Monday, August 10, 2009

Obaminational shoots

While the grass rot movements in the US against big brother and the manic spending spree is gaining momentum - more and more voices are heard from the governing administration claiming the recession is nearing its end. More and more governors and senators are being booed of the stage and getting threats at the same time as Washington is, louder and louder, proclaiming that we are seeing “green shoots”. A strange coincidence?

Lets us look at what two of these funny clown administrators from Washington have said recently.
Here is the first one that should be burned alive:

“I do. I do see green shoots. And not everywhere, but certainly in some of the markets that we've been functioning in. And we've seen some improvement in the banks, as well, certainly in some key cases.” // Ben Bernanke, Chairman Federal Reserve

If you know anything about economics or math you are probably seeing the hilariousness in this quote just as I do. Look at what he is really saying. In this madman’s own words it is the markets where the Federal Reserve has been functioning within that are showing certain “green shoots”. The GDP drop has been halted, sure, that much is true, but what have really happened? If we, oh, I don’t know, look at the Stock Market, just for the fun of it – then we see that the market increase on the US stock market have lately been about $2 trillion, which seems to be a lot, but out of this increase almost $1,6 trillion comes from “new bank reserves” used to buy mortgage-backed securities and treasuries, and who has conjured up this money? Yeah, that’s right, Bernanke has. It is fun when you have your own printing machine, isn’t it? I would also claim, although hard to really measure, that those $400 billion that is left comes mainly from positive reactions on the market since it is “growing”. In other words, the entire Stock Market increase is a fictive bubble!

And looking at banks, around 80 banks have gone down so far in this crisis. Is that what Barnanke calls “improvements”? No, he is probably referring to, among others, Goldman Sachs and JP Morgan. These banks, that was in a crisis just months ago is showing a fantastic improvements. Even if we ignore all those people (and I use that word very loosely) in the Obama administration that comes directly from or have strong ties to these particular banks, we are still faced with another nit little pile of crap. In a move that outmatches any cartoon villain wildest dreams they have used, through different channels, the bail-out money to inject their books with several billions and this is after they claim to be able to “pay the state back”. I hope you are laughing, I know I am.

Here is another idiot that should be fed to a pack of wild animals:

“The worst of the global crisis is over with economic and exports growth showing signs of stabilization.(…) There is still room for the U.S. government to increase spending to boost growth.”
// Paul Krugman, Economist

And this guy have actually won a Nobel Prize, can you imagine that?
I have written about GDP several times now, but what you only need to know is this: if consumer spending drops by $500 billion but the government spends an extra $600 billion, we can say (all else equal) that we have economic growth by $100 billion that increases GDP. Since this is the main cause of the “halting of the crisis”-bamboozle, where does this money come from? Two places, borrowing and printing. The US Government is borrowing hundreds of billions and printing even more money and this is what’s fuelling the economy. The idea that government, by stepping in and borrowing and printing trillions of dollars, and then spend the money and call it growth defies common sense.

Can you see the fun in this? I think it’s bloody priceless.

Maybe you think your country is better off, think again. The Swedish Government, that so far has done a so so job during this crisis is showing signs of going down the same socialist path which will destroy the last remaining buffert my birth nation has. Sweden’s total debt (gov+personal+companies) is today 170% of GDP, the same as US. Great Britain has 306%, Ireland 378% and the Nederland’s 363%. The only good news for us Europeans is that we still have some companies that actually produce values and that the European Central bank (along with most in-house banks on the continent) have not yet capitalised as much debt and printed as many trillions as the US of A have. The big exception here is Gordon Brownie and his criminal gang of thieves in the UK. It is almost as if Labour intentionally, wilfully, is destroying the entire country.

Do you think this is bad news? Maybe you might even mistrust some numbers our enemies are telling us? Better buckle up, it is even worse!

It is worse because of two things. Firstly, this is not the end. When the markets continues to crumble, unemployment is still souring high and/or one or two bubbles bursts, what will they do? They will do the same thing again! They will never admit defeat, never say they where wrong and never ever never ever ever start doing the right thing. In other words, there is no end to this crisis, it cannot be, and it doesn’t matter if the dips come now and again over the coming year(s) or if we get a long deep depression (which will happen sooner or later anyway) directly, the end result will be the same.

And if this doesn’t make you laugh hysterically, how about the next fun fact; the dollar, that most of the American debt and borrowing is based on, is the worlds reserve currency and the basis of many commodity prices like oil, gold and so on. So what will happen when the dollar is defaulting and, most likely, collapses? Maybe even at the same time as the inflated stock markets goes down? Yes, that’s right! Oh... I cannot wait for this.

I want you all to take notes. Write down the name on every one of these pranksters that is claiming to see “green shoots”. Firstly you can compare those names to the names of those that did not see this crisis coming – it’s the same persons. Secondly, save those names, preferably with photos. There will come a time, a sunny day in the future, when you, if still alive, will have a good strong oak in front of you, and with a hardy rope, tied in a nice little nouse, you can sacredly announce the accusations before kicking down that pile of crates.


  1. Du blandar och ger med en väldig frenesi. Inga nyheter men ofta bra sammanfattningar och slutsatser. DOCK, jag blir väldigt förvånad att du verkar vara så historielös. Varför ifrågasätta att Brown, Obama med anhang skulle vilja köra detta i diket avsiktligt?
    Även du måste förstå att det mesta går enligt plan.

  2. Har väldigt svårt för konspirations teorier, men onekligen börjar man ju fundera. :))