NoR11


Now, after cleaning out our champagne glasses, I want to say to my fellow bloggers – we did it!

Bush came to his office 6 years ago when blogosphere was virtually non-existing. We, the people, lost badly then and our voices were muted. Two years ago, when blogosphere was still in its infancy – and we lost again. Now, when we are finally strong and we can fight – we did it!

Millions of people lined out this past tuesday to kick G.W. Bush into his stupid fat ass. I saw him yesterday on TV and his ass was swelling and it was red like a tomato. Not even a baboon has it so bad.

Me, and a million of my fellow bloggers, we give and accept congratulations for the great job we did for this country and its people.

Congratulations!

Advertisements

I will just post the wonderful explanation of Iraq war origins written by Republican congressman Ron Paul.

First, why we can exchange paper for real goods: 

In the short run, the issuer of a fiat reserve currency can accrue great economic benefits. In the long run, it poses a threat to the country issuing the world currency. In this case thats the United States. As long as foreign countries take our dollars in return for real goods, we come out ahead. This is a benefit many in Congress fail to recognize, as they bash China for maintaining a positive trade balance with us. But this leads to a loss of manufacturing jobs to overseas markets, as we become more dependent on others and less self-sufficient. Foreign countries accumulate our dollars due to their high savings rates, and graciously loan them back to us at low interest rates to finance our excessive consumption.

It sounds like a great deal for everyone, except the time will come when our dollars– due to their depreciation– will be received less enthusiastically or even be rejected by foreign countries. That could create a whole new ballgame and force us to pay a price for living beyond our means and our production. The shift in sentiment regarding the dollar has already started, but the worst is yet to come.

The agreement with OPEC in the 1970s to price oil in dollars has provided tremendous artificial strength to the dollar as the preeminent reserve currency. This has created a universal demand for the dollar, and soaks up the huge number of new dollars generated each year. Last year alone M3 increased over $700 billion.

The artificial demand for our dollar, along with our military might, places us in the unique position to rule the world without productive work or savings, and without limits on consumer spending or deficits. The problem is, it cant last.

Now to the origins of the war: 

In November 2000 Saddam Hussein demanded Euros for his oil. His arrogance was a threat to the dollar; his lack of any military might was never a threat. At the first cabinet meeting with the new administration in 2001, as reported by Treasury Secretary Paul ONeill, the major topic was how we would get rid of Saddam Hussein– though there was no evidence whatsoever he posed a threat to us. This deep concern for Saddam Hussein surprised and shocked ONeill.

It now is common knowledge that the immediate reaction of the administration after 9/11 revolved around how they could connect Saddam Hussein to the attacks, to justify an invasion and overthrow of his government. Even with no evidence of any connection to 9/11, or evidence of weapons of mass destruction, public and congressional support was generated through distortions and flat out misrepresentation of the facts to justify overthrowing Saddam Hussein.

And the happy end:

There was no public talk of removing Saddam Hussein because of his attack on the integrity of the dollar as a reserve currency by selling oil in Euros. Many believe this was the real reason for our obsession with Iraq. I doubt it was the only reason, but it may well have played a significant role in our motivation to wage war. Within a very short period after the military victory, all Iraqi oil sales were carried out in dollars. The Euro was abandoned. 

I can't say it better. 

 

The recent defeat of the “knock and announce” rule is just another confirmation of the main topic of my blog: the ruling class represented by Bush administration is fighting against the established civil liberties of American people, as free people are harder to control then scared, suppressed crowd of proudly mooing sheep. Thanks Scalito.

Just to keep reference that CIA employed Ex-Nazis after WWII. There are two reasons for that.

  • First, America's participation in WWII was very limited and hence the sufficient amount of hate toward Nazis was not ever developed. I can't imagine any European nation from Russia to England to hire a Nazi
  • Second, as an Empire, U.S. was inheriting the German empire that just fell. And it was natural to hire well trained emperial soldiers

While Hayden is passing senate I want to point out to some horrible things that are happening with our freedom, if you still know what it is. liberty in chains
As reported here,  DOJ and FBI are secretly wiretapping journalists in order to reveal their confidential sources, or what we call whistleblowers. There is a good article on that here:

Anyone who still believes that a free press is important to America, and that whistleblowing is crucial to a functioning democracy, should be appalled and worried about this new Bush administration step towards dictatorship, which like all the earlier ones is being cast as part of a fraudulent "war" on terror. 

USA today reported that 200 million phone calls of American citizens were unlawfully recorded by CIA. That's what I already reported back in January.

What impresses me the most in capitalism is how the market regulates itself. It is like a Phoenix that resurrects from ashes – it's not just the market that heals disproportions, but disproportions themselves are so organic and logical that I'm tempted to call them "the beauty of disproportions".

The motto du jour is "cheap labor conservative". What I see is not the malice of a secret "skull and bone" group that plans to make U.S. labor much cheaper, but His Majesty The Market is making it cheaper and there is no way around. The world is getting more round and there is no other way to feed 7 billion of people but to have the economy to be more efficient.

The efficient economy leads to globalization and globalization means the constant quest for more efficient labor. The more complicated jobs are constantly moving to the areas where people are most productive and simple jobs are constantly passed to areas where the labor is cheaper. But that also evens the labor contracts around the globe. If once upon a time the Chinese worker was paid 1,000 times less than U.S. worker, one day he will earn only 10 times less, probably after American worker will become 10 times cheaper and Chinese worker will get 10 times more.

The latest developments in real estate market show me how the American worker will eventually earn much less than in the year 2000. The magic trick is very simple, it is called real estate bubble. Those of us who were not smart enough (i.e. they are candidates to became that "cheap labor") are in the debt up to the eyeballs. Up to now it was fueled by real estate bubble. Not anymore. This article is very well describing the scenario of long struggle against the declining market:

If history is any guide, however, home prices won't peak for a while, said Edward E. Leamer, director of the UCLA Anderson Forecast. When the end of the Cold War caused consolidation of the defense industry, the number of home sales in the Los Angeles area peaked in November 1988 — but home prices didn't top out for nearly 2 1/2 years. “Then the prices began this gradual, painful, slow deterioration'' of about 5 percent a year, Leamer said.

“It's really slow, not enough to drive you totally crazy,'' Leamer said. “It's a little bit of pain every year. If you try to sell, you can't find anybody to buy, and the price is eating into your equity little by little. That's the kind of adjustment we expect to see.''

The families protecting their homes from foreclosure will work hard, for any pay, without strikes and labor unions, without healthcare and retirements. Like Chinese do.

Next Page »