Geithner's Perverted Logic

Geithner’s perverted logic:

Quote: Treasury Secretary Timothy Geithner called the (record budget) deficit "unsustainable".

However, he maintained that running the deficit was helping the US continue its recovery from the recession in the short-term.

It is false logic that will end in mad logic to say running the deficit was helping the US continue its recovery in the short term. Running the record deficit worsens the US government’s debt burden so how can that help recovery except in his perverted logic that the deficit helps prop things up and hopefully the economy will recover on its own and the support can be lifted.

THE RATIONALE BEHIND GEITHNER’S STATEMENT THAT THE DEFICIT HELPS RECOVERY IS THAT THE US ECONOMY IS LIKE A COLLAPSED PATIENT WHO NEEDS EMERGENCY RESUSCITATION (DEFICIT FUNDING) AND HOPEFULLY THE PATIENT DOES NOT HAVE CANCER AND WILL RECOVER WITH THE DEFICIT FUNDING BUYING TIME. THIS IS NOT ABOUT UNDERSTANDING THE CRISIS AND IDENTIFYING AND CORRECTING CAUSES WHERE POSSIBLE BUT BLOOD TRANSFUSION TO KEEP PATIENT ALIVE AND HOPE HE WILL RECOVER ON HIS OWN LATER OR IT IS NOT SOMETHING FATAL LIKE CANCER.

RUNNING DEFICITS NEVER HELP RECOVERY BUT WORSEN THE PLIGHT OF THE US, RUNNING DEFICIT CAN ONLY BE TEMPORARY LIFE SUPPORT.

What Geithner said is false and misleading:

Geithner may or may not be aware that what he said is false and misleading.

He may perceive what he said is true when it is false or he may realize he is deliberately misleading the public to give a rosy spin on reality.

Instead of saying ‘running the deficit is helping the US recovery’ he should say ‘the deficit is providing life support to prevent a worse collapse and hopefully the economy will recover and we can reduce the deficit spending’.

IF THE TRUTH IS THAT THE BUDGET DEFICIT IS JUST PROVIDING EMERGENCY SUPPORT NOT HELPING THE ECONOMY RECOVER THEN WHAT GEITHNER SAID IS FALSE EITHER BECAUSE HE IS DELUDED OR PURPOSELY TO DECEIVE THE PUBLIC OR JUSTIFY THE DEFICIT SPENDING.

Geithner justifying bad with good:

By his self admission, the budget deficit is unsustainable and therefore bad. Geithner is trying to justify what is bad (record deficit spending) with something good (it is helping recovery). This is a form of excuse giving or the practice of false logic that he and you do not believe will end in mad logic.

Justifying is a principle or rule that emotional people activate without realizing, they have a tendency to say something to justifying something bad with something good. Because the end result (economic recovery) is good it is justified to do something bad (deficit spending).

JUSTIFYING SOMETHING BAD WITH SOMETHING GOOD IS A PRINCIPLE OR RULE THAT IS UNSPOKEN THAT PEOPLE WHO ARE ROBOTS ACTIVATE OFTEN WITHOUT REALIZATION, THE KNEE JERK REACTION OF PEOPLE WHO ARE ROBOTS IS TO JUSTIFY WHAT IS BAD WITH WHAT IS GOOD.

NOTHING GOOD EVER CAME OUT OF SOMETHING BAD AND SO IT IS FALSE LOGIC. IF YOU HAVE TO DO EVIL TO DO GOOD, BETTER YOU DO NOTHING, BETTER YOU NOT DEFICIT SPEND IN RECORD AMOUNT TO ACHIEVE GOOD. THE TRUTH IS NO GOOD EVER CAME OUT OF THE BAD OR DEFICIT SPENDING, MORE BAD (INCREASED DEBT) CAME OUT OF BAD (DEFICIT SPENDING).

The delusional Fed:

Bernanke to renew his vows?

The Fed has pledged to keep rates near zero for an "extended period," but could a brightening economic picture bring them closer to dropping the vow

It was never high interest rates that was the cause of the world & US crash, if anything it was the extended pandering relentless lowering of interest rates at any hint of a slowdown that fostered the excesses that led to this crash that could not be delayed any further.

IF ANYTHING IT WAS THE PANDERING FED EVER LOWERING INTEREST RATES TO STAVE OFF ANY ECONOMIC SLOWDOWN THAT LED TO UNEXPUNGED EXCESSES CULMINATING IN THIS MAMMOTH CRISIS AND IT REFLECTS DELUSIONAL THINKING THAT MORE OF THE SAME (LOW INTEREST RATE) IS THE CURE. LOW INTEREST RATES WILL ENCOURAGE HEDGE FUNDS TO BORROW AND USE IT AS LEVERAGE TO ATTACK GLOBAL ECONOMIES AND PUSH UP COMMODITIES THAT UNDERMINE RECOVERY.

BECAUSE IT WAS NOT HIGH INTEREST RATES THAT PRECIPITATED THE CRASH, LOW INTEREST RATES IS NEVER THE CURE AND IT REFLECTS DELUSION IN HIGH PLACES THAT IT IS.

Low interest rates caused and therefore cannot cure crisis:

It was low interest rates that promoted reckless excessive lending and borrowing and so how can low interest rates that caused the crisis be the cure for the crisis except in delusion.

You spent yourself into trouble so how can you spend yourself out of trouble?

The person of false understanding thinks he can spend himself out of trouble aided by low interest rate but the person of true understanding knows that no matter how hard and long it takes, the first step is to stop spending to dig a bigger hole for yourself and start to save yourself out of trouble.

Krugman is talking nonsense:

Everything that happens (eg massive trade deficit between US & China) has causes that can be known and cannot be disputed. The only correct treatment of a disease or problem is the removal of the cause of the problem. Thus if you see the wrong cause (China’s undervalued yuan) then you will prescribe the wrong treatment. Not only are you deluded and facing insanity for your delusion but you have karma to be experienced as pain for influencing others to adopt your delusions.

Suppose my money is hard earned, would I spent it frivolously and just because China priced its good cheaply? If I am a prudent man and my money is hard earned, I will only spend it carefully on things I truly need. On the other hand if my money is easily obtained (eg by speculation or gambling, borrowing or even printing my own) then I may become profligate to throw my money around. And so it is that because the money America uses to buy goods from China is not hard earned, it can be printed and there is plenty from where it came from, the US has foolishly raked up such big deficits that it thought it could get away forever.

Suppose I have no money, how am I to overspend even if China prices its goods ridiculously low? No matter how unfairly low China prices its goods, if I have no money I must make do without. It is only because the US has no money, but it is permitted to keep printing more IOUs in the form of USD that it has managed to rack up such a monstrous deficit with China. How come the US was not complaining before and now that it is in deep trouble it is wagging its finger?

THUS THE CAUSE OF THE MASSIVE TRADE DEFICIT BETWEEN CHINA AND US IS NOT SO MUCH THAT THE YUAN IS UNFAIRLY PRICED BUT THE MONEY THE US USES TO PAY IS NOT HARD EARNED (CAN BE GOT BY PRINTING), IT WAS PERMITTED TO SPEND EVEN WHEN IT HAS NO MONEY OR WAS FULL OF DEBTS BY KEEP ISSUING IOUs IN THE FORM OF USD THAT CHINA & THE WORLD FOOLISHLY KEPT ACCEPTING THINKING UNCLE SAM CANNOT GO BROKE. IF THIS IS THE TRUE CAUSE OF THE CRISIS THEN THE TRUE CURE IS FOR THE US TO COME CLEAN, “ENOUGH, LET ME PAY FOR MY GOODS WITH HARD EARNED CASH BY SETTING UP AN INDEPENDENT WORLD TRADE SETTLEMENT CURRENCY THAT THE US MUST EARN LIKE EVERYBODY ELSE OR BORROW LIKE EVERYBODY ELSE BEFORE IT CAN BUY GOODS FROM THE WORLD. IF THIS WAS TO BE DONE, WORLD TRADE WILL COOL MUCH BECAUSE AMERICA, THE ENGINE OF THE WORLD BOOM CANNOT AFFORD ITS PREVIOUS PURCHASES AND SO THE WORLD WAS LIVING BEYOND ITS MEANS LED BY A FECKLESS US AND LIVING BEYOND YOUR MEANS CANNOT GO ON FOREVER BUT WILL RUN OUT OF STEAM AND SO IT IS THAT IT HAS NOW RUN OUT OF STEAM AND YOU SHOULD NOT EXPECT A QUICK REVERSION TO THE BOOM OF THE RECENT PAST.

KRUGMAN AND HIS ILK OBVIOUSLY PERCEIVES WHAT HE SAYS IS TRUE, THE CAUSE IS CHINA’S PREDATORY PRICING OF THE YUAN. IF IT IS NOT TRUE, HIS PRIZE IS INSANITY FOR DELUSION AND FURTHER HE HAS KARMA TO BE REPAID AS SUFFERING THAT IS EVEN GREATER BECAUSE HE TOUTS HIMSELF AS AN EXPERT FOR FOSTERING DELUSION IN OTHERS.

America cannot export itself out of trouble:

Because America owes the world a mountain of money, it cannot export itself out of trouble because its exports will go in repayment of its debts and it will get nothing for its exports.

Why should I pay you money for goods you deliver when you owe me money? Surely it is sensible to deduct from what you owe me before I start paying you.

NOT ONLY DOES THE US OWE THE WORLD A LOT OF MONEY BUT THE OWED MONEY WAS SPENT BY ITS CITIZENS ON USELESS THINGS LIKE CREDIT CARD PURCHASES AND OVERPRICED ASSETS LIKE HOUSES AND SO IT CANNOT RETURN THE MONEY IT OWES THE WORLD EXCEPT BY PRINTING MORE OR IT MUST WORK FOR FREE FOR A LONG, LONG TIME WITHOUT PAY TO CANCEL OFF THE DEBTS AND ITS CITIZENS WILL BE IMPOVERISHED OR ON STARVATION DIETS BY THE TIME IT CLEARS ITS DEBTS.

THUS THOSE WHO THINK AMERICA CAN EXPORT ITSELF OUT OF TROUBLE MAY BE ENTERTAINING FOOLISH DREAMS OR DELUDED NOT ENTERTAINING REALITY.

Are you in the same boat as America?

AMERICA THOUGHT IT WAS PUTTING A LAUREL AROUND ITS NECK BEING THE ISSUER OF THE CURRENCY OF TRADE FOR THE WORLD AND FIERCELY DEFENDED IT BUT UNDERNEATH THAT LAUREL IS A NOOSE THAT KEPT TIGHTENING UNTIL IT NOW WILL STRANGLE THE US.

When America appointed itself the world’s banker and issuer of the world currency of settlement, it reaped many unfair even criminal material advantages.

For instance US$600 billion currency is in circulation outside the US and this is a free loan to the US and should you lose your money eg by fire, flood or even termites, that is the end of your claim to the US and you have forfeited your assets to the US forever.

Many people keep their money in the US and this is a further significant loan to the US.

The US does not need to earn USD to finance its trade with others, it just prints and keep printing if it runs out of USD to pay.

THE US THINKS IT IS ON A GOOD DEAL, A ‘NO LOSER’ BUT IT WAS ACTUALLY PUTTING A NOOSE AROUND ITS NECK THAT KEPT TIGHTENING BUT IT GOT USED TO IT AND NOW THIS NOOSE IS ON THE POINT OF STRANGLING THE US.

IN THE SAME WAY MANY PEOPLE THINK THEY ARE PUTTING LAURELS AROUND THEIR NECKS WITH THEIR CONDUCT WHEN THERE IS A NOOSE CONCEALED UNDER THE FLOWERS OF THE LAUREL AND IT IS TIGHTENING AND WILL SOON STRANGLE THEM AND CONSIGN THEM TO ETERNAL PUNISHMENT.

Where have all the money gone?

People talk of a credit crunch, that there is no money in banks for lending, so where have all the money gone?

There is money that was a mirage, never was there and this naturally has disappeared and there is money that was actually there but has disappeared and this can only disappear from the system or banks into the pockets of the few who have siphoned off the money by hook or crook.

What is money that was a mirage that was never there?

Money based on unrealistic overvaluation of stock and property is money that was never there, only in theory. So long as there is sufficient liquidity in the system to carry out transactions at these inflated prices and there are fools out there willing to pay inflated prices, the appearance of this wealth and extra money in the system is maintained. Once there is a shortage of liquidity to finance these overinflated prices and people balk at paying those prices, the overvaluation vanishes and so in an instant all these extra wealth that was never in the system in the first place vanishes.

Thus your Google share may be valued at $100 and the total pool of Google shares worth billions but if everyone tries to sell Google at $100 prices will collapse. In the same way your house may be valued highly but if now people balk at paying that price because they now cannot afford or they cannot obtain finance, then prices must fall and with it valuation of the worth of all houses in the same category must fall and the system becomes overnight much less valuable.

You can stand at a pool and count the fish you see and come with a gross overestimation of fish in the pool by double even triple counting the same fishes. Thus if you are unscrupulous you can count 100 fish when there are only 10 fish and thus overestimate the wealth in the system. In the same way, your money in the bank has been lent out and is no longer there but it is counted as if it is there plus your money that is now in the hands of the person who was the recipient of the loan that contained money.

It seems Lehmann Bros like Northern Rock got into trouble because it borrowed short term from money markets to finance long term loans and when there was a liquidity crisis it could not meet its commitments. AIG guaranteed loans without the financial backup necessary to meet its guarantees. Thus there is actually much less money available for use than it appears to be, it was a sham or deception that enabled more lending to occur than was feasible.

What is money that was there than is now gone?

Notwithstanding this virtual wealth that was never there in the first place and has now vanished into thin air, there is considerable wealth in the system and a lot of this wealth has now been transferred by hook or crook to a few individuals who can never spend enough to keep the economy humming whilst the many are now saddled with debts or unemployment who cannot spend to keep the economy humming.

THROUGH CORRUPTION AND PREDATORY METHODS, A FEW HAS AMASSED A LOT OF WEALTH THAT CAME FROM THE SYSTEM OR THE COMMON PEOPLE AND NOW A LOT OF THE MONEY IS IN THE HANDS OF THESE FEW WHO ARE NOT CONTENT TO KEEP THE MONEY IN THE BANK BUT ENTRUSTED TO HEDGE FUNDS WHO CONTINUE TO PLUNDER THE SYSTEM DESTABILIZING IT AND TRANSFERRING EVEN MORE MONEY FROM THE COMMON POOL TO THESE FEW ALREADY FITHILY RICH PEOPLE.

There can never be a quick recovery:

Anyone who believes there can be a quick or significant recovery in the economic crisis does not understand or is deluded because someone who understands the true causes of the crisis knows it is something insoluble or difficult to repair.

Northern Rock & Lehmann Bros were borrowing short term to finance long term and that is mad. Would the world permit a return to such craziness of borrowing short term to lend long term? Without such shenanigans there will be less money available for lending so how can the economy be as hot as before?

AIG was guaranteeing loans without the necessary backup. Without AIG guaranteeing loans without backup, can the world boom as before?

The hot property market in the US was because banks were lending indiscriminate to people without collaterals, even jobs. Can this now continue and without this continuing, can the world economy be as hot as before?

Derivatives involved the mixing of rotten meat with good meat to be sold off as good meat. Now that this has been discovered who will accept such parcels of minced meat? Without people accepting rotten meat as good meat, can the world economy be as hot as before?

Now the wealth of the system is the hands of a few who can never spend enough to stimulate the economy whilst the many are in debt or jobless so unless these filthily rich few are willing to return their wealth to the system or people there can never be a recovery.

THE WORLD SYSTEM IS NOW IN A JAM, TOO FEW PEOPLE OWN TOO MUCH WEALTH WHILST TOO MANY PEOPLE ARE IN DEBT OR JOBLESS AND CANNOT SPEND. IT IS IMPOSSIBLE THE RICH GOATS WILL RETURN THEIR WEALTH TO THE SYSTEM BUT INSTEAD THEY ENTRUST THEIR WEALTH TO HEDGE FUNDS THAT MARAUD TO PLUNDER ALL OVER THE WORLD INCLUDING PUSHING UP OIL PRICES TO CRIPPLING LEVELS.

THUS ANYONE WHO THINKS THERE WILL BE A QUICK RECOVERY OR SUBSTANTIAL RECOVERY IS DELUDED. THERE ARE OTHER FACTORS APART FROM THOSE I MENTIONED THAT ARE INSURMOUNTABLE STUMBLING BLOCKS TO A QUICK OR SIGNIFICANT RECOVERY AND SO YOU ARE DELUDED OR DO NOT UNDERSTAND IF YOU THINK IT IS POSSIBLE.

Another Krugman Nonsense:

Another Krugman nonsense is that even though the US is in serious debt, its deficit spending to stimulate the economy should have been far more aggressive than has occurred because the consequences of chronic unemployment and a stalled economy is far worse. He said big national debts are OK, manageable and can be overturned with time based on past experiences.

THIS IS A RULES OR COMMAND LOGIC THAT IS BLIND AND WITHOUT UNDERSTANDING THAT IT MAY NOT HOLD, WHAT HOLDS IN THE PAST MAY NOT HOLD TODAY BECAUSE CONDITIONS ARE DIFFERENT THAT MAY RENDER THAT RULE INOPERABLE.

Suppose you are a fit healthy young man then if you sustain a serious debt, it is likely you can clear it but if you are now an old man carrying old injuries you may not be able to cope with serious financial debts as before and so it is dangerous to conclude that just because this man could clear severe debts in the past, he should be able to clear similar debts today.

America may have racked up big debts during the great depression after the roaring twenties went bust but the debts then may be relatively less severe, it was still a young country with a young growing population with plentiful untapped resources in minerals, agriculture, oil, technological innovations (cars, fridges, radios) etc.

Today’s America may be different, already saddled with much debt, its population is aging and people are having fewer children, it has exhausted its resources (oil depleted) and so to assume that just because America could surmount big debts in the past, it will surmount the current difficulties is to not understand the present problem specifically but to apply rules.

AFTER SPENDING YOURSELF INTO TROUBLE YOU DO NOT SPEND MORE ESPECIALLY BY BORROWING TO CREATE A BIGGER HOLE FOR YOURSELF BUT NO MATTER HOW PAINFUL, YOU SAVE YOURSELF OUT OF TROUBLE AND JUST BECAUSE AMERICA COULD REPAY ITS PAST DEBTS DOES NOT MEAN IT WILL DO THE SAME TODAY BECAUSE CONDITIONS TODAY MAY NOT BE THE SAME.

Why is she twisting her head?

Why is she twisting her head so severely whilst talking and peering through squinting eyes? The reason is because she is not an honest person, the bending reflects the twisting of reality and her squinting reflects her suspiciousness and rejecting. She is not a person of truth but has a twisted mind.

IT IS NEVER A PLEASURE NOR AT EASE TO CARRY YOUR HEAD IN A TWISTED POSTURE THUS AND PEOPLE DO SO BECAUSE IT IS DEEMED STYLISH OR DESIRABLE SEXUALLY AND IT ALSO REFLECTS THE BENDING OF THEIR MINDS, THAT WHAT THEY SAY IS NOT WUITE STRAIGHT OR TRUE.

Good never came from evil:

This is a rule and for people who understand and see, they do not need such rules but this is a good rule, no good ever came from evil, as Jesus said, the bad tree cannot bear good fruit.

Thus if you see something as bad, deficit spending or borrowing money to spend is bad then no good can come out it, if you think it will revive the economy and this justifies deficit spending you are deluded.

THE ONLY TRUE REASON FOR SPENDING ON SOMETHING IS IF YOU NEED IT (AND CAN AFFORD IT), NOT TO STIMULATE THE ECONOMY, IF YOU ARE SPENDING JUST TO STIMULATE THE ECONOMY THEN YOU ARE PRACTICING CONTROLLED INSANITY. SPENDING TO STIMULATE THE ECONOMY USING BORROWED MONEY IS WRONG AND EVIL AND NO GOOD CAN COME OUT OF IT.

Correction: She is diplomatic:

She comes from a province that supports Thaksin, her father is a mayor supports Thaksin whilst her mother is anti Thaksin and she thinks a Thaksin comeback will be bad for the country.

She is trying to be diplomatic and it is the tension in her mind that causes her to twist thus. Being diplomatic is not a virtue but trying to pander.

She says what is happening (staged demonstrations) is bad for the country or economy. It is not because something is bad for the country or economy but it is wrong or evil that you should not do it.

Modern extreme maximizing greed:

I think there is such an entity called the overnight interbank rate, banks park their surplus funds overnight to loan at a small interest rate to anyone just to extract the last ounce of profit from their funds. Borrowers may borrow short term from such interbank funds and if the supply is steady there is a temptation to borrow thus short term to lend long term as Northern Rock and Lehmann Bros were purported to have done. If the pool of such overnight funds are vast and stable then you can get away with some shenanigans to make money but if the pool was to dry up as happened recently then borrowers are left stranded unable to cover their positions.

THERE IS A LOT OF FINANCIAL RISK TAKING EVEN TO EXTREME LEVELS DRIVEN BY GREED TO MAXIMIZE RETURNS AND GET RICH QUICK. OFTEN IF NOT ALWAYS THESE RISK TAKERS POCKET THE PROFITS THEY MAKE AND SO THEY SUSTAIN LOSSES IT IS PASSED ON TO THE PUBLIC IN BAILOUTS. THE PRESENCE OF SUCH ACTIVITIES CONDONED BY AUTHORITIES BODE ILL FOR A QUICK RETURN TO HEALTH OF THE ECONOMY.

Two intractable insurmountable factors against recovery:

There are two intractable factors that stand in the way of recovery and it reflects a lack of understanding, denial and false understanding (delusion) that some people still pin hopes on a speedy recovery or partial recovery.

The first is that the wealth of the system is now in the hands of the few and unless they return the wealth to the system (impossible) there can be no recovery and the second is the chronic unemployment in wealthy countries as a result of the flight of industries overseas seeking minimum production cost and maximum profits. Unless these industries choose to return to their home countries (impossible) there will be chronic high unemployment that crimps recovery.

The reason why banks have no money is that the money savers deposited has been lent out for credit card and mortgage purposes and now no longer in the bank but in the hands of property developers and the privileged few who were sellers of goods and property that borrowers bought. You can print money to cover the shortfall but it only dilutes existing money and now this money controlled by the few are stuck idle, no matter how they spend, they cannot spend enough to stimulate the economy while ordinary people are ‘full of debts’ or unemployed to spend. Further the money these rich people possess and cannot spend enough is looking for ‘investment’ either directly or through hedge funds that further plunder and undermine the system.

THIS TRANSFER OF MONEY FROM THE MANY TO THE FEW HAS REACHED A CRITICAL STAGE AND BECAUSE IT IS IMPOSSIBLE RICH GOATS WILL RETURN THEIR ILL GOTTEN MONEY TO THE SYSTEM, IT IS EFFECTIVELY CHECKMATE AND THERE CAN BE NO RECOVERY BUT FURTHER DECLINE.

AGAIN IN THE SAME WAY BECAUSE IT IS IMPOSSIBLE THESE MULTINATIONALS WHO LEFT THEIR RICH HOME COUNTRIES TO SET UP CHEAP MANUFACTURING BASES OVERSEAS WILL UPROOT TO RETURN TO THEIR HOME COUNTRY TO SET UP EXPENSIVE BASES TO PROVIDE EMPLOYMENT THAT SUSTAINS THEIR CONSUMPTION, THERE IS NO WAY WESTERN ECONOMIES WILL RECOVER SIGNIFICANTLY BUT THEY MUST SUFFER CONSUMPTION CRIPPLING HIGH UNEMPLOYMENT.

Economic stimuli and low interest rates are pointless:

If I am correct that the system has reached checkmate with too much money in the hands of too few and manufacturers committing hara-kiri by separating employment from the markets they make profit killing the goose that laid their golden egg, then what is the point of all these costly multibillion stimulation programs governments all over the world have carried out, what is the use of low interest rates?

ALL THE ECONOMIC STIMULI AND LOW INTEREST RATES IN THE WORLD CANNOT RETURN THE MONEY IN THE HANDS OF THE FEW TO THE MANY, CANNOT RETURN EMPLOYMENT PROVIDING MANUFACTURERS TO THE MARKETS WHERE THEY MAKE MONEY.

Same money can be lent out many times and the danger it poses:

Suppose you have $400,000 deposited in a bank and it is lent out to someone buying a house. It is no longer there but in the hands of the developer who sold the house. Suppose this developer deposited the money in any bank and this money that was previously yours may be again lent out to say someone who bought a car and again if the car company puts that money in the bank it can be lent out to yet another person to say purchase household goods. Thus the single amount $400,000 that was formerly yours and that the bank assures you is still there has been lent out many times making the same or different bankers a fair bit of money in interest, provided all the borrowers are able to service their loans.

If some or all of the borrowers default on their loans then assuming the sum was lent out four times and all four defaulted, they have defaulted on four times the amount that was actually available $400,000 and so the losses have been magnified.

THUS A SINGLE SUM $400,000 ORIGINALLY OWNED BY YOU CAN BE LENT OUT, REDEPOSITED TO BE LENT AGAIN QUITE A FEW TIMES MAKING THE SAME OR DIFFERENT BANKERS PROFIT IN INTEREST SHOULD ALL BORROWERS SERVICE THEIR LOANS BUT IF THEY SHOULD DEFAULT, THAT SINGLE $400,000 MAY FATHER LOSSES THAT ARE MANY TIMES ITS AMOUNT AND THEREFORE BE A ‘BIG HIT ON THE SYSTEM’.

THIS MAY BE HAPPENING TO THE SYSTEM. WHEN BORROWERS ARE SERVICING THEIR LOANS THERE IS FABULOUS PROFITS, WHEN THEY ALL RUN INTO TROUBLE THERE ARE DISASTROUS SYSTEM THREATENING LOSSES THAT MAY BE YET TO BE REALIZED AND BE ABOUT TO COME.

The implications of leverage:

Leveraging, which is what lending, re-depositing and relending a same amount of money is about, that is rampant in the modern financial world, allows more lending to be done with the same money than otherwise would be, allowing more people to borrow and therefore the economy or consumption to be accelerated than it would otherwise be and swell banks’ profits when everything is going smoothly so that that nation’s economy grows rapidly or ‘phenomenally’ but should it hit a pothole then the disaster may be catastrophic rather than absorbable because a small amount of money has spawned defaults many times its size.

LEVERAGED LENDING DANGEROUSLY DISTORTS AN ECONOMY ALLOWING RAPID GROWTH MORE THAN IT WOULD BE WITHOUT LEVERAGED LENDING BUT SHOULD SOMETHING GO WRONG, THE LOSSES ARE ALSO MAGNIFIED TO BECOME EVEN SYSTEM THREATENING.

A catalyst:

A sum deposited in a bank essentially can act as a catalyst spawning by repeated cycles of lending and re-deposition many loans that are multiples of the original sum enabling consumption by borrowing far greater than that sum causing the economy to be boosted considerably. The danger is that all these people who borrowed using that same sum have not repaid their loans and will not do so for some years and if anything should happen so that they are unable to service their loans, if the loans have been injudicious, as has been the case worldwide (pay $500 and get a Proton car, predatory subprime lending, credit card advances) then it is a recipe for system threatening disaster, as has now occurred.

BECAUSE THIS IS AN ACCURATE DESCRIPTION OF WHAT HAS HAPPENED, THE PERSON WHO UNDERSTANDS TRULY KNOWS RECOVERY WILL BE ANEMIC AND SLOW IF EVER.

Not before time:

"This is a positive surprise and not before time," said Colin Ellis, Economist at Daiwa Capital Markets, in response to the unemployment figures.

What he meant was it could not have happened soon enough. ‘Not before time’ sounds impressive or stylish, it is the style in the substance of speech but it is false and does not mean ‘could not have happened soon enough’ except in your false perception that it does.

Nothing can happen before time but it must happen in time. He is speaking of hurry and impatience for recovery and that is always suffering and the adoption of an attitude by his mind that is always false and suffering.

THE FOOL IS ALWAYS HURRYING AND IMPATIENT FOR THINGS TO HAPPEN, IT IS ADDICTIVE AND HE BECOMES A ZOMBIE OF IMPATIENCE HEADING FOR LOSS OF CONTROL AND MAD IMPATIENCE.

Rushing is a program:

Rushing or hurrying or being impatient is a program just like being lazy, ‘taking your own sweet time’ or being slow is a program. The wise person, who is not a robot neither hurries, cannot be provoked to rush nor is he slow or takes his own sweet time.

Rushing is unspoken plan that is not only suffering, enslaving but it is conditioning, each time you hurry you are training yourself to be better at rushing or hurry that is always controlled agony that will end in certain uncontrollable agony.

Rushing is what people in this world do, what they incite each other to do and it is a programming that becomes addictive or irresistible, is always suffering and must be controlled but will end in loss of control and insane hurrying.

NO MATTER HOW GRAVE A SITUATION IS, THERE IS NO POINT HURRYING. WHAT IS IMPORTANT IS IF YOU READ THE SITUATION ACCURATELY AS IS TRULY IS AND THUS READING CORRECTLY, CARRY OUT THE CORRECT RESPONSES. HURRYING SCRAMBLES THE MIND AND LEADS TO DISASTER.

Kidnapped Chinese fishermen freed
 

Seven Chinese fishermen kidnapped from their boats off Cameroon's disputed Bakassi peninsula are released.

The implication of this is that most industrialized nations like Japan, US, China, Taiwan, Korea now fish all over the world in order to feed the overconsumption of their populace and this plunder is bringing fisheries to a collapse that may be far closer than mankind will admit nor does it and you care.

YOU THINK NOTHING ABOUT ALL THESE SHIPS TRAWLING ALL OVER THE WORLD CATCHING FISH, YOU HAVE FAR MORE IMPORTANT SELFISH THINGS TO BE CONCERNED BUT THE WORLD MAY BE EDGING TOWARDS FAMINE BECAUSE OF OVEREXPLOITATION OF THE EARTH.

TODAY’S EARTH IS VERY DIFFERENT FROM THE EARTH IN THE 1930S WHEN IT COULD PROVIDE THE RESOURCES FOR MANKIND TO RECOVER FROM THE HOLE IT DUG ITSELF THROUGH THE FINANCIAL CRASH OF THE GREAT DEPRESSION. THE EARTH MAY NOT ANSWER MANKIND’S CALL FOR HELP THIS TIME.