Defaulting banks - where will it stop?

[Jan Klimkowski]

At the link below is a striking picture of the US "debt clock".

In such circumstances, two of the most logical options for any national government faced with debt which is essentially unrepayable are, presumably:

i) hyperinflation;

ii) default and start all over again.

That's in economic terms.

In political terms, both likely require the ruling elites to introduce martial law or start a false flag war.

US debt clock runs out of digits

The US government's debts have ballooned so badly the National Debt Clock in New York has run out of digits to record the spiralling figure.
The digital counter marks the national debt level, but when that passed the $10 trillion point last month, the sign could not display the full amount.
The board was erected to highlight the $2.7 trillion level of debt in 1989.
The clock's owners say two more zeros will be added, allowing the clock to record a quadrillion dollars of debt.
Douglas Durst, son of the late Seymour Durst - the clock's inventor - hopes to replace the Manhattan clock with its lengthier replacement early next year.
For the time being, the Times Square counter's electronic dollar sign has been replaced with the extra digit required.
For its part, the digital dollar symbol has been supplanted by a cheaper version - perhaps a sign of the times for the American economy.
Some economists believe the $700bn bail-out plan for ailing US financial institutions could send the national debt level to $11 trillion.

http://news.bbc.co.uk/1/hi/business/7660409.stm

[David Guyatt]

I heard on the News today that the debt clock that runs in Times Square (I believe it was?) ran out of zeros last week when the accumulated debt hit the $10 trillion mark...

[Jan Klimkowski]

Here again is the most Alice-in-Wonderland part:

The clock's owners say two more zeros will be added, allowing the clock to record a quadrillion dollars of debt.

I can hardly conceive of a 10 trillion dollar debt, so hell - yeah - let's go for bragging rights and aim for the quadrillion.

My d*** is bigger than your d***!

Meanwhile PM Gordon Brown has used anti-terrorist legislation to seize Icelandic assets. Yes, anti-terrorist legislation to protect British investors from the actions of another European country.

FUBAR is the only vaguely sane reaction to this tosh.

[David Guyatt]

And when will people wake up to the fact that anti-terrorist legislation and other Big Brother laws like compulsory identity cards will equally be abused as soon as the law is passed...

[Jan Klimkowski]

Iceland strikes back:

http://www.youtube.com/watch?v=FwlnRXIwk...acks_again

[Jan Klimkowski]

S&P and the Dow have both crashed down over 7% today.

Meanwhile, the Daily Telegraph's roving Business Correspondent, spooky Ambrose Evans-Pritchard (yes the same AE-P who relentlessly pursued Clintonian "conspiracies" during Bill's Presidency), has totally lost it:

My view is that Washington has done what is needed to prevent the collapse of the US economy. It has taken over the entire credit system, after all, surpassing Roosevelt's New Deal.

The US has guaranteed the $3.5 trillion money market funds. It has nationalised the $5.3 trillion pillars of the mortgage market, Fannie and Freddie. The Fed is accepting any junk as collateral at its lending window. This week it went the whole hog after panic hit the $1.6 trillion market for commercial paper. It is now offering loans without any security at all. The US government has become a bank. Yes, this is US socialism. What is the alternative?

http://www.telegraph.co.uk/finance/comme...-euro.html

AE-P often appears to articulate the views of certain parts of the British establishment. So, this faction is now happy for the Fed to accept "any junk as collateral", and to offer loans "without any security at all"?!?!?

[Peter Lemkin]

At the link below is a striking picture of the US "debt clock".

In such circumstances, two of the most logical options for any national government faced with debt which is essentially unrepayable are, presumably:

i) hyperinflation;

ii) default and start all over again.

That's in economic terms.

In political terms, both likely require the ruling elites to introduce martial law or start a false flag war.


http://news.bbc.co.uk/1/hi/business/7660409.stm

...a trillion here...another trillion there, and soon it starts to add up to 'real money'...or does it?!!? I'd say we're about 'ready' for some diversionary events to be rolled out.....ah the old magic tricks....

[Magda Hassan]

Isn't God supposed to come and rescue every one? That will fix everything won't it? Oh, and adding a couple of extra zeros to the clock too.

http://au.youtube.com/watch?v=fjKBf1N2Wls

'Prayer for Current Financial Situation'

October 10, 2008 - 10:49AM


Britons fearful about the global financial crisis are turning to God - at least online - flocking in their thousands to a special prayer on the Church of England's website, the Church said today.

A new "Prayer for the Current Financial Situation" has been viewed nearly 8000 times since it was published online in September, increasing traffic to the 'prayers for today' section of the website by 28 per cent.
The number of people visiting a section offering debt advice - including a feature that helps visitors work out how the credit crunch will affect them - has also gone up by 71 per cent in the past few weeks, the Church said.
"I'm delighted the content is resonating with people, and there is something the church has to offer people," said John Preston, the Church of England's national steward, who wrote the debt advice.
"I think that people aren't necessarily going online to seek religion, but as they are browsing, their thoughts turn to it.
"We know that many people do pray, but things are made so accessible by having it online. Instead of having to go somewhere, and find something, we just provide some words that people can go through wherever they are."
The prayer for the financial crisis notes that "we live in disturbing days", with rising prices, increasing debts, job losses and collapsing banks, and calls on God to "be a tower of strength amid the shifting sands".

[David Guyatt]

S&P and the Dow have both crashed down over 7% today.

Meanwhile, the Daily Telegraph's roving Business Correspondent, spooky Ambrose Evans-Pritchard (yes the same AE-P who relentlessly pursued Clintonian "conspiracies" during Bill's Presidency), has totally lost it:


http://www.telegraph.co.uk/finance/comme...-euro.html

AE-P often appears to articulate the views of certain parts of the British establishment. So, this faction is now happy for the Fed to accept "any junk as collateral", and to offer loans "without any security at all"?!?!?

Some years ago the Daily Bellylaugh published an article to the effect that 7,000 (some had it as 700,000) Chinese troops were massing on the US Mexican border.

By the time I managed to stand up again, after having fallen down in helpless laughter, I was suddenly all come over with entrepreneurial spirit and saw a niche in the market I could fill and become a Dong millionaire overnight:

Sino-Mex cuisine.

Not so much a chain of Taco Bell but rather Wong Bell.

Think about it. An entirely new fusion food. The menu could include:

Chili Won Ton.

Enchilada Wandering Dragon

Taco's in black bean sauce

Sweet & sour Fajitas

Salsa with rice crackers

Guacamole chow mein

So I'll hear nothing bad said about friend Ambrose because for a moment I was almost rolling in it.

He certainly was.

[David Malone]

David and Jan,

A thought I had this morning. I'd like to hear if you think it makes any sense.

By the way I've been having a fab time over at the Guardian for the last few days. People are becoming more open to hearing that the financial masters have feet of clay and their 'bail out' isn't going to work.

Anyway here's my thought for the morning.

People talk about the possibility of hyper-inflation. They talk about the possibility of becoming like Weimar Germany or Zimbabwe and seeing currency inflation.

Given that we the currency most in use in the markets has been the debt backed currency could we not argue that we already do have hyper-inflation - of the debt backed currency.

We keep looking for signs of hyper-inflation in the high street currency. Are we noty missing the obvious signs of it in the financial currency? What else do you call it when Banks, corporations and governments are forced to talk in Billions and even Trillions.

I think there has been hyper-inflation of the undeclared currency and once you see this clearly you see what is happening now as the effect of that Hyper-inflation.

Which leads me to think that the actions being taken are possibly quite designed for quite a different crisis from that they are actually in.

What do you think?