Elaine Supkis

Flying Bankers and the Economic Crisis: How Do We Make Banks Lend?

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Banks were lending money that came back from Asia as Japan and China were buying our Treasuries, our Fannie Maes, etc. In return, we let Asia overwhelm our domestic markets with their value-added exports. We then ship raw materials to Asia.

This is the way a third world commodities nation operates, not an industrial power. The lack of lending is due to our nation being BANKRUPT. We are too deep in debt. Period.

Fixing this is not impossible: we need tariffs and barriers to manufactured goods as well as higher interest rates to encourage savings, not buying of say, gold, and hoarding it.

The US banking system has not attracted savings for several years, our national savings rate has been negative ever since Greenspan dropped interest rates to 1%. Now, Bernanke is dropping it to nearly 0%. This means, savings will collapse even worse.

So there can be no lending since there is no capital flowing into banks that can support any sort of lending. The money the Fed is giving the banks is NOT savings. The US has virtually no FOREX reserves unlike any of the Asian nations.

Indeed, Japan and China both have between them around $3 trillion in FOREX reserves! The US has less than $60 billion. This is absurd. And unsustainable for a nation which presumes to be the global monetary giant.

No analyst should avoid the issue of trade and FOREX reserves when talking about our economic decline and fall.

Who Is John Galt? We'll Soon Find Out

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What a ridiculous article. The collapse of the US economy came about during the Republican Revolution! The 'good old days' Mr. Wahlman is whining about were during the high-tax/high regulation/high unionization era!

Now, unions are dead, jobs are flying offshore, the rich pay nearly no taxes at all and still use piratical tax havens to hide their obscene levels of wealth. And pray tell, where did all the jobs go?

TO COMMUNIST COUNTRIES!!!! HAHAHAHA. Whew! I hope the John Galts of this world finally figure out the obvious. This is just too painful. And hilarious.

Thanks, Richard Nixon! Kissing Mao was the smartest thing a man ever did for the super-rich.

SWFs Report: Investments Move Away From U.S. Businesses

elainemeinelsupkis.typ...

At Culture of Life News, we not only have an extensive analysis about Sovereign Wealth Funds but also a really cute cartoon.

Todd, it certainly is true that the US and other G7 nations ran a concerted overt attack on all SWFs in the world last year just like the G7 tried hard to pretend gold was worthless and it would be best for all the central banks to sell of huge stashes of gold.

These moves didn't impress the SWF nations including Norway and Alaska [Palin pushed hard to have Alaska leave the United States].


Sovereign Wealth Funds were set into motion to overcome inflation. Japan and China park massive funds in their own FOREX reserves but China has decided to use .2% of this money to expand their influence in the world. This is a massive, massive amount of money sitting right behind the SWF run by China!

If the US kills the dollar, you can bet, the Chinese will first drain out their FOREX reserves to buy up most world resources like in Africa, South America, Mexico, Europe and the US itself.

Mandarin is a very difficult language. We should require it in school since our children will need to know how to use it when they grow up.

Where We Go from Here: Best and Worst Cases

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This is NOT a typical melt down. This is the decline and fall of the US global empire! The US/G7 solution which is being hammered out this weekend, piles another $2 trillion in just one year onto the backs of US taxpayers. This, in turn, is being funded by totally fake, Japanese-style 0% interest loans being extended to us by our trade rivals.

They want to keep us spending and spending and digging our trade hole ever deeper! This is NOT a solution. And the Pentagon is going to raise their own ante by another half a trillion in the next 2 years.

This collapse is identical to the collapse of the Spanish global empire, the French Napoleonic empire, the Soviet Union Empire, the German empire even more fatally, the English 'sun never sets' empire that collapsed thanks to WWI and WWII.

We might collapse in WWIII. The desperate attempts by England to 'grow' their empire after the Boer War showed their fatal weaknesses led to Germany lunging at England's throat in 1914. Nearly succeeded.


Bleeding badly from that, England continued to try to expand the empire but was so feeble, the Japanese could knock the English off with barely any effort at all. In one case, using soldiers on bikes to take Singapore. The US again, pulled England out of annihilation.

But no one is going to save us. Like when Russia fell, everyone will grab what loot they can and fly to better countries that aren't bankrupt.

Is the End of the Crisis Near?

You are 100% correct, Jlonsbury 59. History matters a lot! Ignoring it is dangerous. Calling bottoms is hard when in free fall.

Is the End of the Crisis Near?

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This story is typical of today's 'We are in a small mess' belief system. What is going down isn't mere banks or mere hedges. What is collapsing in a sea of red ink is the world's biggest empire: the USA.

Both politicians running for President last night endorsed more deficit spending and tax cuts. The black hole here is wild US overspending in both government as well as import markets. The real problem is the trillions in debt the US has accumulated this last 8 years: a total of $8 trillion in red ink.

This is rising, not falling. Unlike in the Great Depression when the US was the global creditor, the US today is the global debtor. We suck in more debt at every level compared to the rest of the planet. We are facing national bankruptcy.

This is a historic moment: just like when previous empires went bankrupt, we will see wars and insurrections, maybe even a revolution here in the US. More likely, fascism like when the German empire went bankrupt after WWI. The British empire limped along on the back of the US empire after WWI.


Any commentator who ignores this important information is deluding himself. Mr. Anonymous here at Seeking Alpha is a classic example of someone who can't see the forest because his head is in the ground.

Yesterday's Market: Advantage, Bulls

Guillotines are useful. Put them on wheels.

Yesterday's Market: Advantage, Bulls

Dear youth, this is coming from a rather old lady, old enough to be your mother: please read 'The Bubble That Broke The World' by Garrett Garrett. It was written during the Great Depression. Mises.org has it in full or if you Google the names, it will come up, the entire pdf file.

It clearly explains how these markets operate. You are in the middle of the process whereby BOTH bulls and bears are ground down to nothing while a downer market jerks to its ultimate bottom. The bottom can easily be a 90% loss like in the Great Crash of 1929. Stocks had their greatest record up days during this grinding process. They would shoot upwards and then slowly lose all the gains in less than a month and the general trend was, over time, downwards.

This is why youth must learn the hard way how these things work. During the 1970's collapse and stagnation of stocks, I loved to listen to brokers who were survivors of the Great Crash, they were all in their sixties back then.

One said, 'You don't try to get rich, you try to stay alive.' I decided to make money in other creative ways during that time and I stayed alive. I would strongly suggest you learn a life skill and use it for the next 5 years. Then, with some maturity and an idea of how the REAL world works, you can go back into finance.

I suggest the heads of all the top investment banks be put in prison to learn about reality. Heh.

Culture of Life News....cartoons and charts, full of information.

ECRI Future Inflation Indexes Indicate That Worldwide Inflation Is Receding

When equities and assets lose value, we get 'deflation.' Attempts at increasing this via printing money and deliberately running interest rates below the real inflation rate will only cause repeated waves of inflation/decompressio... that savages all levels of all markets.

What needs fixing is the tremendous imbalance in global trade. The US cannot afford to take on more international trade debts. We have run up trillions in international trade red ink and this is utterly unsustainable. This is at the heart of the banking collapse.

ECRI Future Inflation Indexes Indicate That Worldwide Inflation Is Receding

Culture of Life New here!

All this 'deflation' is due to the US and Europe ceasing all talk about bomb, bomb, bombing Iran. So the 'war premium' on Middle Eastern oil is dropping. But Saudi Arabia and the others are not happy with oil dropping back to $21 a barrel.

They have the ability to change that quickly. If not, the Muslim revolutionaries will overthrow the kings and sheikhs. This is what bin Laden wants, by the way.

The global economic slowdown is due to excessive credit which caused a series of classic bubbles identical to ones that were created this same way 100 years ago or more. The hopes of everyone in the world is, the US will go very, very deep into debt to restart world trade which is mostly one-way: to the US consumers.

We, on the other hand, cannot allow this. We took on epic levels of unnecessary debts from 1971 till today. We have run this dual government/trade deficits most of my life and the result is a loss of $10 trillion in trade and a $10 trillion government debt.

This is now being grossly expanded by the minute. Every few days, half a trillion is added to this debt pile! This is because the Federal Reserve really has no more real reserves and the Federal Government is now being run by foreign powers who now own the majority of our national debts.

They want to keep this going, not save our nation. Of course, they are our 'allies' as well as trade rivals like China. But then, Japan and England together hold by far, the most US government debt.

Fixing this means revolutionary changes in how the present world operates. And this means a degree of chaos.

Dollar Soars

Inflation is eating us alive. Taxing imports will do two things: balance the Federal budget and slow down the tsunami of imports that are shredding our industrial base as well as undermining our entire economic system.

Cheap TVs are fun but not if they are killing our nation. NO nation in history lasts long as a sovereign power if they run vast trade deficits.

Dollar Soars

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HAHAHA. The dollar is up because all our trade rivals are united in making the dollar stronger. This is why the Treasury had to ship out epic amounts of dollars to all the other global central banks this last 48 hours.

They all want to hold US dollars so they can stimulate even more lopsided trade with the US. The US has the world's biggest trade deficit, by far and away. And is thus, central to global trade.

We cannot allow this. A strong dollar is a disaster for us. The obvious and easiest cure is to have a tax on imports to the US. This will negate these naked attempts at weakening currencies that should be strong like the yen, for example.


But the Japanese won't allow this. Nor the Chinese. The EU, China and Japan all hold collectively more than $3.5 trillion in US dollars in their FOREX reserves. For crying out loud. We now have no reserves at all.

Nose Cut Off, Face Spited, Now What?

All the guys running around demanding we bail them out of the messes they made, themselves, is hilarious.

This is because they want their equities and investments to be profitable despite making very bad investments! If they are going to talk about 'blood in the streets' then maybe we should talk about REAL blood; when the working class is hammered by alternately, inflation and then a depression due to the deals of these Wall Street investment bankers....WELL!!!

That will be something big. If the guys who got rich off of creating bubbles and bribing Congress to tighten bankruptcy laws for the workers so they can be crushed forever under debts, the rich who paid Congress to undo all those Great Depression banking laws...they all deserve to lose everything.

I guess, they will all go bankrupt, eh? And I pray the goddess of Justice punishes the rich for foisting that stupid bankruptcy law on all of us! Next: we get a real Congress who will undo all these changes in the law the last 10 years especially the misnamed 'Patriot Act.'

Welcome to the Revolution.

Fooling Around a Financial Black Hole

You can't stand debate with a woman, can you? Ha.

Look, Japan has something the US doesn't have: A TRADE SURPLUS. They are not the same as us. We have tremendous debt...held by foreign powers including and especially, Japan! True, their stocks aren't forming huge bubbles like ours.

This is because they don't want YOU in their markets! They want to be the ones shopping, here. And they are now buying up our banks. Some depression, eh?

We are up to our eyeballs in debt and this has been enabled by the Japanese carry trade. But I am not an 'investor' like you...I am an INVESTIGATOR. Heh. Huge difference.

Common Sense: My Solution to the Mortgage Crisis

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We can't have 4% loans on homes. Thanks to inflation. Never forget inflation! We can't have 0% down, 0% interest and 0% paid off principal loans, either. No one sane will ever lend. And if we have the government lend this way, we get hyperinflation.

We cannot let lending be lower than inflation. We tried this for the last 4 years and it is now destroying us. There is no Santa Claus. Just Satan.