Why give GM US$ 18 billion when the tax payer can buy it with US$ 3 billion?
Here is what the Congress should do instead. The Europeans, the Chinese and the Japanese are doing it already
1. The Government should use this US$ 3 billion and buy GM to have the ability to redirect all GM’s activities as outlined below (2-12).
2. Chrysler became worthless after they abandoned the smarter guys at Mercedes Benz. Chrysler is bankrupt and it would be best for all of us to let it disappear. If not, then the only option left is to merge it with the new GM immediately after the Government owns it.
3. The management in Ford is smart and the company will survive without any help from Congress or anybody else.
4. As Michel Moore said, transporting Americans is one of the most important functions our government must address. Here the only real way to do it is to buy GM to force this change to happen. The guys running it will never do it. They just burn that US$ 18 billion and after the smoke disappears they just come for more.
5. Franklin Roosevelt when facing a huge crisis ordered the auto industry to stop building cars and instead build tanks and planes – and it was done!
6. Our current crisis is different and the solution is also different.
7. In Europe, e.g. in Spain the country is building high speed trains and train lines all over the country including the connection to the rest of the Europe that is waking up to the same change. Why will they all recognize this needed change?
8. It is because it is less expensive and more convenient for people to use a high speed train on all flights that last up to about two (2) hours.
9. This results to huge saving in the use of the fossil fuels.
10. The airplanes can be competitive only on the long flights as most of us has always “known”intuitively.
11. The Big 3 (now 2) are to build only cars that do not use fossil fuel as their primary source of energy and even more importantly they must start building trains, buses, subways and light rail. A corresponding public works projects across the country will build the rail lines and tracks.
12. This all will not only save millions of jobs, but will create millions of new ones
What happens next you can check from http://www.galacticwind.com/eternity/Future.htm
Wednesday, December 3, 2008
Tuesday, November 25, 2008
The current financial crisis has wasted already over US$ 3,000 per every living person on this planet
This already booked financial robbery has taken us all 10 years back in our retirement savings - it is now 1998 again in our financial calendar (assume global long term GDP growth at 3.4%). Unfortunately we are still on a slippery slope. Like during the Roosevelt's time in 1933 and the failed coup by fascists at the time - we can likely never "locate" these criminals to bring them to justice! In china the story would be short: one bullet for each person and the families pay the cost of all these bullets.
The real problem is that US is losing Her currency as the totally undisputed reserve currency of the world. This is too much for those in the shadows to bear and it was likely the only real reason for going to the war in Iraq. Losing the dollar position as the reserve currency means that the world will no more finance the forever growing US debt as as it has been doing already for almost a century. EU was born to establish a counterweight against the US supremacy and it is the reality regardless that the US still keeps them as separate countries. For BRIC-countries and EU the use of dollar as their only reserve currency is already lunacy. The rest of the world will follow whatever selection they will do in the near future - nothing can bring the dollar back to it's former position.
Note that Federal Reserve or FED is a private bank owned by US, West-European and Israeli wealthiest families. The real owners of FED are the following 10 (9) private banks: Rothschild Bank of London, Rothschild Bank of Berlin, Lazard Brothers of Paris, Israel Moses Seif Banks of Italy, Warburg Bank of Amsterdam, Warburg Bank of Hamburg, (Lehman Brothers of New York - now Bankrupt), Kuhn Loeb Bank of New York, Goldman Sachs of New York, Chase Manhattan Bank of New York.
On November 13th BIS reported that in June OTC derivatives contracts to have reached another record at $683.7 trillion, 15% higher than six months earlier. Gross market value measure the cost of replacing all existing contracts had increased by 29% to $20.4 trillion – this number is the best estimate for the market risk of all these OTC derivatives. And the total loss for it all was carefully planned and in the pipeline.
The price of oil was used to trigger the final avalanche starting in the late May, 2008. The price of oil was driven up through a well coordinated scaremongering and secret agreement between the leading OPEC member and the US Neocons - terrorism was a great mantra. In May 2008 the price of gasoline became too high and cracked the back of the consumer.
To "help" the consumer out from agony Saudi-Arabia and some other OPEC members started feeding the markets with everything they had and of course the price of oil collapsed. This collapse was so fast that the "newly recruited" followers in derivatives game were caught off guard and went belly up and scrambling to rescue whatever wealth and collateral they still had. Their actions caused the collapse of the stock markets around the globe - in schedule. This phase was finished in mid November 2008 and the further narrowed financial order of the World will start showing up during the next two years.
On the other side that we can call collateral damage, the "cheap gasoline" causing the stock market crash backfired against the GOP. The other more serious damage will put all with borrowed money operating renewable and alternative energy developers out of business. Oil below US$ 75 per barrel will not support any of these alternatives financially. The are already dead even if they do not know it.
This fits also well to OPEC and the US Oil majors. This is the reason why all of them have been silent while one would expect them screaming that they can not afford developing oil fields in this environment. They know that with missing development the oil prices will be much higher after two years. Unfortunately this low price spike is enough to kill most of the the above mentioned alternative energy enterprises - making them all ripe pickings for the Big Oil.
Of course this would be only business as usual but now we have discovered that the rising CO2 in the atmosphere is actually increasing the pH of the Oceans and if let rampant for years it will destroy all those food links starting from Oceans and with time it all starts threatening the life as we know on our planet. This is the most serious issue we have ahead of us but almost nobody is bringing it up.
In May the gross value of all global stock markets stood at US$ 57.5 trillion. At the time DOW was around 13,000. At closing last Friday (Nov 21) it was about 8,000. Using that as a gauge for the global markets, the global financial loss is now around US$ 22.5 trillion. This tells that the guys in the derivatives business were forced to replace all their bets. Can they remain current with their new bets - nobody knows?
It is fools game played by software programs fighting each others in lightning speed using complicated spreads and swaps as weapons the way that nobody is able to follow any more. These programs needed only one step to any unknown territory outside their Gaussian world and they were instantly lost. Now half a year later and US$ 20 trillion poorer we have a sobering moment - but note, the game is not over before it is made illegal everywhere! According to Bloomberg (Nov. 24) the U.S. government is prepared to provide more than $7.76 trillion on behalf of American taxpayers after guaranteeing $306 billion of Citigroup Inc. debt yesterday.
This loss in wealth will mean enormous suffering for ordinary people on the planet – and everything will get much worse than people understand as of yet. In ordinary world this type of crime - stealing money - would be more than enough to round up all the main actors and those who were involved in any reparations. This would include even all those who ordered a change to the existing market regulations put in place after the 1929 crash a couple of years ago. All these actors and planners deserve the exacting faith that China uses to treat her criminals - unfortunately we are too civilized and will settle with life in prison, that is never life in prison anyhow.
This game is played s totally outside the framework of the for us all vital option trading. Options were developed long time ago for farm products to eliminate wild price swings and to secure enough income for the farmers and with this simple way to secure fairly priced food supply to the people in the fast growing cities. Later on options were adopted to mining and other similar products and even currencies.
Without real regulations the computer age brought a zillion of variations how this game can be played and it exploded everywhere on the planet. The cyberspace of financial centers is now one gigantic casino where bets are made continuously using all kind of options, spreads and swaps that have nothing to do with each others nor the original purpose of reaching supply and price stability. Unfortunately the regulators are all sleeping or perhaps some of them were receiving silently a share of the gains.
To add excitement the regulators added even naked shorting to the game. When the so called up-tick rule was eliminated a couple of years ago it guaranteed that virtually all public companies could be shorted out of business at will. This was perhaps the back-up plan devised by the players and now the real reason for our financial crisis. Remember, the all the above gambling practices were used openly inside the trading rooms of ENRON - and it went down the drain a few years ago.
Was ENRON used to finalize the process for this global game?
See http://www.galacticwind.com/eternity/
The real problem is that US is losing Her currency as the totally undisputed reserve currency of the world. This is too much for those in the shadows to bear and it was likely the only real reason for going to the war in Iraq. Losing the dollar position as the reserve currency means that the world will no more finance the forever growing US debt as as it has been doing already for almost a century. EU was born to establish a counterweight against the US supremacy and it is the reality regardless that the US still keeps them as separate countries. For BRIC-countries and EU the use of dollar as their only reserve currency is already lunacy. The rest of the world will follow whatever selection they will do in the near future - nothing can bring the dollar back to it's former position.
Note that Federal Reserve or FED is a private bank owned by US, West-European and Israeli wealthiest families. The real owners of FED are the following 10 (9) private banks: Rothschild Bank of London, Rothschild Bank of Berlin, Lazard Brothers of Paris, Israel Moses Seif Banks of Italy, Warburg Bank of Amsterdam, Warburg Bank of Hamburg, (Lehman Brothers of New York - now Bankrupt), Kuhn Loeb Bank of New York, Goldman Sachs of New York, Chase Manhattan Bank of New York.
On November 13th BIS reported that in June OTC derivatives contracts to have reached another record at $683.7 trillion, 15% higher than six months earlier. Gross market value measure the cost of replacing all existing contracts had increased by 29% to $20.4 trillion – this number is the best estimate for the market risk of all these OTC derivatives. And the total loss for it all was carefully planned and in the pipeline.
The price of oil was used to trigger the final avalanche starting in the late May, 2008. The price of oil was driven up through a well coordinated scaremongering and secret agreement between the leading OPEC member and the US Neocons - terrorism was a great mantra. In May 2008 the price of gasoline became too high and cracked the back of the consumer.
To "help" the consumer out from agony Saudi-Arabia and some other OPEC members started feeding the markets with everything they had and of course the price of oil collapsed. This collapse was so fast that the "newly recruited" followers in derivatives game were caught off guard and went belly up and scrambling to rescue whatever wealth and collateral they still had. Their actions caused the collapse of the stock markets around the globe - in schedule. This phase was finished in mid November 2008 and the further narrowed financial order of the World will start showing up during the next two years.
On the other side that we can call collateral damage, the "cheap gasoline" causing the stock market crash backfired against the GOP. The other more serious damage will put all with borrowed money operating renewable and alternative energy developers out of business. Oil below US$ 75 per barrel will not support any of these alternatives financially. The are already dead even if they do not know it.
This fits also well to OPEC and the US Oil majors. This is the reason why all of them have been silent while one would expect them screaming that they can not afford developing oil fields in this environment. They know that with missing development the oil prices will be much higher after two years. Unfortunately this low price spike is enough to kill most of the the above mentioned alternative energy enterprises - making them all ripe pickings for the Big Oil.
Of course this would be only business as usual but now we have discovered that the rising CO2 in the atmosphere is actually increasing the pH of the Oceans and if let rampant for years it will destroy all those food links starting from Oceans and with time it all starts threatening the life as we know on our planet. This is the most serious issue we have ahead of us but almost nobody is bringing it up.
In May the gross value of all global stock markets stood at US$ 57.5 trillion. At the time DOW was around 13,000. At closing last Friday (Nov 21) it was about 8,000. Using that as a gauge for the global markets, the global financial loss is now around US$ 22.5 trillion. This tells that the guys in the derivatives business were forced to replace all their bets. Can they remain current with their new bets - nobody knows?
It is fools game played by software programs fighting each others in lightning speed using complicated spreads and swaps as weapons the way that nobody is able to follow any more. These programs needed only one step to any unknown territory outside their Gaussian world and they were instantly lost. Now half a year later and US$ 20 trillion poorer we have a sobering moment - but note, the game is not over before it is made illegal everywhere! According to Bloomberg (Nov. 24) the U.S. government is prepared to provide more than $7.76 trillion on behalf of American taxpayers after guaranteeing $306 billion of Citigroup Inc. debt yesterday.
This loss in wealth will mean enormous suffering for ordinary people on the planet – and everything will get much worse than people understand as of yet. In ordinary world this type of crime - stealing money - would be more than enough to round up all the main actors and those who were involved in any reparations. This would include even all those who ordered a change to the existing market regulations put in place after the 1929 crash a couple of years ago. All these actors and planners deserve the exacting faith that China uses to treat her criminals - unfortunately we are too civilized and will settle with life in prison, that is never life in prison anyhow.
This game is played s totally outside the framework of the for us all vital option trading. Options were developed long time ago for farm products to eliminate wild price swings and to secure enough income for the farmers and with this simple way to secure fairly priced food supply to the people in the fast growing cities. Later on options were adopted to mining and other similar products and even currencies.
Without real regulations the computer age brought a zillion of variations how this game can be played and it exploded everywhere on the planet. The cyberspace of financial centers is now one gigantic casino where bets are made continuously using all kind of options, spreads and swaps that have nothing to do with each others nor the original purpose of reaching supply and price stability. Unfortunately the regulators are all sleeping or perhaps some of them were receiving silently a share of the gains.
To add excitement the regulators added even naked shorting to the game. When the so called up-tick rule was eliminated a couple of years ago it guaranteed that virtually all public companies could be shorted out of business at will. This was perhaps the back-up plan devised by the players and now the real reason for our financial crisis. Remember, the all the above gambling practices were used openly inside the trading rooms of ENRON - and it went down the drain a few years ago.
Was ENRON used to finalize the process for this global game?
See http://www.galacticwind.com/eternity/
Tuesday, February 19, 2008
Democracy in the USA and Iran - Is there a difference?
Here is the beginning of the Presidential election process in the USA through the lens of the democraratic party procedures:
- To become a delegate for the party from your State you must have friends in high places - just like in Iran. These delgates are not elected by voters - the voters do not need to know this detail.
- People cast their votes for their own presidential candidate - not the delegate supporting this candidate. To confuse the process the rules differ naturally in all States - some vote through caucuses, some just vote for a candidate and some do both. The actual delegate selection process is said to be too complex to be explained for the voters.
- Finally the Party delegates for the State get selected. Then at one point all States get together in a huge "party" to elect the party's Presidential candidate. In principle it is simple - but there is yet another caviat.
- Suddenly the party brings in their secret weapon of 700 plus SUPERDELEGATES. The voters do not know who they are. However, when the party's nominee for Presidential candidate needs slightly over 2000 votes, 700 plus party votes can change it at will.
- It has been explained that this SUPRDELEGATE force is a nevcessary to secure that the voters do not make stupid decisions???
- Why bother voting? These SUPERDELEGATES are nothing but our Seyyed Ali Khamene'i and his closest followers. If they don't like whom we elected they cast their vote - and voila - somebody else got elected. End of story!
- There is very little democratic in this process. Can someone again explain why we waste money for any voting process at all? These party SUPERDELEGATES have of course a superior intelligence and with that they for sure know such small details like what is best for the voters and how to get it for them.
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