October 23, 2010

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"Every normal man must be tempted, at times, to spit on his hands, hoist the black flag, and begin slitting throats."
– H. L. Mencken

The Day the Earth Shook; China Dictates to G20

Saturday, October 23, 2010 – by Staff Report

Timothy Geithner

China against current account limits: G20 source ... China has made clear it will not agree to a G20 communique that explicitly binds countries to limits on current account balances or any other form of rules on currency policy, a G20 source told Reuters on Friday. Finance officials from the Group of 20 leading nations started two days of meetings on Friday. A statement is expected on Saturday. The proposal to set a target of 4 percent of gross domestic product for current account surpluses and deficits came from the United States and appeared aimed at China's trade surplus. G20 nations should refrain from currency policies aimed at gaining a competitive edge, U.S. Treasury Secretary Timothy Geithner (left) said in a letter to G20 finance chiefs. "China has clearly said that it will not accept a communique that spells out any target on the current account or for that matter any kind of FX norm," the source, who has direct knowledge of the deliberations, said. – Reuters
Dominant Social Theme: Please avert your gaze. Move along. We will try again in November.
Free-Market Analysis: On Friday, if this quiet Reuters report is to be believed, a 100-year-old Anglo-American conspiracy to create one-world government may have begun to seriously founder. Yes, that is perhaps a bold statement (for those who believe in an elite-conspiracy in the first place) but it is one we will try to explain further in this article. Sub dominant social theme: We are having many meetings here at the G20 because discussions lead to success.

Elite Postpones Earth's Demise?

Saturday, October 23, 2010 – by Staff Report

It's a good news/bad news situation for believers in the 2012 Mayan apocalypse. The good news is that the Mayan "Long Count" calendar may not end on Dec. 21, 2012 (and, by extension, the world may not end along with it). The bad news for prophecy believers? If the calendar doesn't end in December 2012, no one knows when it actually will – or if it has already. A new critique, published as a chapter in the new textbook "Calendars and Years II: Astronomy and Time in the Ancient and Medieval World" (Oxbow Books, 2010), argues that the accepted conversions of dates from Mayan to the modern calendar may be off by as much as 50 or 100 years. That would throw the supposed and overhyped 2012 apocalypse off by decades and cast into doubt the dates of historical Mayan events. (The doomsday worries are based on the fact that the Mayan calendar ends in 2012, much as our year ends on Dec. 31.)" – Yahoo
Dominant Social Theme: OK, everybody just relax. Looks like we have at least another 100 years.
Free-Market Analysis: A new book has just been published, and we are indebted to a feedbacker for bringing it to our attention. Our feedbackers are generally far more insightful and clever than we are, so we are not surprised when they notice something we don't (even all 1,000 of us). In this case, Bluebird not only noticed the book and the revised prediction in one of its chapters, she sent us a feedback making an intriguing connection between the book and power-elite promotions regarding the end of the world. Sub dominant social theme: "Stop worrying. There's no need to riot. Go home."

2010 Is Just Deck Chair Politics on the USS Titanic

Saturday, October 23, 2010 – by Ron Holland
Guest Editorial

Ron Holland
The political consensus is following the 2010 election, the Tea Partiers and the GOP establishment will breathe a sigh of relief and celebrate their victory and our two-party monopoly system of government will continue as before. A GOP House majority will checkmate Obama and the Democrats in the Senate and political stalemate will result. Many conservatives and a few Washington pseudo-libertarians will claim stalemate is better than a Democrat landslide but they will be wrong.
Like the Titanic, the Washington/Wall Street ship of state hit a Federal Reserve created iceberg under the command of George W. Bush with the recession/depression. Again, like recent evidence suggests, the original Titanic hit the iceberg and sank so fast because of a steering mistake turning the ship in the wrong direction which could have been avoided.
In a similar fashion, both Obama and Bush, following the self-serving orders of Bernanke and Wall Street steered the nation directly into the current depression and coming national debt and dollar collapse by following Keynesian economic principles instead of letting the market quickly resolve the crisis.

France: Can You Hear Us Now?

Friday, October 22, 2010 – by Staff Report

Nicholas Sarkozy
Nobody expected this French revolution ... The pensions row has turned into a referendum on Sarkozy ... As the French Autumn of Discontent morphs into its second week (more trains, fewer planes, long lines at petrol stations, banlieues kids indulging in a bit of self-administered wealth redistribution in the streets), no one can predict how things will turn out for Nicolas Sarkozy (left) and his embattled government. And yet this should have been the easiest reform of his first term ... The strikes have turned into a referendum on Nicolas Sarkozy – not his actual policies, so much as his style. The perception is that he panders to the rich, an unfair one when you consider his predecessor Jacques Chirac, who never paid for any holiday he took in or out of office. ... Sarkozy (whose fortune is the product of selling his family flat for £1.6 million when he was elected in 2007) earned himself, early on, the "bling bling president" tag. Nothing he has done since has shifted the impression that he wants the French to make efforts he will not subject himself and his rich friends to. – UK Telegraph
Dominant Social Theme: The French are crazy and need to blow of steam once in a while.
Free-Market Analysis: Until recently we have been somewhat alone in trying to explain the reality of what was taking place in Europe. In a series of articles, we predicted that Europe would blow up sooner or later, because Europe was basically a tribal environment and, in fact, a patchwork of tribes. In one of our recent articles, we even provided a Wikipedia excerpt showing how the tribes had conquered Rome and then migrated throughout Europe in the next 500 years. To think that Europeans themselves are not quite conscious of their background, or have no tribal solidarity, was naïve in our view.

The Big Science Promotion Grows Stranger

Friday, October 22, 2010 – by Staff Report

CERN scientists eye parallel universe breakthrough ... Physicists probing the origins of the cosmos hope that next year they will turn up the first proofs of the existence of concepts long dear to science-fiction writers such as hidden worlds and extra dimensions. And as their Large Hadron Collider (LHC) at CERN near Geneva (pictured left) moves into high gear, they are talking increasingly of the "New Physics" on the horizon that could totally change current views of the universe and how it works. "Parallel universes, unknown forms of matter, extra dimensions... These are not the stuff of cheap science fiction but very concrete physics theories that scientists are trying to confirm with the LHC and other experiments." – Reuters
Dominant Social Theme: Isn't it amazing how real-life imitates the movies?
Free-Market Analysis: In a series of articles, we have explored what we consider to be the risibility of building multi-billion dollar Big Science machines like colliders to enhance scientific understanding. Our point, though we have never entirely boiled it down to its essence until now, is that scientific progress should probably come out of the marketplace (or perhaps from dreamy, brilliant science students dozing under apple trees). It should conform to the modesty of accumulated profits – and certainly to natural law.