EU Update

Bad news out of the EU has been driving global worries over another financial crisis and this has been a contributing factor behind the volatility in the stock market the past couple of weeks. What happens in the EU will affect the U.S. and global economy to a great extent. A note of interest is that the U.S. is already bailing out the EU. It appears as if the great EU political project is falling apart. This is not the case according to a lot of market analyst:

'The default position is more integration, which is why commentary, especially that coming out of the US, is very focused on euro break-up is biased towards thinking about the downside scenario, and is not really thinking about the upside scenario,' he told CNBC.com. 'The upside scenario I think is one that's more consistent with the history of European projects.'[...]

'When people ask us 'is Greece going to leave the euro?' our immediate pushback is that Greece doesn't have the agency. It's not really Greece's choice – it's Germany's choice and it's France's choice,' Rahman said. [...]

However, he too said that stepping forwards towards integration, not backwards, is the far more likely scenario.

'Of course, it didn't happen in an orderly way, and now possibly it's coming in a disorderly way, because now everyone's realizing that you can't have a currency and a single market and communalized trade policy without also having more political cohesion and more fiscal union,' Techau said.
'Maybe, in the end, ironically, Helmut Kohl will be vindicated because the answer to the crisis is either disruption, or another bold step towards integration,'[...]

The most noise seems to be coming from commentators who believe in disintegration, but those who really understand the inner workings of the EU say the opposite: economically it does not make sense, technically it is exceptionally difficult and politically it is nearly unthinkable.

One of the legacy of this global financial crisis will be a more economically united globe. This economic crisis is going to force some politicians and nations to do things that they otherwise would not do: like integrate further into international governing bodies.

European leaders are being pushed into closer fiscal union sooner than they had anticipated by volatile markets concerned over a dearth of ideas on how to solve the sovereign debt crisis in the euro zone, analysts and investors told CNBC.[...]

'If you believe the United States of Europe is stronger than the individual nations, it's simply a step that the politicians have been working towards, but now they're being pushed into it rather than managing the process,' Neil Dwane, chief investment officer for Europe at RCM told CNBC.

Over the weekend, German chancellor Angela Merkel seemed to soften her position on the issuance of so-called euro bonds, but she stressed they were not on the table for now.

'I think [Merkel] is just realizing that politicians are pushed by markets into solutions that politicians don't feel comfortable with yet,' Frank Engels, co-head of European Economics Research and Asset Allocation Strategy at Barclays Capital explained.
His comments reflected those made by Paul Donovan, deputy head of Global Economics to CNBC last week, who warned that markets would push European leaders towards "extreme action" and he called for the appointment of a European statesman to oversee closer fiscal union within the euro zone.[...]

'There is a sense that you have to move eventually towards a common fiscal union, a very coordinated policy approach on economic and fiscal policies, but not now, not yet because you need to lay the foundations in terms of political and legal infrastructure first and then later on move, that is the message [Merkel] wants to provide to markets,' Engels said.

It appears that the EU has lost, to some extent, "its power of decision over the direction that it is going". This economic crisis is the result of a government managed economies. The main instrument that the governments use to manage the economies of the world is through central banking and international governing bodies like the IMF/World Bank (both founded by a Fabian Socialist and a communist). The IMF/World Bank is helping to keep the socialist's dream of global socialism from falling apart in the case of the EU by continuing to bailout the failed nations that should be allowed to default. (A look into the history of central banking and the IMF/World Bank is illuminating.) These government institutions are helping to create an economic crisis that will push the world into a global-socialist-communist-governance. Well that sounds stupid doesn't it? The financial analysts take on the events happening in the EU point to the fact that the EU is being pushed by economic events into a tighter political/fiscal union. What has been the overall effect of the global economic crisis, larger and more united government(s) that are/is taking over economic functions once carried out by the private sector. The direction that the the world is a more in is that of a more united globe, economy and politically. I could state it in a more intelligent manner but that would take a lot more time and room.

Signs of some cuts

It looks like the postal service is finally getting reigned in. USPS has been outdated since mid 20th century. I havent heard much outcry from the public about the fact that over 100k postal service jobs might be lossed. This is a good sign. I think people are realizing that the private sector needs to do the job. Hopefully we start seeing some more cuts. The military? I would accept a pay cut. Shoot, I wouldnt be heartbroken if I was laid off from the Guard.

http://www.foxnews.com/politics/2011/08/17/nonprofits-oppose-measure-wiping-out-their-mail-discounts/

A New Era For Our Military and Nation.

(A very appropriate picture.) The time has finally come.

The Pentagon will announce Friday that it is ready to certify the repeal of "don't ask, don't tell," the controversial 1993 law that banned gays from serving openly in the military, two U.S. officials told Fox News.

This signals a great cultural shift in our society away from the cultural foundation that has made America the nation it is. I have a hunch America will be receiving a fairly significant military set back coming soon. At least America won't be discriminating against homosexuality. I like Congressman Allen West's take on DADT.

This Is Rock/Math!

A short post with some videos, about 10 minutes all together, that makes/alludes to the connection between math and music. "Math has long been at the foundation of music. In fact, in ancient Greece, 'music' referred to the study of numerical ratios, and around the time of Plato, 'harmony' originally emerged as a branch of physics." (The video is under the June 30 entry.)

And check out this video starting at minute 12 Also check out this video about string theory. There is a connection between math and music. What makes a collection of sound noise or music? Is modern rock music considered noise or real music? The videos are interesting.

Don't Mess With Texas

I thought this was an interesting story.

http://www.foxnews.com/us/2011/07/06/mexican-national-inmate-on-death-row-creates-international-stir/

Basically, this guy named Humberto Leal, a mexican national, raped and murdered a sixteen year old girl in 1995. The evidence was overwhelming against him and it only took the jury 45 minutes to reach a verdict.

The UN and Obama have been trying to postpone the execution, which is scheduled for 6:00 pm thursday 7-7-11. Evidently there is a UN resolution that gives Leal the right to seek consultation from his home nation of Mexico.

My favorite part of the story:

“Texas is not bound by a foreign court’s ruling,” Katherine Cesinger, the press secretary said in a statement (foxnews).

This is just another example, among many, why Texas is awesome.

Financial Collapse 2020-2035

Here is some more information to help you to better see that the "most predictable economic crisis we've had" is headed our way: it is obvious to those that care to look. Here is some more good new about our economic situation from the Congressional Budget Office, CBO. It paints a very bleak picture where America is headed towards a Greek-like crisis between 2020-2035.

As negotiators look to gimmicks and changing assumptions to reach a deal on raising the debt ceiling, a new report by congressional budgeters out Wednesday is offering a grim outlook and ugly alternatives for dealing with increasing debt. The report by the Congressional Budget Office says that the debt will eat up the government’s spending ability, and offers two scenarios -- both potential trajectories -- that they say by 2035 will push the debt either to most of the annual gross domestic product or to nearly twice the economic power of the U.S. Already, the CBO says, the debt has spiraled out of control in just three years. 'At the end of 2008, that debt equaled 40 percent of the nation's annual economic output (a little above the 40-year average of 37 percent). Since then, the figure has shot upward: By the end of this year, the Congressional Budget Office (CBO) projects, federal debt will reach roughly 70 percent of gross domestic product (GDP) -- the highest percentage since shortly after World War II,' reads the report.

This increase in debt is staggering and can't be maintained. The August 2 deadline to raise the nation's debt ceiling is fast approaching and it looks like some sort of a deal has been reached between republicans and democrats on raising the debt limit in exchange for spending cuts. But these are very unlikely to be real spending cuts. They will probably be like the phony cuts to this years budget that started out as 100 billion and turned into 60 billions that ended up being a couple of million dollars. If real cuts can't be made at the present, then how will it be any easier or possible to make them at a latter date when it will be a more difficult proposition?

The fact is that America has reached the point that other countries of past and present have reached in this stage of their economic collapse that results from deficit spending-- made possible by central banks-- to fund an over bloated welfare state. The leaders knew/know that they must cut spending but that this will lead to social unrest and lost of social cohesion--check out Greece-- and that such cuts are politically impossible to make-- look at recent attacks on the proposed cuts to medicare. So the leaders create more debt in the attempt to delay the day of reckoning to buy time to come up with a better solution to the economic problems. This "better solution" never materializes and economic collapse is always the end result. This time the collapse is not an individual nation or region of the world but the entire globe. When the nations of the world find themselves in this state of collapse, they will be forced to put aside political and cultural differences while they come together for a short time as the result of the interconnectedness of the economies of the world to form international alliances, agreements and governing bodies as a means to salvage the situation. Look at the relationship between Germany and Greece. Germany is bailing out Greece against the will of its people again because they failed to live up to its austerity measures. Germany is doing this because of the risk of the financial contagion--German banks are invested in Greek debt-- affecting Germany. It is only a matter of time before Greece and then the EU collapses to be followed by America around 2020-2035.

What can you do to prepare yourself for this economic crisis so that you can thrive? Live life but prepare yourself mentally for a very bad economy, know basic survival psychology, stay out of debt, get out of debt, increase your line of available credit, have a couple months of extra food, own some precious metals, invest in commodities and assets with intrinsic value, read the Bible, and know that agriculture is going to be the next big thing according to a prominent investor. Or do what the majority of people throughout history do in situations like these which is to be unawares which leads them falling on their face and being raped. sometimes literally. "In hyperinflation[ or economic collapse], a kilo of potatoes was worth, to some, more than the family silver; a side of pork more than the grand piano. A prostitute in the family was better than an infant corpse; theft was preferable to starvation; warmth was finer than honor, clothing more essential than democracy, food more need than freedom." Quoted form Adam Fergusson's book "When Money Dies". Inflation and economic depression is always the end result when central banks control a nations money supply. To see this clearly read "The Creature From Jekyll Island".

Defense Secretary Gates Consults RTP&GG, rips NATO Allies

Secretary of Defense Gates, who served in that position in the second half of the Bush Administration as well as the 1st half of the Obama Administration, consulted RTP&GG, and decided his farewell speech would be a good time to absolutely hammer NATO.  I've got nothing to add to it.  Just read the Washington Post article.  A couple of killer quotes:

“The blunt reality is that there will be dwindling appetite and patience in the U.S. Congress, and in the American body politic writ large, to expend increasingly precious funds on behalf of nations that are apparently unwilling to devote the necessary resources ... to be serious and capable partners in their own defense,” he said in an address to a think tank in Brussels.

and:

In Libya, Gates said, “the mightiest military alliance in history is only 11 weeks into an operation against a poorly armed regime in a sparsely populated country, yet many allies are beginning to run short of munitions, requiring the U.S., once more, to make up the difference.”

Pathetic.

To continue to rap on my theme: international organizations don't work when the populations of some countries think those of others in the organization aren't pulling their weight or are trying to rip them off. "Coaltions of the willing" will be the wave of the future in both military and economic arenas.  The international organizations themselves have zero power.  Power rests in the wills of the member countries/populations.