Thursday, August 18, 2011
Thursday, August 18, 2011 3 comments
The markets fell through the floor today, the official reason is the bad unemployment numbers, but while Initial Claims went up slightly, they’re better than we’ve had most of the last three years. Corporate media doesn’t like to mention the fact that the zombie banks might collapse again and it’s a toss up whether they will get bailed out this time.
The Dodd-Frank law does give the government the power to take the huge banks over the way the FDIC does with smaller banks but this would take away most of Wall Street’s power. How would that work… better ask the Magic Eight Ball… [shake shake tip] “better buy canned goods”. Let’s try again… that’s funny, it only gives one answer.
Joe Biden went to China, and out of courtesy the Chinese media toned down the scolding rhetoric that has been flowing non stop since the Republican’s tried to default on the debt. They came right out and said that they really want to hear from Biden about the negotiations he was involved in. Poor Joe, it really sucks when you have to go explain to the banker.
Biden met with his “counter part” in China, VP Xi Jinping, in reality Mr Xi is being groomed to take over Chairmanship of the Ruling Committee when the current Comrade Chairman retires. Only in the western media, which is dominated by advertising from the US Chamber of Commerce, is the leader of Red China referred to as “president”. This to make him more palatable to the American people who live with the illusion that capitalism leads to democracy.
Comrade Xi Jinping will be Chairman of a six man committee with absolute control of the last Super Power and is referred to by the same title as Chairman Mao because there is no difference between the two leaders except perhaps in style.
The Chinese own perhaps a trillion in US bonds and were probably cheered to see the ten year note set a new record price today as investors flee to safety. This drove interest on this bond to a new low and this is the basis that sets all consumer interest rates. This has caused record low mortgage interest, so that would be great if buying house was a good idea, or if you can even get a loan. A phenomenal number of home purchase agreements are falling through because the appraisal comes back at way below what the buyer agreed to pay.
Some people who have suddenly realized that the “Free Market” means no wealth for them are fleeing to gold and it set a new all time record price today. If you think that things are so bad that you want to buy gold at this price, you should be buying canned goods and ammunition. If the economy recovers, then gold will plunge in price and you won’t be able to sell on the way down. If the economy doesn’t recover, it will be a long time before you’ll be able to find somebody with anything they want to trade for gold.
Poverty continues to increase and the Republicans’ constant refrain is that we can’t afford to help the poor, educate the children of the middleclass or take care of the elderly because “we’re broke”, but only the bottom 99% are getting poorer. Walmart complains that their customers are suffering from falling incomes and high unemployment and that’s why their sales are down for the 9th straight quarter. It’s nothing but crocodile tears however as they more then any one corporation are responsible for the decline of their customers.
You know the story, every Walmart lays waste to a 40 mile radius and every supplier was forced to move production to China or was destroyed. Walmart stock was the only Dow component to go up today. If the Walton heirs were one person then that Walton singularity would make Bill Gates look like small shop owner. (a singularity, is a small black hole destroying everything within its gravitational field, just like Walmart does) www.prairie2.com