Thursday, November 26, 2009

No matter who you are:

 

No matter who you are:


It does not matter who you are, the only true reason for oil prices to rise is if production costs (eg through inflation) rises.


If you perceive a fall in US reserves is a true reason for prices to rise then you have false logic and perception that is never harmless but is the path to certain final mad perception and logic. To jump off a cliff is mad logic and perception.


The fact that you still perceive that a fall in US reserves is a valid justification for price rises reflects the advanced resistant or automated nature of your false perception. You have been so programmed to perceive it as natural it is automated and cannot be reversed by reason.


Greed is the reason for oil to rise:


Greed for profit is the reason for oil to swiftly rise on reports of a fall in US reserves. Because greed is about stirring of mental force to be attracted by the opportunity for gain, it is blind and harmful and nothing to do with false reason.


There is a rule that governs rise of oil prices driven by greed and it goes like this: Whatever happens that causes a rise in demand (eg falling US reserves) or drop of production (hurricane in gulf) equals shortage equals opportunity to buy in anticipation of a price rise that will result in profit.


The reason oil rises on report that US reserves are dropping is the false greed driven reason that demand for oil will therefore rise and it is an opportunity to bid up the price or demand more or extort buyers.


THUS IT IS GREED, THE ATTRACTIVE STIRRING OF A PERSON’S MENTAL FORCE AT THE OCCURENCE OF AN OPENING FOR GAIN THAT DRIVES A PROGRAMMED OR RULES LOGIC TO BUY AND ASK FOR A HIGHER PRICE IF THERE IS A DROP IN PRODUCTION OR INCREASED DEMAND THAT MAKES CONSUMERS VULNERABLE TO DEMANDS FOR HIGHER PAYMENT.


Consider for a moment:


Quote Krugman: Consider, for a moment, a tale of two countries. Both have suffered a severe recession and lost jobs as a result — but not on the same scale.


“For a moment” is useless, totally unnecessary and it is objective not subjective. The urge in emotional people is to say more, to never let their yes be yes only and so they find the additions ‘for a moment’ full of meaning when it is useless.


What does it matter how long someone consider, be it a moment or many? If it is totally irrelevant and you perceive it as relevant then you are practicing controlled insanity that will end in uncontrollable insanity.


The Buddha never said, what do you think for a moment nor did Jesus say, look for a moment at the lilies in the field.


Not only is ‘for a moment’ unnecessary he is actually going about a roundabout of way comparing Germany and the US. Building up a story gradually rather than directly is a technique or style of speech that stylish emotional people have honed to impress others.


If the US had to pay with euros:


If the US could not pay for imports with currency that it issues but it has to buy say the euro to pay for its imports, then if its exports fail to earn enough euros to pay for its imports, it is impossible that EC will keep lending the US limitless euros to pay after the US has run out of euros and so the US must make do without or with less imports, if it still desires the imported goods, it must source them domestically or manage its trade so that it purchases goods it can produce locally even if they are more expensive and conserve whatever euros earned to buy goods that it can’t produce.


IF THE US HAD TO BUY EUROS TO PAY FOR ITS IMPORTS THEN ONCE IT HAS EXHAUSTED THE EUROS THAT ITS EXPORTS GENERATED, IT HAS NO EUROS TO PAY FOR FURTHER IMPORTS AND UNLESS THE EUROPEAN UNION IS WILLING TO KEEP LENDING IT EUROS TO PAY FOR ITS IMPORTS, THE US MUST MANAGE ITS TRADE BETTER.


(IT IS UNLIKELY IF NOT IMPOSSIBLE IF THE EU WILL KEEP LENDING THE US UNLIMITED AMOUNTS OF EUROS TO FINANCE ITS IMPORTS BUT RISING DEFICIT WILL BE MET BY RISING RESISTANCE AND PUNITIVE INTEREST CHARGES)


WHATEVER GOODS THAT CAN BE BOUGHT LOCALLY, EVEN THOUGH MORE EXPENSIVE, MUST BE SOURCED LOCALLY SO THAT EUROS EARNED BY ITS EXPORTS CAN GO TO PAY FOR THE IMPORTS THE US NEED AND CANNOT PRODUCE AND AFFORD TO PAY.


THE US WILL BE FORCED TO LIVE WITHIN ITS MEANS IF IT DID NOT PRINT THE MONEY USED TO BUY IMPORTS. IF THE VALUE OF ITS IMPORTS FAR OUTSTRIPS ITS EXPORTS, IT MUST ADJUST TO SOURCE UNESSENTIALS DOMESTICALLY TO CONSERVE EUROS FOR NEEDED IMPORTS. THE US MAY HAVE A PRODIGIOUS APPETITE FOR IMPORTS BUT IF YOU HAVE NO MONEY YOU HAVE TO GO WITHOUT JUST AS I MIGHT LIKE A FERRARI BUT IF I CANNOT AFFORD IT MEANS NO FERRARI.


Thus it is not China’s cheap yuan that is the cause of the trade imbalance with the US but it is the US abusing its privilege and unfair advantage of printing currency that is basically a valueless piece of paper to fund its purchase that is the cause.


A revalued yuan can be circumvented if the US still desire Chinese goods, it is just a matter of printing more USD whilst cheaper US goods does not necessary increase Chinese demand for US goods because China still has to earn, not print the USD that it needs to pay for the cheaper goods.


ANYONE WHO PERCEIVES THE UNDERVALUED YUAN IS THE CAUSE OF THE ‘SENSITIVE’ TRADE IMBALANCE BETWEEN THE US AND CHINA MAY HAVE WRONG VIEW AND UNDERSTANDING THAT IS THE WAY TO HELL OR THE ANIMAL WOMB. IT IS THE US ABUSING ITS UNFAIR RIGHT OF PRINTING THE CURRENCY OF SETTLEMENT THAT IS THE CAUSE.


Can Malaysia rake up high deficits?


Greed and covetousness knows little restraint and given a chance (that is, grabbed as much as you can free of charge) Malaysia can and will build a massive trade deficit.


But Malaysia’s appetite for imports is constrained by how much USD its exports can earn and it must live within that limit even if it covets very much.


If Malaysia’s imports in value exceed its exports it must borrow and it is unlikely the US or other bodies with spare USD will lent it much or keep doing so and so its lack of USD will determine how much it can import.


If Malaysia is still desirous of imports then it must source goods that it can produce locally even if it is more expensive and poorer quality in order to conserve USD to pay for desirous imports.


NO SUCH CONSTRAINTS APPLY TO THE US WHICH PRINTS ITS OWN CURRENCY OF SETTLEMENT AND SO IF ITS APPETITE FOR IMPORTS FAR OUTSRIPS ITS CAPACITY TO EXPORT, EITHER IT HAS TO GO WITHOUT OR THE TEMPTATION TO CHEAT, TO PRINT MORE CURRENCY IN SETTLEMENT MAY BE TOO GREAT TO RESIST AND CLEARLY THE US HAS CHOSEN THE SECOND OPTION.


THUS AS AN ECONOMIST YOU SHOULD KNOW WHAT YOU ARE TALKING ABOUT AND IF THE US IS FAR MORE TO BLAME, IT IS THE US’S ABUSE OF ITS UNFAIR ADVANTAGE AS ISSUER OF THE CURRENCY OF SETTLEMENT THAT IS THE BLAME RATHER THAN CHINA’S UNDERVALUED CURRENCY, THEN YOU HAVE FALSE PERCEPTION TO THINK SO AND THE DESTINATION FOR THAT IS MAD PERCEPTION.


Doubt is ill will, uncertainty is delusion:


It is doubting or maliciously questioning or refusing to accept what others say or events that have happened that leads to uncertainty, an emotional or confused state of the mind that is false that emotional people perceive in delusion as true or natural when it is false and unnatural.


The Buddha said doubt and uncertainty is one of three lower fetters that led to future woe and he also said it is greed (attraction), hate (repulsion) and delusion that leads to death (and that is not eternal life).


Thus doubting is driven by force or ill will to question or reject and it leads to uncertainty, a false force roiled state of the mind that the person perceives in delusion as real.


Tkl


Karma for blocking road:


If you must take action in terms of having a view or speaking or acting on a subject, then you must either create karma to be experienced as future pain or happiness. A person who has no view, no action on a matter creates no karma for himself.


Thus whoever is responsible for closing the access road in Bandar Utama that causes distress to so many is creating an obstruction and therefore serious karma for himself.


Apparently only a small part of the road belongs to Bandar Utama and whoever is responsible is optionally exercising his right in denying non residents access to that small part of the road that renders roads leading to it defunct.


Residents of Bandar Utama may resent the congestion access creates but as part of a wider community, you must sacrifice for the common good. The developer may think it is his legal right and he is acting to benefit BU residents but it is a SELFISH action, he himself is the developer and it is only his residents he is protecting.


Further although the land technically belongs to BU its acquisition as part of BU may be through unfair or corrupt means and so there is karma too.


THE BU DEVELOPER IS DELUDED IF HE THINKS HIS ACTION IS MERITORIOUS BECAUSE IT IS SELFISH, HE IS ASSOCIATED WITH BANDAR UTAMA AND HIS ACTION IN UPHOLDING HIS LEGAL RIGHT (THAT MAY UNFAIRLY OR CORRUPTING OBTAINED IN ACQUIRING THE LAND) IS BASED ON SELFISH NEEDS TO THE DETRIMENT OF OTHERS.


AS PART OF A WIDER COMMUNITY SOMETIMES YOU MUST SACRIFICE AND EVEN SUFFER FOR THE COMMON GOOD. SINCE THERE IS AN EXISTING VITAL ROAD, THE GENEROUS MAN WILL ALLOW ACCESS.


Reflecting their increasingly mad and intolerant mental states as a result of conditioning selfish ill will driven lifestyles, people are increasingly mad in their actions and this is one example of the cantankerous action of the developer in forcibly closing the road that will incur karma on him far more than he ever dreamt possible in his wildest dream.


There are many who don’t like the action and therefore say it is wrong but they are right not with seeing understanding but with blind force or dislike or anger. Angered they say correctly it is wrong but not for the true reason that I explained I above.


You want to be ruler of the Gods?


According to the Buddha there is such a being called ruler of the Gods (not the Father) and he was himself ruler of the Gods many times.


The difference between gods and humans is that gods can be ruled by reason but humans are ruled by force not reason.


Thus in order to be ruler of gods you must have discernment, seeing things clearly as they are and then you must have great wisdom to arrive at the right judgment or ruling for the occasion.


Thus in the matter of BU unilaterally closing a road because a small portion belongs to it and it has a right to close off that section that effectively renders roads leading to it defunct, it is wrong because for the common good of all who need to use the road, BU should sacrifice its rights which are actually miniscule and the acquisition of that land may not be entirely above board.


IN ORDER TO BE A RULER OF GODS YOU MUST HAVE GREAT CALM THAT WILL ALOW YOU TO SEE THINGS CLEARLY AS THEY ARE AND THUS SEEING CLEARLY AND ENDOWED WITH GREAT CONCENTRATION THAT LEADS TO GREAT WISDOM YOU COME UP WITH THE RIGHT JUDGEMENT FOR THE MATTER.


Tax credits boost US home sales


Sales of previously-owned US homes jumped by 10.1% in October as buyers rushed to take advantage of tax credits.


If you perceive tax credits as the appropriate or correct treatment for the sickness of the economy, you have false perception and logic that will end in sanity.


Whilst they last, tax credits which are subsidies by the public to house buyers will boost demand but once they stop, demand will again collapse. If tax credits are maintained permanently then it is a permanent discount by the government, de facto a price cut in houses with the government footing the bill.


Tax credit is a false and harmful treatment that penalizes savers and encourages people who have no money to spend. It is akin to giving an alcoholic who has run out of alcohol and no money to buy it subsidized alcohol or at a discount. If you think that cures his alcoholism, you are deluded because it is postponing the reckoning that will be likely worse.


BEFORE YOU CAN CORRECTLY TREAT A SICK PATIENT YOU MUST GET A CORRECT DIAGNOSIS AND THEN BASED ON THE DIAGNOSIS THERE MAY OR MAY NOT BE ANY TREATMENT. IF IT IS APPENDIX IT IS AN OPERATION. IF IT IS CANCER THEN EXPECT TERMINAL PAINS.


THE REASON WHY THE ECONOMY COLLAPSED RECENTLY IS BECAUSE OF OVERSPENDING BASED ON HIGHLY IRRESPONSIBLE LENDING AND BORROWING, SAVERS’ MONEY IN BANKS ETC HAVE DISAPPEARED GOBBLED UP BY BIG FISH LIKE HOUSING DEVELOPERS AND MORTGAGEES CANNOT AFFORD TO SERVICE THEIR LOANS. PEOPLE HAVE SPENT THEMSELVES TO THE GROUND AND NOW GOVERNMENTS ALL OVER THE WORLD ARE STEPPING IN TO DESPERATELY SUPPORT SPENDING BY SUPPLYING DISCOUNTS & SUBSIDIES EVEN AS THEY HAVE NO MONEY, BUT BY BORROWING FROM THE FUTURE AND PENALIZING SAVERS.


IN ORDER TO PREVENT FUTURE COLLAPSES, BORROWING MUST BE TIGHTLY SUPERVISED AND RESTRICTED. EVEN THOUGH IT IS PAINFUL, PEOPLE MUST BE WEANED OFF EXCESSIVE SPENDING BECAUSE THE ECONOMY CANNOT AFFORD IT. THE COLLAPSE MUST BE ALLOWED TO WORK ITSELF THROUGH AND THE ROLE OF THE GOVERNMENT IS TO PROVIDE BASIC FOOD AND SHELTER (SOUP KITCHENS AND TENT CITIES) NOT INDISCRIMINATELY STIMULATING THE ECONOMY IN THE NAME OF DESPERATION TO KEEP THE ENGINE FROM STALLING.


Bottling-up anger 'bad for heart'


Men who do not openly express their anger if unfairly treated at work double their risk of a heart attack, researchers say.


Bottling your anger is bad for your heart but to express or ‘ventilate’ your anger too is bad because one day your ventilation may kill you or unable to restrain your ventilation you get into trouble, injury or death.


TO BOTTLE ANGER IS BAD SO IS TO VENTILATE.


SO WHAT IS THERE FOR ONE TO DO?


KILL ALL ANGER. IT IS THE TOTALLY UNNECESSARY HARMFUL REPULSIVE STIRRING OF ONE’S MENTAL FORCE ON AN EVENT OCCURRING THAT IS ANGER AND IT IS THE CONSTANT USE OF FORCE TO STRETCH SYLLABLES, CHANGE SPEED AND LOUDNESS THAT IS THE DYNAMO THAT FEEDS ONE’S ANGER.


DELUDED PEOPLE ADVISE YOU TO VENTILATE YOUR ANGER BECAUSE BOTTLING IS BAD. BUT VENTILATING IS ALSO BAD AND SO THE ONLY WAY OUT THAT ELUDES DELUDED PEOPLE IS TO TRAIN ONESELF NOT TO USE FORCE TO STRETCH SYLLABLES, CHANGE SPEED AND LOUDNESS THAT IS THE AMMUNITION TO STOKE ONE’S ANGER. A MAN FREE OF STYLE HAS NO ANGER AND THUS SHORN OF ANGER, WHENCE ANGER THAT NEEDS BOTTLING OR VENTILATION?


Mad IGP:


‘Does Karpal want us to close at 5?’ says IGP


PETALING JAYA: DAP chairman Karpal Singh’s demand that police stop interrogating witnesses after office hours is tantamount to asking police stations to close at 5pm, said Inspector-General of Police Tan Sri Musa Hassan.


His emotions stirred, he speaking inappropriately without understanding what he said to ridicule Karpal not realizing he is making a fool of himself and committing himself to false perception that what he said is an appropriate reply when it is absurd and therefore controlled madness that will lapse into uncontrollable madness.


JUST BECAUSE KARPAL WANTS THE POLICE TO STOP INTERROGATION OF NON URGENT CORRUPTION CASES DOES NOT MEAN POLICE STATIONS CLOSE AT 5PM AND SO HE IS MAKING A FOOL OF HIMSELF INTERPRETING THE MATTER AS SUCH.


DID KARPAL SAY ALL INTERROGATIONS MUST STOP AT 5PM? DOES STOPPING INTEROGATION AT 5PM CONSTITUTE CLOSING POLICE STATIONS AT 5PM?


Liberalization of financial sector to continue:


This was stated in relation to Najib’s visit to the US. The intention that the public seems to accept is that liberalization will bring economic benefits when it is the opposite.


It is liberalization copied from Reagan’s and Thatcher’s models that brought the world to the edge of financial meltdown. Many politicians are keen to jump on the bandwagon of liberalizations that are opportunities for them and their cronies to grab the lion’s share at the expense of the public. The loosening of rules is the key to everyone for himself, grab as much as you can and it is the cronies and insiders who usually if not always grab the lion’s shares with crumbs trickling to the people.


RATHER THAN LIBERALIZATION IT MAY BE MORE TIGHTENING OF RULES AND STRICTER ENFORCEMENT THAT IS REQUIRED TO SAVE THE WORLD FROM FINANCIAL MELTDOWN AND IT IS WRONG VIEW THAT LIBERALIZATION IS THE PANACEA.


LIBERALIZATION TO CONTINUE IS AN OLD CLICHÉ, A SLOGAN REHASHED AGAIN AND AGAIN BECAUSE IT IS THE MANTRA OF DELUSION THAT IT LEADS TO ECONOMIC UTOPIA WHEN IT LEADS TO HELL. IT IS NOT A SURPRISE REAGAN AND THATCHER ENDED UP DEMENTED BECAUSE THAT IS THE FRUIT OF THEIR ACTIONS.


Société Générale tells clients how to prepare for 'global collapse'


By Ambrose Evans-Pritchard
Published: 6:12PM GMT 18 Nov 2009


Explosion of debt: Japan's public debt could reach as much as 270pc of GDP in the next two years.


In a report entitled "Worst-case debt scenario", the bank's asset team said state rescue packages over the last year have merely transferred private liabilities onto sagging sovereign (government and people’s) shoulders, creating a fresh set of problems.


Overall debt is still far too high in almost all rich economies as a share of GDP (350pc in the US), whether public or private. It must be reduced by the hard slog of "deleveraging", for years.


 


"As yet, nobody can say with any certainty whether we have in fact escaped the prospect of a global economic collapse," said the 68-page report.  (The truth may be that it is checkmate)


Under the French bank's "Bear Case" scenario, the dollar would slide further and global equities would retest the March lows. Property prices would tumble again. Oil would fall back to $50 in 2010.


Governments have already shot their fiscal bolts. Even without fresh spending, public debt would explode within two years to 105pc of GDP in the UK, 125pc in the US and the eurozone, and 270pc in Japan. Worldwide state debt would reach $45 trillion, up two-and-a-half times in a decade.


The underlying debt burden is greater than it was after the Second World War, when nominal levels looked similar. Ageing populations will make it harder to erode debt through growth. (Japan and US population is aging with fewer young to produce) "High public debt looks entirely unsustainable in the long run. We have almost reached a point of no return for government debt," it said.


Even if the US savings rate stabilises at 7pc, and all of it is used to pay down debt, it will still take nine years for households to reduce debt/income ratios to the safe levels of the 1980s.


The bank said the current crisis displays "compelling similarities" with Japan during its Lost Decade (or two), with a big difference: Japan was able to stay afloat by exporting into a robust global economy and by letting the yen fall. It is not possible for half the world to pursue this strategy at the same time.


SocGen advises bears to sell the dollar and to "short" cyclical equities such as technology, auto, and travel to avoid being caught in the "inherent deflationary spiral". Emerging markets would not be spared. Paradoxically, they are more leveraged to the US growth than Wall Street itself. Farm commodities would hold up well, led by sugar.


Mr Fermon said junk bonds would lose 31pc of their value in 2010 alone. However, sovereign bonds would "generate turbo-charged returns" mimicking the secular slide in yields seen in Japan as the slump ground on. At one point Japan's 10-year yield dropped to 0.40pc. The Fed would hold down yields by purchasing more bonds. The European Central Bank would do less, for political reasons.


Thursday, November 19, 2009

Could you lend me a hand?

 

Could you lend me a hand?


You have come to understand falsely that it means can you assist me.


You have false perception that will end in mad perception that ‘lend a hand’ means ‘assist me’, lend a hand means cut off your hand and temporarily give it to another. It may have started off as a nice or impressive way of saying ‘can you give me some assistance’ and now it becomes entrenched cultural false perception that lending your hand means assist me.


Anyone hearing that said to him must unconsciously decipher it to mean help me and he is learning to perceive A means B when the truth is A means A and B means B.


Taipei beckons:


Taipei is not a human and cannot beckon or welcome and so you are practicing false perception that you want to inculcate in others with karma.


Here as in many places emotional stylish people think they understand but they understand falsely and therefore do not understanding.


If such simple and basic things like this that you see before your eyes daily you cannot understand, what more about more sublime things?


Lost touch?


Sir David Attenborough says humanity has lost touch with the rhythms and realities of the natural world.


When was humanity ever in touch with the rhythms and realities of the natural world?


If mankind is like Attila the Hun, a wanton blight who will turn the toughest prison into rubble, then what he said is false.


Now I fear nothing:


Steve McClaren: I survived the ultimate failure (as England boss), now I fear nothing.


What he said is definitely false on two counts to hype about the matter.


Failure as England manager may be a severe blow to those with pride and falsely esteem the post but it is not the ultimate failure except in the false perception of the person. How can anyone objectively compare different failures? How about failure as prime minister or general with lives lost?


It is IMPOSSIBLE for emotional and stylish people to fear nothing, it is bravado because they can be converted into a cowering wreck eg by a lightning strike next to him. Anyone who is constantly exercising his mental force to fabricate style and emotions must experience fear and it is a lie he has nothing to fear.


IT IS IMPOSSIBLE FOR A PERSON TO SAY MAY I HAVE LIKES AND DISLIKES AND NOT HAVE FEAR, FEAR GOES HAND IN HAND WITH STIRRING MENTAL FORCE FOR LIKE AND DISLIKE AND SO IT IS FALSE TO SAY ‘I HAVE NOTHING TO FEAR’.


Forgot what you were going to say or do?


Have you ever experienced occasions when you knew what you were going to say or do but suddenly you just could not remember what it was you wanted to say or do or you lost track of what you were saying in midsentence?


This is actually a clear instance that what you were saying or doing in midsentence that was disrupted, what you knew you were going to say or do and it suddenly vanished is not fresh specific for the occasion but retrieved from memory and for some reason (eg distraction, self consciousness) a temporary even permanent disruption in the stream of reproducing from the copy or plan in the mental jukebox occurred.


IF YOUR MIND IS NOT FULLY PRESENT WITH A SITUATION AND YOU CAN STILL TALK AND DO THINGS IN RELATION TO THE SITUATION, IT IS LIKELY IT CAN BE SAID OR DONE WITHOUT ATTENTION AND THAT IS ONLY POSSIBLE IF IT IS REHASHED. IF WHAT YOU SAY OR DO IS FRESH, YOU MUST PAY ATTENTION THROUGHOUT.


IF YOU CAN SUDDENLY LOSE TRACK OF WHAT YOU ARE SAYING IN MID SENTENCE OR FORGET WHAT YOU WANTED TO SAY NEXT, IT IS AGAIN AN INDICATION YOU ARE REHASHING AND THERE IS A TEMPORARY OR EVEN PERMANENT ERROR IN RETRIEVAL OF THE STREAM OF WORDS.


HERE AS EVERYWHERE ELSE, WHAT EMOTIONAL STYLISH PEOPLE IN THIS WORLD SAY OR DO IS NEVER FRESHLY COMPOSED SPECIFIC TO THE OCCASION BUT REHASHED FROM MEMORY TO FIT INTO THE OCCASION.


ARE YOU AWARE YOU ARE REHASHING WHEN YOU ARE SINGING? SINGING IS PURE REHASHING. JUST AS YOU ARE NOT AWARE YOU ARE REHASHING THEN, YOU ARE SOMNOLENT YOU ARE REHASHING ALWAYS.


Illegal for federal government to not give loans to opposition states:


By announcing that it will cease financial support of states under the opposition UMNO leaders are either ignorant of the law or they are flagrantly violating the law.


Quote: Now, another thing to note is that when the Federated Malay States, the Unfederated Malay States and the Straits Settlements agreed to join the Federation of Malaya, it was agreed that the federal government would give the states loans for development plus grants calculated on the size of the states’ population and based on so much per head.


The federal government has just announced it will not give any financial support to states under opposition control. So now, not only are they breaching the Petroleum Development Act 1974 and the 1976 Agreement that Petronas signed with all the states, but they are also breaching the Federation Agreement as well.


True and false reasons not to lend:


As part of the federation agreement the federal government undertakes to lend money to the states on request.


True reasons for withholding lending is if the federal government has no money to lend or the state government cannot repay its debts.


A false reason for not lending is because opposition parties run the state.


WHOEVER YOU ARE, WITHOLDING LENDING BECAUSE THE STATE IS IN OPPOSITION HANDS IS A FALSE REASON AND THE PRACTICE OF ACTING ON FALSE REASONS IS THE PATH TO CERTAIN INSANITY BECAUSE YOU CONDITION YOURSELF TO ACT ON FALSE REASONS THAT WILL END IN AN INTENSE URGE TO ACT ON FALSE REASONS THAT WITH LOSS OF CONTROL ENDS IN UNCONTROLLABLE ACTING ON FALSE REASONS AND THAT IS TORMENT, A DANGER TO YOUR LIFE.


IT IS NOT FOR OTHERS’ SAKE THAT YOU SHOULD NOT ACT ON FALSE REASONS BUT FOR YOUR SAKE, YOUR SANITY AND PHYSICAL SAFETY THAT YOU MUST ALWAYS ACT ON TRUE REASONS OR BE TRULY RATIONAL.


Want to feel younger and healthier? Just retire, says survey


It is not working that is the cause of aging and ill health and therefore its cure is retiring, to do so would be to act on false reasons.


It is the abuse of self and others through (needlessly) stressful conduct at the workplace that is the cause of increased aging and ill health.


WORK DOES NOT PER SE CAUSE AGING AND ILL HEALTH, IT IS THE CONDUCT OF WORK, THE STRESS OF ARTIFICIAL, EMOTIONAL STYLISH CONDUCT TO PLEASE AND IMPRESS OTHERS THAT IS RESPONSIBLE AND SO TO RETIRE TO FEEL YOUNGER AND HEALTHIER IS TO ACT ON FALSE REASONS.


More about carpet man by RPK:


Remember the Carpetman cum Bagman cum Toyboy story? (UPDATED with BM Translation)






THE CORRIDORS OF POWER


Raja Petra Kamarudin


Do you remember the story we published on 8 October 2009 called The Carpetman who is Rosmah’s Bagman and much more? Well, if you have forgotten, this is what we said then:


I met the Carpetman more than a year ago. He asked to meet through a mutual acquaintance because he was alarmed that I was about to reveal that the Carpetman is actually Rosmah’s Bagman. But that was not the thing that got him all flustered. What did was the revelation I was going to make that he is not only the Carpetman who is Rosmah’s Bagman but that he is also her Toyboy.


I only do business with Rosmah, said the Carpetman. My relationship with Rosmah is only for business purposes. I am not sleeping with Rosmah, he pleaded. So please do not tell the public that I am Rosmah’s Toyboy. The impression he wanted to make is that his relationship with Rosmah is confined to the boardroom and does not extend to the bedroom.


Well, that is not what Mumtaz Jaafar says. And who is Mumtaz Jaafar? Hey, if I start talking about her then I would also have to mention her relationship with Saiful, the person who alleges that Anwar Ibrahim sodomised him. And if I start talking about that then we will end up talking about the Sodomy 2 case as well. So let’s get back to the subject of the Carpetman, Rosmah’s Bagman cum Toyboy.


The whole country is very focused on Najib Tun Razak’s extramarital affairs. Sure, every Malaysian knows about this. And every Malaysian also knows about him getting caught in a Port Dickson hotel room with Ziana Zain. In fact, Isa Samad even had photographs of Najib clad only in a towel with the delicious young thing in his bed. And Isa handed the photograph over to the then Prime Minister Tun Dr Mahathir Mohamad. (And that is why Mahathir just does not understand why Najib would choose Isa to contest the Bagan Pinang by-election when it was Isa who tried to bring Najib down with the photograph).


Anyway, let’s not digress too far. As I said, every Malaysian knows about Najib’s extramarital affairs. But how many also know that Rosmah has a penchant for Bollywood types. Hell, she will even arrange datukships for them if they treat her the way she loves to be treated, if you know what I mean. And this particular chap I am talking about, the Carpetman cum Bagman cum Toyboy, is far better looking than Shahrukh Khan (or is it Datuk Shahrukh Khan now?) -- not to mention younger as well.


Yes, I have been keeping this story under wraps for more than a year now. But it is now time that the story be told. There is more, though. Deepak the Carpetman cum Bagman cum Toyboy has been very naughty. And all these naughty deeds were done on behalf of Rosmah.


In due course more will be revealed about the role of the Carpetman and how he has served Rosmah. Today is not the time to do that though. So stay tuned for further episodes of the Carpetman cum Bagman cum Toyboy of the so-called First Lady of Malaysia.


(You can read more here).


Okay, and with that intro, it is now time to continue the story of the Carpetman cum Bagman cum Toyboy of the ‘First Lady’ who goes by the name of Deepak Jaikishan and reveal what naughty things he has done.


Deepak Jaikishan was entrusted with the job of taking care of ex-police officer turned private investigator P. Balasubramaniam. Do you remember Bala? Bala was the individual who signed the very damaging Statutory Declaration linking Najib Tun Razak to Altantuya Shaariibuu.


A few hours after Bala revealed his Statutory Declaration during a press conference on 3rd July 2008 he went missing. The following day he filed a second Statutory Declaration that contradicted his first one the day earlier. And then he disappeared totally.


(Read PI Bala missing, says nephew by The Star, 5th July 2008).


By the way, I also went to Rawang to meet Bala's nephew, R. Kumaresan, mentioned in this news report.


What many did not know is, even as Bala was giving his press conference just before lunch on 3rd July 2008, some security personnel were in front of his house in Rawang. They then kidnapped his family.


While Bala was enjoying his lunch a certain ASP Suresh phoned him and asked to meet. Bala was also told that his family’s safety was at stake if he refused to meet. Actually, Bala was having lunch with me at the time the phone call came in so I was sort of aware of what was happening, especially when I saw his face suddenly turn pale and he started panicking. And of course ‘they’ knew that I know and that is why they decided to go for me as well.


After Bala filed his second (and contradictory) Statutory Declaration, they whisked him out of the country and hid him in India. Deepak then paid Bala RM50,000 a month to buy his silence.


Bala had no choice, really. It was either RM50,000 a month and ‘retirement’ in India or suffer the same fate as Altantuya. And there was also his family to worry about -- so better the money than C4.


And with that all safely in place Deepak thought that he and the ‘First Lady’ could afford to live happily ever after without any further problems.


Little did they know that Bala was just biding his time, waiting for the right moment to strike back. And now he is striking back and has come out to reveal what really happened since the time he signed his first Statutory Declaration, followed by the second one the following day, 16 months ago.


Today, we are going to show you just a small part of what Bala has revealed. Yes, only a small part. And there is much more to reveal over the next month or so, all very damaging indeed.


In the meantime, until the real juicy parts are revealed, let us keep Seri Perdana in Putrajaya in suspense. Why should we allow them to sleep soundly? By the time we finish revealing everything there will not be a single Malaysian left who would any longer doubt Najib’s involvement with Altantuya.


As an appetiser, take a look at the copies of the cheques below which the Carpetman cum Bagman cum Toyboy called Deepak paid Bala. If Bala signed a false Statutory Declaration, as they claim he did, then why do they need to hide him in India and pay him RM50,000 a month?


Well they needed to do this because the first Statutory Declaration that Bala signed is true. And that’s why they needed him out of the way.


Yes, the Carpetman cum Bagman cum Toyboy is soon going to be in deep shit so stay tuned for more as the shit hits the fan good and proper.


Sleep soundly Putrajaya, wherever you are.


Columnist: Take a deep breath


There is no need to take a deep breath before you do something, even if it is a matter of life and death (what matters is you calmly truly understand the situation facing you) and the only reason a person does so is because what he plans to say or do is rehashed according to plans that may be demanding, goes against self or is conflict and anxiety arousing, to overcome self resistance or emotion (dislike or fear), what one wants to do is loathsome or forced, there is resistance and you brace yourself taking a deep breath.


THERE IS NEVER NEED TO TAKE A NEED BREATH TO PREPARE TO DO ANYTHING EG PLAY THE PIANO AT A CONCERT BUT IT IS STIRRED EMOTION OR RESISTANCE THAT MUST BE CONTROLLED THAT REQUIRES TAKING A DEEP BREATH. IF WHAT ONE WANTS TO DO IS WITH TRUE UNDERSTANDING OF THE SITUATION, IS NOT ACCOMPANIED BY EMOTION STIRRING OR RESISTANCE, ONE DOES NOT NEED TO TAKE A DEEP BREATH. HENCE THE PERSON WHO ADVOCATES TAKING A DEEP BREATH IS DELUDED THAT IS THE PATH TO INSANITY.


IF YOU THINK THE PERSON IS GIVING MEANINGFUL ADVICE THEN YOU MAY BE RIGHT OR YOU HAVE FALSE PERCEPTION BECAUSE IT IS MEANINGLESS, EVEN EVIL.


What has force got to do with it?


You need to use force to say or do something but do you need to exercise or flex force by taking a deep breath before you do it?


When you take a deep breath you are mobilizing force substantially in your breathing. What has increasing the strength and prolonging the action of force on your breathing got to do with preparing for what you want to do?


If what you are going to say or do has already been predetermined or is rehashed and you have to brace yourself against self resistance then you may have to take a deep breath.


What is important is you fully understand specific to the occasion the situation and based on that understanding, use the necessary force required to accomplish the task, whence the need to take a deep breath that detracts from the task of understanding and acting specifically to the situation.


IF YOU ALREADY HAVE A PLAN OF WHAT YOU WANT TO SAY OR DO AND THERE IS RESISTANCE, DISLIKE OR ANXIETY ASSOCIATED WITH ITS INITIATION THEN YOU HAVE TO TAKE A DEEP BREATH BEFORE YOU START. IF WHAT YOU WANT TO SAY OR DO IS NOT REHASHED, FRESHLY COMPOSED SPECIFICALLY FOR THE OCCASION THEN IT IS SILLY TO TAKE A DEEP BREATH THAT IS OF NO USE, WHAT IS IMPORTANT IS YOU FULLY UNDERSTAND THE SITUATION AND WHAT YOU WANT TO SAY AND DO (AND THAT HAS NOTHING TO DO WITH FLEXING FORCE, DOES NOT REQUIRE A DEEP BREATH) AND THUS FULLY UNDERSTANDING YOU THEN MOBILISE FORCE TO SAY OR DO WHAT YOU WANT TO DO THAT NEVER GOES AGAINST SELF TO PLEASE AND IMPRESS OTHERS.


Why it is mad to take a deep breath:


What useful work is the use of force to prolong and deepen your breathing doing?


If you use force to sweep a dirty floor you are doing useful work. What has intensifying the use of force in your breathing achieved usefully and in what way is this use of force related to or contribute to the task you are embarking on?


IT IS CRAZY TO USE FORCE TO DEEPEN YOUR BREATHING BEFORE YOU EMBARK ON A TASK BECAUSE IT DOES NO USEFUL WORK AND IT IS UNRELATED TO THE TASK AT HAND. BETTER SAVE YOUR ENERGY AND USE IT WHEN ACCOMPLISHING THE TASK THAN WASTE IT TAKING A DEEP BREATH.


What force can and cannot do:


You may need to deliberate or think before you embark to say or do something and that NEVER requires you to take a deep breath but you NEVER take a deep breath, utilize force to deepen and prolong your breath before you embark on something because it is senseless, wastes energy and will not do any good to what you want to say or do.


Force is just an agent, it can only seize something (eg the mind, an object) and propel it (move) or do work with it, apart from work there is nothing force can do. It is blind and does not understand.


Thus using force to deepen and extend your breathing can only do work on your breathing alone, the mobilized force cannot do work for the task that is coming up be it saying or doing something.


THUS IF YOU DO NOT NEED TO PROLONG AND DEEPEN YOUR BREATH TO DO OR SAY SOMETHING, IT WILL NOT HELP OR CONTRIBUTE TOWARDS IT, INSTEAD THINKING ABOUT THE TASK CAN AND MAY HELP BEFORE STARTING, THEN YOU ARE PRACTICING CONTROLLED MADNESS TAKING A DEEP BREATH BEFORE YOU SAY OR DO SOMETHING.


THAT YOU PRECEIVE THAT TAKING A DEEP BREATH BEFORE PREPARES YOU FOR THE TASK IS A REFLECTION OF THE EXTENT OF YOUR FALSE PERCEPTION. YOU ALREADY PERCEIVE WHAT IS USELESS, TAKE A DEEP BREATH, IS USEFUL OR MEANINGFUL.


China’s economic mirage:


Already irrepressible bulls are pointing to China’s recovery as signs that the good times are back again.


What they forget is that China embarked on a US$600 billion stimulus and they may be seeing this and it cannot be sustained forever and the economy may collapse once the steroid wears off.


Apart from the folly of spending money (stimulus) for the sake of spending or boosting the economy (consumers have spent themselves into a deep hole and now governments step in to also spend themselves into a deep hole, they never learn, see what happened to Japanese government boosting after its bubble collapsed), this false boosting may encourage foolish consumers to think the sky cannot fall and assume more debts than is wise.


THUS GOVERNMENT BOOSTING, APART FROM GIVING A FALSE SENSE OF RECOVERY MAY LULL THE FOOLISH INTO ACCUMULATING MORE DEBTS. RATHER THAN STOPPING NOW THAT YOUR HANDS ARE BURNT, THEY WILL ONLY STOP LATER WHEN THE WHOLE ARM IS BURNT.


A year on, China's stimulus postpones its problems


Thu Nov 12, 2009 3:54pm EST


By Alan Wheatley, China Economics Editor - Analysis


BEIJING (Reuters) - Exactly a year since it unveiled a 4 trillion yuan ($586 billion) stimulus package and switched to an easy monetary policy, China is basking in the success of its aggressive response to the global financial crisis.


The government's 8 percent growth target for the year -- derided by some prominent economists as fanciful well into 2009 -- is in the bag. And the solid consensus is that growth will be stronger, possibly a lot stronger, in 2010, when China is set to overtake Japan as the world's second-largest economy.


China is contributing more to global growth than either the United States, the euro zone or Japan and its surging imports have limited the slide in global trade, according to the World Bank.


"There's an inexorable shift toward East Asia, particularly toward China," said Vikram Nehru, the bank's chief economist for the region. "China is becoming a central part of the global economy."


China, in short, is riding high. But could it also be riding for a fall?


After all, the imbalances at the heart of China's mode of development -- too much investment, too high savings, too little consumption -- seem to fit the dictum of late American economist Herbert Stein to a T.


"If something cannot go on forever, it will stop," Stein's Law says. Exhibit one: the prolonged U.S. credit binge that begat the crisis.


STEADY AS SHE GOES


As was the case with the United States, the overarching risk for China is that it keeps policy too loose for too long. Yet Finance Minister Xie Xuren again signaled at the weekend that China is in no hurry to shift gears.


"There are still many uncertain factors in the current global economic recovery, so all countries should maintain the continuity and stability of macroeconomic policy," Xie told a Group of 20 meeting in Scotland.


Another huge wave of bank-financed investment is guaranteed for 2010 because the government is only half-way through its two-year stimulus package. You don't start building a railway and leave it half-finished.


The boom in capital spending has worked as intended. Investment contributed 7.3 percentage points to the 7.7 percent increase in gross domestic product over the first nine months.


China has vast infrastructure needs, but there can be too much of a good thing. Bank lending has grown by a third in the past year to finance the investment spree. Stein would be raising his eyebrows.


"It is now time to begin slowing the pace of rapid credit growth," said Tarhan Feyzioglu from the International Monetary Fund's office in Beijing.


Central banks usually apply the brakes to ward off inflation. Not in this case. China's underlying price pressures are mild.


"In China the potential risk is that excess investment and excess credit growth could lead to excess capacity and eventually non-performing loans, which would weaken the financial system," Feyzioglu told a conference in Beijing.


BLOWING BUBBLES


The related danger in China -- and in much of Asia, incidentally -- is that plentiful credit will spark a scramble for assets, especially property and equities.


"We see a high risk that policymakers may be unable to tighten aggressively, making an asset price bubble likely in our opinion -- and magnifying any negative consequences a few years down the road," said Mingchun Sun, Nomura's chief China economist.


This prospect highlights Beijing's dilemma.


While China can steer the housing market by tweaking down payment and mortgage rules, its hands are largely tied on monetary policy: because it insists on holding down the value of the yuan, China in effect takes its cue from America's zero interest rate policy even though its economy is much stronger.


So how China manages its exchange rate is shaping up as the most decisive -- and divisive -- policy issue in the year ahead.


"It's a difficult subject, I know, but one must ask the question at any rate as to whether or not China has grown up sufficiently to let its currency find its own level against the international currencies, particularly the dollar," said Simon Linnett, vice-chairman of investment bank NM Rothschild & Sons.


U.S. officials have resumed their campaign for a stronger yuan.


The protectionist drums are beating louder in America over underpriced Chinese imports of everything from steel to tyres.


And, significantly, Brazil broke ranks at the weekend by declaring China's quasi-fixed exchange rate to be a problem.


2010 GOOD, 2011 BAD?


China retorts that it cannot risk allowing the yuan to climb as long as its exports are fragile. And raising Chinese interest rates before U.S. rates go up would be to suck in speculative money, making it even harder to soak up excess liquidity, officials contend.


Their argument is understandable but unconvincing. For the longer China waits, the more capital inflows it will attract in any case because of its strong economic fundamentals and in anticipation of an eventual rise in the exchange rate.


"There's still a lot of money to come from Western investors into markets like China," said Anthony Bolton, president of investments at Fidelity International.


So how will it play out?


Alicia Garcia-Herrero, chief economist for emerging markets at Spanish bank BBVA, reflects a widespread view that China might let the yuan resume its climb from the middle of next year.


But she envisages only a minimal rate of climb. And with inflation under control, the central bank will not be under duress to tighten significantly.


"That means policy will be too expansionary," Hong Kong-based Garcia-Herrero said. "2010 will be a year of good news, but you will be building up problems for 2011." ($1=6.83 yuan) (Editing by Mathew Veedon)


A tall if not impossible order for mankind:


Throughout the world, nations are living way beyond their means such that their debts are spiralling out of control and necessitate politically and economically unpalatable measures like either drastic tax increases or spending cuts by government or a combination of both that will cause economic hardship or serious belt tightening by the populace (otherwise the debts plus interest costs will turn cancerous).


Very few if any politicians are willing to bite the bullet and risk being voted out of office and hence the cancer may turn terminal.


Inflating away the problem is apparently inadequate, will not do the trick and default (government refusing to honour its debts) is actually a choice, even if it ruins all those who hold government debts (eg China)


·         For the United States, this underlying deficit (between government spending and taxes) is 3.7 percent of GDP in 2010 and, in future years, would be driven higher by an aging society and increased spending on Medicare and Social Security. Some other countries' structural deficits for 2010 are even higher: 7.8 percent of GDP for Great Britain, 5.8 percent for Spain, 6.9 percent for Japan, and 8.2 percent for Ireland.


·         To prevent an unending upward spiral of debt would require huge spending cuts or tax increases. Without these adjustments, government debts could become unmanageable.


·         The spending cuts or tax increases needed over the next decade to return a country's debt-to-GDP ratio to 60 percent by 2030. For the United States, the changes would amount to 8.8 percent of GDP. In today's dollars, that's about $1.2 trillion and roughly a third of the existing federal budget (government must reduce spending or increase taxes to 30% fed budget). But again, some other countries would face even larger adjustments: 12.8 percent of GDP for Great Britain, 10.7 percent for Spain, 13.4 percent for Japan, 11.8 percent for Ireland, and 9 percent for Greece. For France and Germany, the required changes would total 6.1 percent and 3.4 percent of GDP, respectively.


·         Changes along these lines would be politically, economically, and socially wrenching. Government benefits, especially for the elderly, would have to be trimmed, and there would have to be large, broad-based tax increases. Governments cannot easily inflate away their debt, in part because much of it is short-term and has to be rolled over constantly. The report estimates that increasing inflation to 6 percent annually would on average eliminate less than a quarter of projected increases in debt-to-GDP ratios. At the same time, defaulting on the debt could trigger a broader financial and economic crisis: many financial institutions, businesses, and individuals hold large amounts of government debt; their wealth would drop, and their solvency might be threatened.


The simple and dispiriting point is that rapidly rising debt burdens confront most wealthy societies with deeply disturbing and damaging choices. My original column did not suggest that a debt default is imminent or that any country would eagerly go that route. The argument was that as debt rose and the ugly choices were clarified, some government—or governments—might decide that default was the least bad of many bad choices.


Potentially lethal dollar carry trade:


We live today in a world that tries to maximize gains without regard to others or the system. A dollar carry trade may arise that may be crippling.


Economists fear impact of 'dollar carry trade'




Recommend?


The global economy may be poised for the creation of a massive and potentially explosive “dollar carry trade” — just like the pre-crisis yen carry trade, only more frightening and potentially much bigger.


The warning was issued today at a summit of Asia Pacific leaders in Singapore and comes as a diverse variety of assets have begun to display bubble-like patterns of inflation: everything from gold and copper to fine wine and Hong Kong penthouses.


The dollar carry trade, whereby investors borrow dollars at near zero interest rates to fund asset-buying sprees around the world, has been lurking as a possibility since the collapse of Lehman Brothers last year and the extreme monetary response to its aftermath.


And as the carry trade grows more popular among investors it could add yet more downward pressure to the already falling greenback — especially if the “carried” (borrowed) dollars are immediately sold to buy non-dollar denominated assets in China or Singapore.


Many analysts now believe that it was the sudden unwinding of the yen-carry trade — immense pockets of investment funded by cheap borrowed yen — that sent the ripples of the Wall Street crisis so destructively around the world last autumn.


Carry trades — borrowing at low rates to fund higher return assets — make perfect sense until markets turn sour and exchange rates shift too violently. At that point, the rush for the exit wildly exacerbates any crash. A collapse of the dollar carry trade has the potential to be even more harmful, principally because of its scale.


While a few prominent financial gurus have already warned of the threat of an emerging dollar carry trade, governments have steered clear of commentary on the issue until now. But today, talking on the sidelines of the Asia Pacific summit in Singapore, Donald Tsang, Hong Kong’s chief executive, admitted openly that the dollar carry trade had begun to spread and that the prospect “scared” him.


Washington’s response to the recession, he said, ran the risk of emulating the behaviour of Japan after its own bubble collapsed in 1989 and allowing overly loose policy and a rock-bottom cost of money to inflate asset bubbles around the world. “Gyrations in financial markets and bubbles in asset markets remain ahead of us,” he added.


Hong Kong is perhaps closer to the new asset bubbles than others: house prices there have risen 28 per cent this year and records for land price sales have been set with thudding regularity over recent weeks.


Behind Mr Tsang’s concern, though, is the fixed relationship between the Hong Kong dollar and the greenback — the “dollar peg” that is the cornerstone of Hong Kong financial policy but is currently forcing Hong Kong interest rates to be much lower than the monetary authorities there would like. Hong Kong’s property inflation is, in effect, being driven my mortgages that are cheaper than they should be, but the authorities are limited in how they can respond.


Observers who have warned darkly of the emerging dollar carry trade include Nouriel Roubini, the chairman of RGE Monitor, an economic consultancy firm. He believes that the prolonged ability to borrow dollars cheaply risks planting the seed of the next financial catastrophe. Carry traders, he said recently, feel more comfortable with their positions because of the Federal Reserve’s promise to keep rates “exceptionally low” for an “extended period”.


Others have tentatively raised red flags over the trade. Also attending the APEC meeting in Hong Kong, Robert Zoellick, the preisdnmet of the World Bank, noted that the risk of allowing liquidity to flow into equity and property markets in the region. “In East Asia, if you start to get a strong rebound in growth, and you've got a lot of liquidity, there is the question of whether one could start to face asset bubbles in particular markets,” he said.


Mean greedy Microsoft:


Windows Vista, even Home Premium does not come with faxing capability whereas it is standard on XP, you must buy more expensive Business version to get faxing software.


I had to search the internet for free software and what were called free softwares were actually trial softwares that cost anything from US$20 up to $100.


Finally I managed to get this US robotics upgrade which is free for their modem but seems to work on my modem and it is quite easy to use and its interface looks attractive.


A LOT OF THE COMPUTING POWER IS WASTED BY MIRCOSOFT ON USELESS GLITZ, ON ESSENTIALS, IT REFLECTS THEIR MEAN GREEDY STREAK THAT MICROSOFT HAS TAKEN OUT THE FAX FACILITY SO THAT YOU MUST PURCHASE A MORE EXPENSIVE OS OR PAY FOR IT ON INTERNET.


Passing the debts to future generations:


All the governments in the world carry significant debts and by embarking on stimulus spending, they are spending to support the economy hoping it will then recover but this is accruing debts that they will not pay but others in the future, citizens of the future will pay and this is a form of unrighteousness.


IT REFLECTS THE SHIRKING OF RESPONSIBILITY AND PASSING THE TABS TO OTHERS THAT CITIZENS AND GOVERNMENTS SPEND MONEY THEY HAVE NOT LEARNT AND HOPE AND ASK FUTURE GENERATIONS TO PAY AND THE DEBT BURDENS ARE SPIRALLING OUT OF CONTROL IF NOT ALREADY OUT OF CONTROL.


How convenient:


GDP has resumed growing therefore the recession has ended, conveniently forgetting the massive government stimulus packages all over the world.


Unemployment is still rising faster than predicted but it is OK, employment tends to lag recovery.


Driven by emotion to desire a return to the good times, emotional people will themselves to believe and perceive and interpret data to mean recovery. GDP growth is due to recovery not government stimulus, unemployment is still growing because it lags recovery so don’t worry.


SUCH FORCE DRIVEN SELECTIVE REASONING AND PERCEPTION WILL LEAD TO DISASTER, SEEING THINGS TOO ROSILY.


MACC ropes in top British pathologist as observer:


This action is driven out of false logic and indicates it has guilty conscience and is trying to get an expert opinion that can be bribed to favour it. Just because it is top and British does not mean it is competent or objective.


The truth cannot falsely incriminate an innocent person. If you have nothing to do with the death, you have nothing to be afraid, it is impossible the truth about the death can incriminate you because the truth is that you are innocent. Whatever that is falsely adduced by the examining pathologist can be refuted as either false or an unwarranted conclusion.


It is because there was clear evidence of incompetence and collusion by the previous pathologists that an exhumation was ordered. Even if the new pathologists were hostile, it is impossible for anyone to find and present evidence that MACC was involved that cannot be refuted if in truth MACC was not involved, so why is MACC acting so concerned?


IT IS LIKELY IF NOT CERTAINLY THAT THIS BRITISH PATHOLOGIST WILL BE FAVOURABLE TO MACC.


IF MACC IS INNOCENT, IT IS IMPOSSIBLE ANYONE CAN FIND EVIDENCE THAT WILL DEFINITELY INCRIMINATE MACC, ANY EVIDENCE CAN BE REFUTED AND SO WHY SHOULD MACC BE SO WORRIED?


Why MACC is exhibiting guilty conscience:


It is possible and understandable that previous pathologists would fabricate to absolve MACC of blame in the death of Teoh.


It is highly unlikely if not impossible that pathologists now wilfully fabricate to falsely implicate the MACC. Any false incrimination is likely to come from incompetence.


Whether malicious or incompetent, whatever false evidence that the new autopsy adduces can be refuted as inadmissible. It is impossible to adduce false evidence that implicates MACC that cannot be rebutted.


WHATEVER FALSE EVIDENCE THAT INCRIMINATES MACC EITHER THROUGH MALICE (UNLIKELY) OR INCOMPETENCE CANNOT BE IRREFUTABLE BUT CAN BE SHOWN TO BE SUBJECT TO QUESTION AND SO THE MACC HAS NO REASON TO FEAR IT WILL BE FALSELY INCRIMINATED BY MALICIOUS OR INCOMPETENT PATHOLOGISTS SO AS TO APPOINT A PATHOLGIST TO OVERSEE THEIR INTERESTS.


IT IS PERFECTLY UNDERSTANDABLE IF THE MACC IS GUILTY AND THEY WANT TO HAMPER AND (FALSELY) CAST CONTRADICTING EXPERT OPINION ON WHATEVER CONCLUSIONS DRAWN FROM THE AUTOPSY THAT IT SHOULD APPOINT ITS OWN EXPERT PATHOLOGIST. 


What hope you can pay your debts in the future?


Now you cannot pay your debts because the economic climate is tough and so you borrow MORE from the future and others to spend.


What hope have you to repay in the future what you cannot repay now and you now borrow from the future to spend now to tide desperate times?


Your hope is that in the future things not only recover but your income rises sufficiently for you to pay off your debts.


IF YOU HAVE NO HOPE OF REPAYING YOUR DEBTS NOW WHEN TIMES ARE TOUGH, YOU HAVE NO HOPE AND IT REFLECTS MAKE BELIEVE THAT SOMETIME IN THE FUTURE WHEN TIMES ARE BETTER YOU WILL MAKE ENOUGH TO PAY BACK YOUR CURRENT DEBTS PLUS THE NEW DEBTS ACCRUED IN STIMULATING THE ECONOMY.


THUS MANKIND IS LIVING IN ALICE WONDERLAND, IT IS ALREADY HOPELESSLY MIRED IN UNPAYABLE DEBTS AND YET LIKE AN ALCOHOLIC IT IS STILL BINGING ON MORE BORROWED MONEY.


My diagnosis:


My diagnosis of the world economic crisis is this: Mankind is ‘full of debts’, in danger of drowning in debts and he is running short of money and that is the reason why the economy is sputtering, threatening to stall. So what do they do in desperation? They borrow more money from the future and others (who save) to keep the economy from stalling and stave off collapse. But it is fatuous or silly irrational hope that when things recover I will have enough money to pay off my old debts plus the considerable new debts that I am taking on to stimulate the economy. Economists like Krugman think it is nothing, it is manageable and sensible to stimulate the economy with far greater deficit spending than current and the future will take care of itself, we can pay off.


TALKING IS EASIER, SPENDING IS EASY BUT TO REPAY DEBTS IS DIFFICULT IF NOT A BRIDGE TOO FAR AND SO IT MAY BE THAT MANKIND MAY ALREADY HAVE PAINTED HIMSELF INTO A CORNER DEBT WISE. CHINA MAY THINK IT HAS A LOT OF MONEY IN THE US SO IT CAN INDULGE IN SOME STIMULUS OF ITS OWN. IT MAY BE WISE TO TREAT ITS DEPOSITS IN THE US AS UNCERTAIN RESERVES AND NOT BANK ON IT.


THE ONLY RATIONAL RESPONSE FOR SOMEONE FULL OF DEBTS AND RUNNING OUT OF MONEY IS TO FACE REALITY, CUT DOWN ON EXPENSES AND START TO REPAY HIS DEBTS. IT IS SUICIDAL TO POSTPONE RECKONING BY BORROWING TO SPEND MORE WHICH IS WHAT MANKIND IS DOING. HERE AS ELSEWHERE THEY THINK THEY UNDERSTAND BUT THEY UNDERSTAND FALSELY AND DON'T UNDERSTAND.


You have no debts? Think again:


You may say you are financially sound, you don’t owe others any money or whatever you owe you can repay but you may not realize there is debt due to you.


It is calculated that every man and child in UK has a debt of £42,000 and so even if you do not take on debt, your government is undertaking debt on your behalf.


Further, the money you have in banks, shares, etc may not be there, it may have been lent out and borrowers cannot repay and so it is lost, when share prices collapse, your money in shares will shrink.


Have you been conned?


When you drive along in KL on modern new roads, with modern building and facilities on view, you may be moved to agree with Dr M, UMNO and BN that they have done a lot of good, brought much progress to the country.


What you do not realize is that without approval they have spent the country’s resources and savings (Putra Jaya was built without parliament approval), they have borrowed considerably un your behalf, not only spent on projects that may be useless, but pilfered in the process and you will have to pick up the tab in financial suffering later.


As part of Japanese aid for the 1997 crisis, Japan lent Malaysia some billions to build an electric railway from KL to Ipoh that will benefit Japanese companies involved in its construction, if this project is a white elephant, does not earn enough to repay, then the losses will be paid by citizens whilst corrupt politicians and Japanese companies pocket the profits.


HENCE MOST PEOPLE DO NOT UNDERSTAND AND ARE EASILY DUPED, THE WONDERFUL ROADS YOU DRIVE ON MAY NOT BE THE FRUITS OF DR M’S GOOD DEEDS BUT IT MAY BE BUILT ON BORROWED MONEY BORROWED ON YOUR BEHALF THAT ONE DAY YOU WILL HAVE SUFFER TO REPAY.


Why the world may be financially and economically doomed:


Is it true that people or many of them are ‘full of debts’ be it credit card, loans for houses, business loans and they or a significant proportion are struggling to repay or cannot repay?


Is it true that many governments including the US, UK, Japan and even China are similarly carrying serious if not unsustainable debts?


Is it true that the financial system is in crisis, with the banks running out of money to lend, meaning there is no money in them when there should be lots of savers’ money deposited in them?


THUS THE TRUE PERCEPTION AND CORRECTION CONCLUSION IS THAT THE WORLD, PEOPLE AND THEIR GOVERNMENTS ARE FULL OF DEBT, COLLECTIVELY LIVING BEYOND THEIR MEANS AND THIS CANNOT GO ON FOR MUCH LONGER LET ALONE FOREVER.


THE TRUE AND RATIONAL ANSWER TO THIS PROBLEM OR CRISIS IS TO TIGHTEN YOUR BELTS, STOP CREATING MORE DEBTS OR BORROWING AS GOVERNMENTS ARE DOING BY PRINTING MONEY AND BORROWING WHERE THEY CAN (EG US ASKS CHINA TO SEND MORE GOODS FOR MORE PIECES OF USD). NOT ONLY STOP BORROWING, RAISING INTERESTS TO MAKE IT HARDER TO BORROW UNLESS ABSOLUTELY NECESSARY BUT TO LIVE AUSTERELY TO SAVE SO THAT SURPLUSES CAN GO TOWARDS REPAYING DEBTS. THE GOVERNMENT’S ROLE IS TO SUPPORT TO PROVIDE FOOD, CLOTHING AND SHELTER TO THE DESTITUTE NOT BEYOND BARE NECESSITIES, FIND THE UNEMPLOYED SOME SIMPLE JOBS LIKE SWEEPING ROADS, RUBBISH COLLECTION, PLANTING CROPS, ETC.


BUT MOST INNURED TO A LIFE OF LUXURY CANNOT BEAR AND WILL NOT AGREE EVEN IF THEY HAVE MESSED THEMSELVES UP TO BECOME DESTITUTE AND THEY WILL NOT ACCEPT SUCH TREATMENTS AND ANY POLITICAL LEADER WHO PROPOSES SUCH ACTIONS WILL BE BROUGHT DOWN IF NOT KILLED.


AND SO IT IS THAT MANKIND MUST BE ALLOWED TO MEET THE FATE OF ITS OWN DOING, TOTAL FINANCIAL AND ECONOMIC BREAKDOWN OR MAYHEM THAT WILL COME, SOONER OR LATER.


One of Krugman’s arguments is that even with much more debts, the US can repay it, the deleterious effects of not stimulating the economy with mass unemployment and reduced government income through less taxes leading to governments being unable to service debts is false logic. Whatever extra taxes the government collects by stimulating the economy is not enough to justify the extra debts it will take on by stimulating the economy. You may think Krugman knows what he is talking about, but he may not understand what he is talking about.


Debt is like a deep hole a man has dug himself into. You don’t get out of debt by digging some more, by borrowing more as Krugman wants governments to do, you get out of debt by stopping all digging and starting on the painful process of covering the big hole you dug, suffering whatever hardships involved in the process.


tkl


Only one valid reason to spend:


Whoever you are, unless you want to court insanity and financial woe (and will get it) there is only one true reason to spend and it is this:


IF YOU HAVE MONEY TO SPARE AND THERE IS SOMETHING USEFUL OR MEANINGFUL TO ACQUIRE THEN YOU SPEND.


IF YOU HAVE NO MONEY THEN EVEN IF SOMETHING IS USEFUL YOU DON’T SPEND OR YOU THINK CAREFULLY ABOUT NOT EXPOSING YOURSELF TO TOO MUCH DEBT FOR TOO LONG BECAUSE YOU NEVER KNOW WHAT MIGHT HAPPEN.


IF YOU HAVE MONEY BUT THERE IS NOTHING MEANINGFUL TO SPEND ON, YOU DON’T SPEND FOR THE SAKE OF SPENDING EG TO BOOST THE ECONOMY BECAUSE IT IS IN TROUBLE. THAT IS AN INSANE REASON TO SPEND AND IS THE ROAD TO RUIN LATER.


IF YOU HAVE NO MONEY (AS MOST COUNTRIES LIKE US, JAPAN AND UK ARE) IT IS EVEN MORE SO THAT YOU SHOULD NOT SPEND FOR THE SAKE OF SPENDING BECAUSE THE ECONOMY IS IN TROUBLE.


HENCE THE ACTIONS OF GOVERNMENTS ALL THE WORLD IN STIMULATING THEIR ECONOMIES BECAUSE OF TROUBLE EVEN WHEN THEY HAVE NO MONEY (THEY ARE PILING MORE DEBTS FOR FUTURE GENERATIONS TO PAY) IS RECKLESS, SUICIDAL, INSANE LOGIC.


MONEY IS DEAR TO THE HEARTS OF HUMANS, HOW COME THEY, EVEN TOP ECONOMISTS OR SO CALLED EXPERTS DON’T UNDERSTAND SUCH FUNADAMENTALS OF SOUND FINANCE?


Not no money but ‘full of debts’:


Governments throughout the world are not only without money, they are full of debts yet they deem it wise to borrow and print more money to spend falsely in the name of supporting the economy and when the economy registers growth, they cheer when the growth is the product of the stimulation.


See how foolish they are. Maybe not so because politicians are loaded, even though they rack up mountainous debts for their nations, they have stashed enough so that they themselves and their progenies can afford to pay their shares of the collective debt and still be far better off than the average citizens.


Why governments must stimulate:


Apart from collapse with backlash from voters and being dismissed from office, if the system collapsed without stimulus, then banks will go bankrupt and people will know their money saved is no longer there.


By allowing things to collapse, it will allow a stock take, to see how bad or extensive the financial carnage is, by stimulating, you are sweeping problems under the carpet so that the true state, how bad it actually is, is concealed or unknown.


IT IS FALSE LOGIC TO SAY THAT THE DANGERS, UNEMPLOYMENT AND LOSS IN TAX REVENUES OF NOT STIMULATING OUTWEIGHS THE RISK IN GREATER DEBTS OF STIMULATING. YOU HAVE TO FACE THE MUSIC AND SUFFER THE FRUITS OF YOUR PAST ACTIONS, THE LONGER YOU DELAY RECKONING THE WORSE THE RECKONING AND WHATEVER TAX REVENUES OBTAINED IS FAR OUTWEIGHED BY THE BURDEN IN DEBT CREATED BY STIMULATING.


YOU MAY GET GREATER TAX REVENUES FROM SIMULATING BUT YOU ALSO GET GREATER DEBT BURDEN FOR THOSE TAX REVENUES TO REPAY AND SO IT IS FALSE LOGIC TO TAKE ON MORE DEBTS IN ORDER TO GENERATE MORE TAX REVENUES THAT WILL THEN GO TO PAY THOSE DEBT BURDENS.


God's gift'


How Brazil is hoping to find a fortune in oil


Did God say the oil is His gift?


No one has the right to say the discovered oil is God’s or nature’s or whatever’s gift because it is not so, it is presumptuous. What you can say is that the oil is there, it is neither good nor bad fortune.


ANYONE WHO SAYS IT IS GOD’S GIFT WITHOUT ASCERTAINING IT IS TRUE IS JUMPING TO CONCLUSION THAT IS INDULGING IN FALSITY THAT MAY PROVE FATAL ONE DAY AND IS ALSO THE PATH TO MADNESS.


It is insane to restore froth:


It is impossible if the recent boom was largely due to solid truly productive pursuits that it would have collapsed so catastrophically but it is because the recent boom was largely froth, hot over speculation and consumption of useless things that do not last that it has collapsed ‘so spectacularly’.


THE RATIONALE IN STIMULATING IS SUPPORT THE ECONOMY AND RESTORE IT ‘TO HEALTH’. BUT THIS ECONOMY IS FROTH OR LARGELY FROTH AND SO YOU ARE IN EFFECT STIMULATING (SPENDING MONEY) TO RESTORE FROTH, WASTEFUL SPECULATION AND CONSUMPTION THAT CLEARLY THE WORLD CANNOT AFFORD OTHERWISE IT WOULD NOT HAVE COLLAPSED.


THEREFORE IT IS CRAZY LOGIC TO STIMULATE BECAUSE THE PURPOSE IS TO REVIVE AND UNLESS YOU ARE DELUDED TO PERCEIVE THE PAST BOOM AS FRUITFUL, FULL OF SUBSTANCE, IF IT IS IN TRUTH FROTH, HYPE AND DERANGED OVERCONSUMPTION THEN YOU ARE THROWING MORE MONEY (STIMULATING) TO REVERT TO FROTH THAT WILL INEVITABLY COLLAPSE AGAIN IN THE FUTURE WITH EVEN MORE CALAMITOUS RESULTS SO WHY NOT FACE THE MUSIC AND REFORM, CUT OUT THE FAT AND GET BACK TO BASICS.


IT IS CRAZY AND SUICIDAL TO STIMULATE, IT ONLY AGGRAVATES PROBLEMS TO BECOME EVEN MORE UNMANAGABLE.


Without the froth, the economy will be more subdued:


A lot of the previous boom was froth and so shorn of the froth the economy will be very lean just as shorn of its fur, a poodle will look comical or a pale shadow of its former ‘glory’.


Thus unless you want to restore the poodle to its former ‘glory’ if economy is in truth so lean shorn off froth then that is the truth and to stimulate to try to restore the former state is to sin again, to try to restore evil harmful froth to the economy. Without this froth, the economy must be lean which means the lifestyles of many will be crimped.


Whatever is not froth does not require stimulation:


Whatever that is not froth in any economy will not collapse and does not require stimulation. Because froth is just a mass of bubbles, it will collapse sooner and or later and what collapses at the end of the boom is froth and it is this froth that stimulation (eg cash for clunkers, tax discounts for houses) either unconsciously or unconsciously is designed to revive, whether Krugman or anyone realizes or not, stimulation is primarily if not entirely targeted at sustaining and reviving froth never genuine productivity in the economy and because froth will inevitably collapse when its fuel is spent, what is stimulated will in the end collapse leaving the government will burnt fingers, more debts to service.


SEE HOW FOOLISH IT IS TO STIMULATE IN THE NAME OF REVIVING THE ECONOMY, IN THE NAME OF STAVING OFF UNEMPLOYMENT AND SOCIAL UNREST. WHAT IT ACHIEVES IS POSTPONING THE RECKONING WHICH GETS WORSE WITH MORE DEBTS ACCRUED AND MORE INTEREST CHARGES TO BE PAID.


Don’t worry that the meaningful part of the economy will collapse, the meaningful parts will take care of itself and it is only the froth parts that will understandably collapse and all stimulation is to foolishly, in futility and in suicide revive this froth so that a bigger cancer can grow.


How can what is essential collapse?


Whatever is essential cannot collapse because it is essential.


Just as your heart beat which is essential cannot stop otherwise you will be dead, whatever is TRULY essential in an economy cannot collapse otherwise it would not be essential, what collapses at the end of a boom is UNESSENTIAL and it is the SINFUL stoking of the UNESSENTIAL that all government stimuli target.


How do you stimulate the economy?


First you exhort people to spend, telling them the economy is in trouble, their jobs may be lost if they don’t spend.


Next you lower interest rates so penalize savers and encourage them to spend and borrowers to borrow.


Still later the government borrows or uses money to start projects like build roads or new facilities just to provide work. It gives tax breaks (cash for clunkers, no tax for houses).


ALL THESE (EXHORTING PEOPLE TO SPEND, REDUCING INTEREST RATES DISCOURAGING SAVING AND ENCOURAGING BORROWING, STARTING PROGRAMS OF CONSTRUCTION, TAX REBATES) ARE STIMULATING THE FROTH OR UNESSENTIAL PARTS OF THE ECONOMY THAT IS PROMOTING SIN AND WASTEFUL CONSUMPTION.


No money to buy food and clothes:


It is true that food and clothing are essential and people can have no money to buy such essentials.


But how many people are truly reduced to destitution by the economic crisis and does it require stimulation of the magnitude undertaken to provide succour for those freshly rendered destitute by the recession?


IT IS TRUE THAT MANY AS THE RESULT OF THEIR OWN FOLLIES HAVE BECOME DESTITUTE SO THAT THEY CANNOT AFFORD EVEN FOOD AND CLOTHING BUT IT IS FAR FETCHED THAT YOU NEED STIMULATION OF THE SCALE UNDERTAKEN TO PROVIDE BASIC AMENITIES FOR THESE.


Microsoft un-innovative and imaginative:


I think it was Microsoft who was first to provide the Terra server idea of high resolution maps of the world and Google essentially developed the idea into the success and popularity it enjoys today whereas Terra server as I just checked is still restricted to pictures of the US and nowhere else on earth.


Hence even when Microsoft starts on a new idea, they have fumbled or botched it whilst others like Google developed the idea into a ‘runaway’ success.


Recently a Microsoft executive was rebuked for saying Window 7 draws inspiration from Apple’s interfaces. It is likely Microsoft is again playing copycat as it has done in many places.


MICROSOFT WAS FIRST WITH THE TERRA SERVER BUT THE IDEA SEEMS LIKE A STILLBORN WHEREAS GOOGLE EARTH APPEARS A DEVELOPMENT OF MICROSOFT'S IDEA AND IT HAS BEEN DEVELOPED INTO A 'RUNAWAY' SUCCESS.


China is the greatest danger:


This is the headline of an article that says that China’s refusal to allow its currency to appreciate and its ‘beggar thy neighbour’ policies make it the greatest danger to the recovery of the world economy.


Again an obsessed Krugman is berating China as irresponsible for not allowing its currency to appreciate. Quote: Unfortunately, the Chinese don’t seem to get it: rather than face up to the need to change their currency policy, they’ve taken to lecturing the United States, telling us to raise interest rates and curb fiscal deficits — that is, to make our unemployment problem even worse.


CURRENCY CONTROLS AND AN ARTIFICIALLY LOW YUAN IS NOT THE MAJOR CAUSE OF THE CRISIS FACING THE WORLD, IT IS THE HOCUS POCUS DERIVATIVES, THE RECKLESS BEHAVIOR OF WALL STREET BANKERS AND BANKS IN LENDING SAVERS’ MONEY WITHOUT CHECKING CREDIT WORTHINESS IN HOUSING AND CREDIT CARD, THE IRRESPONSIBLE BEHAVIOR OF THE US AS RESERVE BANKER OF THE WORLD IN KEEPING SPENDING MONEY IT PRINTS WITH IMPUNITY, THE TRANSFER OF WEALTH BY HOOK AND CROOK FROM THE MANY TO THE FEW SUCH THAT IT HAS REACHED IMBALANCE, THE WORLD LIVING WAY BEYOND ITS MEANS WITH THE US AS THE LEADER OF THE HEEDLESS, THE POLITICIANS THROUGHOUT THE WORLD WHO STOKED THE BUBBLE AND PLUNDERED THE SYSTEM THAT IS RESPONSIBLE FOR THE DIRE STATE.


THUS THESE PEOPLE DO NOT UNDERSTAND, THEY ARE LOOKING FOR SCAPEGOATS.


Why appreciating the yuan won’t work:


Look at Japan, its yen has appreciated so much that Toyota is struggling to break even. Because businesses struggle unemployment rises and there is no increased demand for US goods even though it is cheaper.


IF AMERICA EXPECTS A STRONG YUAN TO SPUR INCREASED EXPORTS TO CHINA IT MAY BE DREAMING. CHINESE GOODS MAY BE PRICED OUT OF THE US MARKET CAUSING INCREASED UNEMPLOYMENT IN CHINA AND DECREASED DEMAND FOR US GOODS AND THE CHEAP EXPORTS WILL SHIFT FROM CHINA TO SAY VIETNAM.


THE US OWES CHINA A LOT OF MONEY AND THIS MONEY IS PHANTOM BECAUSE IT HAS BEEN LENT TO US CONSUMERS WHO ARE DEFAULTING AND SO EVEN IF THERE IS INCREASED CHINESE DEMAND FOR US GOODS, THE US WILL NOT RECEIVE ANY MONEY WHICH WILL BE DEDUCTED FROM WHAT THE US OWES CHINA THAT THE US TREASURY ACTUALLY NO LONGER HAS BECAUSE IT HAS BEEN RECKLESSLY LENT OUT. THUS IF THE US EXPECTS TO EXPORT ITSELF OUT OF TROUBLE IT IS A PIE IN THE SKY BECAUSE JUST AS THE MAN IN DEBT HAS TO SLOG TO PAY OFF HIS DEBTS BEFORE HE CAN HAVE ANY SAVINGS, THE US WILL GET NOTHING FOR ITS EXPORTS.


China Is foolish, the US is irresponsible:


If you keep supplying goods to a customer and he owes you very much would you not be concerned to stop the flow of goods? In this sense China is foolish to allow the US to rack up so much deficit.


A responsible man will refuse further credit if he has already owed too much and in this sense the US is irresponsible in taking upon itself so much debt with the rest of the world.


IT IS SAID THAT AS HIGH AS THE US DEBT TO GDP FIGURE IS AND IT IS RISING RAPIDLY, THE US HAS SURMOUNTED HIGH DEBTS IN THE PAST AND EVEN IF THE GOVERNMENT TOOK ON ITSELF SUBSTANTIAL RAPIDLY RISING DEBTS BY STIMULATING THE ECONOMY, IT IS NO PROBLEM, THE GREATER DANGER IS IN RISING UNEMPLOYMENT AND COLLAPSE OF THE ECONOMY.


EVEN THOUGH THE US MAY HAVE RECOVERED FROM VERY DEBT LEVELS IN THE 1930S, THINGS ARE NOT THE SAME.


THEN THE US MAY BE ADOLESCENT WITH MORE ROOM TO GROW AND ITS NATURAL RESOURCES MORE PRISTINE (IT HAD A LOT OF OIL THEN) BUT NOW THE COUNTRY IS AGING (THE BABY BOOMERS ARE RETIRING AND NEED LOOKING AFTER AND THERE ARE FEWER CHILDREN BORN).


IN THE 1930S THE US WAS NOT THE CENTRAL BANKER OF THE WORLD, DID NOT DERIVE SO MUCH FREE LUNCH FROM THE WORLD THAT CAN AND IF TAKEN FROM IT WILL RAPIDLY SHRINK THE ECONOMY AND GDP WITH ‘JAW DROPPING’ FEROCITY. TAKE AWAY THE CONSIDERABLE BENEFITS OF THE US IN PRINTING AND RUNNING THE WORLD RESERVE CURRENCY, THE ACTUAL GDP OF THE US MAY BE CONSIDERABLY LESS AND IT IS WISE TO KEEP THIS IN MIND.


BECAUSE THE US ECONOMY WAS MUCH SMALLER THEN, DEBT AS THE SAME PERCENTAGE OF GDP THEN IS MUCH SMALLER THAN TODAY, IN OTHER WORDS, FOR THE SAME PERCENTAGE OF DEBT TO GDP, THE AMOUNT OF DEBT NOW IS MUCH HIGHER.


THEREFORE JUST BECAUSE THE US HAS SURMOUNTED AS HIGH OR HIGHER DEBT PER GDP IN THE PAST DOES NOT MEAN IT CAN AND WILL DO THE SAME TODAY WHEN ITS POPULATION AND RESOURCES ARE AGING, IT OWES THE WORLD A LOT OF MONEY, ITS ACTUAL GDP MINUS THE WINDFALLS OF BEING WORLD RESERVE CURRENCY MAY BE MUCH LESS AND THEREFORE ITS TRUE DEBT TO GDP FIGURE MORE SEVERE THAN STATED.


A lot of GDP may be froth:


If I am correct even such sports as golf, football, gaming (eg Toto) are counted as part of the GDP. All these are froth, unessential and can shrink substantially or even vanish (golf was not very popular in the 60’s) and so you will be surprised how much the GDP can shrink or disappear when times are tough and because the debt does not shrink, with the shrinking of GDP, your debts and the interest servicing rises to such levels that you will drown in debt when not too longer ago you were bragging how manageable your debts though severe is.


What is the cause of this crisis?


Is it China refusing to allow its currency to appreciate that is at the heart of the crisis or is it derivatives, the reckless extreme plunder of people’s money left in banks to lend to buy houses and credit card borrowings, the heedless stoking of the economy by politicians whenever there are dips by lowering interest rates and encouraging lending?


If you think the cause of the crisis is China’s artificially low yuan then the answer is to make it rise. If it is not then you are barking up the wrong tree looking for scapegoats and insanity is your fruit for wrong view.


THE CURE TO THE CRISIS IS THE NEGATION OF THE CAUSE OF THE CRISIS AND SO UNLESS CHINA’S LOW YUAN IS THE CAUSE, IT IS NOT THE CURE TO THE CRISIS AND YOU ARE DELUDED.


America Not China Caused Crisis:


China’s refusal to allow its currency to appreciate is at the periphery of the current crisis. China is now worried about the sanctity of its deposits in the US and may have to write off those debts, in effect working for free for Uncle Sam to enjoy a life of luxury.


America is like the man who is grossly unfair in his actions accusing others of unfair practices and wanting them to change when he himself is guilty of far greater unfairness that he is either blind or completely ignores and has no intention of rectifying.


America is at the heart of the current crisis that threatens to be fatal in more ways than one, namely:


1)   It grossly abused its position as dominant reserve currency of the world by keep printing money that is intrinsically worthless to buy goods from others allowing it to live way beyond its means and incur debts that are far greater than what appears to be. $600 billion USD are circulating outside America and that is an interest free loan to America and should you lose the money (eg destroyed in fire), America has discharged its duty to you. Wealthy people and crook stash their considerable combined wealth in USD as a safe haven and that too is a loan (to be used recklessly by the US) to the US, albeit with interest. Because all settlement for international trade is in USD, people have to buy USD and that means greater demand and a transient repository of wealth in USD that is perpetual because trade is endless and so demand for USD may wax and wane but never fall below a certain significant level. Many trading nations like oil exporters, China, Japan stashed their earnings in America so that although paid, the money remains in US circulation and therefore de facto it is not paid.


2)   Do not underestimate the boost that this privilege (and danger) of being acting reserve currency accords the US economy and all the sloshing money has been badly mismanaged by the US government who kept stoking the economy whenever it was in danger of cooling down by lowering interest rates, promoting unfettered credit as in margin finance, subprime finance and credit card borrowing.


3)   Derivatives is an American invention and it is simply a form of cheating, paying others a small sum of money to assume responsibility for instruments that are far more risky than they tout. The cheat made $1000 from the transaction and then pay you $10 to guarantee for the transaction and it is the collapse of the subprime housing that exposed the liabilities that they could not fulfil of those who held derivatives that caused this crisis. Even today derivatives are still being traded when they should be banned. The authorities in the US have seriously failed in their duties in not examining and prohibiting derivatives in the first place.


It is the relentless, unfettered supply of credit aided by the US being a repository of the world’s wealth by virtue of it being reserve currency and safe haven to be used profligately to buy houses, shares, consumer products (credit card) with the Fed repeatedly intervening to lower interest rates that is the cause in allowing the debt bubble to inflate to such monstrous life threatening levels and now instead of looking at itself and see its folly, it is trying to blame others.


AMERICA IS LIKE THE TERMINAL ALCOHOLIC WHO TURNS AROUND AND ASK WHY DID YOU GIVE ME SO MUCH ALCOHOL WHEN HE HIMSELF KEPT PANDERING TO HIS ADDICTION BY LOWERING INTEREST RATES.


IF YOU THINK CHINA’S UNFAIRLY LOW EXCHANGE RATE IS THE CAUSE OF THIS CRISIS AND ITS ELEVATION IS THE CURE, YOU HAVE FALSE PERCEPTION THAT WILL END IN MAD PERCEPTION BECAUSE THE CAUSE IS AMERICA’S ABUSE OF ITS POSITION AS RESERVE CURRENCY AND SAFE HAVEN FOR THE WORLD’S WEALTH. IF AMERICA DEMANDS FAIR PRACTICES FROM CHINA THEN IT SHOULD TIDY UP ITS OWN PRACTICES FIRST AND THAT WOULD MEAN EVEN MORE PAIN AND LOSS OF WEALTH.


Baby boomers:


There was a sizeable increase in births after the Second World War and it is this boost in population that is responsible for GDP increase (together with the infusion of the world’s money into the US by ‘virtue’ of it being reserve currency and its bountiful resources eg oil) that was responsible for paring down its considerable debt to GDP ratio after the Great Depression.


Now the population is aging (and will need support and drain resources), fewer young are born (these few will bear the burden of debt bequeathed them), its resources are depleted and now new money is coming in to it as safe haven, there are rival reserve currencies (euro) and so America may be in for a reckoning or rude awakening, it may not be able to sustain but will buckle under the same debt to GDP ratio that a robust, younger USA could in the 1940s.


IT IS DANGEROUS TO INFER THAT BECAUSE THE US COULD MANAGE SERIOUS DEBT TO GDP RATIOS IN THE PAST, IT CAN AND WILL THIS TIME BECAUSE TIMES HAVE CHANGED.


THE POPULATION IS AGING, FEWER YOUNG ARE BORN, THE US HAS DEVELOPED OR DEPLETED ITS RESOURCES, LESS MONEY IS COMING IN BY VIRTUE OF IT BEING RESERVE CURRENCY, THERE ARE RIVALS NOW AND ITS GDP CAN DROP SUBSTANTIALLY AND WITH IT THE US ABILITY TO SERVICE DEBTS.


The bigger you are the harder you fall:


An ant can fall from height and survive intact. An elephant falling from height will be mortally injured.


Americans are fond of boasting how massive the US economy is now compared to the 1930s but an equivalent fall may be much more painful than in the past.


IN TRUTH A LOT OF GROSS DOMESTIC PRODUCT ARE FRIVOLOUS, FROTH AND CAN VANISH OR SHRINK DRASTICALLY IN BAD TIME. ALTHOUGH THEY HAVE NEVER DRASTICALLY SHRUNK, IT CAN HAPPEN AND THEN THE DROP IN GDP MAY BE ‘JAW DROPPING’ AS EMOTIONAL PEOPLE ARE FOND OF SAYING.


What is cooked cannot be uncooked:


If you have cooked yourself a rotten meal (full of shit, glass shards and barbs) you have no choice but eat it and it is going to painful and you have only started eating it.


The world may already have committed serious irreparable irrevocable economic and financial blunders and there is no choice except face the music that is slowly coming on and it has deathly howl.


 


THE WORLD CAN AFFORD BUILDING ALL THESE RESIDENTIAL AND COMMERCIAL PROPERTIES BECAUSE THE COST OF PRODUCTION IS ACTUALLY QUITE CHEAP.


THE WORLD CANNOT AFFORD TO BUY ALL THESE PROPERTIES BUILT BECAUSE THEY ARE PRICED EXORBITANTLY, THE WORLD HAS NOT PAID FOR THESE PROPERTIES BECAUSE THEY WERE BOUGHT WITH LOANS THAT HAVE REMAINED LARGELY UNPAID.


NOW THAT ALL THESE EXTENSIVE PROPERTIES HAVE BEEN BUILT AND THEIR DEVELOPERS GOBBLED THE MONEY, NEVER TO RETURN THEM, FOOLISH PEOPLE WHO WERE ENTICED TO BUY ARE STRUGGLING TO OR ARE IN DEFAULT OF PAYMENT, SAVERS’ MONEY IN BANKS ARE NO LONGER THERE BUT LENT AND COLLECTED BY DEVELOPERS AND THERE IS NO WAY TO RESTORE THE SYSTEM BACK TO HEALTH.


WHAT HAS HAPPENED IS ONLY THE BEGINNING OF THE DESCENT INTO FINANCIAL INSOLVENCY LEADING TO ECONOMIC COLLAPSE BECAUSE ALL THESE OVERPRICED PROPERTIES HAVE BEEN BUILT AND SOLD AND FOOLISH PEOPLE HAVE BORROWED HEAVILY TO PURCHASE THEM TRANSFERRING SAVERS’ MONEY IN BANKS INTO THE HANDS OF DEVELOPERS AND EVEN PRINTING MORE MONEY CANNOT REVERT THE SYSTEM BACK TO THE PAST.


Being reserve currency is like a reservoir holding others’ money:


Being used as a reserve currency (like USD, euro) is like being chosen as a reservoir to hold other people’s wealth in transit from buyer to pay seller, whilst the money is constantly moving out to meet settlement, new money is constantly coming in and usually there is always a variable amount of water or money in that reservoir that would not have been there if it were not a reserve currency that the owner of that reservoir can use to enrich himself but remembering it is not his and is a form of loan that must be returned. And the problem or advantage of such a repository of wealth is that inevitably some of it is left unclaimed and gobbled by the US just as banks have unclaimed money.


The problem with the US is that it got giddy and thought the money in that pool was endless and belongs to it. This pool of water can expand and decrease and so the wise person will keep in mind that in a drought it may disappear.


And so it is, just as Australia is experiencing severe drought, the reservoir of other people’s money may shrink considerably and if you are too dependent on that pool of water you may experience a severe deprivation as a result.


APART FROM BEING THE CURRENCY OF SETTLEMENT FOR INTERNATIONAL TRADE THAT IN ITSELF PROVIDES A RESERVOIR OF WEALTH THAT CAN BE BORROWED, THE US IS ALSO A REPOSITORY OF A CONSIDERABLY PROPORTION OF PEOPLE’S WEALTH AS A SAFE HAVEN.


STILL FURTHER, MANY COUNTRIES LIKE CHINA, JAPAN, OIL PRODUCERS WERE CONTENT TO LEAVE THE PROCEEDS OF THEIR EARNINGS IN THE US FOR SAFEKEEPING.


THUS A LOT OF MONEY IN THE US DOES NOT BELONG TO THE US AND IT HAS BEEN USED WASTEFULLY TO BOOST CONSUMPTION THAT INEVITABLY SPURS THE GDP AND SO A LOT OF GDP IS NOT DUE TO US DILIGENCE BUT A WINDFALL THAT IT DOES NOT REALIZE CAN VANISH TO LEAVE THE US LIKE A POODLE AFTER A TOTAL BODY SHAVE.


Less world trade means less money in reservoir:


One unwelcomed side effect of a slump in world trade is less need to buy USD to settle transactions and that means less money in that reservoir for the US to use that will impact on the US economy that would not have been if the US was not feeding at the trough, did not touched the money in the reservoir or it was not a settlement currency.


Working the crowd:


Quote: Well before the Chinese welcomed Obama, his ambassador was showing them how an American politician works a crowd. And they love it.


He and others see nothing wrong about ‘working a crowd’, thinks it is meaningful and wonderful when it is an admission of deception, rehashing according to a plan.


In order to ‘work a crowd’ you must have a plan of how to do so that is rehashed in you and may differ from others (eg Obama’s may differ from Clinton’s), if you behave according to a plan you are admitting you are a robot and that is nothing wonderful but self slavery.


If you are sincere in what you say or do with a crowd, it is never called working a crowd but if you are manipulating them to make them impressed with you then you are working the crowd and it is therefore an admission of deception, of hypocrisy.


A MAN OF TRUTH NEVER WORKS A CROWD, WHAT HE SAYS OR DOES IS INTENDED SPECIFIC FOR THAT OCCASION, IT IS MEANT AS IT IS, NOT MEANT TO ‘WORK THE CROWD’. IF OBAMA WORKS THE CROWD THEN HE IS A HYPOCRITE, AND SO HE IS.


Working the crowd means stirring their emotions:


Without stirring the emotions of a crowd to like you or do what you want them to do, you cannot work a crowd and therefore working a crowd is entirely about arousing the emotions of the crowd, arousing blind meaningless harmful force that leads to stress, restlessness and distraction.


Therefore anyone who works the crowd is sinning and heading for perdition.


IT IS BECAUSE THEY PERCEIVE ‘WORKING A CROWD’ AS MEANINGFUL THAT THEY TALK ABOUT IT. THEY HAVE FALSE PERCEPTION BECAUSE WORKING A CROWD IS ABOUT STIRRING THEIR BLIND MEANINGLESS MENTAL FORCE, NOT ADDRESSING THEIR MEANINGFUL REASON.


HOW IS IT THAT A PERSON WHO TRULY UNDERSTANDS DOES NOT UNDERSTAND HE IS TALKING NONSENSE ABOUT WORKING THE CROWD?


A puppet master pulling the crowd’s emotional strings:


Essentially, a person who works a crowd is a puppet master pulling the strings that stir the crowd’s emotions. He calls the shots, stirring them to laugh, be sad, to empathize with him, to be angry and hurt etc.


In order to work a crowd, you must practice and keep practicing like a tennis player or golfer practices his shots to see what works and does not work in stirring a crowd to your wishes and so you must be a slick rehasher or robot to work a crowd.


Proof weak yuan is not the cause of US trade deficit:


It is partly false perception and partly looking for scapegoats to deny self responsibility that the US and economists like Krugman perceives China’s unfairness in maintaining a weak yuan as the cause of so called sensitive trade imbalance meaning the US has the audacity to be angry when it and not China is to blame.


It is objective, cannot be refuted and can be proven that a weak yuan is not the cause of the chronic trade deficits but it is the US not earning but printing at will USD to fund the purchases and its gross abuse of that privilege that is responsible.


What is the proof that it is not a weak yuan but US printing money and abusing that privilege that is the cause of trade imbalance?


If the US has to earn a world settlement currency by exporting in order to fund its imports then there is no way the US can rack up such massive chronic imbalances because it will run out of this world settlement currency that it needs to fund those imports and without that currency, how can it import more and therefore run up such massive deficits? If it wanted to run such massive deficits it would have to borrow this currency with penalties due it. It is because the US funds its imports with currency it prints and it has abused it massively that it has run up such a big deficit with China and now it is angry, blames China for causing it by artificially maintaining a low yuan.


Even if China agrees to revalue its yuan it will never work because the US can look elsewhere for cheaper goods and therefore rack up deficits with other nations or since it prints the money used to pay, if it is desirous of Chinese goods, it can just print more to buy Chinese goods. A stronger yuan will not stimulate Chinese demand for US goods by much because China has to earn the USD to fund those purchases and it is unlikely it will profligately increase its US imports just because they are cheap.


If the US is looking to export its way out of trouble, it is a ‘fat hope’ because it owes the world and China in particular so much money that whatever it earns exporting will be deducted from what it owes China and so it will be a long time before the US will actually receive any payment from China by which time its economy may have collapsed.


THUS ANYONE (EG KRUGMAN) WHO PERCEIVES CHINA IS TO BLAME FOR THE US TRADE DEFICIT, THE REVALUATION OF THE YUAN IS THE ANSWER HAS FALSE PERCEPTION THAT WILL END IN MAD PERCEPTION BECAUSE IT IS NOT THE CAUSE; IT IS THE US PRINTING MONEY TO FUND ITS PURCHASE AND ITS GROSS HEEDLESS ABUSE OF THAT, THAT IS THE CAUSE.


Acting as reserve currency is not a role the US was forced into reluctantly but they naturally revelled in that role because of the free lunch it entailed, it is opposed to the setting up of an independent currency of international trade because it would be taking the punchbowl from it. Therefore because the US welcomed and relished its role as settlement currency, it is to blame that it has abused it massively.


THUS IN TRUTH THE US CANNOT AFFORD TO IMPORT SO MUCH OR LIVE SO LUXURIOUSLY, IT WAS LIVING PARASTICALLY, HAVING A FREE LUNCH ON THE WORLD AND IT IS BECAUSE OF THIS THAT WORLD EXPORTS AND THE WORLD BOOMED. IN OTHER WORDS, THE US AND WORLD ACTUALLY COULD NOT AFFORD TO LIVE SO LUXURIOUSLY S IT DID FOR SO LONG RECENTLY AND IT ONLY DID SO BORROWING FROM THE FUTURE HAVING BEEN TAKEN FOR A RIDE OR CHEATED BY THE US. THE TRUE CONCLUSION FROM THAT IS THAT THERE WILL BE PAIN IN THE FUTURE JUST AS CINDERELLA WAS REDUCED TO A PAUPER AGAIN WHEN THE CLOCK STRUCK 12.


 


Bank Negara routinely reports it has so many billions in USD reserves and how it will fund 6 months of imports at current levels. If Malaysia had spent all that USD reserve, it cannot import anymore goods or it will have to export more to earn USD to pay for it.


It is different for the US, it cannot run out of USD but it can deceitfully keep printing more for a world that adores the USD and so keep piling up record deficit after record deficit and the Fed Reserve sees nothing wrong.


THUS IT REFLECTS THEIR MUDDLED THINKING AND FALSE OR INABILITY TO UNDERSTAND THAT EVEN THOSE WHO ARE EXPERTS PERCEIVE A WEAK YUAN AS THE CAUSE OF IMBALANCE AND A STRONG YUAN AS THE CURE.


LOOK AT JAPAN, ITS CURRENCY HAS STRENGTHENED SUCH THAT TOYOTA CANNOT MAKE A PROFIT AND YET ITS ECONOMY IS WEAK AND ITS DEMAND FOR CHEAP US GOODS HAS NOT APPRECIABLY INCREASED. HOWEVER CHEAP US GOODS BECOME, JAPAN STILL HAS TO EARN THE USD TO PAY FOR IT AND THAT TEMPERS DEMAND CONSIDERABLY UNLIKE THE US WHICH DOES NOT HAVE TO EARN THE USD THAT IT PRINTS AT WILL.


China’s hard choice:


It is actually better for China to idle rather than continue to export to the US for pieces of paper that can drastically reduce in value because it needs raw materials (oil, iron ore) it must pay for in order to generate exports and if the US defaults, not only has China worked for free, it owes its creditors for raw materials.


THERE ARE DANGERS OF CONTINUING TO EXPORT TO THE US FOR PIECES OF PAPER. CHINA NEEDS TO PAY CREDITORS FOR RAW MATERIALS AND IF THE US DEFAULT, CHINA HAS NOT ONLY WORKED FOR FREE, IT IS NOW IN TROUBLE WITH CREDITORS FOR RAW MATERIALS.


China beggaring its neighbours?


It was said that China’s policy was beggaring its neighbours.


If that can be said of China, it can be said of the US and many countries that are ruthless cut throats.


America’s recklessness in racking up such big trade deficits by printing money that is used to fund purchases too is a form of recklessness to self and others, akin to beggaring themselves and neighbours.


IF OTHER NATIONS LIKE THE US ALSO BEGGAR ITS NEIGHBOURS WHY UNFAIRLY PICK ON CHINA. THE US BY ITS ABUSIVE IRRESPONSIBLE FINANCIAL BEHAVIOR CAN BE SAID TO BEGGARING ITSELF AND OTHERS. YOU WILL BE JUDGED FOR EVERY CARELESS WORD YOU SAY AND SO IF YOU DON’T UNDERSTAND WHAT YOU SAY, YOU SAY WRONGLY THERE IS JUDGMENT FOR YOU.


Malaysia’s USD reserve is a free loan to US:


The Malaysia USD reserve of billions that will last a few months’ imports is a free loan to the US and cumulatively taking all nations into account, the free loan to the US must be mammoth.


Thus knowing a nation has serious overseas debts and only so much USD reserves, a speculator like Soros can launch an attack, it can borrow ringgit from local banks for a fee (as RHB is alleged to have done) to sell to buy USD so that Malaysia’s USD reserves is depleted and it cannot meet payments due and thus have to go to IMF for a bailout.


THUS IT MAY NOT BE THAT A NATION IS RECKLESS IN ACCRUING FOREIGN DEBTS DENOMINATED IN USD, SPECULATORS CAN WICKEDLY PUSH YOU TO THE BRINK BY BORROWING YOUR CURRENCY TO SELL TO DEPLETE YOUR RESERVES TO FORCE YOU INTO INSOLVENCY. IF SPECULATORS HAD NOT BORROWED RINGGIT TO SELL FOR USD YOU MAY NOT BE IN TROUBLE.


The scale of US profligacy:


Even with many nations holding USD reserves to fund their imports that is a free loan to the US, $600 billion circulating physically (actual paper dollars) outside the US, a lot of money deposited in the US for safekeeping, the US has managed to rack up such massive deficits with many nations of the world.


SHORN OF ALL THESE WINDFALL WEALTH, THE US MAY BE LITERALLY LIKE THE POODLE WITH ITS SHAGGY HAIR SHORN, VERY THIN.


Why no other countries have such massive trade deficits?


If you compare the trade deficits of other countries compared with the US, it may be evident that no other country has sustained such big deficits as the US and this is not an accident but is because other nations have to pay in USD to fund their imports that they cannot print whereas the US can.


Other nations have gone bankrupt or defaulted on foreign debts but that is not due to trade but due to loans that they subsequently were unable to service perhaps because the interest rates were crippling.


Top Ten Countries with which the U.S. has a Trade Deficit


For the month of September 2009





                                                   Year To Date                                   Deficit in       Deficit in                                    Millions         Millions Country Name                       of U.S. $        of U.S. $  China                             -22,101.18      -165,801.04 Mexico                             -4,559.67       -32,617.42 Japan                              -4,129.90       -30,304.30 Federal Republic of Germany        -2,117.85       -19,027.69 Venezuela                          -1,966.36       -13,304.10 Nigeria                            -1,933.10        -9,840.67 Ireland                            -1,668.01       -15,870.37 Canada                             -1,504.21       -13,757.92 Algeria                            -1,328.85        -6,702.57 Saudi Arabia                       -1,275.62        -7,938.30

America’s whopping current account deficit:


According to Wikepedia, America has a current account deficit of USD 731 billion for 2008, Spain & UK next worse at $145 & $105. Australia is quite bad at $56. By contrast China, Germany and Japan have surpluses of USD 370, 250 and 210 billion.


THUS JUST FOR 2008, AMERICA HAS BY FAR THE GREATEST DEFICIT OF ALL NATIONS. IS THAT AN ACCIDENT OR DUE TO IT ABUSING ITS POSITION AS ISSUER OF CURRENCY OF SETTLEMENT?


Evidence I am correct:


The fact that the US has by far the worst current account deficit of all countries and that it has significant deficits with its major trading partners is evidence I am correct, the US is abusing its privilege as printer of currency of settlement and a correctly valued currency is no deterrent for the US raking up deficit with Germany and Japan.


Oil prices rise as US reserves fall:


That oil prices rise on report of US reserves fall reflects the false perception and logic of those involved in influencing oil prices and is proof of speculation.


The only true and therefore sane reason for oil price to rise is if production costs have risen, it is impossible that oil production costs have risen just because US reserves fall or there is a hurricane in the Gulf and so the rise reflects speculators moving in to snap up oil to push it higher because demand will be higher and in a tighter market they can ask for a ransom or you pay more if you want the oil.


BECAUSE THE ONLY TRUE REASON FOR OIL PRICES TO RISE IS IF PRODUCTION COSTS HAVE INCREASED, ANYONE WHO PUSHES UP PRICES BECAUSE OF SUPPLY SHORTAGES OR INCREASED DEMAND IS CONDITIONING HIMSELF TO FALSE PERCEPTION AND LOGIC THAT HE AND YOU DO NOT BELIEVE WILL END IN MAD PERCEPTION AND LOGIC. THEY ARE NOT MAD YET BUT WHEN THEY BECOME MAD THEY WILL WEEP.


SIMILARLY IF YOU SEE NOTHING WRONG, YOU THINK IT IS ONLY NATURAL OIL PRICES SHOULD RISE BECAUSE US RESERVES ARE DOWN, YOU TOO HAVE FALSE PERCEPTION AND LOGIC.


PUSHING UP OIL PRICES ON REPORTS OF LOWER RESERVES IS A PROGRAMMED REHASHED ACTION THAT EVEN COMPUTERS CAN BE PERFORMED AND DOES NOT REQUIRE REASON OR UNDERSTANDING. THERE IS NO UNDERSTANDING INVOLVED NOR IS IT NEEDED AND IT REFLECTS SPECULATORS ARE ROBOTS REPETITIVELY DOING THE SAME THINGS OVER AND OVER AGAIN, HEADED FOR ROBOT FAILURE.