David Westerfield

Theology, Culture, Technology, Reviews, and Other Commentary

Tag: Telegraph

Pulling the Wool Over Our Eyes

Pulling the wool over the sheeples eyes. Nothing to see here, move along now.

IMHO, “Fiscal Cliff” has always been a media meme used by the government to score political points with the public, depending on whoever (as in which party) gets to take the most credit for averting it. “Oh look what we averted.” Once again, it’s the Hegelian Dialectic in full swing; thesis -> antithesis -> synthesis; or to put it another way: problem -> reaction -> solution. My belief is this was all planned and laid out beforehand, utilizing the politics of fear as a weapon against people who lack information about the seriousness of the situation we’re in. Now all of sudden, they announce a deal at the last minute. Oh yea! A deal. Now we can all be relieved right? Well what’s in it?

Reality: we’re so far off the cliff that we’re just trying to figure out how to land and extend the time it takes to hit.

“More than 80 percent of households with incomes between $50,000 and $200,000 would pay higher taxes. Among the households facing higher taxes, the average increase would be $1,635, the policy center said.” http://www.bloomberg.com/news/2013-01-01/senate-passed-deal-means-higher-tax-on-77-of-households.html

More:

Peter Schiff: http://www.youtube.com/watch?v=c8Fxn4of1dg

Ron Paul: http://www.zerohedge.com/news/2012-12-29/ron-paul-fiscal-cliff-we-have-passed-point-no-return

Ambrose Evans-Pritchard: http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9773911/Stocks-to-soar-as-world-money-catches-fire-Calvinst-Europe-left-behind.html

European History Repeats Itself

“Europe’s fiscal Fascism brings British withdrawal ever closer” – Ambrose Evans-Pritchard – Telegraph

“Just when you thought the EU could not go any further down the road towards authoritarian excess, it gets worse.” – Ambrose Evans-Pritchard

Things are spinning out of control in Europe, economically, fiscally and socially. German Chancellor Angela Merkel said today that “Europe is in a ‘very, very serious’ situation and that success is not yet guaranteed.” And no amount of money thrown at the situation can fix the structural cracks that are now emerging in the very fabric of the continent.

And what do these things have to do with the US? We face a very similar situation in the near future when compared in parallel to Europe with states versus the federal government. The only difference is the federal government is well established. Certainly there are differences that cannot be overlooked. Yet the situation sounds all too familiar with the federal government over-stepping its reach on several different fronts since Obama took office.

Ambrose Evans-Pritchard from the Telegraph hits on the historical nature of what is happening (history repeating and history being made) as well as the tyrannical nature of what the EU is proposing to alleviate problems. As one commenter said in response to the article, “I’m getting a very bad feeling about how matters economic and social are going to pan out over the next 3 – 5 years. There’s trouble blowing in the wind.”

Below are some of the summary quotes from the article above.

“Fonctionnaires and EU finance ministers will pass judgement on the British (or Dutch, or Danish, or French) budgets before the elected bodies of these ancient and sovereign nations have seen the proposals. Did we not we not fight the English Civil War and kill a king over such a prerogative?”

“Yet again we are discovering the trick played on our democracies by Europe’s insiders when they charged ahead with EMU [European Monetary Union], brushing aside warnings by their own staff economists that monetary union was unworkable without fiscal union. Jacques Delors knew perfectly well that this would lead inevitably to a crisis, but it would be the ‘beneficial crisis’ that would force sovereign parliaments to submit to demands that they would never otherwise accept.”

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Debt Contagion Picking Up Steam

And so the contagion spreads … first, Latvia’s economy (and government) collapses not that long ago, then Greece and Portugal’s ratings were cut by S&P yesterday, and now today, Spain was cut. And the question is, how much longer before we realize we’re a lot closer than we think to the same situation? Even more importantly is when will we realize that all the trillions in bailouts and stimulus bringing us to our knees in debt currently has done nothing to actually stimulate the economy (73% of economists agree to this effect, CNN Money)? And how much longer before politicians start feeling the effects of their poor decisions in the polls, as if the Scott Brown victory wasn’t enough of an indication? I wonder what this summer’s Town Hall’s are going to look like. To follow developments pertaining to this from a respected global economist, read Ambrose Evans-Pritchard at the Telegraph. History is in the making here.

Telegraph: There’ll Be Nowhere to Run From the New World Government

There’ll be nowhere to run from the new world government – Telegraph

Now that’s a newspaper headline you don’t see every day. I’m not one to jump on the ‘conspiracy’ band-wagon, but this isn’t even conspiratorial: what we are entering into, and what just happened in Copenhagen, is just out in the open, being talked about by leaders and promoted by the media.

Now to be sure, as far as global warming is concerned, the accord they came up with accomplished little more than what Kyoto accomplished: good will toward reducing emissions. The carbon output of 60 developing nations for an entire year, and all they achieved was good-will? That is of course if you believe CO2 to be a toxic substance, you know, the same substance required for … life. I digress.

However, what was clear from Copenhagen is that a network of nations is emerging as having clear control over the affairs of the people they govern throughout the developed and even developing world (something the third world nations were irate about after the Danish text leak revealed something to this effect). There are some very good arguments particularly pertaining to democracy in this article. Here are some choice quotes (my insertions in brackets):
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The Real Issue with Dubai’s Debt

Dubai is just a harbinger of things to come for sovereign debt – Jeremy Warner

These are the exact things Peter Schiff and Gerald Celente were warning about a while back. The issue with this surprise Dubai news is not that they may default on $80-90 billion in debt (the news that came out today). Rather, looking into the near future, this event may be a foreshadowing of things to come with the large industrialized nations. That’s why there was a global sell-off.

In 2007 to 2008, a financial crisis came upon the private sector. And so what did governments do? They bought up the debt amounting to trillions of dollars ($15.3 trillion to be exact). So now governments around the world hold an unsustainable amount of debt. Now what? Jeremy Warner explains it well here:

“The fear is that threatened default in this tiny desert kingdom is just a harginger of things to come for government debt markets as a whole. According to new estimates by Moody’s, the credit rating agency, the total stock of sovereign debt worldwide will have risen by nearly 50 per cent between 2007 and 2010 to $15.3 trillion. The great bulk of this increase comes not from irrelevant little states like Dubai, but from the big advanced economies – America, Europe, and Japan.”

“Up until now, markets have assumed that the ruinous fiscal cost of addressing the financial and economic crisis was probably just about affordable to the major economies. That view may be about to be challenged.”

These issues here (amongst others) are exactly why the government should stay out of the free market. Let the companies crash that need to crash. Get rid of the entire category of “too big to fail” and let the market do what it needs to do. Governments, when they intervene, wind up distorting and elongating what should have been a two year economic meltdown at max, only for some form of short-term economic gain. Now, governments are looking like they can’t pay the bills. Lo and behold: Keynesianism in action!

Now we’ll have to see if the rest of Celente’s predictions and forecasting comes true, which is that governments, as a response to not being able to pay debt bills, will have to raise taxes, which will then in response cause some form of a tax revolt among the people. You think the tea parties were crazy? Just wait and see if they try to do this.

Uncharted Waters

I’m just not sure why the FOMC (Federal Open Market Committee), after having been wrong on multiple assessments of the economy in the not so distant past, would be so quick to say we’re now on the fast -track to recovery when the stats and the history of past crises does not lend us that kind of optimistic conclusion. From Ambrose Evans-Pritchard (Archive):
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