Generational Dynamics Forum - New Site

http://www.zerohedge.com/news/2013-11-0 ... ning-match

We unpacked the black box on credit creation. Brodsky indeed has a decent narrative above on relationship to ngdp as
noted for some who survived those "realities" on the transitory effects called the peso crisis ect and lock ups we are aware of as also the
Smithsonian accord on free float of FX which I rather avoid since policy is intent on zirp which in essense is nirp arm twisting for captial creation
since once you see what the BIS and WTO actually is you can avoid the trip wires of ngdp rhetoric on the funtion of fungible capital maintenence.
If you look into the demise of the natfta "loopholes" on flooding which we also covered here in context to bilateral observations to get a grip on
production flows.
Anyway as before it interferes in actual production in a most dangerous manner since it is impossible to mark and measure moral hazard malinvestments from a premise of credit collapse with out marked to market seeking stabilization. Basil Moore 1983, “Unpacking the post Keynesian black box: bank lending and the money supply”, Journal of Post Keynesian Economics 1983, Vol. 4 pp. 537-556; here Moore was quoting a Federal Reserve economist from a 1969 conference in which the endogeneity of the money supply was being debated. Consumption of fixed capital.

The concept of print it they will come is ngdp which is the back bone of aca also, but not the limbs. Please remember the maintenance of fixed capital exists for the net working capital and actual free cash flow existing in energy margin cluster. The market made a move and few understand implications we have warned of since that is what it is in this turning.
As he notes "However, even if they succeed in increasing NGDP, they will likely fail in pulling the global economy out of its current disequilibrium."
As with NAFTA the loop holes we noted before and the new agreements are no accident either.
As for the current ACA sector and the election cycle it appears they could actually care less with over 10 million votes gerrymandered as banked as "its free" and no point trying to explain any more the concept no accidents in Politics since FDR and political science. The or else structures will not change since the electorate is actually brain dead and lets be clear I am no R or D. To note is the the lefts ability to control the verbiage on how they screw you in Borgeville and the ability to watch the implants of pressitutes control FUD as the wasting continues. Ask The Swedes how much free cash flow after the statists parasites bleed them pale white and thus rendered servile wards. Key words here are wasting and veil since it coveys the contextual process since lets say 1796.

Reality Check wrote:This macroeconomic options discussion is well worth watching in it's entirety.

Multiple different points of view from different speakers - at different points in the video.

Kind of rare on CNBC: http://www.cnbc.com/id/48193471

This is more important IMO http://enenews.com/study-all-western-ea ... sion-photo

Also any fiat has no limitations and the intrinsic value has always been zero.
For the past decades, the United States has been consuming capital on a large scale and at an alarming rate. Living standards,already lower
than a decade ago and will continue to fall, the long term stagnation in the British mold seems ever more likely. This destruction of capital is revealed
by the inflation adjusted market value of equity of U.S.corporations. The value of equity has declined by almost one-third during the past decade, in terms
of constant dollars and this was known in 1980 as supplied above. The forums covered this aspect since 1965 in the nomimal graph that was provided.
U.S. corporations fell from $2.8 trillion on December 31, 1968, to $l.7 trillion by December 31, 1980. Prepare, and I was being nice at level two provided.
Also we captured the endogeneity of the money supply from the 1983 report we linked back in the forums.
http://generationaldynamics.com/forum/v ... eity#p3862

http://mises.org/daily/4728 http://www.youtube.com/watch?v=FDY-LPRy ... re=related

http://generationaldynamics.com/forum/v ... 251#p14251

“We can easily forgive a child who is afraid of the dark; the real tragedy of life is when men are afraid of the light.” Plato
http://generationaldynamics.com/forum/v ... 3160#p3160

Dimon said Europe was the worst problem for the banking sector. "But the EU and euro are solid even if the states will have to be financially responsible and do all they can to develop common social policies," he said."

Business leaders are starting to brisle up. These bankers are smarter than the market Higg since it is not there money.
Note the geopolitical fruitcakes ecalations in this affair we posted as Quintus Fabius Maxim. The Leviathon is loose
and cannot be contained. Mere spectators, to the inane affairs of wisdom and humanity of the day we mentioned
pages back. I was having a focused conversation with my wife who had issue with a observation. It sumed to this.
"Man and person were not equivalent terms. A slave was not a person, but a thing; a person was a human being endowed with civil status."
We covered no man status already. When we slave to desire we are subject to consequences to a few. They will learn from
travail of lessons that cannot be tought. They consider trillions a solution as bricks into the tower of modern babel IMO.

It is no difference than this time reference:
Fri Jul 31, 2009 6:25 pm

“In the real world, banks extend credit, creating deposits in the process, and look for reserves later”.
We see who paid for that.
Their empirical conclusion was just the opposite: rather than fiat money being created first and credit money following with a lag, the sequence was reversed: credit money was created first, and fiat money was then created about a year later:

Having failed to understand the mechanism of money creation in a credit money world, and failed to understand how that mechanism goes into reverse during a financial crisis, neoclassical economics may end up doing what by accident what Marx failed to achieve by deliberate action, and bring capitalism to its knees.
Academic economics responded to these empirical challenges to its accepted theory in the time-honoured way: it ignored them.
Well, the so-called “mainstream” did—the school of thought known as “Neoclassical economics”. A rival school of thought, known as Post Keynesian economics, took these problems seriously, and developed a different theory of how money is created that is more consistent with the data.
The standard money multiplier model’s assumption that banks wait passively for deposits before starting to lend is false. Rather than bankers sitting back passively, waiting for depositors to give them excess reserves that they can then on-lend.

Interferes in actual production in a most dangerous manner since it is impossible to mark and measure moral hazard malinvestments from a premise of credit collapse with out marked to market seeking stabilization.
Basil Moore 1983, “Unpacking the post Keynesian black box: bank lending and the money supply”, Journal of Post Keynesian Economics 1983, Vol. 4 pp. 537-556; here Moore was quoting a Federal Reserve economist from a 1969 conference in which the endogeneity of the money supply was being debated.
Consumption of fixed capital
2005 1612.0 billion
2006 1623.9 billion
2007 1720.5 billion
2008 2032.3 billion
So, they print more and more will never be enough since there is no market signal to refer to.
is this true or false to date: http://generationaldynamics.com/forum/s ... ords=romer
This is in direct context to multiplier.
Romers work for the administration's theory of money multiplier was based on Fishers observations and it is in the forums from the 1930's.
viewtopic.php?f=14&t=2&p=3891&hilit=romer#p3891
How to generate severe stagflation in the years 2010 through 2019 right on que thanks Washington provided below.
The Macroeconomic Effects of Tax Changes: Estimates Based on a new Measure of Fiscal Shocks, by Christina D. and David H. Romer (March 2007). (Christina Romer now chairs the president's Council of Economic Advisors). This study found that the tax multiplier is 3, meaning that each dollar rise in taxes will reduce private spending by $3."
In the same vein: This is from Professor Fisher's book entitled 100% Money, revised edition
published by The Adelphi Company (1936)
There is a growing opinion among specialists in this field that the per capita money income is approximately equal to three times the per capita
money in circulation. Should this opinion be confirmed - that money and money income maintain an approximately constant ratio or even that this
would be true in the absence of great booms and depressions - we would reach the rather startling conclusion that to maintain the dollar as a
fixed fraction of per capita income would amount to the same thing as fixing the per capita supply of money and that the only statistics needed
by the Currency Commission would be those of population. We cannot, as yet, be sure that the two criteria - a fixed per capita quantity of money
and a dollar as a fixed fraction of the per capita income - are so nearly the same; but we can at least be sure that the per capita quantity plan
would not be a bad solution of the money problem. To note, this calculation exists.
We are right on target to what we already know. Also Fisher dies bankrupt and under his Family's dominion.
http://generationaldynamics.com/forum/v ... omer#p3608

It's not that government has lacked information needed to fix the problem. It is institutionally incapable of bringing about the desired result, since the principles of profit and loss, private property and contract, enterprise and entrepreneurship, do not exist in government. Any Government operates with an eye to its own short-term survival, and those of its connected interest groups, and nothing else. Basil Moore 1983, “Unpacking the post Keynesian black box: bank lending and the money supply”, Journal of Post Keynesian Economics 1983, Vol. 4 pp. 537-556; here Moore was quoting a Federal Reserve economist from a 1969 conference in which the endogeneity of the money supply was being debated. “In the real world, banks extend credit, creating deposits in the process, and look for reserves later”.

We see who paid for that.

Their empirical conclusion was just the opposite: rather than fiat money being created first and credit money following with a lag, the sequence was reversed: credit money was created first, and fiat money was then created about a year later: Having failed to understand the mechanism of money creation in a credit money world, and failed to understand how that mechanism goes into reverse during a financial crisis, neoclassical economics may end up doing what by accident what Marx failed to achieve by deliberate action, and bring capitalism to its knees. Academic economics responded to these empirical challenges to its accepted theory in the time-honoured way: it ignored them.

It was ignore to the extent to inflate the debt away in which all Governments do. It is policy and another fatal deciet of historical context of fact.
The fact of being Independant is your only recourse to preserve capital. No one will, or does care other than the common man regard to which is being subjucated for total assimilation to the Statist's wake of they know what is best to push you into.

http://www.frbsf.org/publications/econo ... 6-28bk.pdf <----------- Higg
Measuring Oil-Price Shocks
Using Market-Based Information
CME to delivery would emphatically stop the nonsense.

(G-T) = (S-I) – NX

(G is government spending, T is taxes, S is savings, I is investment and NX is net exports).


Shocks from VAR with net oil price increase.
Conventional measures of oil-price shocks based on oil-price changes have two obvious
flaws: endogeneity and forecastability as paper unfolds.

http://www.ogj.com/index.html

"It seems the incident was in a noncore part of the refinery since it's still running. There's no reason why it should disrupt supplies anywhere in Europe. There's overcapacity in the downstream sector anyway," said Robert Beaman, an oil analyst at consultant Business Monitor International.

Also a open question is what does the Ruble want to equalibrium on there aquisition of a devalued currency?
What united the Third Estate is that most had little or no wealth and yet were forced to pay disproportionately high taxes to the other Estates.

http://www.marketwatch.com/story/how-to ... nginsightb

It's not that government has lacked information needed to fix the problem. It is institutionally incapable of bringing about the desired result, since the principles of profit and loss, private property and contract, enterprise and entrepreneurship, do not exist in government. Any Government operates with an eye to its own short-term survival, and those of its connected interest groups, and nothing else.

Basil Moore 1983, “Unpacking the post Keynesian black box: bank lending and the money supply”, Journal of Post Keynesian Economics 1983, Vol. 4 pp. 537-556; here Moore was quoting a Federal Reserve economist from a 1969 conference in which the endogeneity of the money supply was being debated.
“In the real world, banks extend credit, creating deposits in the process, and look for reserves later”.

We see who paid for that.

Their empirical conclusion was just the opposite: rather than fiat money being created first and credit money following with a lag, the sequence was reversed: credit money was created first, and fiat money was then created about a year later: Having failed to understand the mechanism of money creation in a credit money world, and failed to understand how that mechanism goes into reverse during a financial crisis, neoclassical economics may end up doing what by accident what Marx failed to achieve by deliberate action, and bring capitalism to its knees. Academic economics responded to these empirical challenges to its accepted theory in the time-honoured way: it ignored them.

The process continues market compression we mentioned....

mannfm11 » Thu Jul 23, 2009 9:57 pm "In that vein, he is somewhat right in that a bubble don't need an economy, only speculators who think they are getting rich out of the money they are putting into something. Bubbles always break. In accordance with John, W.D. Gann wrote in his book, making money out of commodities that every generation had its bull markets, but evidently only the generations John mentions and their cousins have bubbles because it takes a type of manipulation to have one. Values are never what prices say they are.

The point is we mentioned how dangerous it is in this climate. Namely winners and losers chosen. Higgy and myself and a few other I fail to mention also
clearly understand the climate. Clearly we must understand the disconnects and to be forthright the FED is finally catching on but the intent we mention is the decimation of working capital enumerated as malinvestment not to mention to servive debt which mann has a firm grip on in the forums. I wish to be clear on the threat we face since we focus on earning's based on complicated metric's. I can only interpolate a few to sense net working capital and see who gets red circled along the way by the Political Clubbing Beast. We can linger a few quarters more in my myopic opinion as the process unfolds we watch and thanks to your thought provoking facet's conclude it will be longer than all wish given the trends we see. What I mean is contraction and debt Implosions in true context to regional play foreign and domestic we see here on GD.

Update:
http://www.londonstockexchange.com/exch ... d=10508770
Greece tries to renegotiate pensions with EU/IMF
Greece will provide visiting EU and IMF inspectors with an actuarial study on Friday.

Earlier:
"Van Rompuy gave no details of new sanctions because officials from the EU's 27 governments, the European Central Bank
and the European Commission are only starting work on changes to widely flouted EU budget rules.
EU leaders are due to decide on long-term reforms at an October summit."

endogeneity of the money supply exspansion

===============================================================

http://generationaldynamics.com/forum/v ... 2580#p5531
Fri May 14, 2010 "Events are truly unfolding indeed as the backwall nears. The economics stagnation will linger as ideological fantasy's crumble to the simple realism of chastisment. "

http://aei.pitt.edu/6935/01/gom%C3%A0_ricard.pdf

This article develops a policy-oriented, explanatory, meso-analysis of the configurative aspects of the Social Dimension of the European Union. It comprises six sections which fall into two wider parts. In the first part (sections one to three), the central elements of the analytical framework are outlined. Social policy is conceptualized in terms of its substantive boundaries and normative foundations. And the distinct structures, contents and policy types of the welfare systems.

Unsustainable Demographical trajectory's of net working capital. I am glad I am not on that panel.

And what they are up to depends on POV http://www.worldwatch.org/node/6444
The liberal bent of mind will spend whatever it takes to solve the historical problems.

http://blogs.worldwatch.org/transformingcultures/
"But the idea of driving consumer demand in new directions even if it is less profitable in the short-run appears to be an anathema to most corporations"


The market does not favor big business or even business in general; it favors consumers. By their choices in the marketplace, consumers decide whether a business can get big, stay big, or stay in business at all. Consumers are sovereign in a market economy: their spending determines what it produces; their saving determines how fast it grows. The choices of consumers also determine indirectly the wage rates of workers.

http://mises.org/books/mises_money.pdf

What is necessary is to prevent government from destroying
the monetary system by inflating. therefore the quantity of money
shouldn’t be manipulated by the government, according to the wishes of
those people who want to enjoy a few minutes, a few hours, a few days, or
a few weeks of good life from increased government spending, for a very
long disastrous state of affairs.

We must say that what creates the inflation is the famous “remedy”
for the government’s problems, the “remedy” which people believed was
discovered some few years ago, but which was really discovered by the
Roman emperors—deficit spending. Deficit spending made it possible
for the government to spend more money than it had and that it collected
from the people. As everybody knows, deficit spending, that is spending
more than one’s income, is very bad for the individual. The great error is
that people believe that what is bad for the individual is not necessarily
also bad for all the individuals together. This is the great mistake. And if
this mistake is not eliminated very soon, all our technological and scientific
improvements will not prevent us from a tremendous financial catastrophe
that will destroy practically all that civilization has created in the last several
hundred years. Mises
============================================================================================
http://generationaldynamics.com/forum/v ... 0%A6#p4225
It is a Political Economy only. Technicals and fundamental plays I feel are basically finished unless you have current Senate graft buy report.

The TBTFs couldn't care less that a huge, unregulated CDS market will destabilize the economy and lead to crises in the future.
Why should they? As Nobel prize-winning economist George Akerlof predicted in 1993, the financial giants would use CDS until the system crashed,
knowing that the taxpayers would bail them out when the crash happened.

They know the same thing will happen tomorrow . . .

A bill that would require speedier disclosure of stock trades by lawmakers has languished for years on Capitol Hill, suggesting Congress has little appetite for new rules on how its members manage their money. The legislation, by Democratic Reps. Brian Baird of Washington and Louise Slaughter of New York, would prohibit lawmakers from trading in financial markets based on nonpublic information they learn on the job. It would also require them to make their financial transactions public within 90 days of a purchase or sale. Currently, those disclosures are filed once a year, and insider-trading laws generally do not apply

When the government wants to pay out more money than before, if it
wants to buy more commodities for some purpose or to raise the salaries
of government employees, no other way is open to it under normal conditions
than to collect more taxes and use this increased income to pay,
for instance, for the higher wages of its employees. The fact that people
have to pay higher taxes so that the government may pay higher wages to
its employees means that individual taxpayers are forced to restrict their
expenditures. This restriction of purchases on the part of the taxpayers
counteracts the expansion of purchases by those receiving the money collected
by the government. Thus, this simple contraction of spending on
the part of some, the taxpayers from whom money is taken to give to others,
does not bring about a general change in prices.

"The point I am trying to make is what Mises and Rothbard warned of in context to amplification of
effect as in a waves to settlement of contracts since credit is not the issue when debt marked is the
obstacle overwelming the flow of credit to clear malinvestment which Government cannot solve given
there attributes to nuetralize effective consumer market preferences."
This observance has been forwarded also as we understand in the early to mid eighty's that the Senate was reduced to
servatude by the Globalism
http://www.americaneconomicalert.org/vi ... od_ID=1086
which the link above supplied to to actual conveyances to previous monetary policy's of trade
and lines of credit to global stabilization lost in the context of Austrians view and the Liberal Keynesians education
systems over the decades which we monitor also as Generational Dyanamic's today.

At least Hadrian had the brains to manage a Empire.

Result:
http://generationaldynamics.com/forum/v ... tein#p4264

Back in forums for clarification: Interferes in actual production in a most dangerous manner since it is impossible to mark and
measure moral hazard malinvestments from a premise of credit collapse with out marked to market seeking stabilization.
Basil Moore 1983, “Unpacking the post Keynesian black box: bank lending and the money supply”,
Journal of Post Keynesian Economics 1983, Vol. 4 pp. 537-556; here Moore was quoting a Federal Reserve
economist from a 1969 conference in which the endogeneity of the money supply was being debated.

We know what will happen as it did before “Unpacking the post Keynesian black box: bank lending and the money supply”,

=================================================================
We know how already, and as we see the truth unfold in context of today's
so called issues we are reminded it is three steps. First it is attacked by whatever
means that system in general needs to protect its interests. Second, it is ignored
as groups linger in doubt and lasty it is acepted as truth evident to those who learn
what has been done to control at your expense.

http://finance.yahoo.com/news/EU-nation ... et=&ccode=

"Van Rompuy gave no details of new sanctions because officials from the EU's 27 governments, the European Central Bank
and the European Commission are only starting work on changes to widely flouted EU budget rules.
EU leaders are due to decide on long-term reforms at an October summit." endogeneity of the money supply

There is no unpopular government in the long run as we are reminded. We are still
between step one and two since they act as they are given the bent of mind they choose.

Irony: Frustrated local and state officials were also waiting for the Army Corps of Engineers to issue permits so they can build sand berms in front of islands and wetlands to act as buffers between the advancing oil and the wetlands. I watched Black Blizzard on PBS on the struggle to survive in that region then as they do now in that current reality from practises. All politic's are local people so act as such. With those with a eye to see you can check to see what seal has been broken.

mannfm11 wrote:Some day it will sink in when I say money doesn't exist in banks. The money Jesse showed was already in the accounts. Bank capital isn't money, but the use of money. When a bank is recapitalized, depositors take money and give it to the bank. The bank buys bonds with it or holds it as credit between them and the bank that had the deposits, but the money isn't in a bank account any more. In some fashion it has to be made liquid. What you have is a series of debits and credits and little else.

[/b]

In short I understand what Koo is talking about, as I have given thought to it. When a creditor pays a bank, the money no longer exists. People have suddenly found themselves in debt with nothing saved for retirement. In order to have real money, you need to get out of debt. This means the credit cards, the car payment the house payment, all of it. Realize the common $100K a year household quite often has $300,000 or more in debt including the house. Being the cars are like having a horse, eats all the time, this debt repeats itself over and over again. But, figuring the person needs to get out of debt, they need to save this $300,000 plus pay the interest, depreciation and upkeep on what the debt is against. If that person saved 20% of his after tax income, which is roughly $15,000 on $75,000 after tax, it would take him 20 years to get out of debt. Maybe he don't need the larger house, but he still needs a house and likely this guy or gal is 40 or older, so at the end of payoff, they are looking retirement in the eye. The point is, the debt has to go if there is going to be a retirement. Forget the stock return models and all the other nonsense.

The other side of this equation is the inflation side, which is what creates the returns that people boast about in the first place. If people are looking at 5% inflation, they can imagine making 8% to 10% forever and with maybe $400,000 and Social Security they can imagine some kind of retirement. But, what if we have zero interest rates? $400,000 maybe earns $4000 and the idea of living forever on $32,000 a year goes to hope I can draw out $15,000 and not go broke or if I am going to draw $32,000 a year, I am going to need to save $1 million. So the psychology turns and what it threatens is the money supply itself.

So, the government issues enough bonds borrow funds and keep funds in accounts. The central banks may accomodate them. so the private sector is paying down their debt and owing it through the public sector. The difference is that when the public sector collects the money to pay off their debts, they give it back. This involves a tax increase.

I don't know that it would work. I believe the US inflated the world. If you read the Keen article, he makes the kind of points I believe are very pertinent. Stuff like the mess wasn't created by Chinese savings, but the reverse, Chinese savings was created by excessive American credit creation. The problem we face is the banking system almost has to go broke in this matter and the faster the debt is cleared out through bankruptcy and the faster people get the bill for their losses, the sooner we will get on the right track again. My guess is the best we could hope for is a 5 year recession with another 5 to 10 years of poor growth.

As far as the really rich getting richer? Much of it is a debt bubble that inflates the price of assets. Note the decline after the market decline in 2001-2003. Also, the debts are owed by the people farther down the pole, so it is clearly the case that the percentage would accumulate to those without debt. When you figure that 60% of the population isn't worth $100,000, this puts it in greater perspective. At the MSFT peak, Gates was supposed to have been worth $100 billion. That is closer to $40 billion now, but at $100 billion, he was worth 1 million times $100,000. That might have been the net worth of the bottom 10 million people in the US by himself. Maybe bottom 20 million if you take out their debts. It is only natural that this chart would appear as it does, as the numbers are only meaningful to the rich themselves, as the numbers are inflated and not likely to be sold to the poor or middle class. The chart is likely to turn down hard soon. The stock market is worth 50% of its current price over history and quite likely will decline in value in the next 5 to 10 years.

==============================================================================================================================
Back in forums for clarification: Interferes in actual production in a most dangerous manner since it is impossible to mark and measure moral hazard malinvestments from a premise of credit collapse with out marked to market seeking stabilization.
Basil Moore 1983, “Unpacking the post Keynesian black box: bank lending and the money supply”, Journal of Post Keynesian Economics 1983, Vol. 4 pp. 537-556; here Moore was quoting a Federal Reserve economist from a 1969 conference in which the endogeneity of the money supply was being debated.

by aedens » Fri Jul 31, 2009 7:25 pm

http://generationaldynamics.com/forum/v ... 1740#p3862

http://generationaldynamics.com/forum/v ... pool#p3755
This refers to John's conveyance to his linear relationship to monetary supply and Mr. Market as we conveyed from in forums to seen and unseen and the conformity in crisis since Uncle Sam needed to stabilize... http://generationaldynamics.com/forum/v ... t=27#p1920

Understanding financial vulnerabilities requires thinking across departments that have not historically been well coordinated—e.g., Defense, Treasury, and the intelligence community. Since money in the modern era can be instantly moved electronically, even the appearance of a threat to accounts can lead to large outflows into safer banks in safer countries. This is how the Eurodollar market began back in the early 1950s. The Soviet Union sold gold for dollars, but was afraid to keep the dollars in an account in New York, where they might be blocked for Cold War reasons. Moscow started a dollar-denominated account in an Italian bank known as “Eurobank,” where it felt safer from seizure.
In the 1956 Suez crisis, when Britain and France landed forces on the Suez Canal to prevent its nationalization by Egypt, President Dwight Eisenhower looked for ways to pressure London to call off the attack. Clearly, Washington could not take direct military action against NATO allies. Eisenhower turned instead to financial warfare. He ordered the Treasury Department to dump British Sterling on the international market. This depressed the value of the British pound, causing a shortage of reserves needed to pay for imports. If this financial situation had continued for much longer, it would have also increased British inflation. The message quickly got through to London, which, along with Paris, soon pulled out of the Canal.
In the aftermath of Iran’s seizure of U.S. hostages in 1979, President Jimmy Carter ordered Iranian government bank accounts frozen in the U.S. and the UK. Recently, the U.S. has acted to block North Korean bank accounts linked to illegal activities and the financing of its nuclear program. The U.S. Treasury Department blocked $25 million in accounts held in Banco Delta Asia in Macao. This Department also pressured other banks to stop dealing with the banks of Iran and Syria, as well as those of certain Russian companies involved in the arms trade. This pressure has made it more difficult for them to use the global financial system for letters of credit, trade finance, and remittances from their overseas citizens. It also has increased the risk premium and interest rates on any financing they are able to secure from other sources.
A U.S. crackdown on Iran’s Bank Sederat involved getting foreign banks including some of the world’s largest banks—UBS and Credit Suisse of Switzerland and ABN Amro of the Netherlands—to agree not to conduct business with this bank or risk being cut off from the U.S. financial system. U.S. actions have involved both official sanctions undertaken by the Treasury Department’s Office of Foreign Assets Control, and informal actions intended to sap business confidence in dealing with Iran.

Similar patterns do exist still given demographic in contraction and currency.
aedens » Thu Jul 23, 2009 10:52 pm "I feel many forward looking Corps have already settled that"
What I mean is contraction and debt Implosions in true context to regional play foreign and domestic. I was amazed at the amount myself seeing the data today. Only one person conveyed the implication's when the wall fell I read and the complication's I remembered other than being reminded by below.

mannfm11 » Thu Jul 23, 2009 9:57 pm "In that vein, he is somewhat right in that a bubble don't need an economy, only speculators who think they are getting rich out of the money they are putting into something. Bubbles always break. In accordance with John, W.D. Gann wrote in his book, making money out of commodities that every generation had its bull markets, but evidently only the generations John mentions and their cousins have bubbles because it takes a type of manipulation to have one. Values are never what prices say they are.
MarshAviator » Wed Aug 05, 2009 9:37 am complex system failures Thanks guys....

Creative destruction most ignore or remember since are in a new business cycle albiet mixed to say the least.....
mannfm11 Earnings in the market are a non issue right now. They aren't because of the nature of a bursted bubble. The prices of the past relate to a financial bubble that allowed them to earn anything. Even though there might be a temporary leveling or pop in earnings, the next move is to lower and lower level until there are no earnings. Then debt will begin to consume corporate USA and Europe as it has consumed housing.
Latvia has suffered the most from the financial crisis. In terms of macroeconomic indicators, Estonia is not much different than Latvia. Estonia's gross external debt, most of which is privately held, is 116 percent of GDP, compared to Latvia's 124.6 percent. Furthermore, Estonia and Latvia both have a very high percentage of foreign currency-denominated loans in their loan portfolios 86 percent and 90 percent, est.

Dollars in green shoots from the new Black Box Crew.

Basil Moore 1983, “Unpacking the post Keynesian black box: bank lending and the money supply”, Journal of Post Keynesian Economics 1983, Vol. 4 pp. 537-556; here Moore was quoting a Federal Reserve economist from a 1969 conference in which the endogeneity of the money supply was being debated.
“In the real world, banks extend credit, creating deposits in the process, and look for reserves later”.
We see who paid for that.
Their empirical conclusion was just the opposite: rather than fiat money being created first and credit money following with a lag, the sequence was reversed: credit money was created first, and fiat money was then created about a year later:
Having failed to understand the mechanism of money creation in a credit money world, and failed to understand how that mechanism goes into reverse during a financial crisis, neoclassical economics may end up doing what by accident what Marx failed to achieve by deliberate action, and bring capitalism to its knees.
Academic economics responded to these empirical challenges to its accepted theory in the time-honoured way: it ignored them.
Trust at home hinges to abroad...http://www.americanthinker.com/2009/08/ ... _pill.html Pushing Up Daisy's

Why are we angry was asked?
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