Are you depressed yet? Do you somehow think that these stopgap measures are going to solve the essential problem facing international markets? It won't.
The essential problem is a lack of trust in the value of securities. That failure of trust is based on the perception of corruption in those markets. It is also based on the perception that securities markets have been flying too high with these weird new financial instruments that no one can understand.
All of Wall Street has been on a money drunk. Now comes the hangover.
Showing posts with label Europe. Show all posts
Showing posts with label Europe. Show all posts
9.18.2008
Let's Hunt Them Down ...
Who are these losers who are handing the United States and its allies these financial disasters? Who invented these new types of securities?
Let's hunt them down and take every penny they have. And all their houses, even if they don't know how many of them there are.
With the rescue of our allies in this affair, the political cover enjoyed by these nameless financial elites will be ripped apart. Europe and Japan will want blood.
And they will get it.
Let's hunt them down and take every penny they have. And all their houses, even if they don't know how many of them there are.
With the rescue of our allies in this affair, the political cover enjoyed by these nameless financial elites will be ripped apart. Europe and Japan will want blood.
And they will get it.
6.07.2007
Bush Uses Words, Not Threats, With Putin
Today Putin and Bush announced that they have a common framework for getting past this nasty missile business in Europe. So all these Russian remarks about Europe becoming a pancake were posturing, which is what you would have to expect. After all, Russia would be destroying themselves in destroying Europe. And I doubt they are prepared for another European war.
Without a doubt, though, Russia has felt very threatened by Eastern Europe's military cooperation with NATO and the U.S. They have made this plain over the last few weeks by their complaining loudly and publicly that Russia is abiding by treaties limiting missiles and no one else is.
But now that President Bush has found the value of talking instead of name calling, he and Putin have established the beginnings of a dialog on military cooperation against common threats. What are these common threats? A nuclear Iran, a Middle East meltdown, and an aggressive China. Those are my guesses. So much for the cold war military contractors were hoping for.
Click on the title to this post for the transcript of Bush's and Putin's public statements.
Without a doubt, though, Russia has felt very threatened by Eastern Europe's military cooperation with NATO and the U.S. They have made this plain over the last few weeks by their complaining loudly and publicly that Russia is abiding by treaties limiting missiles and no one else is.
But now that President Bush has found the value of talking instead of name calling, he and Putin have established the beginnings of a dialog on military cooperation against common threats. What are these common threats? A nuclear Iran, a Middle East meltdown, and an aggressive China. Those are my guesses. So much for the cold war military contractors were hoping for.
Click on the title to this post for the transcript of Bush's and Putin's public statements.
5.30.2007
Putin and the Balance of Power
Putin is back in the 20th Century on this one: "We think it would be harmful and dangerous to turn Europe into a tinderbox and fill it with new types of armaments," Mr Putin said.
Russia has test-launched a new intercontinental ballistic missile and claims to have fired it almost entirely across its northern air space to eastern Siberia. That means they could hit Europe if they wanted to.
So if Eastern Europe gets a missile shield, Russia will up the ante with showing off its new missiles. Whee! Haven't we been here before? It's a new arms race.
Remember Kissinger's balance of power politics that got us into Vietnam? That's where Putin's head is at. He is threatening Europe with fire if they install missile defense shields in Eastern Europe. Why would Russia feel threatened by that anyway? It's not as if they are planning on sending missiles into Europe, right? Or do they just want the option?
Putin should instead worry about the other rising powers of the 21st century: Brazil, China, India-Pakistan, Indonesia. He's fighting some kind of self-esteem war over the losses of the Soviet Empire. Get over it, dude. Europe won't be cowed so easily again.
Click on the title to this post for the story in the The Sydney Morning Herald.
Russia has test-launched a new intercontinental ballistic missile and claims to have fired it almost entirely across its northern air space to eastern Siberia. That means they could hit Europe if they wanted to.
So if Eastern Europe gets a missile shield, Russia will up the ante with showing off its new missiles. Whee! Haven't we been here before? It's a new arms race.
Remember Kissinger's balance of power politics that got us into Vietnam? That's where Putin's head is at. He is threatening Europe with fire if they install missile defense shields in Eastern Europe. Why would Russia feel threatened by that anyway? It's not as if they are planning on sending missiles into Europe, right? Or do they just want the option?
Putin should instead worry about the other rising powers of the 21st century: Brazil, China, India-Pakistan, Indonesia. He's fighting some kind of self-esteem war over the losses of the Soviet Empire. Get over it, dude. Europe won't be cowed so easily again.
Click on the title to this post for the story in the The Sydney Morning Herald.
5.25.2007
Foreign Perspectives on the Dollar
Yes, other countries are conducting international business in Euro. Yes, some of that business used to be conducted in Dollars. But that is only part of what supports the value of the dollar.
The United States is an extremely stable country that is also a huge marketplace. We allow and encourage innovation like no other country, and don't place impediments in the way of instant success. You can get as rich as you want, as fast as you want, if you are smart enough.
Another factor supporting the value of the Dollar is that people all over the world NEED the dollar to have value. First, many non-Americans put their money in Dollars in the United States because they know it will be safe.
Second, you mention the exchange of goods and services in exchange for Dollars. Remember the end results of that exchange: we have their goods, they have the Dollars. If the bottom falls out of the value of the Dollar, it is the the trading partners who will be hit hard, not the U.S. After all, we are not holding those Dollars. China et. al. is. Even China's recent diversification won't change the billions in Dollar assets that make up their wealth. It is China at risk, not the U.S.
Third, the U.S. population has a horrible savings rate. To answer your question, what savings?
1.09.2007
Russia, Belarus and Oil
Russia is accusing Belarus of diverting some of the oil flowing through its pipelines. It seems that the pressure in the oil pipeline going through Belarus had dropped noticeably. Russia is blaming Belarus for this because they think Belarus is siphoning off oil from the pipeline going through their country.
Germany and Poland are reliant on Russia's oil as well as other European countries, so this is a big deal. The Polish Economy Ministry assured everyone publicly that Poland had enough reserves right now and there was no need for worry.
The keyword here is PANIC. There needs not to be a PANIC about OIL in EUROPE. It is that panic that Russia is playing with.
So what can be done? What would really happen if Russia cut its oil supplies to Europe? Would they honestly sit by and let thousands of people freeze to death? Perhaps. One thing that would definitely happen is that Europe would find an alternative to oil as fast as possible. Russia would become an international pariah. I doubt Putin really cares about that. He just misses seeing the fear in their eyes.
Germany and Poland are reliant on Russia's oil as well as other European countries, so this is a big deal. The Polish Economy Ministry assured everyone publicly that Poland had enough reserves right now and there was no need for worry.
The keyword here is PANIC. There needs not to be a PANIC about OIL in EUROPE. It is that panic that Russia is playing with.
So what can be done? What would really happen if Russia cut its oil supplies to Europe? Would they honestly sit by and let thousands of people freeze to death? Perhaps. One thing that would definitely happen is that Europe would find an alternative to oil as fast as possible. Russia would become an international pariah. I doubt Putin really cares about that. He just misses seeing the fear in their eyes.
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"They are getting rid of the dollar to,but slowly slowly.So in the end no one will pay you interests for the green paper,will get rid of it,and then you'll end up trillionaires: in worthless paper." Comment on Econo-Girl
"It is strange that no one in the usa dares to talk about this.To warn the people that HEY maybe in a few years your savings will worth nothing..."