Economic Madness Is Repeatedly Endless

Demand for goods and services in Japan are plunging. Please consider Japan’s Deflation Deepens as Prices Fall Record 2.4%.Japan’s consumer prices fell the most in at least 38 years in August, heightening the risk that prolonged deflation may hamper the country’s recovery from its deepest postwar recession.
Prices excluding fresh food slid 2.4 percent from a year earlier, topping July’s 2.2 percent decline, the statistics bureau said today in Tokyo. The drop, the sharpest since the survey began in 1971, matched economists’ estimates.
“We’ll soon start to see that there isn’t enough domestic demand to push up wages,” said Kyohei Morita, chief economist at Barclays Capital in Tokyo. “As households’ spending power falls, there’s concern that this deflation will lead to further deflation -- in other words, that we’ll enter into a deflationary spiral.”
Much of the drop in prices reflects last year’s peak in oil costs. Crude reached an unprecedented $147.27 a barrel last July, and has dropped more than 50 percent since then.
The oil effect “will diminish over the next few months, quite quickly,” said Richard Jerram, chief economist at Macquarie Securities Ltd. in Tokyo. Even so, Jerram expects prices will keep falling for at least another three years as the country enters a period of “persistent deflation.” Economic Madness Over Pork Prices
In what amounts to economic madness, Japan to Buy Domestic Pork to Boost Prices After Demand Drops.Japan, the world’s largest pork importer, will purchase about 70,000 swine carcasses from local herds to boost prices after an economic slump cut consumption and sent stockpiles of the meat to the highest level in 20 years.
The government will spend 292.9 million yen ($3.3 million) on the purchasing program, the Ministry of Agriculture, Forestry and Fisheries said in a statement today.

Gold Manipulation Smoking Gun

Numerous people have asked me to comment on the Zero Hedge article Exclusive Smoking Gun: The Fed On Gold Manipulation.
The "Smoking Gun" is a now declassified document about gold, sent to president Gerald Ford on June 3, 1975 by Arthur Burns, chairman of the Fed from 1970 to 1978.
The document concerns the "broad question as to whether central banks and governments should be free to buy gold, from one another or from the private market, at market related prices"
Market prices at the time were $160-$175 and the official price was $42.22 per ounce.
Arthur Burns states "It is an open secret among central bankers that, at a later date, the French and some others may well want to stabilize the market price within some range".
Arthur Burns also states "The Federal Reserve has sought to avoid taking a rigid position", while going "some distance to try and conciliate the French view". Yet... "If we do ever acceded to French views on gold, we should at least use our bargaining leverage to some major political advantage".
Finally Burns states "All in all I am convinced that by far the best position for us to take at this time is to resist arrangements that provide wide latitude for central banks to purchase gold at market-related prices."
Shocking Revelation?
Burns sought an agreement whereby central bankers and governments would not buy gold at market prices. Because gold prices never traded at $42.22 again, essentially that was an agreement to not buy gold.
After Nixon closed the gold window, why is it such a revelation that events like this happened? Did any governments cheat?
The most interesting thing in the document was Burns' willingness to bargain for "political advantage". However, the idea that governments are lying manipulators willing to sell their soul for the right political advantage can hardly be a considered a startling revelation. ( learn more at )

Barney Frank, Mel Watt are you guys in the pocket

of the Fed. Watt and Frank should be exposed for

the bought and paid for politicians they are!

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.These are the people entrusted with the job of

fight for the and protecting YOU THE AMERICAN

PEOPLE??

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I'm not to sure.

A great read

Very informative

Very important for today

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From the New Middle Ages

to a New Dark Age:

The Decline of the State

and U.S. Strategy

-
Authored by Dr. Phil Williams. June 2008

SUMMARY
Security and stability in the 21st century have little to do with traditional power politics, military conflict between states, and issues of grand strategy. Instead, they revolve around governance, public safety, inequality, urbanization, violent nonstate actors, and the disruptive consequences of globalization. This monograph seeks to explore the implications of these issues for the future U.S. role in the world, as well as for its military posture and strategy.
Underlying the change from traditional geopolitics to security as a governance issue is the long-term decline of the state. Despite state resilience, this trend could prove unstoppable. If so, it will be essential to replace dominant state-centric perceptions and assessments (what the author terms ?stateocentrism?) with alternative judgments acknowledging the reduced role and diminished effectiveness of states. This alternative assessment has been articulated most effectively in the notion of the New Middle Ages in which the state is only one of many actors, and the forces of disorder loom large. The concept of the New Middle Ages is discussed in Section II, which suggests that global politics are now characterized by fragmented political authority, overlapping jurisdictions, no-go zones, identity politics, and contested property rights.
Failure to manage the forces of global disorder, however, could lead to something even more forbidding?a New Dark Age. Accordingly, Section III identifies and elucidates key developments that are not only feeding into the long-term decline of the state but seem likely to create a major crisis of governance that could tip into the chaos of a New Dark Age. Particular attention is given to the inability of states to meet the needs of their citizens, the persistence of alternative loyalties, the rise of transnational actors, urbanization and the emergence of alternatively governed spaces, and porous borders. These factors are likely to interact in ways that could lead to an abrupt, nonlinear shift from the New Middle Ages to the New Dark Age. This will be characterized by the spread of disorder from the zone of weak states and feral cities in the developing world to the countries of the developed world. When one adds the strains coming from global warming and environmental degradation, the diminution of cheaply available natural resources, and the proliferation of weapons of mass destruction, the challenges will be formidable and perhaps overwhelming.

(read the full pdf here)