Wednesday, October 31, 2007

Economics 101: The Bush Version of Let's Rape America

From our excellent common sense historian, Greg Palast(1) we herewith feast on this scrutiny of Bush's doublespeak with Greg's own version of what Bush really means. This is highly relevant as our dollar plunges, soon to be replaced by the Amero and the North American Union(Security and Prosperity Partnership of North America)

On July 22, 2005, the President, beside himself with idiot glee, took personal credit for China's "revaluing" its currency, the yuan. The press applauded, unanimously, and egghead-looking TV analysts in bow ties told us that this was a great boon for U.S. manufacturing employment. Was it?

First off, most Americans haven't the least idea what "revaluing" China's money means. Let me put it in the language of economics: The revaluation of the yuan didn't mean squat. . . at least in terms of saving American manufacturing jobs. In simple terms, "revaluation" means that it takes fewer Chinese yuan to buy an American dollar. The White House peddled the line that this slight alteration of exchange rates makes our products cheaper for the Chinese and they'll buy more from us.

They didn't.

Why not? Currency Exchange Rate Economics Lesson Number One: You can't change the value of goods by changing the value of the currency on the price tag. The price inflates to compensate for the currency change. As my comrade the economist Art Laffer reminded me: "If cheap currency makes your products more competitive, all the automobiles would be made in Russia." Driven a Lada lately?

Currency Exchange Rate Economics Lesson Number Two: Don't take economic lessons from George Bush.

By definition, revaluing the yuan means devaluing the dollar. Imagine if our President had put the news differently:
My fellow Americans, today I am proud to announce that this Administration has successfully devalued the dollar. Dollars are now worth less compared to Chinese money. Your pensions are worth less, your savings have been shaved in value. Devaluation of the U.S. dollar leads to price inflation in the USA. Always. And get ready for this. We're going to have to buy own money back from China--and it will now cost us more. The U.S. Treasury will have to raise interest rates to get the Chinese to return the loot. So yes, there's an affect on manufacturing jobs. Kiss them good-bye. And may God bless America.

Class dismissed.

Almost. There's another way to get the money back besides trying to sell China more goods or by raising interest rates to borrow our money back from them. If China won't buy our manufactured goods, they can return our capital by buying our manufacturers. It is no accident that the very week China raised the value of its currency, the Chinese state oil company made a cash bid for Unocal Oil of California. Raising the value of the yuan cut the price of Unocal to the Chinese by about half a billion dollars. The Bush administration was unhappy, but not about a foreign takeover of a strategic industry. Rather, our Treasury Secretary John Snow flew to Beijing to demand the Chinese hike their currency even higher, demanding the Chinese further devalue the U.S. dollar.

Remember: There are no nations. There is no "West". Am I getting through to you Mr. Beale? There is no America. There is no democracy. There is only IBM, and ITT, and AT&T, and Dupont, Dow, Union Carbide, and Exxon--those are the nations of the world today. We no longer live in a world of nations and ideologies, Mr. Beale. The world is college of corporations ... It is the international system of currency that determines the totality of life on this planet.(2)

End Notes

1.)Greg Palast, ARMED MADHOUSE- From Baghdad to New Orleans--Sordid Secrets & Strange Tales of a White House GONE WILD, (U.S.A.: Plume [The Penguin Group], 2006, 2007)p. 149, 150, 143, 144.

2. This famous quote (paraphrased) was taken from a prophetic speech in the movie Network. It is the money power that determines which nations rise and fall and nothing else is relevant. Steve

Tuesday, October 09, 2007

The Absurdity Of It All!

This little piece by Pamela Hess AP(1), deserves some comment!

My comments are in italics

Panel Wants Tighter Radiation Security.

WASHINGTON - The U.S. government should replace more than 1,000 irradiation machines used in hospitals and research facilities because terrorists could use the radioactive materials inside to make a "dirty" bomb, a government advisory panel has concluded.

Common sense has therefore concluded that the U.S. government should replace more than 1,000 airline passenger jets built with two or more engines since passenger jets built with more than one engine contain more fuel which would result in a bigger fireball and greater sky scraper damage should terrorists use them to attack tall buildings.

"Any one of these 1,000-plus sources could shut down 25 square kilometers, anywhere in the United States, for 40-plus years," according to panel documents obtained by The Associated Press."

The machines are in relatively unprotected locations such as hospitals and research facilities all over the country, and may be a tempting source of radioactive materials for terrorists who want bombs that explode and disperse radioactive debris over a large area, rendering it uninhabitable, the board found.

The irradiators contain Cesium-137, one of the most dangerous and long-lasting radioactive materials. They are used for radiation therapy and to sterilize blood and food.
Now the punch line!

Swapping the Cesium irradiators for X-ray machines or irradiators that use other materials would cost about $200 million over five years, but it would take the most accessible source of dangerous radioactive material inside the United States "off the table" for terrorists, the panel says.
Does the panel know that they have now given this idea widespread credibility? Notice that every recommendation from intelligence and security organizations affiliated with the U.S. government will involve spending millions of dollars of your money to justify their existence. Yet has a radioactive bomb every been detonated in this country (USA)?

The recommendation is part of an as-yet-unreleased report that describes how unfriendly nations or terrorist groups could undermine the computers and satellites the U.S. military relies on and attack the United States with radiological or biological weapons or blackmail the U.S. government with a threat of a nuclear detonation, all while manipulating world opinion against the United States in the media and on the Internet.

The report comes from the Defense Science Board, a panel of retired military and CIA officials and defense industry experts who offer the Pentagon possible solutions to actual and potential national security problems. It is expected to be released late this year.

The board wants the Pentagon to create a joint military force able to locate and seize illicit nuclear materials and weapons when they are still in transit, and to safely destroy nuclear weapons captured from terrorists or defeated states.

It says U.S. intelligence has failed to determine what countries or groups are developing or trying to obtain nuclear, radiological and biological weapons and how and when they are likely to use them.
This is because U.S. intelligence is either very inept or there are no "rogue states" actually trying to do this.

"No adversary can exercise all options; but we don't know which options they can exercise," the documents state.
Therefore common sense has concluded that extreme measures must be taken!

The report recommends creating "unfettered X-treme intelligence teams" to improve the "poor intelligence community posture." Exactly what the teams would do is classified.
Hitler would be proud! This is better than the old SS. What the teams will do is root out any opposition to the coming global government. Your neighbor could be the snitch who turns you in! Notice their purpose is classified!

The board advocates diplomacy and trying to influence world opinion so the United States is less likely to be attacked or lured into a foreign war it might not win.

"We are unprepared," state the documents. "At best we will be deterred. Worse, we will enter the fray and then quit when we appreciate the cost of success. Instruments of national power other than the military, such as strategic communication, will assume greater importance."
Yes, this is true in a world government!

The U.S government should be promoting universally accepted values like human dignity, economic well-being, health care and education rather than "democracy" and "freedom," the panel states.

"What we say is often not what others may hear -concepts such as 'democracy,' 'rule of law' and 'freedom' have different meanings in different cultures and at different stages of their development," the documents state. "It is about them, not only about us."

It recommends that the State Department spend $250 million over five years to create an independent "Center for Global Engagement" to conduct opinion research and analyses on media and culture that the government can use to design projects and messages that will advance those values.
The State Department will spend $250 million over five years to analyze what propaganda methods work best to influence the public into accepting the globalization concept and a global world government.

It also recommends deploying more hospital ships for medical and humanitarian relief; releasing spy imagery to help other countries in crop management, weather forecasting, and environmental studies; and adopting policies that will help create jobs in key strategic nations such as Lebanon, Pakistan and Iraq.


End Notes

(1)Pamela Hess, Panel Wants Tighter Radiation Security, Associated Press,
Yahoo News!, October 9, 2007.