the people at large-frightened by the gloomy picture on one side, and allured by the prophecies of some of our fanciful and visionary adherents on the other-are ready to accept and confirm our proposed government without the delay or forms of examination–which was the more to be wished, as they are wholly unfit to investigate the principles or pronounce on the merit of so exquisite a system. Impressed with a conviction that this constitution is calculated to restrain the influence and power of the LOWER CLASS-to draw that discrimination we have so long sought after; to secure to our friends privileges and offices, which were not to be … [obtained] under the former government, because they were in common; to take the burden of legislation and attendance on public business off the commonalty, who will be much better able thereby to prosecute with effect their private business; to destroy that political thirteen headed monster, the state sovereignties; to check the licentiousness of the people by making it dangerous to speak or publish daring or tumultuary sentiments; to enforce obedience to laws by a strong executive, aided by military pensioners; and finally to promote the public and private interests of the better kind of people-we submit it to your judgment to take such measures for its adoption as you in your wisdom may think fit.Signed by unanimous order of the lords spiritual and temporal.MONTEZUMA

bJanuary 2nd, 2010 at 7:59 am

http://georgewashington2.blogspot.com/2009/12/will-americans-reclaim-our-nation-in.html.Thursday, December 31, 2009Will Americans Reclaim Our Nation in 2010 From the Thugs and Con Artists?The giant banks are treating the American Citizen like we work for them, are holding the economy hostage, and are taking our deposits and using them to speculate in casino style gambling.They’ve bought and paid for Congress and the White House. See this, this and this.Will Americans exercise our power – see this and this – or become serfs to a permanent banking royalty?……

Octavio RichettaJanuary 2nd, 2010 at 8:39 am

My key call for 2010 is that the Professor’s popularity will go back to its highest levels. His mantra “it is a solvency crisis, not a liquidity crisis” will be back in full force. The housing crisis will resume with gale force as homeowners under water who can barely make mortgage payments are precisely the best example of insolvency.read this:AN INTERVIEW WITH RICHARD KOO: America seems to be suffering from the same affliction that has hobbled Japan for so long — a balance-sheet recession.” And no matter how hard the Federal Reserve tries, it won’t end until businesses shake their heavy loads.http://online.barrons.com/article/SB126228908317212353.html#articleTabs_panel_article%3D1

villagerJanuary 3rd, 2010 at 12:05 pm

As an example, given his joint authorship and what is written concerning “Why Japan Needs a Hataboma”, the Professor appears not to be politically independent in his public statement. His need to appear to be a supporter of current political directions/figures suggest some loss of credibility. Possibly his popularity will renew but not to former levels. His advice will be noted but with caution as to its independence.

bJanuary 2nd, 2010 at 9:25 am

http://www.globalresearch.ca/index.php?context=va&aid=16713.Obama and Afghanistan: America’s Drug-Corrupted Warby Prof Peter Dale ScottGlobal Research, January 1, 2010..Why does the U.S. intervene repeatedly on the same side as the most powerful local drug traffickers? Some years ago I summarized the conventional wisdom on this matter:Partly this has been from realpolitik – in recognition of the local power realities represented by the drug traffic. Partly it has been from the need to escape domestic political restraints: the traffickers have supplied additional financial resources needed because of US budgetary limitations, and they have also provided assets not bound (as the U.S. is) by the rules of war. … These facts…have led to enduring intelligence networks involving both oil and drugs, or more specifically both petrodollars and narcodollars. These networks, particularly in the Middle East, have become so important that they affect, not just the conduct of US foreign policy, but the health and behavior of the US government, US banks and corporations, and indeed the whole of US society.[43]…..2010: U.S. To Wage War Throughout The World- by Rick Rozoff – 2009-12-312010 will usher in ten consecutive years of the United States conducting war in the Greater Middle East.September 11, 2001: America and NATO Declare War on Afghanistan- by Michel Chossudovsky – 2009-12-21NATO’s Doctrine of Collective SecurityA New World War for a New World Order- by Andrew Gavin Marshall – 2009-12-17Peace is only possible if the tools and engines of empires are dismantled…peace possible? a good question that could beexplored and answered. …..

bJanuary 2nd, 2010 at 9:58 am

http://georgewashington2.blogspot.com/2009/12/new-law-requires-president-to-report-to.html#comment-form.Thursday, December 31, 2009New Law Requires the President to Report to Congress Periodically On Actions Taken By the Administration to Ensure Israel’s Military AdvantageOn December 21st, Glenn Greenwald quoted from The Jewish Daily Forward to make an important point:While reports have focused on alleged tension between the Obama administration and Israel over the latter’s uncooperative conduct, this is what is actually happening: ……comment: there are historical precedents that showconclusively that a nation or people cannot kill orcommit genocide their way to peace or respectabilityor prosperity. so what.but speaking of shitty laws this one is the amongthe most shitty. i think it should be willfullyignored along with all the other laws that are routinelylaughed at by the special interests that write them,tears of laughter staining the pages before the inkeven dries. random lack of enforcement perfectlybalancing incomprehensible verbiage. even the lawyersand judges have no idea what is going on. it is done!we are free!….”lawyers, drugs and money” w. zevon

ttJanuary 2nd, 2010 at 10:32 am

The current state of affairs and my prediction for 2010._1. Financial markets and the real economy are predicated on___inexpensive energy (oil)._2. The world consumes about 85 million barrels of oil a day.___At ~19.5 gallons of gas per barrel, that is equal to 1.6___billion barrels of gasoline a day._3. There is simply not enough crops, natural gas, solar, or___wind energy to replace 1.6 billion gallons of gas per day.___That is ~33kw * 1.6 billion equals ~53 petawatts per day._4. Desert based solar, methane hydrates, magnetic fusion could___be answers, but it will be decades into the future before___energy from these resources can meet demand._5. Production from every major oil field is in decline._6. Discoveries of new oil reserves pale in comparison to___the aggregate demand for oil._7. China now consumes more oil than the USA and there are___1.2 billion people around the world that want to, and___are ready to, own and drive cars._8. Rate of increase in oil demand is historically ~5.5% per___year. At that growth rate, oil demand will double in___~13 years. That means that the world will have to produce___as much oil in the next 13 years as it has in the last___100 years._9. The purchase of foreign oil sends ~25% of our GDP to other___countries.10. The government has decided to support the financial industry___at the expense of the real economy and “monetize” bad debt___with new money.11. As debtors continue to default, the insolvency crisis will___continue to worsen through 2010 into 2011.12. Given the vast amount of collapsing debt, the country will___either fall into a deflationary depression or go through a___period of inflation before entering a depression.Given that any one of these factors can have an effect on theprice of oil and that most any combination of factors can havea huge effect on the price of oil, I believe we are facing animminent oil shock of a minimum of $5-$10 per gallon gasoline($150-$300 per barrel) in 2010.Live Well and Prosper;)

GuestJanuary 3rd, 2010 at 8:30 am

I just don’t see it TT – there are full tankers sitting offshore waiting for the processing. Almost every large oil company has cut back on processing. The US usage is down quite a bit. I will give you there are a lot more cars in China and India, but currently oil is too high as far as supply and demand is concerned. Last thing I saw a couple of months ago that the fair price of a barrel is upper $40s, not upper $70s. Once again being manipulated and also the liquidity sloshing around. Once rates start to move up, oil will drop some.

GuestJanuary 3rd, 2010 at 10:26 pm

tt,we will spend/burn the second to last dropof oil fighting over the last drop of oil,probably not in 2010 though. it will be anintense time in the commodities market for sure.he ha absurdum..

ttJanuary 3rd, 2010 at 10:51 pm

You guys may be right.But it’s the lack of real reserves, BRIC-driven rate of consumption, looming inflation, and knee-jerk speculation that makes me think an oil shock is on-deck for 2010.

The AlarmistJanuary 4th, 2010 at 2:40 am

Kind of on the right track there. The US is unbelievably shuttering even more of its refining capacity and choosing to import gas from places like Yemen, so even if oil were to hold steady or even drop, it is quite possible that gas prices will spike and put another nail in the coffin for 2010.

11b40January 4th, 2010 at 7:28 pm

That’s right. Oil over $100 barrel will stop whatever little recovery we may be having. Not saying we won’t see $150/barrel, but if we do in 2010, watch out below.Independent Contractor

Average JaneJanuary 3rd, 2010 at 11:07 am

Maybe all of the above, PJB. I’m getting ready to move my money from Wells Fargo. Let’s hope this “movement” gains some traction. Tell all your friends. . .

Little SaverJanuary 3rd, 2010 at 2:40 am

Steve Keen’s view on 2010:My expectation is that, some time during 2010, the disconnect between the financial markets’ euphoric expectations and the hard reality of a deleveraging private sector will bring the optimism of both “born again Keynesian” neoclassical economists and the markets to an end. Growth will not resume once the stimulus packages are removed, since deleveraging will then assert itself in the absence of government stimulus. Falling debt will subtract from growth, as it once added to it, and unemployment will start to rise again.I expect that governments will react to this as they did in 2009–by turning on the stimulus packages once more, while continuing to ignore the private debt levels that caused the crisis in the first place. They will “turn Japanese”, to coin a phrase–since this is the same thing the Japanese government has been doing for two decades since its Bubble Economy burst at the end of 1989.This process may repeat itself two or three times before serious attention is finally turned to the Ponzi-dominated financial sector’s parasitic impact on the real economy. But for now, the parasites are clearly still in control of the host.http://www.debtdeflation.com/blogs/

bJanuary 3rd, 2010 at 9:59 am

http://www.wepin.com/articles/afp/afp74.html.http://www.foundingfathers.info/federalistpapers/.Antifederalist No. 74 THE PRESIDENT AS MILITARY KING”PHILADELPHIENSIS,” who was influenced by Thomas Paine (in “Common Sense), wrote the following selection. It is taken from 3 essays which appearing February 6 & 20, and April 9 of 1788 in either The Freeman’s Journal or, The North-American Intelligencer.Before martial law is declared to be the supreme law of the land, and your character of free citizens be changed to that of the subjects of a military king-which are necessary consequences of the adoption of the proposed constitution – let me admonish you in the name of sacred liberty, to make a solemn pause. Permit a freeman to address you, and to solicit your attention to a cause wherein yourselves and your posterity are concerned. The sun never shone upon a more important one. It is the cause of freedom of a whole continent of yourselves and of your fellow men. . . .A conspiracy against the freedom of America, both deep and dangerous, has been formed by an infernal junto of demagogues. Our thirteen free commonwealths are to be consolidated into one despotic monarchy. Is not this position obvious? Its evidence is intuitive . . . . Who can deny but the president general will be a king to all intents and purposes, and one of the most dangerous kind too-a king elected to command a standing army. Thus our laws are to be administered by this tyrant; for the whole, or at least the most important part of the executive department is put in his hands.A quorum of 65 representatives, and of 26 senators, with a king at their head, are to possess powers that extend to the lives, the liberties, and property of every citizen of America. This novel system of government, were it possible to establish it, would be a compound of monarchy and aristocracy, the most accursed that ever the world witnessed. About 50 (these being a quorum) of the well born, and a military king, with a standing army devoted to his will, are to have an uncontrolled power. . . .There is not a tincture of democracy in the proposed constitution, except the nominal elections of the president general and the illustrious Congress be supposed to have some color of that nature. But this is a mere deception, invented to gull the people into its adoption. Its framers were well aware that some appearance of election ought to be observed, especially in regard to the first Congress; for without such an appearance there was not the smallest probability of their having it organized and set in operation. But let the wheels of this government be once cleverly set in motion, and I’ll answer for it, that the people shall not be much troubled with future elections, especially in choosing their king-the standing army will do that business for them.The thoughts of a military officer possessing such powers, as the proposed constitution vests in the president general, are sufficient to excite in the mind of a freeman the most alarming apprehensions; and ought to rouse him to oppose it at all events. Every freeman of America ought to hold up this idea to himself: that he has no superior but God and the laws. But this tyrant will be so much his superior, that he can at any time he thinks proper, order him out in the militia to exercise, and to march when and where he pleases. His officers can wantonly inflict the most disgraceful punishment on a peaceable citizen, under pretense of disobedience, or the smallest neglect of militia duty. . . .The President-general, who is to be our king after this government is established, is vested with powers exceeding those of the most despotic monarch we know of in modern times. What a handsome return have these men [the authors of the Constitution made to the people of America for their confidence! Through the misconduct of these bold conspirators we have lost the most glorious opportunity that any country ever had to establish a free system of government. America under one purely democratical, would be rendered the happiest and most powerful nation in the universe. But under the proposed one composed of an elective king and a standing army, officered by his sycophants, the starvelings of the Cincinnati, and an aristocratical Congress of the well-born-an iota of happiness, freedom, or national strength cannot exist. What a pitiful figure will these ungrateful men make in history; who, for the hopes of obtaining some lucrative employment, or of receiving a little more homage from the rest of their fellow creatures, framed a system of oppression that must involve in its consequences the misery of their own offspring….Some feeble attempts have been made by the advocates of this system of tyranny, to answer the objections made to the smallness of the number of representatives and senators, and the improper powers delegated to them. But, as far as I recollect, no one has been found bold enough to stand forth in defense of that dangerous and uncontrolled officer, the President-General, or more properly, our new King.A few pieces under the signature of An American Citizen’ were published immediately after the Constitution broke the shell, and the hydra made its way from the dark conclave into the open light. In the first number the writer, in touching on the President, endeavored to conceal his immense powers, by representing the King of Great Britain as possessed of many hereditary prerogatives, rights and powers that he was not possessed of; that is, he shows what he is not, but neglects to show what he really is. But so flimsy a palliative could scarce escape the censure of the most ignorant advocate for such an officer; and since [then] we hear of no further attempts to prove the necessity of a King being set over the freemen of America.The writer of these essays has clearly proven, that the President is a King to all intents and purposes, and at the same time one of the most dangerous kind too – an elective King, the commander in chief of a standing army, etc. And to those add, that he has a negative power over the proceedings of both branches of the legislature. And to complete his uncontrolled sway, he is neither restrained nor assisted by a privy council, which is a novelty in government. I challenge the politicians of the whole continent to find in any period of history a monarch more absolute. . . .PHILADELPHIENSIS

bJanuary 3rd, 2010 at 11:46 am

apologies for the misquote. this is howit goes…..the cultural connection of drugs (heroin) andguns seems to have occupied related neural, etc., pathways?at least as they, pathways, are involved with linguisticexpression.ps. why do i see in the local paper all these storiesabout the epidemic of heroin use in “white” school districts,read “our children”, ( this making the matter actionable ) and never any mention of the source ofthat heroin, ( this making the matter moot ) that would be our friends in afghanistan and allthose agencies that assist them in raising money to buy armaments.not that i have anything against heroin use in the case offree and so inclined adults. decriminalization. but children?to financially support the war effort? at least now they areopening some treatment centers for the little tykes with the monkey on their backs.so why won’t the media tell the story of the connection of the destruction of the youth with the finances associated with opium,armaments, lawyers and money? war…not the old story but the same new story that continues tounfold. why? because it would be treason to tell that truth. indeed,….”the shit has hit the fan.” w.z..ppss.. wasn’t the department of homeland security supposed toassist the agencies, cia and fbi, to promote sharing of informationso that shit like this doesn’t happen, or are these new developments by design? sharing of information so that shitlike this is facilitated and uninhibited? for the sake of the economy, foreign policy and all. greater good through societaldestruction theory of “leadership”. ??.Lawyers, Guns And Money. Warren ZevonFrom the album Excitable Boy.Well, I went home with the waitressThe way I always doHow was I to knowShe was with the Russians, tooI was gambling in HavanaI took a little riskSend lawyers, guns and moneyDad, get me out of thisI’m the innocent bystanderSomehow I got stuckBetween the rock and the hard placeAnd I’m down on my luckAnd I’m down on my luckAnd I’m down on my luckNow I’m hiding in HondurasI’m a desperate manSend lawyers, guns and moneyThe shit has hit the fanSend lawyers, guns and money….http://www.youtube.com/watch?v=S5puAN1PGQw.pppsss. and our president is vacationing in Hawaii. goodfor him! i hope timmy and ben soon get to enjoy the serf andsky somewhere nice also. the world can revolve and devolve on its own without their constant attention / fidgeting.

11b4January 4th, 2010 at 7:44 pm

Never can tell about you, b. Did you mean ‘surf’, or was the ‘serf’ intentional? Maybe a Freudian slip?Independent Contractor

bJanuary 4th, 2010 at 8:36 pm

1,i am entirely dependent on spell check ofsome variety. you caught me. i meant surf,as you you suggest, but serf does work in itsown way. “never can tell about you..” i have beenhaving the same feeling lately, concerning the/my self oridea / concept of same. maybe freudian, but also i can’tspell for shit nor do i have editing or proofreading inclinations.i can’t even “format”, remember that?, whatever that, “formating”,means. hny. hnd (decade). all around.

bJanuary 3rd, 2010 at 3:38 pm

speaking of warren zevon….@ the full moon, vampires, zombies and thecult of blood suckers.(parasites).. werewolves.http://www.youtube.com/watch?v=bqNOWM1ExNY&feature=related.Werewolves Of London. warren zevon rip.I saw a werewolf with a Chinese menu in his handWalking thru the streets of Soho in the rainHe was looking for the place called Lee Ho Fook’sGonna get himself a big dish of beef chow meinHoowwwlll, the werewolves of London, HowwwllIf you hear his howling around the kitchen doorYou better not let him inLittle old lady got mutilated late last nightWerewolves of London againHooowwwl, werewolves of London, hooowwwlHe’s the hairy-handed gent who ran amuck in KentLately he’s been overheard in MayfairYou better stay away from him, he’ll rip your lungs out JimBut hey, I’d like to meet his tailorHooowwwwl, werewolves of London, howwwllWell, I saw Lon Cheney walking with the QueenDoing the werewolves of LondonI saw Lon Cheney Jr. walking with the QueenI saw a werewolf drinking a pina colada at Trader Vic’sHis hair was perfectHooowwwwl, the werewolves of London, HooowwwwlDraw Blood.

PeterJBJanuary 4th, 2010 at 4:14 pm

Who mentioned “gold”?SATURDAY, JANUARY 2, 2010Viet Nam’s Decision To Close Its Gold Trading Floors”Viet Nam has quietly become one of the largest gold importers of gold in the world. Apparently, as per the Cambodian source, the voracious appetite for gold is now endemic to all of Southeastern Asia. Even more interesting, this source told my colleague that Honk Kong and Singapore are slowly usurping London as the nexus for global physical gold trading.”http://www.truthingold.blogspot.com/Ho hum

b, please read entire sited piece.January 4th, 2010 at 6:57 pm

werewolves of london, ah hooooooooooooo…….http://economicedge.blogspot.com/2010/01/craig-harris-introspective-look-at.html.An Introspective Look at the Future of AmericaBy Craig Harrisearthblog.news@gmail.comAs we close out 2009 and look forward into 2010 and beyond, this has been a year of near financial catastrophe and monumental change, none of which benefited America or ordinary Americans. Late in 2008 and throughout 2009, events have happened in the US which would have been labeled unfathomable just a few short years ago, and yet already these monumental changes are expected to be filed into the memory hole and Americans are expected to believe nothing has changed.As we exit the year, we are told the US is a laissez-faire free market economy and yet the US government is now the largest owner of housing in the US as well as the owner of last resort for some of the largest and completely insolvent US corporations. The Federal Reserve, a privately and anonymously owned and controlled corporation chartered with issuing the nations currency, were given the green light by themselves to transfer to themselves and their shareholders the people’s wealth in the form of their future labor. The FED balance sheet has ballooned to become a junk bond warehouse as they overtly and covertly buy their own debt, immune from any sort of oversight, regulation or auditing and operating above the law. Along with that, increasingly coercive brute force measures are now routinely necessary to manage and manipulate so called “free market” asset prices which are cheerled by so called “financial news media” whose board members and management are all the same people who transferred the people’s wealth to themselves. The corporate media party line idea of a “free market US economy” now seems like a distant memory and it all feels like systemic fraud, corruption, malfeasance and organized crime at the very highest levels.During 2009 we have seen the continued collapse of American industry amid wave after wave of layoffs. The corrupt corporate media cartel likes to trot out a group of FED sponsored shills who call themselves “professors” to call this a “jobless recovery” although it’s difficult to imagine a recovery where American industry has collapsed and is now owned by the government. US cities both large and small have been decimated by the loss of the US manufacturing base. Detroit now resembles a third world country with a 50% unemployment rate. Ransacked, foreclosed houses go for a dollar apparently because no one who has a choice is willing to own property or live there. The US has an officially stated unemployment rate of ten percent and a real unemployment rate of over 20 percent. Wall Street may have recovered due to a direct injection of capital from the future labor of the people, but there has been no action taken whatsoever to improve the situation of the average citizen as the disconnect between the ruling Oligarchs and Wall Street, the real economy and the lives of ordinary Americans continues to widen. The people’s bailout money, which represents the future labor of Americans, went directly into the pockets of the people who created the crisis in the first place because they are in the enviable position of being “too big to fail”. Interestingly, or sadly, the same people and institutions responsible for and who profited from the catastrophe are still in charge and have handed even more power and control to themselves. Although there has been talk in Washington of “too big to fail” being undesirable, the result of the post collapse policies have resulted in ever fewer, ever larger players with more power and control and instead of being “too big to fail” now wield so much money and power that they demonstrate wholesale ownership of the entire US political body……….I would like to end by quoting Marc Faber with one of the most compelling quotes of 2009. I find this quote compelling because the price of anything as measured by a fraudulent standard is meaningless. To me, it is a gift to be able to still exchange US dollars for anything with real value.”I would buy every three months some gold and not worry so much about the price because the weight stays the same”My favorite quote, “As Jim Grant pointed out recently, according to Section 19 of the Coinage Act of 1792, the penalty prescribed for any official who fraudulently debased the people’s money is death, yet in 2009 debasing the people’s money resulted in a “man of the year” award from the self serving corporate media….http://www.garynull.org/wp-content/uploads/2010/01/GaryNullShow010410.mp3.g. null and gerard celente.

The AlarmistJanuary 5th, 2010 at 5:52 am

Argentina was once a first-world country. Mexico too. They pretty much arrived at their present state by pursuing statist policies like those now being pursued by the US. Welcome to the new world order.Gold is portable wealth. As Jim Morrison once said (sang), “Never be so broke that you couldn’t leave town.” Problem is that it is getting harder to get across borders without someone official seeing your portable wealth. Seriously, do you think those full body scanners are there to stop terrorists, and why do you think TSA asks people why they are carrying so much cash? Welcome to the new world order.Meanwhile, it is freezing in Florida, but we desperately and urgently need Cap-n-Trade to save us from global warming … er, I mean climate change. Welcome to the new world order.

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