So this weekend, the ECU and the EU and the IMF and SHIT and all the King’s Horses and all the King’s men got together and decided to use more Keynesian economics (spend lots more of the taxpayer’s money) to get us out of the mess that Keynesian economics got us into in the first place (by spending all the taxpayer’s money) in spite of all the Keynesian economics that was used for more than a year (spending even more of the taxpayer’s money) and hasn’t worked since the credit crisis blew up the summer of 2007 which proves once again that insanity is doing the same thing over and over and expecting a different result and also proves that our fearless leaders are INSANE and all the King’s Horses and all the King’s men can’t put Humpty Dumpty back together again using Keynesian economics (no matter how much money they create out of thin air.) Surprise!

I’m keeping this update brief this weekend. I see in Asian markets, gold and silver are taking off (but as usual they’ll get hammered by the King’s Horses and the King’s men in the U.S. tomorrow) and the Asian markets are tanking. I expect, as the sun makes its way around the earth, that European markets will tank and then tomorrow the U.S. markets will also bite the big one (Canadian markets are closed.)

One of the unintended consequences (there’ll be lots of those and we’ll call them “Black Swans” as if we couldn’t see them coming) are political-military power grabs. Russia invading Georgia was a no-brainer because the U.S. couldn’t respond militarily because it is stretched thin in Iraq and Afghanistan and Russia really didn’t capitalize on the financial fiasco. However, Russia just bailed out Iceland’s imploding economy and you can bet they didn’t do it out of the goodness of their hearts. I’d bet Russia just bought themselves a mid-Atlantic naval refueling station. Also, stay tuned for China re-acquiring Taiwan without the U.S. lifting a finger because China’s $1.3 trillion in U.S. dollar reserves gives China a very big hammer which they can use to threaten the U.S. dollar. The Chinese are smart. They’ll wait for the right time. Goodbye, Taiwan. 

Stay tuned. This week won’t be dull.

Gerold
Oct. 21, 2008

Your comments are WELCOME! Lengthy comments may time-out before you’re finished so consider doing them in a word doc first then copy and paste to “Leave a Reply” below.