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October 24
I'm an electrical engineer and mathematician by training. My career has spanned diverse areas of expertise from being part of a team which designed the world's most powerful computers to corporate consulting around business transformation and information-based solutions to being a corporate sales and marketing executive in the information technology and business consulting space. I’ve led teams responsible for innovative and transformative solutions and been part of teams that helped set strategy for many of America's greatest companies. Two of my interests are econometrics, democratic finance and quantitative - qualitative analysis. Over the years I have developed risk-based models and trading systems meant to identify significant investment opportunities and periods of extreme risk. My blog is an outlet for another of my passions, writing. I generally consider myself a contrarian. Therefore, many of my rantings are meant to encourage people to question what they believe to be true. Terms of Use & Disclaimer: First off, I don't take anything on here too seriously and you shouldn't either. These are simply sardonic rantings of Bill, my alter ego, often meant to agitate for peaceful & nonviolent reform. This web site reflects the views of its authors. It is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than its authors. The information on this site is provided for discussion purposes, comedic relief and entertainment only and are not investing recommendations. The authors may have positions in securities mentioned herein. Under no circumstances does this information represent a recommendation to buy or sell securities. While information discussed on this site was gathered from what are believed to be reliable sources, in no way is informational accuracy guaranteed. All information on this site may contain errors and omissions. Trading and investing involves high levels of risk. Always consult a licensed financial advisor or broker before making any and all investment decisions. Authors of this site and any sites which are fed by said site, including Open Salon and others, will assume no responsibility for the actions of the reader and user. Readers and users agree, as condition to accessing this site, to release and hold harmless this site's authors from all liability in connection with this site or any views posted on this site. All readers and users of this site agree that use of this site requires acceptance to the current Terms Of Use & Disclaimer and that current terms include any and all use and material from site inception. If you do not understand these statements in their entirety or do not agree to be bound by this current agreement, you must immediately discontinue use of this site. This Terms Of Use & Disclaimer may change at any time and it is the reader's and user's responsibility to review, understand and abide by any updates.

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JANUARY 15, 2013 2:54PM

Is The G20’s Faux Unity Unwinding? Germany Wants Its Gold Back From New York Federal Reserve.

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Now, there are a lot of conspiratorial comments that are going to come to pass with this announcement.  The AP reports that this came about due to an audit.  And, that the gold was originally stored in New York to avoid being taken by a Soviet invasion.  That is plausible for the same reason countries moved their gold during World War II.

The last time someone asked for their gold was the end of the last global currency regime.   The situation was clearly different but when the U.S. war state was busy turning Southeast Asia into a parking lot in the 1960s and early 1970s, France asked the U.S. for dollar payments to be converted to gold.  (We were still on the gold standard set up after WWII at that time.)  France asked for its gold, as then did other nations, because they knew the U.S. being able to honor its gold commitments was dubious at best.  The U.S. corporate war state needed more and more money to keep the global campaign going against the boogeyman of communism.   You know, like the global boogeyman of terrorism today.  And, that meant the U.S. would eventually break their commitments to the gold standard that limited their ability to print money needed to wage endless war.  And, to continue the U.S. government’s centrally-planned, massive Soviet-style over production of weapons systems that brought in untold riches to private, for-profit corporate capitalists running the military-industrial complex.  Sure enough, soon after France’s request, the U.S. flipped France and everyone else the bird and kept the gold for themselves thus defaulting on its commitment to the Bretton Woods agreement.  (Remember, I have said for years that I expect the U.S. to do this again by defaulting on/monetizing some or all of its foreign debts and my expected date for this is 2013.  And, so far, 2013 is looking mighty promising given the rancor over the national debt in Washington.)

Could this move by Germany be based on some level of mistrust?  It most certainly could but regardless of any conspiracy theories we don’t really know what is behind this move.  But, I consider it ominous to some degree.  One of our long-time theses on here is that the current global trade settlement system is in the process of failing.   

I wanted to get up a few timely posts that ultimately play into this dynamic and some level of distrust developing between G20 nations but don’t know that I will.   I still haven’t put up my follow up fiscal cliff posts.  I will.   As it pertains to this topic, let me at least say that the Japanese government just flipped the bird at all G20 nations with some recent government actions to protect their economy.  And, they cited that other nations shouldn’t be lecturing them on how to run their economy or their currency given how other G20 nations have all broken their promises made after the 2008 collapse.  Promises made that no one would attempt competitive currency devaluations.   I have mocked this notion time and again.  As I have noted numerous times, globalization is and has been for the last three decades all about currency devaluation.  That is how nations win the economic game of globalization.  So, the Austrian, corporatist, pseudo-economic, free-market dunces who point to trade wars as a cause of the Great Depression and who again state today that “free-trade” should continue unencumbered, all I have to say is that we have been in a trade war for the last thirty years.   And, frankly, as I have noted time and again, capitalism is an invention of the state.  Corporate capitalism and its offshoot, globalization, are the state’s version of economic warfare.  And, as I cited before in a verbatim Bill Clinton remark, he clearly cited corporate global trade as a war between nations.  That is not democracy or democratic economics.  As noted on here before, we are a free people and don’t need to compete against anyone for anything.   That we believe we do is simply corporate state propagandized enslavement to empire and corruption. 

I mocked those post-collapse G20 meetings at the time saying how none of these political idiots in attendance were going to fix anything.  But, that they had, in fact, created this mess.  And, that at some point they would all start to turn on each other.  That nations would break from unity and start to turn against one another.  Could this be the early signs of such an outcome?  I certainly think so. 

People who believe there is some global cabal or new world order meant to enslave and kill all of us are very, very wrong as I have noted before.  Are there globalists like Obama, Clinton and Gore who serve a failed ideology laid out by their corporate masters and by liberal idiots who wrongly believe we can avert war by economic trading with murderers, dictators and thugs?  ie, Appeasement of evil that led to the trading of, and eventual arming of Nazi Germany by western capitalism and the same dynamic has happened again today with western capitalism arming communist China.  Again, noted on here before.  Sure they are liberal idiots who espouse these views and they aren’t above using military force to further any motives.  But, George Bush, Dick Cheney, Don Rumsfeld and Ronald Reagan were strict nationalists.   Each are very dangerous in their own right under a neoliberal economic system as is in place around the world today.  

But, let there be no doubt that when it comes right down to it,  globalization is about American hegemony.  Period.  It is about corporate America looting of the world and extending our military power to support that goal.   We are a corporate empire whose goal is to loot the world.  To enslave anyone and everyone we can in corporate American-inspired culture and propaganda and using the U.S. dollar to do it.  Just like the corporate-capitalist British empire whose intermingling of private capital, private for-profit banking and private corporations in cahoots with the ruling political class, looted and enslaved every nation they could.   By the way, this effort at global looting is the same goal of modern-day Germany, China, Japan, France, Britain and other neo-colonial and neo-mercantilist political states.  That is globalization.  It’s an anarchist, free-market, free-for-all created and endorsed by the corporate-fascist state.

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Gold will go where gold will want to go. I read a book this summer on Japanese war spoils. Ferdinand Marcos had quite a good time in the Phillipines, but that is another story. Just another brick in the wall of the American Empire.
If you want my conspiracy theory take on the matter, for what its worth, I don’t think Germany shares Wall Streets confidence that their house boy will be able to disarm America in his second term. The whole thing could backfire right in their faces and in six moths lower Manhattan will be occupied by a few million hillbilly's, backed by their kin in the military, and waving plastic Jesus’s in one hand and AK47’s in the other. Who will get the gold then?

As far as you calling it an anarchist, free-market, free-for-all, I think I have to disagree TL. You are underestimating the opponent. Don’t kid yourself they have a plan. Of course you are right when you point out the obvious: the endgame does not include mass extermination of their own servants (which is exactly what the American people have become), as some of the more fringe elements of are plastic Jesus waving friends believe. That simply is not logical. But Globalism and its adherents do envision a robotically and permanently entrenched corporate world government, kind of like an Orwellian state on steroids.

And you are right about another thing: the globalists principle support, mostly inadvertently through ignorance, comes from the pseudo intellectual liberals who have been spoon fed a diet of false philosophy and false science for over a hundred years now. But that only serves to counteract the right which have been spoon fed false religion for almost two millennium.
Okay, call me a dolt if you want to, but you are puffed up with rhetoric that people with common sense just can't understand.

You say: "We are a free people and don't need to compete against anyone for anything." Is that right? So if Japan in the 1970s begins making better cars than the US Big 3, that means nothing, right? Just because in recent times many kinds of corrupt financial shenanigans have exploited notional differences in market currency valuatuons, arbitrage that is, fueled by all the fanciful financial inventions of derivatives, etc., this does not mean that there did not exist, underlying these paper based inventions, genuine diffrences in productivity. First the Japs in the 60s and 70s, then the Chinese in the last two decades have created the trade imbalances with the US because their workers work for lower wages and their return on capital was/is greater than in the US. If you can't acknowledge that then you are indeed an occultist of some kind....wink

Last point about anthropogenic climate change. I don't understand why you won't engage in a dialogue with an advocate for the orthodox theory of anthropogenic climate change. What are you afraid of? Such a dialogue would be instructive to an open audience, yet you dismiss the notion as perhaps beneath contempt. You are not reasonable.
I meant it is an anarchist free-for-all for society. Corporations most certainly don't see it that way. And I certainly agree that global corporate governance is what Obama is pushing with TPP. The fascist state continues to take and take and take and give to our corporate masters. So, I wouldn't be surprised to see plastic Jesus in Manhattan south... Regardless of the torturing of Jesus' message or fanaticism often exhibited by illegitimate religious authority, it is people of conscience and people who truly understand some meaning of Jesus' message who will ultimately provide a bullwark against the tyranny of the corporate state. And, it is the liberals that have pushed us off the cliff. Although few, if any, are willing to admit it.
Now as far as the last comment by my new found friend, I would suppose that if you cannot actually defend your thesis of anthropogenic global warming, you shouldn't be its cheerleader. Because you are simply outsourcing your thinking to someone else. And, that makes you ignorant. I'll amuse you with an answer because I have a special place in my heart for arrogant ignorance. But, this is the last time.

Now, regarding your mumbo jumbo about productivity, imports and other nonsense, I'm glad we don't have to classify you as someone who has common sense as a lack of understanding. You might actually try reading a book like Lefty. You might upgrade your condition from dolt to ignorant.

The U.S. worker is the most productive worker on earth. That is a statistical fact. It has been for the last 100 years. For that reason, we should never import anything that we have the resources to produce ourselves. Capiche? We import from other countries because of the Triffin Dilemma. ie, In the world of neoliberal economics, unregulated capital flees our country in order to benefit from slave wages, lack of environmental regulation, for bribery/corruption of emerging market officials and the like. That allows us to import what is mostly cheap junk. ie, The world's reserve currency allows us to print money for nothing and force people to make things for us at a price we will pay in order for them to gain access to dollars to buy oil, commodities, food, etc.

Don't you tire of posting ignorant comments on here?
You really are an arrogant mystic. You are the one who writes mumbo-jumbo, but, because you are intelligent, you can attract a tiny audience of conspiracy theorists, etc. So you deny that the developing economies around the world, such as the so-called Asian Tigers, were m ore productive than US companies and workers? So the rise of Japan in the 1970s and 80s, and the rise of China in the last two decades was solely the result of the privileged position of the US dollar as the world's reserve currency? But you haven't answered the question why US and other investors worldwide chose to invest US dollars in Asian, etc. production facilities, if, as you claim, the US economy was actually the most productive. The investors are just interested in making a profit. Real long run profits must be based on REAL WORLD productivity differences, based on an analysis of alternative investment opportunities, and such analyses favored the Asian producers over US producers for many years. What other explanation, except arrogant cultism such as you embody, could there be?