Friday, 28 May 2010

Chossudovsky – Don't Trust the Market Ups and Downs: It's Speculation + Austerity Cures will Kill Us

Michel Chossudovsky on: austerity measures; volatile currencies; solutions as the cause of further collapse; attacks on the euro; war against savings with zero interest rates; increasing rates of poverty; crisis has not yet reached its climax; the current crisis far surpasses the Great Depression; and the Long War.



A VERY EXCELLENT summary dealing with what is really going on at the moment. Check this out. Pay attention ! :)

[Posted at the SpookyWeather blog, May 28th, 2010.]

2 comments:

steven andresen said...

spook,

Thank you for this video. And the others here.

I am curious.

Do you think Chousodovsky (sp?) states the view of academic economists and political thinkers? I think he has to be a minority on the public inyellectual side, but, are the acadenmics going in his direction?

There are two possibilities, at least.

One, they do and that's why we don't hear anything at all from academic economists.

Two, the are wandering in a backwoods wilderness of issues completely seperate from what's going on in the real world, and so they don't matter, and that's why we don't hear from them.

Which is it?

SpookyPunkos said...

Steven,

Thanks for your commentary !

I hate to say it, but I think many economists fall into both scenarios you point out.

The problem about speaking out about the fraud is that talking about it will help to crash the markets. The game will falter and no one wants to loose their investment.

Also, many people ARE caught up in the mainstream view of things. So many get their info from the TV and the mainstream papers. They don't want to know about the systemic troubles because they are "making money" from the existing game and are brainwashed into dismissing, or diminishing, outside ideas.

There's another level to the media's economic reporting too. It's not all deception. Lots of mainstream publications do feature articles dealing with the issues raised here. I see the stories appearing from time to time about gold, and fraud, and derivatives issues, and Goldman Sachs, but it's downplayed.

The news that gets the most attention, that is picked up by short term traders and brokerage analysists, are headlines that feed off suspect or manipulated data (GDP figures, inflation, stock inventory, consumer confidence etc). They all want to make a quick buck and indepth, long term thinking & strategy doesn't wash well.

In the face of a tsunami, I can see lots of people trying to figure out how to keep selling the sand on the beach to each other. The game is all carried out on the beach, but it is not safe there.

For instance, the idea that the markets are rigged is somewhat irrelevant to the game. It does not matter so long as the game is still running. If the Dow drops and then recovers, the real reasons (often fraud) are not so important. If the wire says "bargain hunters stepped in", and bought shares when the market was in free fall, then ok ! Everyone wins. (At least on that day the casino is running).

Sometimes we do have good data that will help, sometimes it's an official statement from the US or Chinese. Sometimes the official statements don't wash with the traders either, which leads me to say that it's not all rigged.

There are real trades, but lots of rigging.

In my opinion many people (traders/brokers/financial media) believe the dangers of playing on the beach are not so great, and will keep playing as long as they think they can.

Economists, I think, would be more cautious generally, but depending on their training and views, could either think there is gonna be a disaster or that present monetary policy will stabalise things. Most probably do not really believe in the danagers.