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Japan And The US Banking Collapse
August 18, 2007: NovaStar Goes Nova---Big Boom The real estate market is dead because it is being forced back into the older method of selling houses. 20% down, full documentation, the bank itself goes to check out the property and even snoops around the neighborhood or you know the bank president personally. It was hard to get mortgages when I got my first mortgage. It was nearly impossible in the late 1970's and I had to get it from a guy from Haiti who carried a gun and had a very dark reputation. But we did business and I got my brownstone and paid him in full in less than 6 years which made both of us happy. But no bank would lend me a penny back then. No problems are ever solved by sweeping them under the rug. The US economic rug has so much swept under it at this point, it is now bulging as high as Mount Everest. The latest theme I see emerging in our benighted economics professorial community is the totally goofy idea that 'liberal' economies are failing and 'authoritarian' ones are rising. And I suppose, the solution is for us to grow even more authoritarian? The New World Order's conspirators would dearly love this to be the real lesson! In the US, we have this fantasy system that claims our freedoms make it better for us to compete with the world, to create and innovate. The US right wing used this dogma to push for no regulations or laws concerning exploiting the environment or doing business. And no taxes, of course! In a world of capitalist anarchy, red in tooth and claw, the US would rise up and dominate the planet. Anyone who knows the history of US economics can see clearly that this was never the case. Many rules and regulations were put in action to protect competition. For unfettered competition can easily end with an array of monopolies exploiting people and resources. We inflicted this on the Russians when communism fell. Russia has re-instituted regulations and controls, of course. This is why Europe and the US are furious. Russia should have been our Haiti: weak, desperate and incapable of organizing any resistance to exploitation by the imperial powers of the West. Americans should understand, we are the next Russians. Recently, the news came across the wires that the US public wasn't going to be a majority of Western European invaders. Others of darker skin were going to be the majority. The Republican right wing has responded to this information by demanding less access to abortions, for example. Hoping to have 'white' women multiply by force, I guess. Since the 'white' majority of the GOP hates national health care, I am guessing the darker thinking here is, 'Those coloreds will die because they won't get health care.' I grew up in the South and heard quite an earful during the long fight for civil rights there. This is why, when Dean joked about the skin color of the GOP, he was hounded mercilessly. This entire election has been one, long wail about race which was mostly about how we are NOT to talk about race at all but other issues...all of which are very entangled with race. Just like it is impossible to talk about Middle Eastern politics without talking about ethnic cleansing, Hitler and oil, in the US, talking about greater economic forces without talking about illegal aliens is impossible. They flooded our work sites, they flooded into our cities, they took over many sectors just like previous waves of immigrants who underbid natives for the available work. This always kills inflation. Indeed, it is the #1 way to prevent inflation. If no workers can raise wages by striking, etc, then wages drop and profits soar and inflation is masked. The latest flood of illegals destroyed the US banking system. It is bad enough that many foolish homeowners bulked up on their debts by refinancing their homes. But the bidding wars for housing would not have soared if it weren't for a flood of illegal aliens making reckless bids. This is because a good number of them thought, this is how they can gain citizenship, for example. A reasonable belief. Unscrupulous loan officers and real estate agents seeking fees gladly encouraged this sort of belief. The alteration of our system to a 'paperless' loan process was utterly demented. Recently, my son was unable to get a simple car loan because of the collapse of our entire banking system. Even with me co-signing, it was impossible. This is a 180 degree turn around from just one year ago. The US is now madly deporting or driving out these millions of illegal aliens and this is making the housing downturn worse. International corporations love liberalism that opens borders to export rivals and which makes it easier to exploit labor by moving labor around or shifting factories to newer and newer labor pools, thus preventing any organizing that can muscle corporations. Florida mortgage regulator resigns under fire The panel two weeks ago ordered their respective inspectors general to audit the office in response to a Miami Herald investigation. Florida, like California, is a prime example of what went wrong: various immigrant populations joined forces with major corporate interests and the GOP in order to loosen public oversight of important economic activities. Things then 'boomed' and when the criminal elements finally swamped everything, it collapsed. We see the tendency of the Board Rooms of many powerful corporations lured into increasingly hazardous and illegal activities in these time frames. The Mafia-types of organizations flourish. Every con on earth opens up shop. The 'Buyer Beware' signs go up and the con community sets out to create money out of thin air as fast as possible. Just like we saw in Yeltsin's Russia, this process can beggar an entire nation. So maybe the idea that we are not in an 'authoritarian' mode by 'liberal' should be changed to 'Mafia mode'. Bernanke Tries to Define What Institutions Fed Could Let Fail (Bloomberg) -- Ben S. Bernanke is still trying to define which financial institutions it's safe to let fail. The longer it takes him to decide, the tougher the decision becomes. Instead of taking responsibility for the mess, Congress is, like any Mafia mode con organization, is seeking ways of evading the law. We have a debt ceiling law, for example. Congress changed this law they passed so they could be 'virtuous'. Like a whore that goes to bed every night with a new John, in the morning declaring her virtuous virginity, Congress dutifully votes to raise this ceiling whenever they want to overspend which is....virtually constantly! The ONLY time this was not true was when we had a funky little stock market bubble, the Dot Com craze. Then, revenues poured in. So the budget was balanced for exactly one and a half years. Then went off the cliff in an orgy of wild tax cutting and wilder spending. After stealing all the excess Social Security funds that were supposed to be protected so our grandchildren won't be taxed to death or us baby boomers dying en mass, Congress is restlessly searching for ways to lie about overspending. Seizing the $900 billion held by the central bank is no problem. We must remember this rule of thumb: all governments of all nations can steal ANYTHING they want if they wish. There is NO LIMIT. They can, like in Cambodia, enslave the entire population in labor camps and work them literally to death! On Aug. 10, 2005, when Greenspan was chairman, 94 percent of the Fed's $24 billion in outstanding repurchase agreements with Wall Street were in U.S. Treasury notes. On Aug. 10, 2008, only 14 percent were in Treasuries, with the rest in mortgage bonds and agency securities, according to Wrightson ICAP LLC in Jersey City, New Jersey. The New York Fed says agency and mortgage-backed securities ``became more attractive.'' *snip* Bernanke added that ``the financial system has been under a lot of stress and that has affected our ability to grow. It's affected employment. It's affected credit availability.'' HAHAHA. Good grief. Did mortgage-backed 'securities' become more attractive from August, 2006 to August, 2008? Anyone reading this blog here knows this is obviously a stupid lie. Right when all the super-rich, the biggest investment bankers and everyone was running for the hills, dumping these securities, the Fed was buying due to them being superior? HAHAHA. I really wish these guys would stop lying. It is getting tedious laughing at them. Once the angel of wealth destruction is finished devouring this $900 billion, she will turn her Gorgon eyes upon some new target. Bernanke puts the cart before the horse here. Banks collapsing didn't make the depression worse. It was the collapse of PAYMENTS to banks that were the problem. And the biggest loans that were not repaid were...the WWI loans to England and France and the loans to a defeated Germany to pay reparations to England and France and others! Always, always, it is the failure to pay loans that leads to massive banking collapses. And the fix isn't easy for the simple reason, if too many or too large loans are made, this creates too much easy funny money and this causes global inflation. And if any major player in this game ceases to make or accept more easy funny money loans, the whole system collapses. I noted last August that China was no longer playing the 'make the bubbles bigger' game and this caused the rate and direction of flow of funds to alter. And it killed the Japanese carry trade which our bankers are very, very anxious to restart. Once the Olympics are done, the Chinese are going to shift gears yet again. And I am suggesting that it will be in a direction we don't expect. Definitely, China will take advantage of the US and Europe foolishly relaunching the Cold War with Russia. This will strengthen China's powers in Asia greatly. OPEC May Cut Output Next Month The Organization of Petroleum Exporting Countries could decide to roll over or cut crude oil production from existing levels when the group meets in early September in Vienna, Iran's OPEC governor Mohammad Ali Khatibi said Saturday. The Saudis may have learned some lessons from the past! I suppose they will try to keep oil at around $100 a barrel for the time being. They can't let it go back below $60 a barrel because they are adjusting to the new price and frankly, like it. The US and NATO are still menacing Iran and hope to overpower Iran even as this navy is sinking due to lack of funding. Or rather, the economies backing this naval show of force are dying. One would imagine, they would focus on international trade, not starting yet another war. But again: the military/industrial complex needs more war profits. Now, off to Japan for some big reality checks: Mitsubishi Is Said to Be Close to Deal for California Bank The transaction values UnionBanCal, which owns Union Bank of California, one of the 25 largest banks in the United States, at about $10.5 billion. Isn't sovereign wealth wonderful? And note that the Japanese banking system as well as the colossus Japanese industrial manufacturing systems are taking over the US systems. Let's go back to the business of banking collapses: they are the ONLY way to get rid of tons of DEBTS. The US is desperately clinging to the fiction, we can pay our debts. We obviously cannot. Japan has gone through this long period, the longest in 100 years, of vast economic growth of the upper class's economic powers. To promote a fictional 'depression', Japan's rulers used taxes, fees and restrictions to prevent the people from getting wage hikes or buying imports. So Japan has a depression for its majority while the minority at the top raked in global power. This is the US ruling elite's plans, too. They earnestly say, their free trade policies are bringing lower prices and more goods to US consumers. While destroying any ability to control wages and get a cut of profits. I predict that eventually, aliens will own all our banking systems. Natives who own systems will move them all offshore. So there will be no more 'community control' over banking. And bankers, not the Federal Government, makes money by making money magically appear via loans. And the US government will be allowed to overspend only to the degree that our foreign owners will allow. Sovereignty matters. Ask the Japanese! They will do anything to prevent foreign entities expanding inside Japan. Japanese Megabanks Finding Opportunity In Subprime Mess (Nikkei)--Leading Japanese banking groups have leveraged their robust financial health and made large-scale investments in U.S. and European financial institutions hit hard by the U.S. subprime mortgage meltdown. The Japanese domestic economy is going down the tubes. Instead of fixing this, the Samurai financial giants are moving everything overseas. They really don't care that Japan's population is contracting rapidly. They don't care about their own nation. Except so far as it can be a base of international operations. This is very much like the Mafia. This is why the economics professors who are bloviating about free versus non-free economic systems should really talk about Mafia versus nationalist systems. The Mafia is international. Nationalism is the natural outcome of aggravating economic forces decimating sovereignty. Now, more news from Japan: Sony, Toshiba To Farm Out More LCD TV Output To Taiwan Firms TOKYO (Nikkei)--Sony Corp. (6758) and Toshiba Corp. (6502) plan to significantly boost the percentage of their LCD television sets made by Taiwanese manufacturers under outsourcing contracts in an effort to cut costs amid intensifying price competition, The Nikkei learned Friday. Inflation is raging in Japan. And the Bank of Japan is allowed to keep interest rates in the cellar. Yet we see, from the earlier banking news story, Japanese businesses and individuals are going bankrupt! How can this be if interest rates are below 1%? Well, since Japan is a Mafia economy, the people in debt are paying astronomical interest rates! Just like here. Average Americans collectively owes well over a trillion dollars in debts that have a +12%-33% or more interest rates! This usury now burdens the entire economic system. For the previous 20 years, people were able to move this usury onto their homes via refinancing their debts. So the massive debts went from over 12% to under 6%. A 50% or more cut. This process depended very heavily on allowing no paper loans to illegal aliens so they and anyone else could bid up the price of homes outrageously. This, in turn, boosted the ability of non-buyers to eliminate previous credit card charges by piling this on their homes. Without this process, the credit card debts will grow and grow until everyone is forced to default. The US Mafia economy has been crowing that our recession has cut imports and boosted exports. This is due to the weak US dollar. The benefits of all this have been mostly due to US cutting back drastically on oil imports. So it is false. Only if the dollar continues to weaken, can we see our trade deficit fall. And absolutely everyone on earth is trying to prevent this. Some realistic commentary from eFinancial News:
Export Boom Helps Farmers, But Not U.S. Factories Exports are the bright spot this year in an otherwise bleak economy, but the world is not suddenly snapping up made-in-America goods like aircraft, machinery and staplers. The great attraction is decidedly low-luster commodities like corn, wheat, ore and scrap metal. The US has been rushing backwards for a long, long time. Much of our engineering prowess these days are focused mainly on military toys. Thus, the huge push for restarting the Cold War. The Cold War destroyed the US economy every bit as it destroyed Russia's economy. We made up for this by asking our trade rivals and 'allies' for lending. They gave it and we are in deeper trouble. Duh. Right under our wings, we protected Europe so they could consolidate into a greater and greater power. Gradually, all major political power is being gathered in Brussels where the biggest economic nations in Europe can control the entire continent for their own ends. They are TRADE RIVALS as well as POWER RIVALS. This concept is just too difficult for our neocons and Presidential candidates to work around. Well, everyone allowed to run for President first must be vetted by the international banking and ruling elites! Then, our media will back one or the other depending on the needs of this cartel. And one thing they want is a ruler here that will keep the US public at bay. This is why we resemble China or Stalinist Russia more and more. The US should have pulled out of NATO long ago and should have obstructed the growth of the European Union. Rapidly, China and Europe have been organizing bigger and bigger trading consortiums, all aimed at one thing: to prevent US manufacturing exports to their areas of influence and to flood the US with exports. In trade wars, there are few allies and many, many rivals. This logic infests the European systems, by the way. Nationalist feelings will rise as people figure out, they are not benefitting from the consolidation of economic powers in to fewer and fewer hands. |
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First, we look back one year ago to see what was going on here at this blog. The real estate collapse has been deliberately misinterpreted by our media because no one wants to look closely at the illegal alien community and its activities. It is no shock that high-illegal alien states also have the biggest housing market collapses. We also go to Japan today for a load of very interesting news. As world trade desperately resets to the pre-July 17, 2007 mode, the US public must understand, this is our death sentence.
