Congratulations to the U.S.A. for their deft handling of the Egyptian problem. And who is Nobel laureate, ElBaradei? Globalist? Islamist? Secularist? Saviour? Opportunist? Sorry. Colour me sceptical when it comes to this guy.
Update: Feb. 1, 2011 ……
“For every complex problem there is an answer that is clear, simple, and wrong.” ~ H. L. Mencken
I decided that I would update this post with a little less ‘knee-jerk’ and a little more chin-scratching. I decided to take down a video spoofing U.S. Secretary of State Hillary Clinton … a little too anti-American and, frankly, I just don’t believe much of it’s message. I still wanted to express my frustration with the U.S. for exacerbating the situation in Egypt and elsewhere in the world. It is my contention that the unwillingness of the U.S. Government to change its’ monetary policy to something approaching rational and prosecute the perpetrators of widespread banking fraud has led to inflation around the world. This inflation and shrinking of opportunity has hit the poor and less-advantaged hard and it is little wonder that people in these nations are taking to the streets. It’s not all America’s fault. For the most part, it is the repressive and regressive nature of their ruling regimes that have left these people vulnerable – whether those regimes are arrayed against Israel and America or not.
The Ticker Guy, Karl Denninger, puts hammer to nail here:
It’s always amazing to watch our government play patty-cake with tin-pot dictators when it suits us, even though they have a habit of torturing and otherwise abusing their citizens. They hold fraudulent elections or no elections at all, they refuse to bend to the will of the people, and they claim a right to perpetual rule.
Mubarak has a brutal and long history. Coming to power after Anwar Sadat was assassinated in 1981, he has been an effective dictator since ascending, as the nation has been under an Emergency Law since 1967. This state of emergency has provided the government with the excuse to take virtually all rights and bin them, including freedom of the press, assembly, and others. Unlimited imprisonment without charge or trial is permitted and reports of torture of prisoners are common.
Thaddeus may be well-intentioned but ex-post-facto analysis usually is. The United States has a history of supporting this thug that goes well beyond the last few weeks and days.
In addition since 2005 the Egyptian Pound has been pegged to the United States dollar, and the nation has undergone a cumulative 45% inflation rate in the last three years imposed on it by our Central Bank and profligate Federal spending, which Bernanke has been all too eager to monetize.
With a per-capita GDP of about $2,700 it’s people are 1/17th as capable of producing income as those of The United States on average and well-below other nations such as China ($4,300) and Belize ($4,500) that are commonly regarded as quite poor.
The nation’s people are clearly incapable of absorbing a 45% increase in their cost of living and this has largely played into the causes of the current uprising.
(read the rest)
Update: The Wall Street Journal has an interesting graphic comparing global inflation rates. Note where Egypt sits.
Karl Denninger – one of the few WHO GETS IT: “The Thorium Fuel Cycle (liquid salt reactors) is the obvious way forward.”
Karl Denninger has an excellent post entitled “How To Truly Take Back America” at his site The Market Ticker that everyone should read. He offers a number of solutions that are dead on (as far as I can tell, my perspective being that of a conservative from Alberta, Canada) but there is one that really stood out for me. This is the suggestion that the United States make 100% energy independence a policy (I guess that’s O.K. – Nancy Pelosi recently told our premier, Ed Stelmach, that she doesn’t consider us to be a “foreign” supplier of oil!) and seriously ramping up the application of nuclear power. In particular, he states that “The Thorium Fuel Cycle (liquid salt reactors) is the obvious way forward.” It is fantastic to see more people seeing the blatantly obvious. As Mr. Denninger puts it:
We discard more fuel for these devices (it’s a natural part of coal) by a factor of ten (in terms of thermal energy available) than we burn in coal every year! That’s idiotic.
As far as I’m concerned, Karl Denninger is someone who gets it – someone who has a background in network engineering and business and has the kind of flexible, powerful and principled mind necessary for survival in this period of high uncertainty and high larceny. A stark contrast to the mental straight-jackets being worn by the commentariat employed by the MSM. I strongly recommend following his commentary if you want to stay truly informed.
(Thorium? What’s this guy talking about? … )
For those who don’t know what I’m talking about (and you’re not alone), watch this presentation on LFTRs (liquid fluoride thorium reactor) by someone who is rapidly becoming another one of my heroes – Kirk Sorensen:
Tyler Durden on the elites who have lost their way: “This is financial war make no mistake about it.”
What I discovered as I interviewed for jobs disturbed me right away. Every single firm with the exception of one was completely obsessed with math. Entire interviews revolved around “how quantitative are you” and the like. Although I hadn’t had much experience with investing I had enough to know this line of thinking seemed preposterous. It seemed to me only basic math skills are necessary to be a successful equity investor. Besides that, it seemed that the key is understanding that the world is always changing rapidly under the surface and therefore what is a good business today might be bankrupt tomorrow and what is a start up today could be the next Microsoft. This seems obvious but the skill set to figuring all this out is more geared to an appreciation of human psychology, historical cycles and cultural shifts (both fads and structural changes) than math. What I realized later is the reason they were so focused on mathematicians and Phd’s is that Wall Street was moving away from what it was always meant to be – a conduit between the holders of capital and those that wish to deploy that capital in productive economic activity. Rather than trying to hire a well rounded workforce of intelligent college graduates the firms were hiring a cadre of quantitative robots that would play an instrumental roll in blowing up the world’s financial system.
… and this:
As far as the speech itself, it confirms something I mentioned several weeks ago. Banana Ben absolutely wants to do a massive QE2 program. The only thing holding him back is gold is near an all time high. What he wants is gold much lower and stocks much lower to give him cover. Gold has not cooperated so he is in a bind. He cannot print a massive amount of money with gold here and stocks at 1055 because what happens if gold soars and stocks sell-off in the days that follow such an announcement? What if the response in the treasury market is not as desired? He is scared to do it here and he is right to be scared because such a reaction would be the end of the Fed right then and there. The Fed will be gone anyway within a few years in my opinion but it’s going to fight hard to survive and if you want to make money in this market you need to understand that. The most powerful institution in the world is fighting for its survival. Never forget that.
Vodpod videos no longer available.
Hat tip to Market Ticker: As Denninger suggests, some cracks may be appearing in the facade of the mainstream press.
Vodpod videos no longer available.