#1 Dave | 2008-02-25 12:00
The most severe crises is in Europe precisely because a bunch a bureaucrats in Brussels decided to replace Germany's organic currency with a Soviet model fake called the Euro, thus removing from the sovereign state of Germany, one of the world's greatest industrial powers, any ability to competently manage the market in its own sovereign bonds (the bonds of the German state).
Political correctness requires us to ignore how important Germany is to the world and how dire the mismanagement of Germany's finances is to the future of Europe.
The combat occurring in Central Asia is light action combat only. It is no big deal, stuff for mercenaries. Iraq, Afghanistan, and Pakistan are not going to be problems going forward. Young men for several generations and still today in Central Asia have no other means to earn a living except through being a fighter in somebody's ad hoc cobbled together battalion. Nothing has changed. It is the same 'ol same 'ol in Central Asia. The only difference is that America now has significant bases there.
It is hugely ironic that after the fall of the Berlin Wall, America decided to move its European presence eastward into Central Asia.
Clinton actually felt it necessary, in connection with his Serbian aggression, to flip the Russians the bird by bullying Turkey to let American surface naval vessels through the Bosporus Straits for an unseemly victory lap in the Black Sea.
So the big move into Central Asia has been big friggin success, just at the time Europe is going to hell in a hand basket. The MSM fails to report that France is currently facing an exodus of white people. These whites are early adopters of the coming "get the hell out of Dodge" mentality that is sweeping Europe's white middle classes.
The American government has plenty of room to continue to water its sovereign bond float in this environment. Global finance has nowhere else to go except into gold and the smart money sure in the hell is not doing that. Instead, it is selling into the big gold rally that has been going on now for over 5 years the loot it stole in its mortgage bond pool operations. They are flipping the loot into short-term American sovereigns in anticipation of an inevitable crash in the commodity markets. Unlike consumer goods prices, commodity prices always come home.
Today, the Fed actually has to sell American sovereigns from its very own portfolio to keep short-term interest rates from going too low. This is because of the demand for short-term American sovereigns from the global pool operators. This is truly history making stuff, as it is truly rare that the Fed sells bonds to drain the monetary base.
There is no way in hell the Fed is going to water American currency by buying bonds. It has no need to, and won't for the foreseeable future. You have to remember, the Fed has no choice but to be responsible in today's environment. It is a captive agency of the US Department of the Treasury and has global terms of trade commitments that must be met. Also, the value of American bonds must be upheld because those bonds are required to fund the American Navy's victory laps in the Black Sea. (Don't tell a Libertarian this. It will upset his religious conceits.)
Meanwhile, the whole nonwhite world is piling onto the backs of white Americans through T-Bill purchases. And meanwhile, the MSM continually tells us America has been defeated in Central Asia.
No way. That is not what is going on at all. Europe has been defeated. But the MSM will not notice this until Europe is in utter ruins.
And you know how it is. It is the MSM that determines what is real, not reality itself.