DEBTOR NATION

RUMBLINGS FROM THE PIT

Weekend, May 18 - 19, 2013

Sales skid at S&P 500 companies: 458 companies of the 500 in the index have reported their Q1 results so far: earnings were up a measly 3.4% year-over-year, but sales fell 0.2%. Not exactly the foundation for the gigantic undying stock market rally that has plowed through whatever economic and corporate bad news with nary a twitch. When will this separation of reality from stock prices end? Someday, one way or the other! He who can pinpoint that day will make a lot of money.

Central bank success story: The global market for luxury goods grew 38.6% in three years. From $200 billion in 2009, luxury goods sales jumped 13% in 2010, 11% in 2011, and 10% in 2012, to end up at $275 billion. Despite the Eurozone debt crisis and austerity, despite the earthquake and tsunami in Japan in 2011... no matter what happened in those three years, luxury goods boomed, sez the the just released "Worldwide Luxury Markets Monitor," by Bain & Company for Fondazione Altagamma (PDF). “Absolute luxury items (high-end products with no logo, highest quality materials, and exquisite craftsmanship) lead the way,” the report reassured us, but there were some losers, including “watch consumption” which crashed in China. The report confirmed what we’ve seen everywhere: when central banks hand out trillions to their cronies, it doesn’t do much for the real economy as a whole, nor for employment, but it does one heck of a job at the very top of the pyramid.

"Threat of Default": US hits debt limit on Saturday, but by using a slew of shuffle maneuvers, shell games, tricks, and devices, the US won't actually run out of money until "after Labor Day," Treasury Secretary Jacob Lew told Congress in a letter. In his previous statement, the US would be "okay until Labor Day." Today, he was more frantic. He begged Congress to get its act together and do something "sooner rather than later" to “remove the threat of default.” In its infinite wisdom, Congress had suspended the debt limit till May 18, rather than dealing with it. The debt, though still over the limit, declined in April and early May; tax extractions were fattened by asset bubbles. But since May 10, the debt has once again been rising.

 

Friday, May 17, 2013

US Consumers haven’t felt this good since July 2007, just before all heck broke loose. An "encouraging sign," Reuters sez. For short sellers? The preliminary results of the Thomson Reuters/University of Michigan's consumer sentiment index jumped to 83.7 in May from 76.4 in April. Big part of the reason: households in the upper third of the income bracket felt flush from the ballooning stock market – the wealth effect. The Fed giveth.... They were able to brush off the payroll tax increase, which Wal-Mart shoppers, as we’ve seen, had a harder time brushing off. The Consumer Expectations index rose to 74.8 from 67.8. And the Current Economic Conditions index leaped to 97.5 from 89.9, the highest since October 2007, a month before the stock markets began to swoon. Impeccable timing, the hallmark of consumers.

Car sales in the EU crept up 1.7% in April, from a horrible April last year. The fact that the parade of ever worsening numbers has finally stopped, at least for a moment, was greeted with a huge sigh of relief. The details of the report aren’t that rosy: sales in the UK, now the second largest market after Germany, jumped 14.8%. Without the UK, sales for the rest of the EU actually dropped 0.46%. It wasn't exactly a smooth trend across the member states: Greece finally seems to have hit bottom, and sales increased 20.9%; in Denmark, they jumped 30.7% and in Finland 142.6%; but they crashed 26% in the Netherlands and 51.9% in Cyprus; they rose 3.8% in Germany but dropped 5.3% in France.

Deafening US media hype: Japan Core Machinery Orders jumped 14.2% in March, seasonally adjusted, from February. The eternal money-printing and fiscal-stimulus apologists dragged it out as proof that Abenomics is working massively. Alas, these are highly volatile big-ticket items, though “core” orders exclude container ships, nuclear reactors, etc., which are even more volatile. To iron out the volatility, the Cabinet Office also offers quarterly numbers. Soooo, core orders in the first quarter of 2013 were actually 4.8% lower than in the first quarter of 2012, when Noda was prime minister. Kampai!

The Japanese take care of their college grads: 93.9% of all those who graduated on March 31, the end of the academic year, had jobs by April 1, the beginning of the business year. This was the second year in a row that the percentage increased, so it’s NOT related to Abenomics, please! College recruitment, like so many things in Japan, is a highly structured process with the idea to get pretty much everyone squared away before the end of the academic year. But those who miss this entry into Japan Inc. have the greatest difficulty getting through the door later. The system is unforgiving punitive to those who don’t toe the line.

About that secret inflation in Argentina: famously, no one is allowed to accurately track or discuss inflation, but all the whisper numbers floating around peg it at over 20% annually. Now confirmation has come from official sources: wage negotiations between unions and the government of President Cristina Fernández Kirchner. Unions are her base. In fact, she personally met with the leaders of six unions that represent about 2 million workers, or 40% of all workers covered by wage negotiations, and made a deal, similar to the deals she’d made with Railway and Bus Drivers’ unions. The agreed-upon wage increases this year to keep the purchasing power of her voters intact? The closest estimate to official CPI that Argentina has? 24%!

 

Thursday, May 16, 2013

Last time French-made cars were sold is the US? 1980? Long time ago. But... French-made models of the Toyota Yaris are coming to the US, Canada, and Mexico, apparently to keep the plant in Onnaing, near Valenciennes, busy. Car sales in Europe have been catastrophic, and plant shutdowns and layoffs are hard to do, especially in France where even thinking about it causes a huge political ruckus. In 2012, 182,841 Yaris were sold in Europe, accounting for 22% of Toyota's total European sales - a highly successful model at the low end of the lineup. North America will get US versions, not EU versions. So no diesels.

Plunging price of gasoline shaves 0.4% from Consumer Price Index in April. Total energy prices dropped 4.3%, with gasoline down 8.1%. We’ll remember those days fondly because that cheap gasoline is now history; prices have been climbing in May! Food prices rose 0.2%. Core CPI, which excludes food and energy, rose 0.1%. For the 12-month period, CPI is up 1.1% and core CPI 1.7%. The Fed might complain that this is below target; but it’s still inflation, and it still whittles down the value of your and my dollars, and everything denominated in them, and it’s still higher than the interest that banks pay on most deposits and CDs, though it’s better than 4.3%, as we had some months in 2011.

Another blow to US manufacturing: Philadelphia Fed's Business Outlook Survey – for manufacturing in eastern Pennsylvania, southern New Jersey, and Delaware – dropped into the negative, to -5.2 in May, from 1.3 in April (below zero = decline). The New York Fed's Empire State Manufacturing survey, reported yesterday (below), had also pointed at a contraction. Ominous: new orders dropped to -7.9, the worst since June last year, from -1 in April; the Workweek Index dropped to -12.4, and the Employment Index dropped to -8.7. Manufacturing is only a small part of the US economy, and this region is a small part of the US, so we’re not going to panic just yet...

US Housing Bubble confirmed: Heard an ad on the radio on how to get rich quick by flipping houses – and we’ll show you how. It conveniently offered an 800-number. Something or other was free.... but keep your credit card handy. These kinds of things usually appear late in a bubble.

Death penalty for financial fraud in China. A court in Wenzhou slapped a local, 39-year-old gal, former general manager of Wenzhou Xinfu Investment Consulting Co., with the maximum penalty available, death, for having illegally raised funds for investments starting in 2007. Everything worked fine until October 2011, when her scheme collapsed and she ended up defaulting on a 428 million yuan loan ($69.6 million). Leaves open the question if they’d slap the same penalty on TBTF bank CEOs every time their banks need a bailout. A bit draconian maybe, but something the US might want to consider as well, after not having prosecuted anyone responsible for the financial crisis and for the Fed’s bailouts that followed, though they did hound, as in China, small-scale crooks like Bernie Madoff.

Bad loans at Chinese commercial banks swelled by 6.8% in the first quarter, to 526.5 billion yuan ($85.6 billion), the sixth consecutive quarter of increases, raising the non-performing loan ratio to 0.96%. And NPLs are expected to rise further. One of the many elements in a boundless debt-fueled scheme that will eventually, like the micro-case above, unravel.

The Japanese Diet rubber-stamped the ¥92.6 trillion ($926 billion) budget for fiscal 2013, which started April 1. A breath-taking ¥43 trillion ($425 billion) will have to be borrowed to make ends meet - that's 46.4% of the total outlays! But no problem. Abenomics will get Japan out of its fiscal quagmire, one way or the other, by printing money. Government spending on public works – welfare spending for Japan Inc. – will rise to ¥5.3 trillion. In a show of rare fiscal discipline, welfare spending for the poor will be cut by ¥67 billion. Priorities of Abenomics are becoming clear.

Japanese GDP growth less than a year ago! The economy grew 0.9% in the first quarter 2013 from Q4 last year, or a 3.5% annual rate. Private demand was up some, with investment in housing being fairly strong, but corporate investment lackluster. Public demand – government spending and investment, including boondoggles – jumped, as promised by Abenomics. Exports rose, and so did imports, but not as much. All seasonally adjusted. Great? Give credit to Abenomics for that 0.9% growth in GDP? Because it was the fastest growth since... oops, well, since the first quarter of 2012, when the economy grew 1.3%. Abenomics can't even keep up with Noda's maligned era.

 

Wednesday, May 15, 2013

Megabanks "are NOT too big to jail," claimed Attorney General Eric Holder today in a heroic about-face at a House Judiciary hearing, after he'd explained to the Senate Judiciary Committee in early March why exactly they were indeed too big to jail. The Justice Department has not prosecuted any megabanks despite their shenanigans leading up to the Financial Crisis and continuing to this day. A debacle I wrote about.... 'Regulatory Capture' Emasculated The Regulators Of Megabanks.

French purchasing power plunges 1.5% per capita, and 0.9% for all households together in 2012 (difference due to population growth), the worst performance since 1984. Combination of: disposable income creeping up only 0.9%, and prices rising 1.9%. Ah yes, the many benefits of "moderate" or even "below-target" inflation.

Tough day for US manufacturing: industrial production dropped 0.5% in April, after increasing in February and March; year-over-year, it's up only 1.9%. Within it, manufacturing fell 0.4%; fingers point at motor vehicles and parts, down 1.3%. Capacity utilization fell 0.5% to 77.8%, and is 2.4 percentage points below long-term average. Add to that: the New York Fed's Empire State Manufacturing Survey for May dipped into the red (-1.43, from 3.05 in April). Employment sub-indices were mixed, with number of employees up slightly, but hours worked down sharply. Darkest cloud: new orders were negative. Executive optimism for the next six months declined, second month in a row. Not an exemplary picture of a growing economy.

"My question is, who is going to jail?" wondered House Speaker John Boehner about the IRS scandal. So why didn't he and other Republicans ask that question after the financial crisis, the largest scandal in the US ever?

Swooning energy prices, particularly gasoline, pushed down wholesale prices by 0.7% in April, seasonally adjusted. Food prices also dropped, a godsend for those of us who like to eat, with veggies and meat down the most. Without food and energy, which are highly volatile, the core Producer Price Index rose 0.1%. For the 12-month period, the unadjusted PPI is up a scant 0.6%. If they could just keep it that way!

Warning shot: Russian car sales plunged 8% in April. For the year, they are now 2% below the same period last year, a record year during which sales had jumped 11% from 2011. The good times appear to be over. Is the EU malaise heading east?

Europe stuck in recession: the Eurozone economy shrank 0.2% in the first quarter, from Q4, the sixth quarter of recession in a row, another glorious record. The 27-nation EU contracted 0.1%. Year over year, they’re down 1.0% and 0.7% respectively. Germany's economy inched up 0.1% in Q1, after having plunged 0.7% in Q4, thus barely avoiding the red stamp of recession. Both quarters combined, Germany is in the hole. The lousy performance in both quarters surprisingly surprised pundits. France is formally in a recession; its economy contracted 0.2% in Q1, third contraction in four quarters. Italy and Spain both shriveled 0.5%. Unperturbed, German stocks, while down a smidgen for the day so far, are still above their prior all-time intra-day high of July 2007. This will be seen as the greatest accomplishment of the central bank money-printing binge: separating (at least temporarily) stock markets from reality and allowing them to float in a dream world.

China's pile of foreign exchange grew by 294 billion yuan to 27.363 trillion yuan ($4.41 trillion) in April, according to the People's Bank of China, the fifth month in a row of increases. For the first four months of 2013, the monthly influx averaged 400 billion yuan, nine times the average in 2012. Earlier this month, the State Administration of Foreign Exchange, the top forex regulator, had threatened to crack down on foreign money flooding the country. China is where the hot money goes – on the bet that the yuan will continue to rise against the dollar which, through the arduous and heroic efforts of the Fed, will continue to lose value.

Nikkei jumps 2.29%, to 15,096, highest since December 28, 2007. If it keeps going like this, it will be above 40,000 soon. This thing has become a joke – even more so than the US stock markets. Japanese government bonds continue their descent, pushing yields up, with the 10-year JGB hitting 0.90% but then settled down at 0.85%. The yen skidded.

 

Tuesday, May 14, 2013

Ex-leaders of consumer electronics: Sharp's huge loss is a sign of how Japanese powerhouses have lost the edge to Korean, US, and Chinese rivals. A doozy: ¥545 billion ($5.3 billion) in red ink, a record in its storied century-long history. A top exec reshuffle has been announced, but it won't fix the real issue that is bedeviling Sharp and other Japanese consumer electronics companies, once world leaders, now not even also-rans. Abenomics won't be able to cure that either. This isn't an issue of costs and exchange rates, but of innovation, products, and now increasingly brand (they squandered it).

China's white paper on human rights, helpfully issued in English so that foreigners like me can get their brains washed, starts out promisingly: "Since the arrival of the 21st century, the Chinese people have been making constant efforts in advancing human rights protection along the path of building socialism with Chinese characteristics under the leadership of the Communist Party of China (CPC) and the Chinese government." Further into it, the paper clarifies priorities: "China has a population of over 1.3 billion. For such a populous country, it would be impossible to protect the people's rights and interests without first developing the economy to feed and clothe the people." Money before rights. But it also points out how the government has become much more transparent in many ways, which few people will dispute (text in full).

Inflation hits Japan: wholesale prices rose for 5th month in a row in April, by 0.3% from March, with the index at 101.4 (2010 prices = 100). Electricity, gas, water, lumber, and wood products jumped over 3%. Some of it was due to the weakening yen that made imported fuels and raw materials more expensive. How exactly higher prices would cure Japan’s economic ills remains a mystery, though it will give a stylish haircut to all those owning Japanese Government Bonds....

Japanese Government Bonds skid once again: yields rose, for the 10-year JGB to 0.85%, from 0.79% yesterday, from 0.69% on Friday, and from 0.315% on April 5, the day they went bonkers. While yields are still ultra-low, the rise has been relentless, not at all what the BOJ wants – and now there's also volatility, rare sight in the JGB market. Japanese institutions and individuals are buying foreign bonds with higher yields to diversify out of the yen that has been doomed by Abenomics to decline. If this turns into a massive dumping of yen, if the BOJ cannot keep it under control, the selloff might turn into a rout, and the BOJ and government-controlled institutions will be the only ones left buying. In sympathy, mortgage rates are creeping up, as are bank loans. The opposite of what Abenomics wants to accomplish. Free money is suddenly becoming more expensive. 

Click for Older Rumblings....

VIDEOS

Wolf Richter on Max Keiser's "On The Edge" 
"The Pauperization of America"

Wolf Richter on the Keiser Report
"Where the Money Goes to Die"

Clarke and Dawe: European Debt Crisis
Two favorite Australian Comedians

Clarke and Dawe: Quantitative Easing
Big industrial-strength printers, all facing the window

The Fastest Drive Ever Through San Francisco
Don't try to do this yourself
 

humanERROR - by "Frying Dutchman"
Powerful, lyrical appeal to the Japanese. Slams nuke industry, MSM, bureaucrats, and politicians.

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Friday
Jan182013

New Islamic Caliphate Challenges Western Crusaders

Contributed by Chriss Street. Specialist in corporate reorganizations and turnarounds, former Chairman of two NYSE listed companies. His latest book, The Third Way, describes how to achieve management excellence and financial reward by moving organizations from Conflict and Confrontation to Leadership and Cooperation. He lives in Newport Beach, CA. 

This week marks the second anniversary of the birth of the “Arab Spring”, which began when President Zine El Abidine Ben Ali of Tunisia fled to Saudi Arabia after only a month of protest against his rule. Egypt, Libya, and Yemen dictators have been overthrown and rebels now control most of Mali and Syria. Bahrain, Kuwait, Lebanon, Morocco, Jordan, Saudi Arabia and Sudan are also suffering protests.

The United States and Europe directly and clandestinely encouraged this revolutionary fever with the naive expectation that these countries could be pacified by evolving into European-style welfare states. Unfortunately for the West, these people have a common heritage as a series of Caliphate Empires that from 622 AD to 1258 AD were the most powerful, wealthy and cultured nation on earth.

Arab Spring revolutionaries understand it took 200 years for Islamic forces to defeat the Crusaders. They have demonstrated by invading Mali and attacking Algeria that they are embarking on a protracted war of liberation to reestablish Caliphate of the Moors to control of North Africa, the Middle East and Southern Europe. 

Western academics have championed an educational common core curriculum for history; economics and sociology that emphasizes the importance of nation states wither away as the world moves toward global decision making, resource management, stakeholder inclusion and role of international institutions. But Vladimir Lenin, founder of Communist Russia, said:  

“There are decades where nothing happens; and there are weeks where decades happen.”

Since the 1979 take-over of the U.S. Embassy in Tehran, the U.S. and its Western allies have been engaged in fighting a proxy wars to prevent the rise of a new and powerful Persian Empire, while the rest of the Middle East remained relatively quiet. That is why the beginning of the Arab Spring is so momentous. Tunis sits on the ruins of ancient Carthage, which under Hannibal in 218 BC marched 38,000 infantry, 8,000 cavalry, and 37 war elephants over the Alps and almost conquered Rome. The people of Tunis, Morocco, Algeria and Libya are called the Maghreb and referred to as the “Moors“. The Arab Spring heralds the rise of a new war of liberation to reestablish the Caliphate of the Moors.

Moslems reached their point of greatest world domination from 909 AD to 1171 AD under the Moorish Caliphate of Fātimid, which controlled the Maghreb, Egypt, Mauritania, Sicily, Malta, Saudi Arabia, Syria, Palestine, Levant, Spain, Portugal and Southern France. The Fatimid’s built the City of Cairo as their capital and dominated trade in salt, gold, ivory, and slaves they captured from the neighboring Sahara desert (Mali) and from Europeans as pirate booty.

The Moors came into major dispute with Christians when their Persian Seljuk Turks allies decisively defeated army of the Byzantine Empire in 1071 AD, cutting off Christian access to the Holy Land in and around Jerusalem. Pope Urban II rallied Christians for the First Crusade by declaring “It is the will of God“. The Crusaders set off with an army of 700,000 men with 100,000 were knights in armor. They besieged the Syrian City of Antioch for two years until the Crusaders scaled the walls and slaughtered inhabitants.

In 1099 the Crusaders captured Jerusalem and massacred 10,000 Muslim men, women and children who sought shelter in the Al-Aqsa Mosque (Dome of the Rock). The Crusaders also slaughtered the thousands of Jewish defenders in Jerusalem who had sought refuge in their synagogue by burning them alive. The fall of Jerusalem to the Crusades emboldened the Christian Reconquista rebellions in Spain and Portugal that undermined the Caliphate and eventually led to the Moors decline.

Nine centuries later to contextualize 9/11, President Clinton recalled the massacre “is still being told today in the Middle East, and we are still paying for it.”

The Arab Spring follows three generations of revolutionary jihadism led by Salafist Muslims from the Maghreb and Egypt, who are “striving” to expel all foreign influences and create a new world-wide Islamic Caliphate. The Salafist movement was encouraged and financed by Americans and Europeans, because of their willingness to tenaciously battle and even conduct suicide attacks to defeat the Russians in Afghanistan and Serbs in Bosnia. But as the National Commission on Terrorist Attacks Upon the United States would report, Al-Qaeda Salafists turned against their Western allies with the 911 terrorist attacks in the U.S., bombings across Europe and Wars in Afghanistan and Iraq.

When the revolt against Libyan dictator Muammar Gaddafi began in February 2011 the Western powers intervened with a NATO military “no fly zone”. The CIA covertly armed the Salafists warriors steamed back from Afghanistan and Iraq to join the revolution. When the rebels defeated Libyan army, the Salafists captured a spectacular amount of sophisticated weaponry, including 20,000 shoulder-fired surface-to-air missiles. In February 2012, Al Qaeda military chieftain Ayman al-Zawahiri declared war on Syria. With covert aid from Western nations, the Salafist took military control of the Free Syrian Army and overran 1/2 the country.

But the new Salafist working relationship with the West crumbled after Salafists also seized 2/3 of neighboring Mali led violent U.S. Embassy protests across the world on the 10th anniversary of 911 and murdered of U.S. Ambassador Stevens in Benghazi, Libya. This week French war planes and troops, supported by U.S. and NATO logistics, intervened on the side of the Mali government and started bombing the Salafists.

The Salafists replied with 20 members of their “Masked Brigade” taking 41 Western hostages at a foreign owned oil facility in Algeria as retribution against the Algerian government for allowing French “infidels” to use their airfields to bomb Salafists. When Algerian forces tried to free the captives, it has been reported that 35 hostages were slaughtered.

Earlier this year, I wrote the “Arab Spring Turns To Winter” to warn that putting the full-force of America’s military and diplomatic clout behind leveraging “Arab Spring” protests to transform the Middle East would lead to a disaster. Recent events confirm that the West is in a new protracted war to prevent the establishment of a new Caliphate of the Moors.

CHRISS STREET & PAUL PRESTON Present
“The American Exceptionalism Radio Talk Show”
Streaming Live Monday through Friday at 7-10 PM
Click here to listen: http://www.mysytv.net/kmyclive.html
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Reader Comments (4)

This is complete nonsense. It's embarrassing . To suggest that the recent revolutions in the Middle East were Salafist inspired is laughable. People in the Middle East want justice, democracy and to be rid of American Imperialism, which upholds Salafist rule in Saudi Arabia, the most extreme fundamentalist state in the world. The people who kicked off the revolutions of the Arab Spring were progressive, liberal, often secular, democrats. The US, of course, will feed the Salafist fire by reacting to a paranoid, simplistic and ignorant analysis of the politics of the Middle East like the one here advanced. For a person who supports a country and politics that recently talked of A New World Order and Full Spectrum Dominance to rail against some imagined credible threat of a Caliphate is quite astonishing. He is jumping at his own shadow. Not everyone wants to dominate the world like the American Exeptionalists. The rest of the world is relatively sane.
January 18, 2013 | Unregistered CommenterRoger Yates
We'll see how they behave when Sharia law is imposed and the Taliban take over.
January 18, 2013 | Unregistered CommenterJaneb
@Roger
Fully agree that the revelotions were only for a very minor part salaphi inspired.
The revolutions we have seen were bound to happen one way or another. Leaving a dictator and not even a 1% top in charge of a country with hardly any eye for the interests of the rest is simply not sustainable. And it might take a few decades but if that is not changing the system will collapse some day. We have seen that in Latin America and see that now in the larger ME.
However the islamist as some of the best organised groups have hijacked the revolutions at least part of it.
And it looks relatively stable in the way that it is doubtful if the present Islamists in power will meet Mubarak's fate anytime soon.

Imho a problem partly also caused by countries like the US and France, who simply had problems in making a distiction between what was likley to happen and what they wanted to happen. In the proces making the leaders still in power seeing the West as unreliable aprtners and likley moving part of their 'business' more East.

Fortunately we keep repeating the same mistake in countries like Syria. probably to have statistically significant numbers to prove that this policy is crap. But basically it is GW's Iraq revisited. Letting the locals run the process meaning that the organised ones have a huge advantage (and are usually not your friends).

Mali from a waging war perspective is roughly as good as it gets. Sand (nowhere to hide. Unpopulated, easy to see the bandits and easy to shoot them, and not many journalist that think you have to be nice to the enemy iso of shooting them. And basically nowhere to run after they have lost so you can start the turkeyshoot. Probably they will be arrested and put on a small island or so and given the opportunity to become the next PR disaster, but for the non handbag brigade it has a lot of waging war potential at least. The ideal place to take them out with likley only marginal collateral damage in the press at least and that is what counts. Ideal for high tec warfare as well it is not a multi million city (low on own casualties). It doesnot get any better than that.
January 19, 2013 | Unregistered CommenterRik
@Rik Yes, I think a lot of what you say is on the money. But it is not true to say that a dictator like Mubarak is isolated with all the power. What has been happening is that the dictators function as a kind of "safety valve" for the real, hidden, power elites in these countries. In Egypt and Algeria it is the Army and the Oligarchs,who have control of economic power, who are calling the shots. If popular pressure rises too high they will sacrifice the figurehead. But in Egypt, for example, the Army still runs the same swathe of the economy, is still supported by US Aid. The Muslim Brotherhood are now implicated in this process and it will cost them at the ballot box. The Salafists will profit, but they are unelectectable as things stand. Whoever is seen to run Egypt will have to confront the fact that 60% of the population is under 25 and mostly unemployed or underemployed. This is the elephant in the room in the Middle East and North Africa. The bearded religious zealots (called "The Beardies" by the lumpen proletarian youth) are the last people to have any notion as to how to face up to this. For starters the grip the Army has on the economy has to be broken, and behind the Army stands US power. The best course, the course most in the interests of the ordinary "Westerner", and the moral course, is to let these people sort out their own destinies like we have. Unfortunately we too are ruled by a hidden power elite and a military system that controls everything in their (not our) self interest. This is why we need to understand that the Egyptian revolutionaries were fighting in our front line. As to Mali. This is a non event occasioned by the presence of gold. Did you know, by the way, that Goldman Sachs just paid itself more cash in bonuses than the GDP of Mali? A few drone strikes on GS might be more fruitful in defending Western interests.....
January 19, 2013 | Unregistered CommenterRoger Yates

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