Translate

Monday, January 26, 2015




What is Faster than a Speeding Bullet…. More Dangerous than an Atomic Bomb? 
The Swiss France! Monopoly Money On A Grand Scale! 
Within hours of the moment that the Zurich Bankers in Switzerland decided, correctly, to break away from the Euro and appreciate significantly…. the following countries went into a financial tailspin: Poland, Hungary, Romania, Bulgaria, Croatia, Serbia…..The list will rise every day.
Why?
Unbeknownst to many of us in the west, most of the Central and East European countries had mortgages denominated in Swiss Francs [SF]. That means as the SF rose, it became much harder to pay back the loans in the SF.  Instead, Hungary decided to convert all SF loans into their own currency-FORINTS [completely worthless in the open currency markets]. Therefore, the aforementioned countries cannot pay back the Swiss denominated loans without restructuring these loans [Poland]; or declaring massive bankruptcy [Romania].

As I have pointed out over the past two years, the European Market will never really be able to settle it’s financial/political/economic differences amidst the poverty stricken- southern tiered countries: Portugal, Spain, Italy, Greece [ready to exit the EU]—and the more prosperous northern countries: Germany, Austria, Switzerland, England, Belgium, Scandinavian [Denmark, Finland, Sweden].
The reason is quite simple,  it has to do with the different political cultures or the national characters of each country. One cannot expect the Spanish who have a corrupt centralized government in Madrid to be able to stimulate an economy with close to 25% unemployment rate.  Spain, other than Barcelona [Catalonia], has never been a major center of manufacturing or industry like Frankfurt or Bremen. 
Germans, despite two world wars; complete fragmentation of their country have, once again, ascended to their apex of economic performance because they are by nature INDUSTRIOUS, FOCUSED, HARD-WORKING; maintaining higher standards of production and manufacturing than most EU countries. That is both a historical and psychological reality. Therefore, when the French, who have never been recognized for their manufacturing skills or work ethic decided to corral Germany in the fictitious myth called the ‘EUROPEAN UNION’—then, the weaker of the two countries, France, suffers the most from this unholy alliance. The reason is that the economic destiny of that EU is not dependent on all the countries but on the strongest country and its currency. The French Franc could never compete against the German Deutsch Mark or,  even the stronger, Swiss Franc.
Angela Merkel, the brilliant Phd leader of a reunited Germany understands this better than anyone else. She grew up in the dysfunctional East German sector and she knows from past experience how poorly countries that are basically socialist or communist in nature compete in the present day worldwide markets.  However, there is one serious caveat that Merkel has to bear, like the Iron Cross. Germany/Austria had extended massive amounts of credit to these ‘failing states’ in the Southern, Eastern and Central part of Europe. If they refuse to repay the loans in the denomination that they are loaned out, usually Swiss Francs; then each country will decide to default on the loans; creating a massive banking crisis throughout Europe, England and possibly worldwide.

In time, that type of financial crises will lead to political instability throughout the European continent. The more marginalized minorities [Muslim, Gypsies, et al.] will begin to disrupt the political stability of their respective countries as we have seen in both France and Belgium. However, the real problem is the dissolution of the EU.
One way or another, the EU has to dissolve and allow each of the respective countries to print their own moneys. That money will clearly reflect what the dollar mirrors in our present day society—peace, prosperity and political stability.  All reality based psychological determinants that must be met in order for a currency to reflect real worth. 
As you know by now, Switzerland has had three hundred years of peace and political stability—irrespective of what they had to do in order to achieve this long sought after goal. Therefore,  this collective underlying pressure felt by the Swiss bankers compelled them to break away from the Euro-Pegged currency which did not really reflect how ‘good things were in Switzerland.’
However, currency wars are two-edged swords. No sooner did the Swiss Franc appreciate than the Swiss exports like Swatches, Chocolate, Weapons, became much more expensive; and not as competitive, in the open trade markets. So the currency wars can have unintended consequences far more reaching in my opinion than KINETIC ACTIONS [War].

Despite President Obama’s jubilance about our present economic situation, he has not really understood how our stock market does not reflect his exuberance. In fact, there is clear evidence to me that there may be signs of deflation creeping into, at best, an erratic stock market-- with very low trading volumes.
So, what are we to do?
I think it would be prudent if we, Americans, could remain liquid.  In effect the dollar is so strong that US Treasury yields are so low that just buying US Bonds denominated in US Dollars are considered a ‘safe bet’ for ‘flight capital’. Remember: a strong currency means fewer exports of US manufactured goods. And the one thing that we, Americans, are particularly good at is entrepreneurship; or creating businesses in real time.  
Clearly our conglomerates cannot carry the brunt of our economic growth. We have to be able to create new businesses at the rate at which employees are being fired in order to maintain the necessary growth rate that will prevent deflation. At the same time, we must have tax codes and financial incentives that will allow our country to grow without USG impediments.
I think it would be prudent for us to wait and see what exactly will happen-- as the Swiss Franc Bullet Speeds across the World’s currencies-- creating a major tidal wave of disproportionate heights.
I hope that I am wrong. 
The sooner, the EU dissolves, the better it will be for world financial markets which depend on the ability of each country to print money backed by nothing more than psychological determinants like hope, anxiety, and fear---specific to that particular country. What a way to run the world currencies: phony paper money absorbing the cultural/political/historical/psychological determinants of a body politic.

Monopoly Money on a Grand Scale!
That is the reality of the CURRENCY WARS!!
  


14 comments:

  1. I think the original notion of a United States of Europe might have been quite a good idea on paper, it would stop the Germans invading anyone for 5 minutes reduce trade barriers that kind of thing. However in reality anyone with a grasp of Economics can see you cannot bring in 'Donkey-Button' countries, with economic power houses it is very silly. I am glad the Greeks are rocking the boat, I hope they kick out the 'Banksters' as Iceland did. Currency should be backed by Gold!
    I saw an idiot who ran the Federal Reserve on a news program telling people not to worry, as they could always print more money and he was not joking. The other people on the show could not believe he was serious or such an idiot.a Gold standard would stop mindless printing or endless zero's on screens and hopefully curb some of the excesses of the men who sold the World. (not David bowie!) I presently have my 'dosh' in one Bank and want to split it up in case of future collapses, but frankly they all look as shit as each other. I do not understand how Politicians can make such important calls without any real economic/financial training maybe instead of Presidents and PM's we need very good CEO's.

    ReplyDelete
    Replies
    1. A gold backed currency, or a silver backed currency, or anything of the kind is a horrible idea.

      1.the countries with gold mines suddenly become financial titans - bad idea

      2.the value flips according to a stupid market for the damn stuff - horrible

      3.the stuff has little practical use and it's only value is an illusion. Do you want to peg the value of your currency to an illusion??????

      Look.....

      Currency doesn't have to be redemable in anything.

      Currency works NOT because it's redemable, but because it's rare and the state mandates that everyone must use it.

      Fiat currency works because only one place can issue it and no one else can create it and that makes it rare. It works because everyone agrees to accept it because it's the only thing around because the government has mandated it so.....

      There are also many pitfalls to fiat currrency. Whoever is sanctioned to create it holds a racket over everything.....

      But using a commodity and redemability is worse.

      Delete
    2. Fiat currency works? All fiat currencies go to zero. It's worthless paper. You're wrong about most everything!

      By the way, the snow wasn't that bad in New York so I didn't kill myself. You still think I must die immediately, right?

      Delete
  2. For those who can access BBC iPlayer!!! Watch Adam Curtis and Bitter lake...reaffirmed my belief we are all on a roundabout here! It focused on wahaabism and how the west backed it "inadvertently" in pursuit of oil and whilst furnishing the house of saud with dollars they in turn furnished the madrasses with funds to promote wahaabism throughout Islam!! Yes folks we are paying for this extreme form of Islam so its only right we indeed should be first in line to reap the the fruits that we indeed have sown!!!!!

    ReplyDelete
  3. I have advice, we can carve up Germany, Switzerland and Austria among US, France and UK, make them agricultural and we have united Europe. USA can be industrial engine of Europe and everything is fine, everyone is happy.

    ReplyDelete
  4. What was wrong with everything the way it was???

    Listen people need to stop all these changes. Change is bad. The lobbies and groups who push for change are idiots.

    The Euro needs to be dissolved and everything go back to the way it was.

    ReplyDelete
  5. The banks and utilities need to be re-regulated like before.

    The tax rates need to go back to where they were in the 1970s.
    That means income and property taxes all back to the way they were.

    Immigration laws need to be enforced like they used to be, and immigration restricted to the level of the 1970s and before.

    Government spending needs to be brought to the level of the 1970s. Union membership needs to be brought back to 1970s levels.

    Median incomes and the numbers of people in poverty needs to be brought back to the numbers of 1970.

    Law enforcement powers need to be scaled back to the 1970s level. The numbers of people in the prison needs to be taken back to the level of 1970 - no war on drugs, etc.....no RICO laws either.

    Everything back to the way things were....

    No NAFTA or 'free trade' with anyone. Not with China or anyone else. Everyone importing gets taxed.

    And finally this....

    No more 'SWAT' teams or armoured vehicles or automatic weapons for law enforcement. Criminals today are no better armed then they were in the 1930s so stop all these lies that they are. Domestic police should be BANNED from using military equipment or wearing fatiques or black uniforms!!!

    POWER TO THE PEOPLE!

    ReplyDelete
    Replies
    1. in the 1930s criminals used a lot more fully automatic weapons than they do today. They used full auto Thompsons, BARs, and submachine full auto model 1911s in .45 and .38 Super......

      There's no fucking need whatsoever for domestic police 'departments' to be playing war and arming up with military weapons.

      It's not a war out there so stop the games.

      Delete
    2. The two cases in law enforcement where officers were brought down by superior firepower was the "Miami Shootout" in 1986 and the "Bank of America Shootout" in LA in 1995.....

      In both cases officers were on the losing end NOT because they didn't have AR-15s, kevlar and tanks......

      They were on the losing end because they only had 9mm or .38 special pistols which couldn't penetrate anything.

      IF THEY HAD BEEN ARMED LIKE PEACE OFFICERS WERE IN THE 1930S THIS WOULDN'T HAVE HAPPENED.

      In the 1930s peace officers [which were not law enforcement but PEACE officers] used .38 Super and .357 Magnum cartridges to counter full auto and armoured perpetrators.

      If the LAPD in 1995 and the FBI in 1986 had merely gone back to using .357s or .38 Supers or even adopted 10mm then they wouldn't have been outgunned.

      But these events and similar ones are used as excuses to FALSELY CLAIM that criminals are more heavily armed than in the past and that law enforcement needs helmets, kevlar, tanks, machinge guns.....

      All untrue.

      Delete
    3. People are by nature mostly good. It's a fact that only a tiny fraction of losers in any society are capable of doing harm to others. And, there is only a fraction of that group that'll actually commit major harm on others.

      Why is good neighborly behavior not highlighted anywhere anymore? Why aren't the true crime statistics (gun free zones vs. C&C) sold to the general public instead of this culture of violence and fear?

      When you've answered those questions, you will have realized the debate ended a long time ago along with our National Innocence. Parents should not teach, they should train their children.

      The first rule of flipping any modern society is to replace all images of good (God), and replace them with bad (Satan). Look around and see the work in action, only an idiot can miss it.

      Whether you choose to believe it or not doesn't matter to that fact that it's been written already and it continues repeating until the last measure, the very last beat.

      The day will arrive like a thief in the night and you have to ask yourself (hopefully we'll before the end), what did you really do to help anybody to a better place. At the end of this short ride called life, how you helped and treated others is how you'll be judged.

      Remember the best and most powerful giving there is... Forgiving!

      Delete
    4. What have you been smoking?

      Most people are basically BAD, and only comport themselves to social expectations because of habit and fear of punishment.

      Most people are indifferent to the welfare of others, and this trait has different distributions according to race.

      Among Europeans most people don't give a shit about anyone else but go along because it's expected.

      Delete
    5. As far as 'foregiving' is concerned you're talking happy horseshit.

      Most people foregive for selfish reasons.

      Any serious crime should never be foregiven. Why?

      The problem I have with law enforcement is that they are too stupid and immoral themselves to make any distinction between vices, misdameanors and serious crimes.

      They are immoral themselves so they just follow the law and it's all they know.

      Delete
    6. People are by nature mostly good. It's a fact that only a tiny fraction of losers in any society are capable of doing harm to others. And, there is only a fraction of that group that'll actually commit major harm on others.

      Why is good neighborly behavior not highlighted anywhere anymore? Why aren't the true crime statistics (gun free zones vs. C&C) sold to the general public instead of this culture of violence and fear?

      When you've answered those questions, you will have realized the debate ended a long time ago along with our National Innocence. Parents should not teach, they should train their children.

      The first rule of flipping any modern society is to replace all images of good (God), and replace them with bad (Satan). Look around and see the work in action, only an idiot can miss it.

      Whether you choose to believe it or not doesn't matter to that fact that it's been written already and it continues repeating until the last measure, the very last beat.

      The day will arrive like a thief in the night and you have to ask yourself (hopefully we'll before the end), what did you really do to help anybody to a better place. At the end of this short ride called life, how you helped and treated others is how you'll be judged.

      Remember the best and most powerful giving there is... Forgiving!

      Delete

  6. Dear Sir/Madam,

    If you need a loan from a genuine lender, i will advise you contact
    this lender were i got my loan from. His company is the only company i
    know of.i have introduce so many other borrowers to this company, who
    can also testify this company good services. For your own good, do
    contact them for a legit loan. ( Pon Yee fast cash service).I have
    been scammed several time before i could get this genuine lender. For
    you not to fall into wrong hands, i will advise you to contact this
    lender that i am referring to you right away contact them for a loan.
    Do remember to state the amount you need in your message to him.via<
    ponyeefastloan.ch@cash4u.com << <<< ponyeecashloan@gmail.com >

    Thanks
    Mr Pon Yee

    ReplyDelete