Not only are they better capitalists, but better peacemakers too?

Tim Swanson, September 30, 2008


CNN recently interviewed Premier Jiabao and no topic was considered too taboo.  And while they probably wouldn’t call themselves libertarians, Wen Jiabao and Hu Jintao are arguably much more level-headed and diplomatic than many Western politicians like Obama, McCain or much of the G7 leadership.

In particular, Wen discusses a nuclear Iran and supports a peaceful, non-military approach, one with dialogue and not the threat of annihilation.

In addition, he does not view China as a superpower and believes the PRC leadership should continue focusing on setting its own house in order before trying to take on any global enforcement role.

It should be noted that following the reforms of Deng Xiaoping, the PLA was sliced in half and the military itself has not participated in any offensive military operations for 30 years; with Vietnam. They are now large trading partners and are even constructing a joint-highway. Similarly, despite the best efforts of the Western elite to demonize the PRC, links between Taiwan and the mainland continue to warm.

See also: The Peaceful Rise of China
China and the New Cold War
Tibet, the ‘great game’ and the CIA

109 Responses to “Not only are they better capitalists, but better peacemakers too?”

  1. “he does not view China as a superpower”,,,, “the PLA was sliced in half”,,,, “no offensive military operations in 30 years”,,,,

    WOW!!! Could we EVER LEARN something from this guy. Imagine Washinton not viewing itself as “the indispensable nation”, U.S. military spending cut by half (and we wonder why our economy is collapsing) and no wars in Iraq, Afhanistan, Panama, etc (too many to name really). BUT OF COURSE, that would REQUIRE American “leaders” to have humility, reason and moderation and not arrogance, ignorance and hubris.

  2. Their names are Wen Jiabao and Hu Jintao. Wen and Hu are their family names.

    China has lots of problems and there are certainly political turmoils ahead, but probably they are not ones that Americans would think of.

    Daily life in China is somewhat libertarian, in the sense that no one gets arrested for walking down the street with an open beer bottle or for nursing their baby while sitting in front of their little store. Most people take a nap after lunch, a rare thing in the USA. I personally have enjoyed my 10 years in China. But it’s not utopia.

    Lester Ness

  3. Andy,
    Agree with everything you said. I would extend what you say about American “leaders” to include the American people. We as a nation have a case of spiritual blindness to reality. We can’t seem to understand that:
    1. We have been living beyond our means for years now – running up trade imbalances, government deficits, and personal debts with no thoughts of the consequences.
    2. We have developed an arrogant belief that we have the right to slaughter wholesale anyone who annoys us or who we feel takes offense at our actions.
    3. We have clouded our thinking with an insane Christian heresy that equates fascist Zionism with God’s will ( Ms Palin being a particularly dangerous example of this).
    4. We have begun to worship militarism; the destroyer of civilization.
    Until we get well, spiritually and mentally, our “leaders” will also be blind to reality. Actually the blindest of all.

  4. Ritual humility is still cultivated in certain circles, and may even approach the genuine article among a scholar or a scientist.

    At the same time one must not miss the subtilty of the context, nor the unpleasant messages that can be conveyed in the humblest of fashions.

    I cannot say with any exactitude where the phrase “superpower” originated, in English or Chinese, but I know from experience that it was intensely chorused by the mainland Chinese in relation to the United States for long years, including the final triumph of the US as “the only remaining superpower.”

    That the chorus was often accompanied by belligerence is also noteworthy.

    The Americans, including many American politicians and diplomats, took this Chinese chorus very seriously. Years ago and in some out of the way places I noted again and again that this was at least partly a tactic, much as the earlier phrase, “saving face” was a tactic, and that the US actually considering itself such a “superpower”, beyond all competition in any area, was very risky business.

    The US, for various reasons, was being escorted in a certain direction, in my opinion, which included the distraction of arrogance and overconfidence.

    Meanwhile, the Chinese, getting exactly what they wanted, bowed humbly.

    Note closely–the Premier of mainland China now quite graciously accords the United States the status of being considered what is translated as “a credible nation.”

    Unfortunately I cannot make out the sound well enough to hear what the Premier said exactly in Chinese. But I suspect the brilliance and subtilty was not just the translator’s, and that just the right word has been the work of many, subtly crafting hours.

    From “only remaining superpower” to “credible nation”. I am surprised not to hear “creditable”.

    The handwriting is on the wall.

  5. Corr: “among scholar and scientist”

  6. Among military men, on the other hand, the Chinese also have their version of Miles Gloriosus.

    Lester Ness may appreciate a disconcerting question I ask both Chinese and many western aficionados of Sun Tzu, including corporate executives and West Pointers, to wit, just who was this Sun Tzu?

    Almost no one comes up with a competent answer. Every so often I clarify a bit by asking–well then, just who was Ammianus Marcellinus?

  7. “Imagine Washinton not viewing itself as “the indispensable nation”, U.S. military spending cut by half (and we wonder why our economy is collapsing) and no wars in Iraq, Afhanistan, Panama, etc (too many to name really). BUT OF COURSE, that would REQUIRE American “leaders” to have humility, reason and moderation and not arrogance, ignorance and hubris”

    I would say, ” imagine that the majority of US citizens not viewing themselves as “the indispensable nation”….”

    “…BUT OF COURSE, that would REQUIRE American “people “to have humility, reason and moderation and not arrogance, ignorance and hubris”

  8. “Humility” is cultural and ritual not only among the Chinese.

    Most “Christians”, however righteous and belligerent, are quite sure they are the humblest of their God’s children, are they not?

    Arrogance too comes in many flavors.

    At any rate, reason and a close connection to some reality that is not wholly emotional or subjective works wonders in the way of moderating both–humility and arrogance, that is.

    Nietzsche, merely by the way, is marvelous on the subject of Christian “humility”. His father was a Christian clergyman after all, wasn’t he?

  9. Thanks for the heads up.

  10. Richard, your comments were wise. Many in the US agree with you.How can we translate our desire for peace and economic justice into government policy? Without getting ignored, demonized, marginalized or killed? MLK was trying to get a coalition of all races together, for justice, right before he was killed, this is illustrative of what peacemakers have faced

  11. Have the Chinese become good guys all of a sudden ? Not really. Its “us” that have changed which is pretty scarey when you think of it. Sort of like the ending of Orwell’s Animal Farm where you couldn’t tell the difference between the opposing sides.

  12. No doubt the pathocrats will be soon retailing the same story, to wit, how humbly Americans must sacrifice themselves for the greater good, namely, theirs and that of the Chinese.

    “Ask not what your country can do for you, ask what you can do for your country , and all that.’

    Hey, brother, can you spare $700 billion?

  13. Mark my words, Mr. Corkey, the elite, left and right, will soon be peddling Thatcherism.

    In fact, Congressman Paul, a.k.a. Doctor Slop, already is, while others try to tote up the collapse of sub-prime to those poor irresponsible, loose-shoed, over-Cadillac’ed blacks.

    Isn’t interesting, however, most Mexican “labor” in the US works hard, saves, doesn’t borrow much, and has very little use for “credit”.

    Perhaps they should be elected the next Protestants.

  14. Havatu,
    If you meant me, thanks for the compliment. I don’t possess any wisdom but I do practice the truth. Spiritual sickness is like physical sickness – either one must purge out the malady making us sick or if we lack something for good health, take that in. Lies are making us sick, accepting the truth can cure us. Acknowledging the truth and confronting the lies publically will help spread spiritual health.

  15. September 29, 2008
    A Banker on the Evils of the Community Reinvestment Act
    Posted by Thomas DiLorenzo at September 29, 2008 09:28 AM at

    Another banker has written me to explain why the CRA Scam is even worse than we imagined. My workds are in brackets. L.S. writes:

    I am an expert in the Community Reinvestment Act and the Home Mortgage Disclosure Act and related Fair Lending laws. I have been consulting in this specializeed compliance area for 14 years and have worked with hundreds of banks and some community organizations as well. There is a good deal of truth to the allegation that the CRA did contribute to the current financial crisis . . . . There is much good to be said about the CRA, but as the old saying goes, “The road to hell can be paved with good intentions.” While the CRA has been around for more than 30 years, it was the changes made in 1995 under the Clinton administration that set the ball in motion for the pressurs that created market premiums for LMI ["low- to moderate-income, or sub-prime] mortgages. In 1995 for the first time, the CRA specified quantitative performance standards specifically related to LMI mortgages. It took 7 or 8 years for the cumulative effect to become too big to ignore.

    About 50% of the sub-prime mortgages originated can be ascribed to banks and their affiliates (which itself is still very substantial). Under CRA banks receive credit [by the Fed and other regulators, for making bad loans] not only for loans they originated, but loans they purchase as well. This resulted in a premium value for mortgages to low- and moderate-income [i.e., sub-prime] borrowers . . . . The premium was reflected in the secondary market for these loans [i.e., Fannie and Freddie's operations] I personally saw transactions between banks in which these mortgages were sold and purchased at huge premiums that were driven by the “CRA value” of the credits [i.e., browny points with Fed regulators] for the loan purchaser. I vividly remember one portfolio transaction in which the purchasing bank paid a premium of $15000 per mortgage to effect a transaction just before year end. Some unscrupulous firms went around marketing “CRA mortages” . . . touting the mortgages to borrowers as highly attractive because of the CRA-angle. Lehman Bros. was one of the most acive players in the secondary market purchasing these loans. The reality is that the regulatory pressure exerted by CRA was a factor that should not be ignored. Ironically, at the same time, many banks did offer discounted rates to LMI borrowers that did benefit them. Not all sub-prime loans took advantage of borrower ignorance.

  16. Corkey,

    Yes, from the tone of the article, you’d think that Wen Jiabao and Hu Jintao were candidates for cannonization. Let no one ever forget the history from which these slime emerged, the estimated 60,000,000 deaths attributed to Chinese Communism, and to the conditions to which the Chinese people are subject as a consequence of their leaders’ piggishness. They are slave people being led by thugs, thugs not entirely unlike our own. Perhaps Eugene will be more sparing of the legitimate humility of Christians when comparing it to what the East has produced in this instance.

  17. China’s new gang of four are Hu, Wen, Wat and Wai.

  18. Your misrepresenting the issue here. The POINT is NOT what the Chinese government is doing to/in China versus what the American government is doing to/in America. The POINT is what is being done ABROAD. It WASN’T a Chinese army that invaded Iraq in an illegal war based on trumped up fraudulent charges. It WASN’T the Chinese air force that bombed Serbia for 78 days in an illegal war of aggression.

  19. “…and may even approach the genuine article among scholar and scientist.”

    The more I know the more I know how much I don’t know.

    Ya know? ;-)

  20. More hot air. There was indeed a lot of nonsense in in CRA, a placard about which was prominently displayed in most banks, but it had little or nothing do with the collapse of subprime.

    Bank of America actually thrived on exploiting markets that other banks did not see, most importantly by relying on their own credit models.

    Some of the smaller community banks most creditably involved in CRA had the best paper, and were bought or went down for that very reason.

    No doubt if you fellows keep repeating this it will be widely believed, just as most Americans seem to believe now, from the sheer repetition in the media, that the Russians preemptively attacked Georgia.

    DiLorenzo is often interesting, but here he is at sea.

    I could name five factors that are not mentioned that were more important, but why bother, and have already suggested a few others.

    It will all come out in the wash.

  21. “Legitimate humility of Christians”, John?

    I doubt you really want to go in that direction, for I might be forced to bring up the small matter of the Albigensian crusade, just for starters, and at the other end, more than a million dead in Iraq.

    As for accounting for the dead bodies in mainland China from, say, 1910 to the present, it is no simple matter of columns for the Nationalists, the Communists, the Americans, the Japanese, and so forth.

    They all had distinguished records in that department.

    More interesting is the later cooperation of the United States, in the person of Kissinger, with the Communist Chinese in engineering the killing fields in Cambodia.

    In fact, the Chinese Communists were once known for their blatant rejection of ritual humility, which was identified with the old ways, and about which Karlgren has a hilarious story. It is a pity I do not have his little book at hand, but it is too good to retail loosely.

    The most interesting thing about the fellow above is that he is a geologist. The Party obviously finds his mien as grandfather and his “heartfelt” air of plain dealing very useful, especially with Americans.

    The message to the US is heartfelt indeed, “Pay up”.

    One is reminded of string theory–at the other end of the universe, Paulson pops up trying to panhandle $700 billion, and that is just for starters. You don’t really think Paulson or the mainland Chinese give a good goddamn about American homeowners, or even most banks, or even the bad paper, do you?

    I recall an interesting speech by Congressman Paul, in which he praises the mainland Chinese for their hard work and thrift, and attributes their success to such virtues.


    Anyway the Chinese foreign exchange surplus was $1.7 trillion just a short time ago with about sixty percent in USD, if I recall correctly. This must be the “one trillion” the interviewer alludes to.

  22. Pathocracy is a disease of great social movements followed by entire societies, nations, and empires. In the course of human history, it has affected social, political, and religious movements as well as the accompanying ideologies…and turned them into caricatures of themselves….This occurred as a result of the…participation of pathological agents in a pathodynamically similar process. That explains why all the pathocracies of the world are, and have been, so similar in their essential properties….

    Andrew M. Lobaczewski

    I honestly have no idea who this fellow was, and am still sceptical about the legend. But he is almost as good as Stansilaw Lem on a very good day, and that is genius pure and simple.

  23. Eugene,

    There no such thing as a legitimate humility in Christianity, Eugene? I believe St Therese of Liseaux has her feast day on October 8th, only about a week from now, does she not? Are we to regard her “Little Way” as craven self-importance? And its beneath your dignity to suggest that Christians – as Christians – are responsible for the carnage in Iraq. You know that the Holy Father opposed the war, declaring it unjust from the outset. And that overworked warhorse, the Albigensian Crusade? Oy gevald! Lets stick to Callas, Tito Shipa and Il Barbieri di Siviglia. We were making real progress at that point. :-)

  24. Andy,

    And I suppose it wasn’t the Red Chinese that invaded Tibet in 1950 and India in the early 1960s?

  25. “The Church” feeds off saints and eremetics as the eagle fed on Prometheus.

    Laudate sie, mi Signore, cun tutte le tue creature
    Spetialmente messor lo frate sole….

    How is it that Francesco is claimed as “Christian” but the systematic slaughter and torture of the Cathari is not?

    If you look carefully on the web you can find a photo of Spellman flanked by Nixon and Kennedy.

    It speaks volumes, saving me the time and trouble.

  26. Sun Zi was an ancient Chinese writer who saw fit to pontificate on military topics. More than one real military man noted that his book was a product of the study, not experience on the battlefield.

    Ammianus Marcellinus was a Late Roman historian, active in the late 4th, early 5th century. His Res Gestae is nominally a continuation of Tacitus’ writings, but the parts that survive deal with the reigns of Constantius, Julian, up to Valens and Valentinian. He was a retired member of the Imperial Guard and was an eyewitness to much of what he describes. His account of religious fanatic emperors, corrupt eunuch advisers, sinister bureaucrats like Paul the Chain, and (last but not least) futile invasions of Mesopotamia and unwinnable wars with Iran throws light on our own situation.

    Is this a test? Beaucoup info on these guys is available on the Net, some of it even reliable. For Ammianus, at least, I can suggest you read the Loeb Classical Library translation, not the Penguin version. The latter leaves out all the digressions, which are highly interesting in their own right.

    Lester Ness

  27. The US has always relied heavily on immigrants, educated and uneducated. When they stop coming, you may be sure that the big lumps are hitting the fan.

    Lester Ness

  28. Chinese people are not slave people; you are an ignoramus.

    Lester Ness

  29. The article specifically said the LAST THIRTY YEARS. Not the last 58 or 45+ years ago. Again you are misrepresenting both the letter and the spririt of the article. It is not China today, but the USA, that is the world’s most aggressive and reckless nation. Which country spends more on its military? Which country has military bases all around the world? Which country invaded Iraq under false pretences?

  30. There are lots of people in China, and all of them have the usual mixture of good and bad qualities. (“There is none good but G-d”, remember?) Messers Hu and Wen are both able to read, write, figure. Nearly all the top leaders are engineers, with successful careers making things happen, not incompetent businessmen and lawyers, as so many US leaders are. They see profit in economic development, not in militarism. But they are not supermen, merely more competent managers of their country than the current band of extraordinary incompetents in DC.

  31. “Pathocracy” sounds like what is traditionally called “original sin”, even “total depravity.”

    Lester Ness

  32. My image of slaves is of starving people being brutally worked to within an inch of their lives. By what miracle do these wretched slaves manage to collectively save 30% of their meager income which they then kindly lend to us free and rich Americans so that we can live beyond our means? I can’t even imagine slaves with bank accounts much less with savings.

  33. Actually the “Chinese” are not a people at all, but even insofar as the majority is Han, they enslaved one another regularly, and some, as far away as New York City, still do apparently.

    But what need of China and the Chinese as slaves?

    Most Americans seem to believe that “slavery” in the US ended after the War between North and South. Read the Constitution closely–involuntary servitude is still allowable in regard to convicts.

    With roughly three percent of the US population in prison, which is more per capita and also absolutely than either the Russian Federation or the People’s Republic of China, there is a growing industry in convict slavery in the US.

    Whether she is a Marxist or not, when Angela Davis talks of the US “prison-industrial complex”, she is not just whistling Dixie.

    Strangely enough, though he pretends to be a Libertarian, I have not heard a peep out of Paul on the subject during this presidential season.

    That, combined with his praise of the “thrifty, hardworking, Calvinist” Communist Chinese, sets off some alarms bells in relation to just what his “revolution” is really about.

  34. Not necessarily the most realistic image of “slavery”. In the US at least, where slaves were property and produced work, their condition materially tended to be better than that of either indentured servants or propertyless proletariat.

    In fact, the motive behind the British freeing the slaves in their empire, which was a classic Liberal policy, had little to do with freedom or human rights, but hinged on the fact that slaves are more expensive to keep and maintain than “labor” paid a subsistence wage.

    Indentured servants had the worst of both worlds. At the beginning of their term, when there were still years of work left in them, they were treated as well as slaves. Near the end of their terms, there was nothing to be gained in not working them to death, including semi-starvation and medical neglect.

  35. The methods of psychological terror (that specific pathocratic art), the techniques of pathological arrogance, and the striding roughshod into other people’s souls initially have such traumatic effects that people are deprived of their capacity for purposeful reaction; I have already adduced the psychophysiological aspects of such states. Ten or twenty years later, analogous behavior can be recognized as well-known buffoonery and does not deprive the victim of his ability to think and react purposefully. His answers are usually well-thought-out strategies, issued from the position of a normal person’s superiority and often laced with ridicule. Man can look suffering and even death in the eye with the required calm. A dangerous weapon falls out of ruler’s hands.

    Andrew M. Lobaczewski

  36. And the gang’s cousin, Hao.

  37. John, are you familiar with Carlo Ginzburg’s The Cheese And The Worms: The Cosmos of a Sixteenth Century Miller (Il formaggio e i vermi)? I have not looked at it in many years and I don’t think I ever read it straight through, but I earlier had the benefit of a long and brilliant lecture of Ginzburg’s that later became part of the book, and some discussion.

    The miller in question is a fascinating figure–separated from approved and complex theology, or universal metaphor, perhaps only by his lack of “formal” education.

    Ginzburg also revised wholly the picture of the Italian Inquisition, which was not in league with the Spanish but much more of a mixed bag.

  38. Let’s grant all that’s said about the Community Reinvestment Act and troubled subprime mortgages. The question is: what was their weight, or percentage, of the defaulted mortgages? From what little I gather so far, the main problem was with middle and upper class types flipping houses in an inflationary environment, or going in way over their heads expecting the house to appreciate so rapidly that they could stay ahead, and the banks who enabled this behavior. When the escalator stopped, a lot of people got burned.

    A case in point: National Public Radio interviewed a working class couple (income circa $80,000/yr.) who bought a 400K house under an adjustable rate mortgage. When the interest rate spiked the monthly payment rose to 4K, which wiped the couple out. The interviewer asked why they would have taken such a dangerous and huge mortgage, and the wife replied that gee, they hadn’t really considered the consequences of what they were doing.

    I’m open to correction on the importance of the CRA to the current mortgage mess, but right now it looks like some libertarians are trying to blame the feds rather than greedy buyers and sellers.

  39. Really–should I read Ammianus Marcellinus in the Loeb? Thanks for the tip, Lester Ness.

    Ammianus was indeed enrolled as a protector domesticus, but what actually did that mean in the Fourth Century?

    Also, what does he mean when he calls himself “a soldier and a Greek”. Any idea?

    You might want to look at a book by Robin Seager, Ammianus Marcellinus: Seven Studies In His Language And Thought. Notice the dedication especially.

    I have never been impressed with the work of Sun Tzu, but the dichotomy you construct between “literary man” and “soldier”, whether among the ancient Chinese or the Romans, is pretty rickety stuff.

  40. From Dennis Kucinich on blocking the bailout:

    Here is a very quick explanation of the $700 billion bailout within the context of the mechanics of our monetary and banking system:

    The taxpayers loan money to the banks. But the taxpayers do not have the money. So we have to borrow it from the banks to give it back to the banks. But the banks do not have the money to loan to the government. So they create it into existence (through a mechanism called fractional reserve) and then loan it to us, at interest, so we can then give it back to them.


    This is the system. This is the standard mechanism used to expand the money supply on a daily basis not a special one designed only for the “$700 billion” transaction. People will explain this to you in many different ways, but this is what it comes down to.

    The banks needed Congress’ approval. Of course in this topsy turvy world, it is the banks which set the terms of the money they are borrowing from the taxpayers. And what do we get for this transaction? Long term debt enslavement of our country. We get to pay back to the banks trillions of dollars ($700 billion with compounded interest) and the banks give us their bad debt which they cull from everywhere in the world.

    Who could turn down a deal like this? I did.

  41. You’ll find the Loeb translation of Ammianus online at the Lacus Curtius site.

    I can’t say what “protector domesticus” meant, but he was not the slave who emptied the chamber pot. No idea about “soldier and Greek” either.

    You can be pretty sure that Robin Seager’s book on Ammianus is NOT available in China!

    Read _Romance of the Three Kingdoms_ or (even better) _Journey to the West_.

    Zhu Bajie

  42. My sweet, lovable Chinese students are not bad guys.

    A lot of Americans need to flush their Cold War political educations, their Yellow Peril racism, down the toilet, or Pres. McCain (the Insane) will lure them into ANOTHER war.

    Lester Ness

  43. You can be pretty sure that Robin Seager’s book on Ammianus is NOT available in China!

    Want to bet?

    In fact, some Chinese has already looked it up.

    The dedication reads, “For Gene Costa ut militi quondam”.

    Oh, Outlaws of the Marsh? To find out read our next chapter.

  44. Ammianus claims caution as a virtue of his own approach to history, before amending this with tongue in cheek to timidity. Elsewhere cautus is his favorit word of commendation in both politics and particularly military matters. The praise of prudence is more evenly distributed between political and miltiary contexts, and prudens, unlike cautus, is sometimes employed as a vague compliment without any clearly defined content. In politics caution is almost always praised, but especially when it brings success….

    Robin Seager

    Latin too comes in useful comparing, say, the Chinese of the Chung Yung (Chum Yum) with the translation of Matteo Ricci’s Jesuits in China.

    At first sight the sentence C in ancient Chinese was translated as sentence L in Latin is a headbender all its own.

    Even most Chinese don’t know that they have been gradually changing the grammar of modern mainland Chinese to fit languages like English as analysed by linguists like

    Not vocabulary–”grammar”.

  45. corr: “favorite”, “military”. Pardon this and other typos.

  46. Incidentally, Lester Ness, just to illustrate how one can easily fall into misunderstanding whole structures by reading in one’s own unconscious and unexamined prejudices, if the emperor was, say, Constantius, the cubicularius who emptied the chamberpot was likely much more influential than any protector domesticus.

    There are parallels in English and French history, and in Chinese as a well.

  47. You may want to read Ammianus Marcellinus one of these days, Lester Ness. You’ll so much better get the drift.

  48. Any half-educated Russian, naturally, will immediately think of Pushkin’s grandfather, was it?

    And, as many Russians now realize, even half a basic education in Russia means more day by day than reams of cheap American paper, whether in the form of dollar bills or Ph.D’s and advanced degrees.

  49. Eugene, I am not too keen on this statement, which has been allowed to become the keynote of the remaining part of the thread: Ritual humility is still cultivated in certain circles, and may even approach the genuine article among a scholar or a scientist.

    The reason I am not happy about it is that “the humility of the scientist” in the western positivist school consists in his determination to regard himself and everyone else as inanimate machinery that merely happens to have an inconvenient (and often unpleasant) illusion of “consciousness”.

  50. Incidentally, Lobaczewski is the guru of the extremely daffy Cassiopeia sect, run by channeler of non-human entities Laura Knight-Jadczyk. Lobaczewski proposes to abolish politics in favour of a completely unverifiable, genocidal form of moral mass prophylaxis. Specifically, he proposes that “we” confine, and if necessary kill, the half percent or so of our population (as divined by him) who are “incurable psychopaths”, who currently own and run the world. thus, as a preliminary, we will need a totalitarian world-wide revolution, led by political ponerologists.

    You may easily confirm this by reading any of the relevant pages on Jadczyk’s site, such as this:

  51. (1) Depends on the “scientist”, no?

    (2) Don’t you unconsciously fall into defining “science”, thus “scientist”, only on the model of some recent and supposedly strictly empirical disciplines, such as, say, “physics”.

    Logic and mathematics are not “scientiae” then?

    Buckminster Fuller was an unchallenged genius. If you read his work carefully, however, as many an engineer, he was supremely naive about the logical implications of the mathematics he used.

    Indeed, his positivist bent led to even some of his warmest admirers dubbing his various theories “applied mathematics”.

    There is an irony there that may not have been intended.

    For all that, and despite the fact that Fuller, in his rush to communicate his thoughts, invented a difficult and clumsy language of his own, I highly recommend his little essay on Henry Ford–as I recall, in Nine Chains To The Moon, wasn’t it?

  52. Thanks for the information, Rowan Berkeley.

    The supposed photo of the mysterious fellow on that site certainly does not look like Stanislaw Lem in his last days.

    Is this Knight-Jadczyk, if a real person, altogether sure she is not the consequence of a secret cloning of Stanslaw Lem and Kurt Vonnegut, to be unleashed on the 21st Century as posthumous envoi?

    Or is she closer to Nietzsche’s sister, the real authoress of the odd un-Nietzsche of The Will To Power?

    Finally, do you consider this Cassiop(oi)eia sect, as you call it, any more exotic than the Project For The New American Century?

    Or is that pathocrat calling pathocrat black?

    For all or any of that, I found the legend hard to swallow from the getgo.

    I will expand the heuristic to countenance the possibility that Lobaczewski is a genuine trout, not Philip Jose Farmer’s variety, and perhaps a kind of Polish Bukowski, who, despite much studied repulsiveness, did manage to write at least two near great poems.

    Someone once sent me a long account of Christ’s lost years in Egypt.

    I became a little suspicious when the the young fellow was chronicled as having walked out the door of cottage into the “backyard.”

  53. A good place to start to cull the pathocracy is in Congress. Not much divining is required here. Anyone who voted for the Billionaires Bailout bill must be a pathocrat.

  54. Unfortunately, I have missed most of the disscusion on this issue, so some of this may by repatative, my apologies.

    While I agree whole-heartedly that everything this man is saying is very levelheaded and diplomatic, can we really be naïve enough to take what he says at face value? It is one of the defining characteristics of past communist societies, and authoritarian governments (which China arguably has), to never be completely transparent.
    While the Premier may be saying these inspiring words, and possibly even meaning them, he is but one man in the government of the largest country in the world. This is a country that has countless human rights violations, from the execution of prisoners for organ harvesting to supplying the Burman junta with weapons to crush peacefull demonstrations with.
    The so called ‘Western eliteist demonization’ of the PRC is not without some justification.
    As for the highway between Vietnam and China, it is being built for the same reason that the Premier said he wants to unify with the USA to tackle the current economic crisis. That reason is pure SELF INTREST.
    Regarding the warming relations with Taiwan, this is not because of the PRC’s deligent diplomatic talks, it is because the people of Taiwan were forced to give in. Upon electing Chen Shui-bian of the Democratic Progressive Party, the people told China that they had given up hope in the idea of complete self-determination of peoples and succumbed to the PRCs constant threat.

    Once again, I would like to reiterate the mistake this article is making at taking everyhting the premier says at face value. Anyone can say words, it is action and the change that follows that is what really counts.

  55. Yeah, the next thing you know we will be comparing him to Thomas Jefferson.

  56. Costas, et al., may I suggest you come to China, work for a year? Then you can spend the rest of your lives posing as China experts. The current crop of China experts seem to get their info from the “Terry and the Pirates” comic strip, and similar sources of misinformation.

    Lester Ness


  57. Really Lester Ness? You display your ignorance. But I don’t intend to provide any more details. Suffice it to say that some mainland Chinese have already put two and two together.

    What do you know about the mainland banking system, Lester Ness? Go back to your Terry and the pirates.

  58. If the mainlanders want my advice, they know exactly where to find me. My fee has gone up. Let’s start out at $600 per hour. Not interested? No skin off my nose. Man zou.

  59. At any rate, at the moment I am much more interested in the Russian Federation, and am done with China and Chinese short of something really to perk my interest.

    The Russian Federation is where the real intelligence lies.

    Sorrily, though I am well read in Russian in translation, I know only a few snippets of Russian. That may well be an advantage. Exchanging English and Russian would be interesting at least.

    I deliberately avoided learning the Russian language because I knew it would become my life work if I started it, and I had other things to do.

    The US is on the verge of complete collapse. It is strictly low comedy from here, whatever the results of the election.

    There may be a bit of breathing space if oil is nationalized quickly in just the right way.

    The US is now the world’s greatest deadbeat. The elite expects the lower and middle economic orders to pay for it. I pass.

    Without the Constitution in force, what is the US worth? One can read Melville or Peirce or Santyana or Poe anywhere.

    The Russians and the Chinese and the rest are holding back only because, for obvious reasons, they prefer a gradual collapse.

    If there is going to be nuclear war, on the hand, why worry at all?

  60. corr:”on the other hand”.

  61. After Mo Tzu, just for example, or even Li Ma Dou, Lester Ness, most Chinese, as most Americans, are predictable and boring.

    And the people who teach their colloquial American English in return for a pittance and newspaper Beijinghua are even more boring and uncultured and arrogant than the Communist Chinese leadership.

    This does not include, obviously, a few close friends I have among mainlanders.

  62. Eugene,
    “It is strictly low comedy from here,…” I agree wholeheartedly. Last night, I watched the VP debate, and maybe I was drunk or half-awake, but I could swear that one of the candidates was smiling and winking at me.

  63. I missed it. I was busy watching Mick Foley’s return to professional wrestling on Spike TV. Much more interesting too. By the way, was there any hair pulling or eye gouging during the debate?

  64. Corkey,
    You didn’t miss much. Biden said a lot of things that I didn’t exactly agree with, but he did it pretty professionally. He spoke out for the Wall Street bailout, possible war with Iran, definite war with Pakistan, against gay marriage etc. Palin came in prepped as can be. She ran the first few plays just as they diagrammed for her in the locker room. Sometimes what she talked about had nothing to do with the question, but Gosh, she did it just so doggone cutely, no one should hold it against her. She even did a folksy cross between Edith Bunker and Ronald Reagen (“Say it ain’t so, Joe – there you go again”). The only original thoughts in the woman’s head were her hatred for Mr. Ahmadinejad and her love for Israel. Biden was a little more restrained in his hatred for Iran but he wanted no back seat in his love of Israel claiming number one place in the Senate’s Zionist Hall of Fame. Palin gushed “I think it is great that we both love Israel”. I felt nauseous and faint.

  65. I haven’t figured out yet how much of Palin’s “love the Iraq war/bomb Iran/lick Israel’s boots” is native to her and how much is neocon buffoonery poured into an empty vessel.

    With all that winking at me, though, where was she when I was in high school?

  66. More String Theory:

    Beijing’s official Xinhua news agency reported today that Hu and Pres. Bush conferred thusly about the crisis yesterday evening (Washington time):

    Bush briefed Hu on the latest development of the U.S. financial market, saying his government was well aware of the scope of the problem…

    Hu [said he] hoped the measures would soon take effect and lead to a gradual recovery of the financial market, which he said not only serves the interests of the United States, but also those of China…

    He said China is ready to work with the U.S. side to intensify dialogue, exchanges and cooperation, and properly handle issues concerning mutual interests and of major concern, particularly the Taiwan question, in a bid to push forward the sustained and steady development of the Sino-U.S. constructive and cooperative ties….”


    Meanwhile there are unconfirmed reports that Comrades Paulson, Bernanke, and Chertoff have boarded an armored train to New Mexico to supervise the upcoming green chili harvest.

  67. In furtherance of what E.C. and R.N. have said, it appears that the mortgage defaults in and of themselves were merely the trigger, not the actual cause of the progressive collapse. The banking system could have handled the increased default rate if there had not been layer after layer of leveraging piled on top of the mortgages. That pile of leveraging had everything to do with deregulation. Essentially, more and more credit was allowed to be written without regard to reserve requirements or proper evaluation of the risks of the increased leverage. In 1929, we saw what can happen when margin requirements are too low and individuals can buy (on margin) the stock of holding companies who are in turn allowed to buy the stock of other companies on thin margin. Once “de-leveraging” got rolling, it was impossible to stop. It didn’t matter that the stocks of the underlying industrial corporations were fundamentally sound and had merely had a quarter or two of flat earnings. What should have been a minor slow-down in economic growth became a catastrophe due to excessive leveraging. This crisis is fundamentally the same. The only real difference is that the underlying asset is real estate rather than industrial stock.

    Blaming this crisis on defaulted mortgages is like blaming a nuclear explosion on the conventional explosion of the triggering device, while ignoring the critical mass of fissionable material.

  68. The “thusly”, by the way, is the site’s, not mine.

  69. Just watched Greenwald’s movie on Walmart and China on TV today. I am trying to decide who I dislike more, the Chinese government or Walmart. Based upon this program, we should deport the entire Walton family and their organization to China as thats where they belong.

  70. The major difference between the two is that Biden has Arab blood on his hands, and Palin is only willing to have it on hers. I despise both of these creatures. Sorry to be so blunt. Thank you.

  71. Andy,

    A totalitarian country with an established history of military aggression and because the article conveniently refers to a period of 30 years within which no such aggression is alleged to have occured the leopard has somehow changed it spots and that history is irrelevant? Ask the people of Tibet how they enjoyed their recent schmooze with the PLA, son. That the United States has made of itself a bane to the peaceloving nations of the world does not cannonize Wen Jiabao and Hu Jintao.

  72. Eugene,

    “John, are you familiar with Carlo Ginzburg’s The Cheese And The Worms: The Cosmos of a Sixteenth Century Miller (Il formaggio e i vermi)?”

    I hope you will forgive the long period of neglect in which I’ve left this inquiry, Eugene. Old men are given to going to bed early after a particularly arduous workday and I’ve had five of them this last week. Apologies! I cannot say that I’ve had an earlier aquaintance with Il formaggio e i vermi, I haven’t. An early representative of chaos theory, the miller? A much happier outcome for the speculative, self-educated theologian is to be found in the example of Hans Urs von Balthasar. Instead of the stake, a cardinal’s hat in 1989. :-)

  73. Lester Ness,

    “Chinese people are not slave people; you are an ignoramus.”

    Sure they’re not, Lester, you just keep believing that. And as to the ignoramus part, cross your legs, your breath smells. :-)

  74. The Sino–Vietnamese War, also known as the Third Indochina War, was a brief but bloody border war fought in 1979 between the People’s Republic of China (PRC) and the Socialist Republic of Vietnam. The PRC launched the offensive in response to Vietnam’s invasion and occupation of Cambodia, which ended the reign of the PRC-backed Khmer Rouge…on February 17, a PRC force of about 200,000 supported by 200 tanks from the PRC People’s Liberation Army entered northern Vietnam….Contrary to the belief that over 600,000 Chinese troops entered Vietnam, the actual number was only 200,000. However, 600,000 Chinese troops were mobilized, of which 200,000 were deployed away from their original bases….Around 400 tanks (specifically T-54′s) were also deployed….

    [wikipedia s.v.]

    It was brief only because the Vietnamese forces, though mostly no more than border guard units and though taken by surprise, inflicted massive casualties on the Chinese, including 26,000 Chinese soldiers killed in a few days.

    The United States, which had just opened full diplomatic relations with China, and with Brzezinski pursuing the policy Kissinger began, not only supported the Chinese against Vietnam, but earlier supported and encouraged the Chinese Communist-sponsored Pol Pot and the Khmer Rouge in Cambodia. Cf., just for one example, Edward Herman, Pol Pot And Kissinger On War Criminality And Impunity:

    It would be naive to suggest that the Vietnamese intervened in Cambodia and put an end to Pol Pot and the killing fields for humanitarian reasons.

    But the Vietnamese invasion put an end to slaughter quickly, and this in a way that, whatever the motive, was more humanitarian in its effects than anything the US, in a long and brutal history, did in the same area, including earlier helping to destroy and destabilize Cambodia under Nixon.

    Note also that the old Soviets were not only helping Vietnam against China, but also encouraged the Vietnamese to invade Cambodia and overthrow Pol Pot.

    To this day, many Americans are unfamiliar with the US role in supporting both Communist China and Pol Pot in Cambodia, and thus sponsoring the killing fields.

  75. Eugene, you said: “The elite expects the lower and middle economic orders to pay for it. I pass.” What do you mean “I pass.”? Are you saying that you, like me, and many others, are refusing to pay your income tax? If so…BRAVO Eugene Costa!

  76. I pass on your “bravo” as well. Does that help you a bit with the semantics?

  77. Why just Arab blood:

    Biden is a long-time member and current chairman of the Foreign Relations Committee. His strong advocacy helped bring about U.S. military assistance and intervention during the Bosnian War.


    Biden had five consecutive deferments during the Vietnam years, but by his own testimony he was not antiwar.

    Apparently his activism is confined to his now widely proclaimed Zionism, which is a bit curious for an American and supposed Roman Catholic.

    For myself, I have not noticed any equivalent enthusiasm for the US Constitution.

  78. [...] PRC better Capitalists & Peacemakers…. Blog · Not only are they better capitalists, but better peacemakers too? [...]

  79. Hey, brother, can you spare ANOTHER $700 billion:

    SINGAPORE (AP October 6, 2008)- Asian stock markets plunged Monday as investors took scant comfort from Washington’s passage of a $700 billion bank bailout and focused instead on deepening financial turmoil in Europe that threatens to slow global growth….

    A dismal report on the U.S. job market released Friday added to the gloom, fanning worries about U.S. consumer demand for Asian exports….

    “This credit crunch looks like it’s not going away any time soon,” said Alex Tang, head of research at brokerage Core Pacific-Yamaichi in Hong Kong. “Apart from a credit crunch in Europe, investors are quite concerned about the worsening outlook on the U.S. economy.”

    “We haven’t seen any positive developments in Europe or the U.S., apart from the rescue plan,” Tang said. “But even with the rescue plan, investors are focused on the slowing economy”….

    In currencies, the euro slid to $1.3618 from $1.3774 late Friday. But the dollar was weaker against the yen, falling to 103.11 from 105.30 yen late Friday..

    Paul Craig Roberts’, “The Bailout Will Fail” (October 5, 2008) is masterful analysis that should be read carefully line by line:

    In my view, he makes only two errors, both of omission.

    First, the USD is no longer the world reserve currency, but only a choice.

    Second, Roberts does not measure the collapse of the USD in relation to the price of a barrel of oil, nor does he introduce that collection of figures into his model explaining the collapse of sub-prime.

    This does not compromise his analysis, except to add a recursion that makes matters worse than even he reckons.

    I see no way out of that particular recursion except the nationalization of US oil and disattaching USD from the global market price of oil.

    Windfall profits taxes and curbing high salaries of the oil executives does exactly nothing–in fact worse than nothing.

    I may be wrong, and there may be other ways.

    The rise of the price of oil is actually the collapse of USD, and, with a few other factors like futures, had very little to do with supply and demand.

    Oil prices are declining now, on the other hand, because the economy is tanking.

    It is quite obvious, however one slices it, that the bailout will do nothing to support a “recovery in real estate”. In fact, I doubt very much that Paulson and Bernanke, among the deceits they peddle, believe that particular shaggy dog story.

  80. I strongly suggest Congress redouble its efforts scouring the Pacific jungles to find another holdout of the Japanese Imperial Army still fighting WWII.

    The US needs to surrender to him immediately.

  81. Strictly as a matter of accountability, which is at the root of near universal American incompetence nowadays, it might also be a useful diversion, if not pregnant with any immediate economic consequences, to prosecute Hofmeister and fellows for lying to Congress, as in their appearance before the redoubtable, if much underestimated, Maxine Waters, here:

  82. Fed Boosts Cash Auctions to $900 Billion, May Do More

    Oct. 6 (Bloomberg-Lanman Torres) — The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens….


    What is that quotation attributed to Everett Dirksen of Illinois, “”A hundred billion here, a hundred billion there, and pretty soon you’re talking real money.”

    And that Dirksen quotation about the ship of state–”If there’s a firm hand on the rudder, then someone is drowning and no one is minding the tiller.”

    Or was it “till”.

    Politics aside, he had a marvelous voice, and even managed, with some beauty, a very flowery speech about, well, flowers, as I recall.

  83. [AP 15 minutes ago]Rep. Henry Waxman, D-Calif., chairman of the House Oversight and Government Reform Committee, said the giant investment bank [Lehman]was “a company in which there was no accountability for failure.” Lehman’s collapse set off a panic that within days had President Bush and Treasury Secretary Henry Paulson asking Congress to pass the rescue plan for the financial sector.

    That curious word again, “accountability”, missing also in the Federal Executive, the Congress (including Waxman himself) the Judiciary, the military and financial elite, and so forth.

    Thank the stars, Paulson’s and Bernanke’s “bailout” remedied all that.

  84. Comrade Paulson just appointed the head of the new “Office of Financial Stability”, charged with giving away the taxpayers’ $700 billion.

    He is an ex-Goldman Sachs vice president.

    That’s bad enough. What’s worse is his surname sounds a lot like “cash ‘n’ carry”.

    Low comedy indeed.

  85. Presumably the mission of the new sachem of the “Office of Financial Stability” is domestic in thrust and it is the financial stability of the United States, however perversely defined, that is the goal.

    Presumably there is also sufficient Congressional oversight to track where all the money finally winds up.

    The loose change abstracted by Bush administration officials in other directions is perhaps cause for slight pause–at least $3.5 billion simply “lost” by Halliburton, for example, supposedly for the war in Iraq.

    Chief Cash N. Carry’s ethnicity is certainly not pertinent.

    Presumably he is an American citizen, with all the proper loyalties.

    Still, the recent advance of the Project for the New American Century in the growing hostility with Pakistan, and the nuclear pact with India, makes one wonder if any of the $700 billion is ultimately ear-marked for foreign venues, including perhaps banks in Israel?

    It is surely unpatriotic in the highest degree even to ask.

  86. It is not too late to impeach. It would take the House and Senate a day or two to do were there the votes and the will.

    How many even as early as last Spring, were saying there were only a few months to go, and asking how much damage could Bush and Cheney do?

  87. From the Treasury Department Biography:

    Neel Kashkari

    Neel Kashkari was designated as the Interim Assistant Secretary of the Treasury for Financial Stability on October 6, 2008. In this capacity, Mr. Kashkari oversees the Office of Financial Stability including the Troubled Asset Relief Program.

    Mr. Kashkari also continues to hold the position of Assistant Secretary of the Treasury for International Economics and Development, but his International Affairs responsibilities are delegated to Assistant Secretary for International Affairs Clay Lowery while Mr. Kashkari serves as Interim Assistant Secretary for Financial Stability.

    Mr. Kashkari joined the Treasury Department in July 2006 as Senior Advisor to U.S. Treasury Secretary Henry M. Paulson, Jr. In that role, he was responsible for developing the President’s Twenty in Ten energy security plan, enhancing Treasury’s engagement with India, particularly in the area of infrastructure development, and developing and executing the Department’s response to the housing crisis, including the formation of the HOPE NOW Alliance, the development of the subprime fast-track loan modification plan, and Treasury’s initiative to kick-start a covered bond market in the United States.

    Prior to joining the Treasury Department, Mr. Kashkari was a Vice President at Goldman, Sachs & Co. in San Francisco, where he led Goldman’s IT Security Investment Banking practice, advising public and private companies on mergers and acquisitions and financial transactions. Prior to his career in finance, Mr. Kashkari was a R&D Principal Investigator at TRW in Redondo Beach, California where he developed technology for NASA space science missions such as the James Webb Space Telescope.

  88. Interesting snippets on Chief Kashkari also here:

    BA and MA in engineering from the University of Illinois at CU, as well as a connection with T. Boone Pickets, and many notices in the India Times.

    Engineering types in finance an economics are usually cultivated for their mathematical skills, and often specialize in the science fiction of derivatives and risk management.

    I have known several of the type, including a man with a Ph.D in electrical engineering who for a time worked for Buffet, and who frankly admitted he had no idea what the application of the mathematics of “risk management” meant in the world, or whether it worked.

    Nor did he much care.

    He was simply attracted by the mathematics, and the pay naturally.

  89. No doubt another area where strict accountability results in an efficient meritocracy of liars, thieves, and–how else to put it–highly numerate bullshit artists, all at taxpayer expense.

  90. Hey, Brother, can you spare YET ANOTHER $700 billion?

    (Raum AP October 8, 2008)In addition to the $700 billion financial bailout package Bush signed into law Friday, the Fed announced two bold programs. On Monday, it increased a short-term loan program to banks and other financial institutions to as much as $900 billion by the end of the year. And on Tuesday it said it would buy vast amounts of short-term “commercial paper” debt, some of it unsecured….

    Stock markets continue their downward spiral as pressure is building for the U.S. government to do even more…

    “Have faith, this economy is going to recover over time,” Bush said in a speech at an office supply company in the Washington suburb of Chantilly, Va. “I wish I could snap my fingers and make what happened stop. But that’s not the way it works.

    This a bit hard to follow–Bush says have “faith” but has no “faith” himself?

    Isn’t that the way it works in foreign policy and economics, just have faith and snap your fingers–SHAZAM, the US military attcks Afghanistan and Iraq, Georgia attacks Ossetia, the Fed buys your commercial paper, takes your bad mortgages off your hands, lowers interest rates, and pours $900 billion of liquidity into banks and other financial institutions….

  91. [AP October 9,2008] The Bush administration is considering taking ownership stakes in certain U.S. banks as an option for dealing with a severe global credit crisis….Supporters of this approach, such as Sen. Charles Schumer, D-N.Y., argue that injecting fresh capital into U.S. banks…would be an effective way to bolster banks’ balance sheets and get them to resume lending. Taxpayers would benefit because the government would receive an equity stake in the bank in return for providing the capital….

    A decision to inject capital directly into financial institutions in return for ownership stakes would be similar to a plan announced Wednesday by Britain….

    There is a central flaw in this approach as there is in all monetarism, and as also seen recently in Bernanke’s near criminal bumbling.

    Greenspan was an untutored and unintelligent Randian solipsist, who got up at dawn, snapped his fingers, and concluded he had brought the sun up.

    Unilike Greenspan, Bernanke is an intelligent and highly educated fellow.

    The problem, therefore, must be found in organizing image.

    Schumer, like most politicos, is a economic and financial naif.

    The whole crew is beginning to make Marxist, and even Communist “economics” (the latter not “economics” at all strictly speaking) look brilliant by comparison.

  92. [AP Pylas October 10,2008] Finance ministers and central bankers from the Group of Seven industrialized nations are due to meet later Friday in Washington to address the financial meltdown but analysts are skeptical that they can do anything …US President George W Bush is due to make an address to the American people later in the day.

    ‘I don’t know what they can do. The actions of governments and central banks have had no effects, they haven’t freed up credit markets and not inspired confidence in stock markets,’ said David Jones, chief markets strategist at IG Index.”

    Bush is scheduled to speak. That is encouraging. His firm hand on the rudder will doubless reassure the world.

  93. [AP October 10,2008 NA] In advance of what is expected to be reassuring words from the president, the Dow Jones industrials futures plunged 185 points ahead of the opening bell Friday….”

    The author is anonymous.

    His post hoc, ergo propter hoc is delicious.

  94. Preview of President’s Reassurance Speech in the Rose Garden:

    “My fellow Americans, I know that the present financial and economic crisis looks grave. I have been snapping my fingers but things don’t work that way. Myself and my advisors have been working hard to resolve the crisis caused by the Clinton Administration and the Democrat Congress.

    I feel your pain. I am giving up golf again. I urge every Patriotic American to remain calm. You must have faith. That is why we have ‘In God We Trust’ on the currency. We are a religious country. We know that you cannot trust anyone else.

    We have successfully brought the price of oil down to just over $80 dollars. This fall in prices is a sign that the economy is about to get fired up again.

    Treasury Paulson has told me that this is a contraction of the economy caused by banks with too much bad credit. I have given him all the tools he needs. And I have told him that there are hundreds of billions of more tools where those tools came from.

    What you can do to get the economy going again is to remain calm. Go out and buy as much as you can on credit. If you have a business or are a corporation, please borrow as much money as you can to expand. The interest you pay on that debt will help return solvency to the financial firms that I am lending billions of tools to.

    I have conferred with General Petraeus and Homeland Security Director Chertoff. They have assured me that our forward looking fortification policies along the southern border have Al Qaeda in Mexico on the run. We can see the light at the end of the tunnel. We know that America has many enemies and that they hate us because they envy our freedom. We will never cut and run.

    God help us all.”

  95. The Only Anxiety You Have To Be Anxious About Is The Anxiety That Feeds The Anxiety You Have To Be Anxious About

    [AP Hunt October 10, 2008] Bush said he understood how Americans could be concerned about their economic future. “That anxiety can feed anxiety and that can make it hard to see all that’s being done to solve the problem,” he said.

    But despite a relentless sell-off that has seen the Dow Jones industrials plunge 20 percent in the past seven trading days, Bush said, “We are a prosperous nation with immense resources and a wide range of tools at our disposal.”

    Yes, indeed, the US is a nation of many, many tools no doubt of that.

    Not only at the highest levels–in politics, in finance and economics, in the military, in the universities and so forth–but also among the general population, who are the tools who made the greater tools what they are today.

  96. Press report on the Euro-Zone meeting, worth reading closely:;_ylt=AsNwylQzb2.4X9hdzTCEgSGs0NUE

    Note what is said about Ireland’s bank deposit guarantee particularly.

    If this is part of a covert British and US attack on the Euro, it will backfire, but it will take time.

    The US is running out of counters.

  97. NEW YORK(AP October 113, 20080- Wall Street headed for huge rebound Monday with the Dow Jones industrial average futures up 348, or 4.2 percent, to 8,718….”

    Nota Bene: the only thing “huge” at this point is what is supposedly “headed for”.

    With oil down because of world-wide economic contraction, and the Euro under attack, many will soon also talk of the “resurgence” of USD.

    The word I used for oil prices in USD at the end of July, and subsequently, was “plateau”.

  98. corr: “October 13, 2008″. Pardon. Quotations before NY as well.

  99. To shore up the credibility of the US Treasury’s own credit rating and the US dollar as world reserve currency, the US budget and trade deficits must be addressed. The US budget deficit can be eliminated by halting the Bush Regime’s gratuitous wars and by cutting the extravagant US military budget. The US spends more on military than the rest of the world combined. This is insane and unaffordable. A balanced budget is a signal to the world that the US government is serious and is taking measures to reduce its demand on the supply of world savings….

    Paul Craig Roberts, A Solution To The Financial Crisis

    I very seldom disagree with Paul Craig Roberts, and hardly ever on matters of fact. Some of his solutions in the article quoted above are well-aimed. That throwing $700 billion at the banks and financials, for example, is a waste of money, and that it should be thrown at the borrowers instead, which will stabilize some of the paper.

    The man is an honest broker, clear-headed, and extremely intelligent.

    Here I disagree on two points.

    The status of USD as the world reserve currency is long gone and will never be recovered. The Europeans, whatever they are saying, will now go their own way, slowly but also steadily. The Euro is sounder than the dollar, despite the last few days. Nothing of that will be solved by attacking it or by currency manipulation.

    Berlusconi just mentioned very quietly that Bretton Woods may have to be reworked.

    That is handwriting on the wall. That no one in the US seems to be paying attention is irrelevant to what the Europeans will do.

    Oil is now the virtual world commodity currency, and the USD seeming to recover is a sign of the same pattern at work as it was in regard to oil prices going up in USD.

    For that reason oil has to be nationalized, or some equivalent, whatever the price in the present contraction.

    Too, Roberts mentions “racial” preferences in lending in regard to the collapse of subprime. Whatever one reckons these to be, good or bad, they had little or nothing to do with the collapse of subprime, and getting rid of them will likely accomplish nothing one way or the other. On the other hand, there is a small possibility it just might make things worse just now.

    This is complex is partly connected to conventional credit models.

    Who has the money AND the “credit rating” to buy some of the housing now on the market?

    I leave that question unanswered for the nonce but it is central, whether you like the answer or not.

    At any rate, at the moment the issue is mostly academic.

    Roberts should put into his model two central facts, and one important interpretant.

    The two facts:

    (1) January 2008 oil = $19 per barrel
    (2) July 2008 oil = $147 per barrel

    The interpretant: these two facts are more a sign of the collapse of the dollar than of the rise in the price of oil due to supply and demand.

    Everything Roberts says about the cost of war, the lack of US exports, and so forth is all valid.

    One other point–which falls under the heading “innovation and creativity”. Throwing “money” at US producers of buggy whips will not solve the balance of payments problem.

    It will only fuel a false and temporary expansion, that will leave things even worse than before.

  100. corr:”This is complex and is partly connected”.

  101. Oops–also: “(1) January 2002 oil = $19 per barrel”. Pardon again.

  102. Hey, Brother Can You Spare ANOTHER SURGE

    NEW YORK(Reuters October 13, 2008) – The Dow Jones industrial average surged more than 400 points in early trading today as investors rushed into stocks after eight sessions of devastating losses, hoping that the stock market is finding some footing following pledges by governments to further aid the banking sector, including plans by the Treasury to buy U.S. bank stocks….

    Or should it be called “escalation”?

  103. We had to destroy the village in order to save it”:

    [AP October 14, 2008] President Bush on Tuesday announced a $250 billion plan by the government to directly buy shares in the nation’s leading banks, saying the drastic steps were “not intended to take over the free market but to preserve it”.

    Meanwhile the self-described “Maoist” political economist Raymond Lotta is quoted in the mainstrean news (AFP):

    “It’s not ‘socialism for the rich,’ nor a rescue for the people. It’s emergency capitalism for the rich, and more brutal capitalism for the rest.”

    The “huge” gains Wall Street was supposedly “headed for” have, on the second day, petered out into bargain hunting and a moderate gain so far. Not that Wall Street has ever had much to do with the underlying economy, in good times or bad.

    Back the ranch, as was eminently predicable, oil is now on the rise again.

    Apparently the Federal Government and American economists do not grasp simple economic recursions?

  104. corr: “Back at the ranch”.

  105. Welcome Comrade Bush

    “If the Venezuelan government, for example, approves a law to protect consumers, they say, ‘Take notice, Chavez is a tyrant! Or they say, ‘Chavez is regulating prices. He is violating the laws of the marketplace.’ How many times have they criticized me for nationalizing the phone company? They say, ‘The state shouldn’t get involved in that.’ But now they don’t criticize Bush for having nationalized . . . the biggest banks in the world. Comrade Bush, how are you? Comrade Bush is heading toward socialism.”

    Cf. also– “Communism for the rich”, with the worst of both worlds, privatizing profit and socializing losse, here:

    By the way, Lew Rockewell (the site), blinded by knee-jerk ideology, is being quite silly, as ever, on the subject of both Hugo Chavez and the nationalization of oil in Venezuela.

    But that may take some time to unfold.

  106. [...] also: Not only are they better capitalists, but better peacemakers too? « What are you going to wear to the booth? [...]

  107. Stavo navigando per i blog legati per il mio progetto di ricerca e mi è capitato di scoprire il vostro. Grazie per l'informazione eccellente!

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