Financial topics

[Higgenbotham]

History will objectively record the reasons for America's downfall.

America is not the shining city on the hill. It has a dark history of having built its economic prowess on the sin of using Black African slave labor. Telling truths like these are too painful for humans. Humans are not a truth telling species.

In 1968, the former Black African slaves revolted in the streets of America and demanded their fair share. Objective history will record this revolt as such. Thus began the "Great Society" and "Civil Rights" programs which have been one of the contributors to the bankruptcy of America.

Since America had the reserve currency, it just printed off the reparations to the former slaves and demanded that the rest of the world pay for it with the threat of nuclear annihilation. That was easier than watching the cities burn.

The rest of the world can see these stone cold facts for what they are. They will not continue to pay for this. If it's not stopped internally within the US, which it can't be, the cities will burn anyway, but this time they will burn in a nuclear holocaust.

This is not about whether the US or the rest of the world is right or wrong in my view. It just is what it is and it's really that simple.

[aedens]

http://charlotte.cbslocal.com/2013/01/1 ... ang-signs/
H we have countless million of idiots in this nation and they expect me to surrender arms to protect my family.
http://photos.mlive.com/grandrapidspres ... vigil.html
They are being laid to rest today. I will not surrender my rights to idiots
and the majority have lost there mind.

[Higgenbotham]

I will not surrender my rights to idiots and the majority have lost there mind.

Absolutely they have lost their minds. The internal rot is probably farther advanced than in any empire in all of human history, because we have the whole world paying for it at a ratio of 7 billion to 300 million. The only question in my mind is when and how soon the Chinese will decide to stop paying and start going to war. You know they're not going to be as nice to us as we were to Britain. As long as the rest of the world pays, the spineless parasites in Washington and New York have conclusively demonstrated that they will keep demanding in lieu of their failure to control their internal population.

Now, here's the thing, as I told someone a few months back. When Captain John Smith came to America 4 centuries ago, he told the people that "if you don't work, you don't eat." Can anyone imagine a bureaucrat in Washington telling the 47 percent plus such a thing today? Try to imagine the US government demanding that they get on a bus at 6 am to go to a community garden or a factory that does productive work to earn their keep. This is the real crux of the issue. Anyone in Washington or New York think the Chinese don't understand this and will continue to pay?

"When Jamestown was England’s first permanent settlement in the New World, Smith trained the settlers to farm and work, thus saving the colony from early devastation. He publicly stated "he who shall not work, shall not eat." His courage and tenacity overcame many adverse situations in a new land. This strength of character and determination overcame problems presented from the hostile Indians, the wilderness and the troublesome and uncooperative English settlers. Harsh weather, lack of water, living in a swampy wilderness, English unwillingness to work, and attacks from the Powhatan nation almost destroyed the colony."

http://en.wikipedia.org/wiki/John_Smith_(explorer)

I would add that if the US were operating at a trade surplus and a budget surplus these comments would be irrelevant but such is not the case and the US is demanding the rest of the world fund these exponentially growing deficits. The exponential growth of the deficits is the issue.

[vincecate]

Absolutely they have lost their minds. The internal rot is probably farther advanced than in any empire in all of human history, because we have the whole world paying for it at a ratio of 7 billion to 300 million. The only question in my mind is when and how soon the Chinese will decide to stop paying and start going to war. [...]

I would add that if the US were operating at a trade surplus and a budget surplus these comments would be irrelevant but such is not the case and the US is demanding the rest of the world fund these exponentially growing deficits. The exponential growth of the deficits is the issue.

When the US prints $1 trillion in new money and half of the old dollars or bonds are held outside the US, the rest of the world sort of ends up paying a $500 billion inflation tax. I think it is more that they are not seeing the inflation yet so not feeling the pain of this inflation tax yet, not that the US is really demanding that people suffer through the inflation tax. If we have inflation at 8% I think there would be far less willingness to hold bonds paying 1.5%. But if the rest of the world gets out of US bonds/cash then the full pain of the inflation tax has to be paid by people in the US.

[aedens]

When they see the world like this they just populate the results. H is on course to what we have been seeing. Patterns may suggest many things and
John's updated P/E was noted also to tracking. I consider the game afoot as a few also on the NGDP and the some current events they see as noise from
there perch. Needless to say alot is going on to distract us also. China is restocking on discount as some ponder noise I feel also. Water, Wheat, Weather

[Higgenbotham]

When the US prints $1 trillion in new money and half of the old dollars or bonds are held outside the US, the rest of the world sort of ends up paying a $500 billion inflation tax. I think it is more that they are not seeing the inflation yet so not feeling the pain of this inflation tax yet, not that the US is really demanding that people suffer through the inflation tax. If we have inflation at 8% I think there would be far less willingness to hold bonds paying 1.5%. But if the rest of the world gets out of US bonds/cash then the full pain of the inflation tax has to be paid by people in the US.

The US leadership has made it pretty clear that they will abuse the world reserve currency for all it's worth, so I think that's the tipping point versus the actual future evidence of inflation pressure. The pressure will come one way or the other unless a financial war ensues to nip it.

I look at the fiscal cliff resolution as a declaration of war. It is saying that others will fund the deficit no matter how large it gets and that it is guaranteed to get larger by declaration of refusal to deal with it. The inflation is in the deficit and the deficit has now been declared to be in hyperinflation mode by the fiscal cliff resolution. Either the rest of the world will absorb the inflation in the deficit through bond purchases or through the price inflation that will result when the Fed buys the bonds and the parasites in the US get first dibs on the electronic printed money. The rest of the world can't possibly do either one.

From a strategic standpoint, all of that will begin to hurt other countries more than it helps and that hurt can only increase. So I think they have to go to war as soon as possible. It won't be possible to increase advantage from here on out.

[Reality Check]

The actual data in this chart, as opposed to the projections, ended in early 2011.

The actual data is now available into 2013.

Using old data that is closing in on two (2) years old, and includes predictions, rather than actual data, for all of 2012 can lead to conclusions such as: Obama has no chance of winning re-election.

[Reality Check]

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Decline of the West


How United Kingdom's current military forces compare to 1982:

1982 vs Today ( As the UK planned for war in 1982 and Today )

Armed Forces Head Count: 320,000 down to 160,000

Navy

• Air Craft Carriers: 2 down to 0
  Submarines: 32 down to 9
  Destroyers: 15 down to 7
  Frigates: 46 down to 13
  Small Patrol Ships: 15 down to 4
  Mine Clearing: 29 down to 15
  Moth Balled: 45 down to 10

Air Planes: 400 plus down to 150

http://www.telegraph.co.uk/news/worldne ... lands.html

[Higgenbotham]

Though the overall trend isn't good, any short term data that shows stronger export growth from China might help put off a war.

China exports rebound but 2013 outlook remains murky

BEIJING | Thu Jan 10, 2013 4:44am EST

BEIJING (Reuters) - China's export growth rebounded surprisingly sharply to a seven-month high in December, a strong finish to the year after seven straight quarters of slowdown, but subdued global demand means that the spike may not herald an enduring recovery.

Uncertain trade prospects contrast with data that showed resilient local loan demand, further evidence that the world's second-largest economy rebounded towards 8 percent annual growth in the last quarter of 2012 on firming domestic demand.

That modest revival may reassure China's new leaders after a once-a-decade power transition at the top of the Communist Party in November, and follows a raft of pro-growth policy steps designed to support the economy - poised to post its slowest full-year growth figure since 1999.

http://www.reuters.com/article/2013/01/ ... 5T20130110

[Reality Check]

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Sign of the times:

http://hosted.ap.org/dynamic/stories/L/ ... 2-18-48-21