Job fair in China a virtual human ocean of applicants(!?)

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I realize this is from a humor site, but if someone can verify these photos, then things are clearly not what they seem in the MSM regarding Asia leading the 'global recovery'.

http://thechive.com/2009/12/07/want-a-job-in-china-sure-theyll-get-right-on-that-8-photos/

That Barberous Relic (Ahh... How we lust for ye!)

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Great article on Zerohedge on gold.

A particularly relevant snip IMO:

Fear Factor

Gold is a commodity that perception plays a more significant role than other market factors. Almost all other commodities such as crude oil, natural gas, copper, prices often fluctuate on indications of inventory, supply, and demand; whereas gold moves primarily with investor’s fear or perception of inflation, U.S. Dollar and the economy.

But just as fast as the market perception can drive prices straight up, it could tank an asset class in a matter of minutes. As discussed here, investment/speculator demand is clearly a major factor in the current gold price rally, a decline could potentially take the gold price down quite significantly on indications such as rising interest rate, or the U. S. Dollar starts to strengthen.

If history is any indication, after gold rose sharply in 1979-1980 to $850, it was followed by a drop to near $500 in less than 2 months. It is conceivable that gold could take a similar loss in a short time.

To which Spitzer replied:

haha, "Gold will drop $500 in a short time" Thats a good one.

Everyone including some big central banks are buying gold on dips and these dips get shorter in duration every time. Gold bug indexes have not even taken out their 08 highs, bubble ? I don't think so.

My response:Actually, to make a similar move from $850 to $500, gold would go from $1250 to $735.

Maybe a bit more on the overshoot. In which case call me Hannover... Hannover Fiste.

Either way, the safe thing to do is average in (in either direction), and increase your percentage as the clock counts down.

My bet is down first, then up, if only because it's *obvious to everyone* that gold just takes a moon shot from here WTF MAN ARE YOU AN IDIOT THE DOLLAR IS SH!T, BRANDY, BEANS, BULLETS, BANDAGES AND BULLION UH-UURRRR! O_o

And also because they might actually try and defend the dollar, squeeze the dollar bears, screw J6P out of some more $$$ before they rotate into the new asset classes, etc.

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A final note: I suspect that people fail to recognize that while gold and silver are MONEY, it's value is relative to ALL OTHER MONEY, and that the other (fiat) money can be manipulated, thus changing it's value relative to gold...

...For a little while longer, at least! I eventually see a scenario down the road where gold is $5000.00 an ounce, but unavailable at five times that price.

But it ain't gonna be a smooth road, IMO.

Debtwatch: Or, why debts that can't be paid... Um... Won't. Sry.

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If y0u don't follow Steve Keen's Debtwatch, you really should. IMO he is one of the few economists out there who get it. His most recent post is excellent and a must read.

My favorite part :

"Only one question remains: why do Central Banks ignore the debt to GDP ratio?

There is nothing more dangerous than a bad theory

The simple reason is: because they are neoclassical economists. You don’t get to be a Central Banker without a degree in economics, and the school of thought that dominates economics today is known as neoclassical economics. Though a lot of what it says appears to be superficially intelligent, almost all of it is intellectual drivel, as I outlined in my book Debunking Economics (which summarised a century of profound critiques of this theory which its practitioners have studiously ignored)."

Which backs up my central premise on this mess: Never attribute to nefarious conspiracy what can also be explained by rank incompetence.

BOYCOTT AMAZON.COM!

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They are NOT ALLOWING the movie The Secret of OZ to be sold on their site.

http://www.secretofoz.com/index.php?option=com_content&view=article&id=111:soz-banned-off-amazoncom

The Secret of Oz is a new movie about the banking system by the maker of the documentary, The MoneyMasters (www.themoneymasters.com) (The MoneyMasters predicted the economic events that are just starting to befall this country. It is now considered THE classic work on monetary reform. Nobel Prize winning economist Milton Friedman guided them during the editing process for this 3 hour 23 minute documentary and provides his endorsement of it on their website.)

DO NOT BUY ANYTHING FROM AMAZON.COM UNTIL THEY RECTIFY THIS. THERE ARE PLENTY OF OTHER RETAILERS WHO WILL BE HAPPY TO TAKE YOUR MONEY.

SPREAD THE WORD, and I hope you all have a great Thanksgiving, and a very merry Christmas (or Hanuka, or Kwanzaa, or however else you choose to celebrate the season, whatever, just make sure you take the time to let those you love know that you love them).

Short term the market is a voting machine

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Psychology in the short and medium term, but long term, fundamentals rule.

"Short term the market is a voting machine, long term it's a weighing machine".
- Benjamin Graham

There's not much the government can do about that, except *actually improve* the economy via improvements in infrastructure and (removing imbalances caused by) legislation, and (gasp) imposing sound banking on the bankers... Which in the long run, would allow earnings to catch up with price.

But they have confused effect with cause, and think the tail wags the dog. There is no possible way earnings can catch up with price in time to keep price at this level, unless they flood the actual marketplace with cash, which would result in strong inflation and a currency crisis.

Bottoms are events, tops are built. This one, like the last one, is built on a column of hot air and empty promises.

Investment wise, I don't see any place in the world to hide from this, except short, gold, and then...

The USD. That's right, Uncle Buck.

But this assumes the US gov't wipes out all the debt and converts the currency to a non credit/debt based currency, taking control of the money supply away from the bankers and giving it back to the governments.

Given the current lack of leadership from congress and Obama, I only give this a 10% chance.

Right now my faith is 100% short. Soon it will be 90% gold, 10% USD.

The system is broken, you cannot make 1+1 = 3, and change will come whether they want it or not.

US wants CHINA to invest in small to medium sized US BANKS. China says "Um... Yeah, sure, whatever..."

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Here's the article (I would just link to it except things like this have a way of disappearing completely from the web):

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China, U.S. eye pact to help troubled banks: sources

HONG KONG (Reuters) - Chinese and U.S. regulators are negotiating a pact aimed at encouraging Chinese financial institutions to buy into small and medium-sized banks in the United States, bankers briefed on the plan said on Tuesday.

Chinese bankers have complained that it's been difficult for them to set up branches or invest in banks in the world's leading economy, due partly to U.S. regulators' tough supervision and strict approval process for financial deals.

But the global financial landscape has been revamped by the credit crisis, and cash-rich Chinese banks are now bigger players on the world scene and are scouting around for investment targets.

To illustrate the global shake-down, Industrial and Commercial Bank of China (Shanghai:601398.SS - News; HKSE:1398.HK - News) is now the world's biggest bank by market value, while Citigroup Inc (NYSE:C - News), once the world's No.1 bank, is worth the same as a second-tier commercial bank in China.

Two senior Chinese bankers said they had been invited this year by U.S. officials, investment bankers and financial advisers to look at several potential investments in U.S. banks, mostly in financial trouble.

"The trend is already there," said one Chinese banker. "Now they're going to make this into an agreement to show there's a change in official attitude toward Chinese investments in the U.S. banking system," said the banker, who declined to be identified due to the sensitive nature of the matter.

A Sino-U.S. Memorandum of Understanding (MOU) to encourage Chinese banks to invest in U.S. lenders is in the making, and China's banking regulator has sought feedback from big domestic banks, bankers told Reuters.

Over 100 U.S. banks have already been seized by regulators in the financial crisis, and more bank failures could come as the Obama administration also needs more capital to take over troubled lenders.

NO HURRY TO BUY?

The MOU would be part of a new strategic framework that ranges from climate change to international cooperation, Hong Kong's South China Morning Post reported on Tuesday.

The hope is to announce a deal during U.S. President Barack Obama's current visit to China, the newspaper said, citing unnamed mainland bankers briefed on the matter.

In October 2007, Minsheng Banking Corp (Shanghai:600016.SS - News), China's seventh-largest by assets, agreed to buy 9.9 percent of San Francisco-based UCBH Holdings Inc (NasdaqGS:UCBH - News) for more than $200 million in the first investment by a mainland Chinese bank in a U.S. bank.

But Minsheng has seen huge paper losses on its investment in UCBH, whose business focuses on mortgages for many Chinese Americans on the U.S. West Coast, as UCBH shares sank in the financial crisis.

Other Chinese banks such as ICBC and Merchants Bank (Shanghai:600036.SS - News; HKSE:3968.HK - News) have also shown an interest in expanding in the United States, but their approach may be different.

"I feel lots of uncertainties still exist in the U.S. financial market and we want to keep a distance from these toxic assets at this moment," said Ma Weihua, CEO of Merchants Bank, China's sixth-largest lender by assets.

"Our attitude toward U.S. financial assets is very conservative right now," Ma told Reuters by telephone.

Merchants Bank opened its first U.S. branch in New York about a year ago, and Ma said the branch would hire more local staff to expand its business there.

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Heh heh...

"No hurry to buy".

This is never gonna happen. Here's why: The US has demonstrated it is perfectly willing to violate black-letter law with regards to contracts to appease a voter base.

So why would China invest in a bunch of US banks when the US can just change the rules and screw them over? China can't threaten us militarily, so their end of the bargain is unenforceable.

If US gold reserves start to move to China as collateral for this investment I'll believe it. But then I'll also have to believe in the existence of the mythical magical unicorn that craps Skittles.

WHY AN OUTSIDER IS NEEDED to end this INSANE "ESCALATION OF COMMITMENT"

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Traders typically become familiar with the "sunk cost" phenomenon, AKA "throwing good money after bad". Good traders suck it up, take the hit, and move on. Bad traders average down until they are broke.

The similarity between this and the government's mis-management of the banking implosion are obvious to most people. So why doesn't the government "get it"?

Turns out there's a psychological reason for this.

Excerpt - 'Galinsky believes that the results suggest that companies trying to reverse results of bad decisions should find true outsiders. He points to troubled automaker Ford as an example. Instead of hiring from within--as General Motors (GM) recently did--Ford made Alan Mulally from Boeing, an aerospace company, their chief executive officer. Many experts believe that Ford is now recovering quicker than GM. "It's true that insiders have more knowledge," Galinsky says. "But when you are already down the road of a failed course of action, you really need ... a true outsider."'

...Ron Paul, anyone?