Title: Mcgowanjm Wire 2012 Source:
[None] URL Source:[None] Published:Feb 26, 2012 Author:Various Post Date:2012-02-26 09:15:13 by A K A Stone Keywords:None Views:1480999 Comments:2390
Post Sat Jun 16, 2012 8:26 am by mcgowanjm The Age of Non Consequences or the Age of Denial is now over...
Mark it. Your fave numerology date of this coming week.
I've chosen:
062112
Just like 30 years ago this week when the
Reagan/Greenspan Commodities Trading Act was rolled out.
I had a hedge trade on that blew up because of that 'Act', so I remember it well.
When you look at any chart covering the time, you can see it to the day.
The Stock Markets soared. The Recession was over. And no one could explain why.
$1.75 Quadrillion later (love to give Jamie Dimon this number and see his reply :twisted: ) in Synthetic Investment Vehicles (See Enron JP Morgan;) and we have our answer.
ALL commodities charts have either formed a huge flag/pennant here or have dropped to the bottom of a Major Support level.
The Greek Election will be the explosion of the fuse that's been burning since September 15, 2008.
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mcgowanjm
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Post Sat Jun 16, 2012 8:33 am by mcgowanjm Re: Empire Manufacturing PLUNGES, misses big
Post Sat Jun 16, 2012 8:33 am by mcgowanjm While China's been just another copy of our Kleptocratic Plutarchy.
Most Chinese savings however are not invested in see-through apartment buildings. Bank deposits still dominate. The Chinese banks are the finest deposit franchises in human history.
They can borrow huge amounts at ex-ante negative real returns. And those deposits are mostly lent to State Owned enterprises.
The SOEs are the center of the Chinese kleptocracy.
If you manage your way up the Communist Party of China and you play your politics really well may wind up senior in some State Owned Enterprise. This is your opportunity to loot on a scale unprecedented in human history.
And what is the end result?: The Chinese Government (and the banks are part of the government even though they are listed) has access to seemingly unlimited bank deposits at negative real costs. When you have copious funds at a negative cost a lot of investments that look stupid under some circumstances suddenly look sensible.
US Treasuries look just fine. Don't think the Chinese are going to stop holding Treasuries. The Treasuries yield far more than they pay the peasants. The Chinese make a positive arbitrage on holding low rate US bonds.
Swap a few names and the resemblance with the System of the USSA is uncanny... :twisted:
While Russia has copied our political/diplomatic system. While covering our empire with it's own very precise choke point system. See Tartus Naval Base/Cyprus Bail Out bidding war for details.
