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Survey: Ordering Preps for Collapse – Results: Fate of Countries in Collapse

survey-says-2gc2Off the keyboard of RE

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Published on the Doomstead Diner on Septemeber 30, 2015

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Discuss this article at the Survey Table inside the Diner

TAKE THE ORDERING PREPS FOR COLLAPSE SURVEY HERE

Our new Collapse Survey TM for this week is on how you should order up your preps for Collapse.

There is a lot of dispute on this topic, particularly with folks who think Gold & Silver are important Collapse Preps to have.  Theory there is that the PMs will hold their value when the fiat money collapses. So do you want to convert your current paper or digibit money into Gold if you have some savings?  How much of your pile should be held in Gold? 

Alternatively, you have many folks looking at a Mad Max scenario unfolding, so they are more partial to Steel & Lead as an investment.  AKA, Guns and Ammo.

Then you have the Back to the Land folks who feel the best investment is to buy your own piece of property and start growing your own veggies.  Except, once your Goobermint is outta biz, who exactly enforces you Property Rights to that patch of land?  If you are a Libertarian or Anarchist who wants to see Goobermint disappear, than what gives you the right to own a piece of property?

In the survey, you get $10,000 to spend on whatever preps you like, distributed out however you like.  If you're going to buy land with that, it's probably going to take at least half of it right there.

Anyhow, you can express some of your opinions on these topics in this Survey.

survey-saysNow. on to the results from last week's survey, the Fate of Countries in Collapse! 🙂

Although I did include questions to rank many countries and/or regions as to their fate in collapse, mainly the survey was focused on the "Big 3", the FSoA, Russia and China.

There s a constant debate ongoing in the Collapse Blogosphere as to which of these countries will fare the best as collapse marches onward, and there is a lot of ideological spin that goes along with that analysis also.

So, here I tried to strip some of that out and just get a hard and fast global viewpoint on which will be best and worst as time goes by.

Below here are the results from this survey.

For most dead people in gross numbers, the Winner is

  1 2 3 4 5 6 7 8 Standard Deviation Responses Weighted Average
China 19
(31.15%)
15
(24.59%)
7
(11.48%)
5
(8.2%)
2
(3.28%)
7
(11.48%)
2
(3.28%)
1
(1.64%)
5.9 61 3.18 / 11
India 12
(19.67%)
11
(18.03%)
10
(16.39%)
6
(9.84%)
7
(11.48%)
5
(8.2%)
2
(3.28%)
2
(3.28%)
3.8 61 3.97 / 11
Middle East-North Africa 3
(4.92%)
7
(11.48%)
13
(21.31%)
10
(16.39%)
5
(8.2%)
7
(11.48%)
10
(16.39%)
2
(3.28%)
3.96 61 4.74 / 11
Japan 4
(6.56%)
10
(16.39%)
2
(3.28%)
8
(13.11%)
8
(13.11%)
8
(13.11%)
6
(9.84%)
5
(8.2%)
2.81 61 5.38 / 11
USA-Canada 10
(16.39%)
3
(4.92%)
4
(6.56%)
8
(13.11%)
5
(8.2%)
3
(4.92%)
4
(6.56%)
6
(9.84%)
2.31 61 5.8 / 11
Sub-Saharan Africa 4
(6.56%)
8
(13.11%)
7
(11.48%)
4
(6.56%)
9
(14.75%)
0
(0%)
4
(6.56%)
9
(14.75%)
2.54 61 5.95 / 11
Europe 2
(3.28%)
3
(4.92%)
4
(6.56%)
6
(9.84%)
8
(13.11%)
11
(18.03%)
8
(13.11%)
8
(13.11%)
3.37 61 6.08 / 11
Southeast Asia 3
(4.92%)
3
(4.92%)
5
(8.2%)
5
(8.2%)
7
(11.48%)
7
(11.48%)
7
(11.48%)
3
(4.92%)
2.84 61 6.49 / 11
Russia 3
(4.92%)
1
(1.64%)
7
(11.48%)
4
(6.56%)
4
(6.56%)
3
(4.92%)
9
(14.75%)
11
(18.03%)
2.78 61 6.89 / 11
Central-South America 0
(0%)
0
(0%)
2
(3.28%)
2
(3.28%)
4
(6.56%)
8
(13.11%)
8
(13.11%)
9
(14.75%)
4.48 61 7.9 / 11
Australia-New Zealand 1
(1.64%)
0
(0%)
0
(0%)
3
(4.92%)
2
(3.28%)
2
(3.28%)
1
(1.64%)
5
(8.2%)
10.7 61 9.62 / 11

China!

India #2.

Since these are the two most populous countries on the planet currently, this makes perfect sense.  The Kollapsniks TM got this one right! 🙂

Now going by percentage of the current population:

  1 2 3 4 5 6 7 8 Standard Deviation Responses Weighted Average
Middle East-North Africa 14
(22.95%)
9
(14.75%)
4
(6.56%)
6
(9.84%)
3
(4.92%)
6
(9.84%)
15
(24.59%)
1
(1.64%)
4.92 61 4.28 / 11
China 7
(11.48%)
16
(26.23%)
7
(11.48%)
3
(4.92%)
10
(16.39%)
7
(11.48%)
0
(0%)
3
(4.92%)
4.31 61 4.41 / 11
India 3
(4.92%)
13
(21.31%)
6
(9.84%)
5
(8.2%)
13
(21.31%)
5
(8.2%)
5
(8.2%)
5
(8.2%)
3.85 61 4.87 / 11
Japan 6
(9.84%)
7
(11.48%)
6
(9.84%)
16
(26.23%)
5
(8.2%)
4
(6.56%)
4
(6.56%)
4
(6.56%)
3.65 61 4.9 / 11
USA-Canada 16
(26.23%)
3
(4.92%)
5
(8.2%)
3
(4.92%)
4
(6.56%)
6
(9.84%)
6
(9.84%)
5
(8.2%)
3.87 61 5.07 / 11
Europe 6
(9.84%)
2
(3.28%)
6
(9.84%)
6
(9.84%)
5
(8.2%)
14
(22.95%)
3
(4.92%)
8
(13.11%)
3.29 61 5.77 / 11
Sub-Saharan Africa 4
(6.56%)
7
(11.48%)
6
(9.84%)
6
(9.84%)
5
(8.2%)
1
(1.64%)
5
(8.2%)
20
(32.79%)
4.96 61 5.87 / 11
Russia 2
(3.28%)
3
(4.92%)
14
(22.95%)
2
(3.28%)
3
(4.92%)
4
(6.56%)
10
(16.39%)
6
(9.84%)
3.53 61 6.3 / 11
Southeast Asia 1
(1.64%)
0
(0%)
2
(3.28%)
11
(18.03%)
7
(11.48%)
3
(4.92%)
8
(13.11%)
5
(8.2%)
5.09 61 7.15 / 11
Central-South America 0
(0%)
1
(1.64%)
2
(3.28%)
1
(1.64%)
4
(6.56%)
9
(14.75%)
5
(8.2%)
4
(6.56%)
6.16 61 7.92 / 11
Australia-New Zealand 2
(3.28%)
0
(0%)
3
(4.92%)
2
(3.28%)
2
(3.28%)
2
(3.28%)
0
(0%)
0
(0%)
11.62 61 9.48 / 11

In this case, MENA got the nod for most dead people by percentage of population, which I also would generally agree with considering so much of it is already DESERT.  However, I would have ranked both Japan and sub-Saharan Africa higher.

Now the "Big 3" questions, comparing the fate of the FSoA, China & Russia in the post-collapse world:

Which one does best?

  USA China Russia Standard Deviation Responses
All Data 19
(31.15%)
11
(18.03%)
31
(50.82%)
8.22 61

The Ruskies win this one hands down.  Most Kollapsniks believe that since Mother Russia has already experienced collapse, they're more resilient.  Also, they like the people/land ration and the resources.

Here's Text Responses:

Strict. Authoritarian. Tight control. Strong military. Organizational capability and enforcement.
Our words are backed by working nuclear weapons.
Technology, temperate lands with a relatively large amount of resources, mid-large population, science.
abundance of natural resouces, people/land ratio
 

Where would most Kollapsniks prefer to be living post-collapse?

  USA China Russia Standard Deviation Responses
All Data 47
(77.05%)
2
(3.28%)
12
(19.67%)
19.29 61

Despite most Kollapsniks believing Mother Russia will do better, they still would rather be here in the good old FSoA.  This also is not surprising given the demographic of Kollapsniks is about 50% Amerikan and most folks want to stay where they are comfortable, know the language and fit in culturally.

Here's text responses on this one:

As a country, the United States may still be able to hold things together. Even if not, the social and cultural landscape is most familiar.
I speak English
The other two have a funny history when it comes to instability and killing people.

Finally, which country is likely to experience Political Upheaval and Revolution first?

  USA China Russia Standard Deviation Responses
All Data 26
(42.62%)
27
(44.26%)
8
(13.11%)
8.73 61

This is almost a dead even race between China and the FSoA, with Mother Russia coming in a distant 3rd.  Not sure why Kollapsniks think the Ruskie Goobermint is so stable though.

For myself, I will take a Middle Ground here (not available on the Survey) and stay in Alaska, but have it Repoed by Mother Russia. 🙂

OK, now get to it and take the new Ordering Preps for Collapse survey!

The Future of Money

Off the keyboard of RE

Published April-May, 2010 on Reverse Engineering

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Discuss this article at the Economics Table inside the Diner

Note from RE: File this article under “the more things change, the more they remain the same”.  What follows is an exchange I had with Toby Russell, a quite brilliant Brit 3 years ago on Reverse Engineering, pondering on the Economic Issues of the day and the Future of Money.  We rehearse these questions now on the pages of the Doomstead Diner for a somewhat larger audience, but in all honesty in 3 FUCKING YEARS, not a whole lot has changed here as of yet and the same questions remain to ponder on until they do.

Toby and I had many a great chat on the subject of money, and inside the Diner I will paste a few more of them.  With luck, Toby will find his way to the Diner as well, and we can renew, refresh and update the $64,000 Question on the Future of Money in the post-Industrial Economy.

RE

To begin, from my keyboard:

Who ARE the Bond Vigilantes?

Exactly how the monetary system will come apart remains an open question, but more and more each day you see a structure developing for the collapse.  It comes in the form of the internal battle between Nation States and those who have “invested” in Nation States in the Bond Market, which in Europe is currently in a Death Spiral that can only be slowed if the Sovereigns “guarantee” the bonds currently being repudiated by whoever it is who buys those bonds. The so-called “Bond Vigilantes”

So who really ARE the Bond Vigilantes, and WHO is the “market”?  Its not J6P for the most part, I mean who buys Greek Bonds with their spare change?  In aggregate J6P who actually HAS  401K might be buying some of this trash as part of his portfolio, but inr reality most of this trash is bought by the Big Banks as proxies for the Iluminati.  Once it starts to go BAD, they want to offload it all onto the balance sheet of J6P the taxpayer, that is what Bailouts amount to.

There is a BIG confusion in using the term “market” when it comes to the dealings of Big Capital.  Most people think of the market as the aggregate of what all the people in society are buying and selling, but that is not true at all with respect to sovereign debt.  The massive TRILLIONS in debt that are being issued these days by Sovereigns all over the globe cannot be absorbed by the savings of J6P, because the money didn’t exist before to buy it.  It really can only be bought by the Big Banks who can Borrow money from the Central Banks at close to Zero Interest.  The CB then writes the money into existence and loans it to them.

It’s all a big Circle Jerk, and the end result is it loads up all the bad debts on the balance sheet of the Taxpayer, which the taxpayer cannot actually pay because he is Unemployed and no longer pays taxes, so the Bond Vigilantes/Big Banks drive the interest rate up still higher for borrowing.

The problem is coming to a head now, and it pits varying Pigmen and various arms of Da Goobermint against each other.  Neil Barofsky has a plethora of litigation ready to undertake here that will make the little SEC lawsuit against the Squid look like child’s play.  T will be undertaken also, because the Political Survival of most of the apparatchiks depend on finding Scapegoats.  Besides that, you have lawsuits that will be filed on behalf of States that got fucked by the Banksters along the road as well.  Pigman vs.Pigman, the battle begins.

Greece is and remains Small Potatoes in this battle, but what is done here to Bail them out only sets up bigger bailouts for the other Hostages to the Banksters, the rest of the PIIGS.  Because their debt is “risky” now, the “Bond Vigilantes” are driving up the debt costs for the other nations also.  Which means they also must seek a Bailout. Some pundits think when this hits Spain the market will choke on it, maybe so maybe not.  However, its also going to eventually hit the FSofA market after all the weaker chickens have been slaughtered here.  Nobody is out there to Bailout the FSofA sovereign, not even the Chinese, because they hold the debt already, into the Trillions.  That is their “savings”. No reason to buy MORE worthless toilet paper for the Chinese.

So, the only “out” here is for the FSofA to buy its own debt in perpetuity, issuing more and more paper.  Hyperinflation of the money supply, but not necessarily hyperinflation of prices until and unless those newly created dollars start filtering out of the system into the hands of J6P, which is nowhere on the horizon.

The reality here?  Goldman Sachs, JP Morgan Chase et al are now engaged in a circle jerk trading with themselves, they ARE the “market”. They can keep propping it up so long as the CBs keep issuing them Interest Free Money to speculate with.  Problem is of course, that is just driving the sovereigns into ever deeper bankruptcy.

Eventually one of these sovereigns will crash, and nobody will bail them out.  The CDS will trip, and then the House of Cards will crash here.  Still has a coupel of layers to go though.  They will print the money to Bailout Greece, and probably Portugal and Spain also.  When the Debt Tsunami hits the ISSUER of the Debt, the Federal Reserve Bank, then it will come to an end.  How long will that take?  Based on progress since Bear Stearns of upward Cascade Failure, my guess is 2 years.  In the meantime, Volatility is going to be WILD. Very hard to pinpoint what asset class or what Sovereign will be the next target of the Bond Vigilates. However, target them they will, because they have to make a PROFIT here.  The only way to do that is to turn the world into their Debt Slaves.

RE

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From Toby:

I’m getting very interested in MMT, as I have posted at my blog. What we are really saying when we argue there is too much debt (there is) and this sucker is going down, is that money is the most important thing there is, that nothing can be done about it, someone’s got to pay, and so on. But in reality of course money’s just so much numbers. Ecological issues aside, real wealth is not diminishing, only debt obligations are growing. What do we do about this? Drown in our idea of what money is, or redesign it?

MMT would embrace the printing of money, by spending it into the economy interest free, into education, infrastructure etc. Tax is seen as nothing more than a drain when things start to inflate, and the issuing of and buying back of gov debt is used to control money supply and interest rates. The chief difference in printing money for the economy at J6P level rather than for the bigbanks, is that the money actually gets to do something, instead of digging deeper debt holes as the pigmen sociopathically destroy the horse they rode in on, battling it for the “honour” of delivering the final blow.
MMT welcomes fiat, seeing it as the chance to free money creation from the private credit institutions, whose activities, in the absence of a gov spending money into existence, represent an institutional ponzi scheme, one that is dragging us all down as we speak. To separate gov from credit institutions would be also to remove them from lobby power and make taxing far more effective, which would stop the vast imbalances of wealth we currently see. Gov would not rely on the pigmen. Pigman loses his leverage, gov can start to function as it should. So the theory as I have been understanding it.
I’d be interested to hear what others see in this new take on how to do money in a modern economy. Bill Mitchell’s blog has masses of work to lay out the basics: http://bilbo.economicoutlook.net/blog/ And there are two posts on MMT at my blog: http://thdrussell.blogpost.com
Cheers
Toby
http://occupyuppervalley.org/wp-content/uploads/2012/05/PD2w1.jpg
From RE:
I read through some of Billy Mitchell’s Blog and through a couple of your posts
on MMT as well. Many of the concepts we have covered in the past seem to be a
part of this. You seem to favor these days offering up the whole panopoly of
currency forms here, from Demurrage money on the international level to a
variety of state and local currencies all operating at the same time.Clearly, if this was actually operating on the local level commerce would be
quite the bear for your local Convenience Store clerk. You show up at the store
with some of RE’s Moosechips, and the clerk has to check to see first if MCs are
on the list of currencies he is authorized to take. Then he has to check the
daily (hourly?) exchange rate for Moosechips to price out the merchandise
against whatever currency it usually is priced out in. Granted, the Computer he
uses probably could be programmed to do this all automatically and even monitor
exchange rates in nanosecond intervals, but its still going to mean a drawer
full of lots of different notes, and how do you make change?Next problem is exactly how do you save your money? Do you save it in
Moosechips? This is kind of like the problem people who worked for companies
that paid in their own Scrip faced. Its only good for buying stuff at the
Company Store, and when the Company goes outta biz, its worthless Toilet Paper.
Sort of like what will happen when the FsoA goes outta biz on the grand scale.
LOL.

Beyond this, I don’t see how having many forms of currency operating resolves
the Interest problem. People who Loan out money will still expect Interest on
it, elsewise there is no point in loaning it out. With many currencies
operating, the problems you have now of unscrupulous Banskters creating more
notes than they actually have assets to back them up would be even more
intractable than it is now.

Clearly on the International level the Top Level Demmurage Money has to be used
as a settlement form, and a 5% Demurrage is liking saying you have 5% Inflation
all the time. If you aren’t growing faster than that you are gonna be losing
money. Is there room for 5% Growth in our real economy? Considering the Energy
problems we have even BEFORE the Big Spill, I think we would be lucky to keep
the Shrinkage at 5%, which is a total 10% differential between the Demurrage and
the Negative Growth rate.

As bad as our Money problem is, the real problem here for the Industrial society
remains the Energy problem. For the Transportation portion of this economy, its
more than that, its Portable Energy as well. The society needs to be
restructured along lines which require less movement of goods and people around
and a slower pace of life all around. Unfortunately, all the infrastructure we
have built here is built around precisely the opposite concept, and REBUILDING
it now with substantially less Available Energy per capita will be quite
difficult, if not impossible. Of course, a 90% Die Off of the Human Population
would solve the per capita problem by lowering the denominator, but this is not
a concept most people consider a good solution.

My guess here remains that the current monetary system we are using is going to
continue onward here in Epic Fail mode for a while yet to come, exactly how long
I am not sure. Whether it reaches a Critical Point that results in a Sudden
Stop Event or whether it just continues to deteriorate and we all slowly Boil
like Frogs also is open for debate. If/When the Dollar fails completely,
likelihood would be states and local communities will substitute their own
currencies, but even if well managed and temporarily successful all will also
collapse due to the interest problem in a negative growth environment. It
doesn’t matter if you put a Demurrage on the Money of 5% or Inflate the currency
at 5%, it’s the same result in either case. In fact 5% is even more onerous
than the 2% or so Inflation the Fed sets as a Target Rate, so I expect you would
see a monetary collapse even faster than the typical 60 –80 year cycle we see
now.

So, is it all HOPELESS and we are just spinning our wheels here to no purpose?
Well, if the hole they poked in the crust of the Earth down in the GOM keeps
spilling out PUSS here, yes its quite hopeless and worrying about what kind of
money we are going to use in the future is a massive waste of the short time we
have left breathing the last Oxygen the phytoplankton produce for us. However,
on the slim chance that the Bozo Engineers who popped this pimple can plug it up
and we are not currently experiencing the beginning of a new Permian Extinction,
the exercise is worthwhile. Not so much for us in this generation, but for
those a few generations down the line AFTER the great Die Off is finished.
Perhaps we can leave a legacy for them of how they can build a Better Tommorow
and NOT make the same mistakes half a millennia of Capitalism led us into here.
Talk about EPIC FAILURE of an economic system, Capitalism is going out with a
mighty Big Bang here. Yeesh.

RE

http://www.lightspeedca.net/images/Future-of-Money_logo.png

From Toby:
Local currencies are already in operation and work in the various ways
they work. It is not about some guys saying accept my MCs because I say
so, or the two of us agree so, but is more well thought out than that.
I’m not going to go into all the details, but there are variants out
there in operation and have been for a while. Time will kill off the
weak ones, and favour the strong, as it always does.As for the demurrage currency, that is global and for investment and
international trade purposes only, not for saving. The demurrage
inspires investment in projects which have long term value. See the
Bernard Lietaer talk: http://vimeo.com/6491175for more details.Interest/usury still acts as it does now on the natinoal currency, as a
kind of vacuum cleaner on fiat national currencies and spur to savings,
so people will get into debt and so on, as the prudent will be able to
save, though the kind of future the changes I hope for would initiate
would change plenty, perhaps even how saving and retirement works. But
when big problems through over indebtedness arise there won’t have to be
any bail outs. Those banks that got too greedy have no leverage on the
sovereign to save themselves with, because the sovereign controls money
supply with the tools laid out in MMT (existing tools actually like
taxation and bond issuance and purchase). Life would still have its
financial ups and downs, but they would not represent systemic threats.
The ride would be a bit smoother.All of this is moot in an energy crisis, as you say, but the viable and
working alternatives to oil are out there (unless that GOM spill undoes
everything — time will tell). Also an absolute necessity is the death
of our lust for eternal GDP-growth and a corresponding transition away
from consumerism. MMT offers an attitude to money which allows us,
culturally, to be more open minded about where value lies. To my mind
real value lies in healthy relationships: ecological, socioeconomic and
societal. Technological unemployment could be embraced too by a more MMT
way of thinking about the economy, which would help us review what we
are alive on this planet for, and the kinds of activities and behaviours
which really make life sustainable and enjoyable.So in the end this is going to be about striking the right balance
(isn’t it always?). It’s not just Joe’s currency versus Jack’s, versus
fiat versus the Terra (Lietaer’s suggestion for the global demurrage
currency), but other things too, outlined above. To me MMT is but one
important plank in all this, though perhaps the first that needs to be
laid down, because the way most people think of money and value, they
seem prepared to let the world go down for money’s sake. That’s plain
stupid, and I don’t want any part of it.Toby

http://assets.tape.ly/uploads/tape/image/195/The_End_of_Money_-13.2.2012.jpg

F7 Print Button in Lock Up

Discuss this article inside the Diner 

For those hoping for a rapid response from CBs to the gathering storm here, at least according to the MSM a massive coordinated Global Printfest does not seem in the cards, at least for next week. At the same time, without a massive intervention here, it is hard to see how the Spanish will survive through to the end of next week either.

Super Mario Dragon, head of the ECB is getting more strident in his calls for Eurobonds and a Transfer Union with full fiscal and monetary integration, with all the concomitant loss of National Sovereignty and elimination of Democratic political control that implies. HUGE pressure now on the Krauts to pick up the Tab for the cascading debt Tsunami surrounding them, but of course in reality the Krauts can’t afford to pick everybody’s tab here either.

So, a EZ breakup now seems pretty inevitable, and as usual it is the timeline question which is the most tricky. The Greeks are in such Dire Straits now that if they don’t pull out and at least TRY issuing Drachma the only thing that will keep anything moving around that economy at all is Barter systems. Same with the Spics, they have to try the Peseta route.

So it is time for a Thought Experiment here about exactly how such a fracture back into multiple currencies in Eurotrashland would be handled on an International Trade level, administered of course by the BIS in Switzerland.

They probably do have Legacy Software they used back in the day to track all these currencies, but of course also back then there was a market for the debt each of these countries sold as well. The big problem here is that even with a Debt Jubilee of all the current MOUNTAINS of debt, there isn’t a market for NEW debt either! If you actually have some money, why would you lend it to anybody when there is no reasonable expectation you would ever be paid back for it? The funniest one in this regard are the investors currently buying Kraut debt, who actually are PAYING the Krauts for the priviledge of holding their debt! LOL. This on the theory of course that it is better to only trickle away your money than to risk losing it all at once. This situation is an anomaly however, and would not apply to any other nation in the EZ than Krautland once they move to separate currencies.

So then the question is, could these countries issue NON-DEBT money that would function to buy stuff at least inside their own borders? Possibly and it would certainly be an interesting experiment, but even if they do that they will still need to try to earn some FOREX, namely Dollars right now that still will buy them some Oil. Or they could try the Nazi trick of doing Direct barter of something they produce which an OPEC nation needs for their Oil, which generally speaking is mostly Food of course.

However, run that idea out in the case of Spain for instance. They have good arable land there and can certainly grow more food than say the Iranians can on their patch of desert. Even if the Spics have surplus food to barter with the Towel Heads though, can they grow ENOUGH to both feed their own population AND trade with the Iranians for enough Oil to run their Carz? This of course returns us to the Choice Steve presents all the time on EU, is do you feed the Carz or feed the People?

So you say, “But the Nazis did it! They produced Railroad Cars and got Raw materials from the Argentinians!” Indeed they did, but of course at the time the Nazis had one of the few industrial apparati necessary for producing railroad cars AND there was a ton of excess Oil out there for them to do that with. The Spics don’t have industrial apparatus to build anything the Towel Heads want that the Chinese can’t build cheaper. So bartering Finished Goods with the Towel Heads won’t work for the Spics.

On the Grand Scale across the EU this is pretty much true for everybody except the Krauts, who still do produce some finished goods the Towel Heads want. However, since the price of their Oil is going up, it costs a lot more for the Krauts to produce the finished goods, so they have to raise the prices on them high enough to make some Value Added profit from burning said Oil. As they raise those prices, the Towel Heads then cannot afford to buy the BMWs unless of course they divert some of their Oil revenue from buying Food to buying BMWs. Again the choice is between feeding the Carz or feeding the Peoples.

When the market drops off the map for the BMWs, the Krauts of course also will be in the same situation as the Spics and everybody else in Eurotrashland. They also will have only Food to trade for Oil. Once you take away the advantage in production that Industrialization powered by cheap energy has, just about everybody can produce inside their own society the finished goods that they need. They don’t NEED to trade for them. Trade only results when various cultures all have surplus and so begin to produce non-essential items other people also in surplus covet for one reason or another.

In the situation we find ourselves in NOW, after years of resource depletion and expanding population overshoot is that in fact nobody really is in surplus anymore and the vast pool of stored thermodynamic energy to prduce so much suplus is petering out here. Not disappearing overnight, but rapidly becoming to expensive to burn for the purpose of driving Carz around willy nilly or even making Iphones that nobody REALLY needs, they just WANT them. The monetary system implosion is just a representation of the fact that there is not surplus and there is not a future expectation of ROI by buying anybody’s debt. You won’t be paid back, so why invest in anything or loan money to anyone? If you HAVE money or control over resources, you keep them for yourself and try not to LOSE them or have them taken from you. Both of which get more difficult all the time of course, both on the Micro level of the Individual and the Macro Level of the Nation State. Far as the OPEC Nations are concerned, at this point their problem is that since Industrialized nations cannot afford to BUY their Oil from them anymore, now they are trying to STEAL it instead, using the Big Ass Military. For the Individual, the issue is that since their is no Growth, instead of trying to sieve profit off a growing economy, those in control are STEALING the money through Taxation to bailout TBTF Banks, reneging on Pension Plan agreements and selling Trash for Cash like Facepalm to INCREDIBLY stupid Investors who just are ASKING to be bilked and deserve the fate they got for that stupidity. Always a SUCKER out there of course. I don’t feel sorry for any of those people, but for the people who have Pension Plans they have no control over who Invested in such trash, I do feel sympathy. Their money and their futures are being stolen from under them from gimmicks like this, and they have no control over that. The money from doing these deals is being pocketed here by a few very BIG Thieves at the top, and it is time now to STOP this theft once and for all time, by whatever means is necessary to do so.

RE

Central Banks to hold fire… for now

By Richard Hubbard

LONDON | Sat Jun 2, 2012 7:39am EDT

(Reuters) – The intensifying euro zone crisis and uncertain global growth outlook have raised hopes for a policy response from major central banks but, while it could be a close call, they are likely to resist pressure to act in the coming week.

The European Central Bank, the Bank of England and the Reserve Bank of Australia are all due to meet as data emerges on the euro zone’s service sector, and the manufacturing and trade performances of the big German and U.S. economies.

The main focus will be Wednesday’s ECB meeting, and whether dramatic selling of peripheral European government debt by investors in May and a flight into safe-haven U.S. Treasuries and German government bonds will prompt it to act.

One reason to doubt a major shift in policy is that, even after U.S. Treasury 10-year notes hit yields not seen in more than two centuries of record keeping, and investors began paying the German government for the right to hold its debt, the move across all markets may not warrant it.

“The stresses appear not yet to be big enough across all asset classes for the policymakers to react,” said Richard Batty, global investment strategist at Standard Life Investments.

“It all seems to be playing out in investor’s appetite for triple-A government bonds and for the dollar, but there doesn’t seem to be the volatility or sharp falls in equity markets or other stresses in the system, such as the funding market.”

In Europe, the spread between three-month Libor rates and overnight rates, seen as a measure of health of the banking system, has been stable throughout May – mainly due to the more than one trillion euros of cheap funds injected into the system by the ECB in December and February.

And while May was a bad month for equity markets everywhere and Spain and Italy in particular, the widely watched Dow Jones .DXY and S&P 500 .SPX indexes remain in positive territory for the year to date.

Those gains were under threat on Friday, however, as disappointing May U.S. jobs data sparked heavy selling, sending the MSCI world equity index .MIWD00000PUS back to where it started the year.

The VIX index .VIX, often referred to as the market’s fear gauge stood at 25 points, in line with its levels of last December but well below the 48 points seen at the height of last year’s market turmoil in August and September.

POLITICAL MOVES

A heavy calendar of events throughout June which could help determine how the euro zone crisis unfolds may also encourage Europe’s key monetary policymakers to hold fire.

Greek elections are due on June 17, following a first round of French parliamentary elections on June 10. The heads of the G20 group of nations will hold a summit on June 18 and 19, while Europe’s leaders gather at the end of the month to decide their next response to the crisis.

But pressure is growing for action from the ECB to calm acute nervousness about a potential Greek exit from the currency bloc, and fears that the cost to Spain of saving its fragile banks will mean the country itself has to be rescued.

“The ECB is currently the only institution that can credibly counter a collective loss of confidence on the scale we’re now witnessing,” said Nicholas Spiro, Managing Director at debt consultancy Spiro Sovereign Strategy.

Spanish bond yields have surged in the past week to near their highest level since the launch of the euro, raising questions about the country’s ability to fund itself over the longer term without outside help.

Spain will provide a big test of investor sentiment when it auctions more government bonds on Thursday as its 10-year bond yields hover around 6.5 percent – close to the 7 percent level at which other indebted countries have been forced to seek aid.

The latest Reuters poll of economists found most still expected the ECB to resist pressure to cut interest rates before the end of next year, but that majority has shrunk from previous polls as gloomy economic data rolls in. Just 11 of the 73 respondents expected the bank to cut rates on June 6.

The Bank of England is also expected to resist calls to pump more money into the depressed UK economy when it meets on June 7, according to a separate Reuters poll, although it found there was an even chance the central bank would restart the printing presses at some point in future. POLL3

A slim majority of economists expect Australia’s central bank to keep interest rates unchanged on Tuesday, but this is an even closer call as a growing number of banks, including the nation’s top four, are calling for a cut. AURATE1

Meanwhile, the U.S. Federal Reserve Board’s mid-month policy meeting and the end of its current easing policy, known as ‘Operation Twist’, could also bring changes.

“With dark clouds gathering over the global economy and the euro area crisis intensifying, the ‘Great Monetary Easing Part 2′ looks set to accelerate again as many major central banks around the globe are gearing up for more action in the next month or two,” said Manoj Pradhan of Morgan Stanley.

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