Wednesday, June 11, 2008

Oil's Tulip-Mania?___Oil and Reality

Att: Hon. President Elect, Barack Obama___NATIONAL SECURITY
Iff: In case the oil and derivatives mess, the world is presently in, turns into a full blown national and global emergency, here’s an emergency sketch-plan for the necessary moves to be taken, and WHY…

Balance of Payments With China Link:
Important Article: The End of The Beginning
Paul Krugman

Oil’s Tulip-Mania?___Oil & Reality

Long ago people became so exuberant they actually paid as much as $75 thousand dollars, for certain species of tulip bulbs___How far might oil prices rise before people and nations come to their senses, and realize something must be done?___Something really meaningful and serious… Years past, it collapsed the whole system, before people came to their senses___Need this happen again? Not if we actually learn from history’s many, many past mistakes, of similar nature. Plain and simple, this is perpetual economic suzerainty(aggregate incentives’ transactions flows) from one main power nation to another___It’s mathematically, mechanically going to take place, unless we change course. It’s happened before, with Spain’s economic suzeraintic changes over the Dutch. It happened with England’s economic suzeraintic changes over the Dutch and Spanish Empires. It happened with America’s economic suzerainty over England’s Empire, and it’s now happening to America, as China assumes perpetual economic suzerainty over us, unless we drastically change course. The other related economic name and theory for this extreme market condition mechanics is best explained and known as “Specie Point Theory”(treasuries are here, transposed as a new specie theory mechanics), and it’s well documented and understood. Once massive currency imbalances exist, as they do between China, America and others, and commodity and goods prices start inflating/deflating, then hyper-inflating/hyper-deflating(incentives’ massive transactions flows___short and long), in a bottled up area, it becomes, at a certain point, impossible to stem the rising tide___and the world presently has five such major areas of concern___The Mid-East, China, Russia, Wall St., and the global Enron style derivatives’ “Shadow Banking” market(derivatives are here transposed as a new specie theory mechanics). It happened with tulip bulbs. It happened with gold from the new world, in Spain. It happened with John Law’s bank note over-issue. It happened with Napolean’s currency speculation during the French Revolution. It happened with Germany `23’s intentional currency hyper-inflation. It happened with Russia’s intentional currency hyper-inflation, in the early `20’s, shortly before Germany’s. It has happened in numerous countries then, before and since, and many of recent years, but the possibility of oil depletion offers a truly unique and fundamental change of outright potential necessity___Mother nature rules, in this case___Will we foolishly let it happen with derivatives, and or, oil? This is a first, where the world may be running low of the most needed commodity/resource in the history of humanity___and everyone will be fighting for it___and the world is massively currency imbalanced(Prof. Cassel’s true PPP{purchasing price parity} theory is here transposed). Must it become another “Tulip-Mania”, turning out as extreme “perpetual economic suzerainty” changes from America to China, and most likely eventual outright war, or can we develop the intelligence, and grand strategies necessary, to avoid such a potential catastrophe?

Now, the argument goes that we even have plenty of oil, right here in America, and the other side is we are truly running short, not only in America, but globally. After studying and writing others about this problematic argument for years, it seems to be clear we should listen to the experts. As far back as the `50’s, a Shell Oil engineer, one Mr. Hubbert, warned the US it would reach peak oil by the `70’s___We did. He also predicted the world oil supplies would also peak between 2000 and 2010___It seems to be true, especially when we combine this information with oil Bankers like a Mr. Mathew Simmons, and hundreds of other experts in the field of oil, such as T.Boon Pickens___They all agree that oil demand is beginning to exceed supply. They are all singing Hubbert’s song, as am I. Whether we have truly peaked, at this very moment, or not, the problem is still certainly serious enough to warrant emergency change, to ensure true social and military defense capabilities and future safety, when the market price rises to $140 a barrel, before dropping slightly___and we’ll, absolutely, certainly arrive at peak oil, all too soon . The real point is one of facing the eco-geo-political-military requirements, stabilities, and possible outcomes over time and truly doing something about it, or not___and now and not later___Better safe than sorry…!

If after reading what I write below(China’s Intent or Resources Depletion Necessities), and deeply contemplating the seriousness of potential outcomes, maybe we can talk about possible solutions, and I mean real and mammoth, extremely responsible, mathematically realizable, visionary projects. I’m just going to be brief and paint with a broad brush, but you’ll get the ideas. We immediately need to delist and negotiate a reasonable, sliding time scale, set price, for all the world’s oil, with all the nations of the world involved___as this problem is not going away any time soon. We immediately need a new “National Emergency Bank of the US.” We immediately need a new “National Energy Bank.” The Emergency Bank can and should be housed in the US Treasury, and instituted by re-chartering. The Energy Bank can and should be housed within the Dept. of Energy, and also instituted by re-chartering. We immediately need major IFA(international financial architecture) reform___True global PPP(purchasing price parity, not the false Arrow/Debreau purchasing power parity) currency re-balancing, which can be housed and re-chartered under the existing IMF(International Monetary Fund). This will require major new IXC(internal exchange clearing) capital controls, and external capital controls, during the temporary implementation period, and clearing, and serious attention must be paid to new “Sliding Time Scale Laws” implementations___this is possible with or without global cooperation___I offer a completely self-balancing, self-autonomous system, if interested. The WTO(World Trade Organization), trade treaties should be, sliding time scale, re-aligned with the new IFA___many varied options exist for final implementations. The new Emergency Bank will require Keynes’ highly expanded Bancor, to a sliding time scaled “Triple Entry Banking” law and emergency lending system. Keynes’ Bancor System will be required to be stabilized by Alfred Marshall’s major “Units of Production” standards, to control any possible inflations of the massive printing of monies needed, to reach a safe emergency level of real and workable national eco-political-military defense, of total energy independence, enhancing social and military safety. This will require new instituting and chartering laws, within the commercial entities’ existing corporate charters, of the entire nation___complete explanations will show this system’s higher efficiencies and productivities of transactions’ capital flows, at no added costs to corporations and businesses___It‘s just an inflation stabilizer system, to make reasonable fundamental use of the printing press___and actually pays down existing national and global debt(imbalances of balance of payments liquidations), with a new highly productive credit mechanics, to its percentage of sliding time scale institution. The Emergency Bank will be required to safely and timely create the trillions of dollars necessary to finance three major refinery systems, Coal, Sugar and Water___That’s major coal hydrogenation/liquifaction/gassification refineries, huge sugar refineries to ethanol, and massive water desalinization refineries and pipelines to irrigate the deserts, and southern farmlands, to grow the necessary sugar cane, for our future national energy security and food needs’ supplementations. All three will be required, even if we finance and drill everywhere possible, and build and finance nuclear power plants, wind farms and solar plants, and go to all other green technologies possible___as fast as safely possible…

The local and global eco-geo-political-military situation requires it…

Is this at all exaggerated?___Read below…

China’s Intent or Resources Depletion Necessities?

The Chinese intent is the most important national security issue, we Americans face, now and in the future___What is it? America needs a major awakening, macro-globally, to what we truly face, by being foreign-dependent on our oil supplies. IMO, China views the global eco-geo-political-military position of America very clearly, while our officials make false assessments, of the dire situation developing, by being blinded by our over-inflated nuclear-ego assessments of the real potential danger. Has anyone truly realized, our oil must be carried across two major militarily un-protectable oceans, leaving America a sitting duck, on the tiny islands of N. and S. America. We need far more oil than will be available, should a conventional WW-III break out, or even a major terrorist attack takes place on Mid-East oil ports. We will be stranded, by China's future submarine capabilities___I do not state this lightly, as I have studied the sub-hunting capabilities, for years___sound, radio and magnetic wave capabilities of all detection systems, if you know what I mean. Everyone must realize, while we've been asleep under BushCo's wars, China has also moved extensively into Africa's rich resources, of which oil is 30% of global supplies. Also, strategically, Africa, and China's entry of over 2000% increase of resource exports, from Africa, over the last decade, compared to America's only 400% increase, gives China a geo-military-political advantage of considerable force___She's now practically surrounding the Mid-East oil fields, as well, with all the Chinese she’s shipped to Africa, to do her bribed bidding. Somebody had better wake up in America, and see China, from China's, long term, strategic military and eco-geo-political perspectives, than from America's false ego's confidence, short term, perspective.

All I need do is ask, “How do you expect America to transport its oil across two oceans, if an almost certain, future conventional oil war breaks out, over known resource declines of said oil?” And, if one plays out the strategic logistics of an extended conventional oil war, just look at the eco-geo-political-military regional consequences___Three basic autocracies___Russia, China and Islam, while democracy is globally in decline, as autocracies rise, as Robert Kagan has pointed out in his newest book, and will more than likely see a capitulation of India and Europe, over the time of an extended war, to the Chinese side, in any real global conventional conflict, as nuclear must be ruled out as “MAD”(mutually assured destruction), and I don‘t really believe anyone is going to be that stupid, yet the conventional advantage is glaringly obvious… And, believe me, conventionally, it's approaching fast, and America better awaken___the logistics I speak of are a real possibility. Further, do it by population scenarios of macro eco-geo-political-militarism, and one quickly sees why any Mid-East oil war, would force India and Europe to capitulate___We all know, in the back of our minds, who will be the true land-powers, in any such scenario___They can walk to the Mid-East___We can’t, and remember, one of the major reasons Germany lost WWII was our cutting off her oil supplies in N. Africa. Is it going to be a repeat of history, or will we awake? China and Russia could hold Mid-East oil hostage to India and Europe, joining them, by the shear forces of economic and food starvation tactics, to Russia and China’s side, as China is presently buying submarines from her friend, Russia, along with building her own, faster than we’re baking new loaves of bread. In any extended conventional naval battle, America would surely lose against such odds, and the autocracies’ sophisticated technologies’ capabilities, as all these land locked autocratic empires need do, is sink our oil tankers, with any number of conventional means{also remember China hitting that satellite with a missile last year___they have the capabilities}, thus possibly forcing America to even think about taking over all of N. and S. America’s oil supplies to survive___yet how long would this last, with their starving populations, coming here for food, and vengeance?___and remember also, one of China's new class diesel-electric-battery-air propulsion subs surfaced, right in the middle of our Pacific Ocean carrier group, etc., exercises, just last year, without detection___A major embarrassment to the big wigs…

We'd better start studying these scenarios a bit deeper, and fast make America energy independent, as at the moment, we have a very insecure, and extremely inadequate, national defense policy and actual potential. In just a few years, we'll have a naked national security defense potential. This is serious...!!!

America definitely needs “A Grand Independent Finance and Energy Strategy“___Immediately…!!!

A $9+ trillion national debt, and $1+ trillion leaving the nation for the oil autocracies, and the trade-goods autocracy of China, every year___How long does anyone, truly, think this can last…? We’re free-trading the Eagle’s paper money, into the mouth of a Fierce Fire Breathing Dragon…!!! Last I checked, fire burns paper eagles…

Thanks to Obama___Change the World? YES WE CAN…!

Please read these articles___important… {Scroll down page for info-graphics}

A Note To Paul Krugman

Paul Krugman Link:
Paul Einzig Link:

Excellent view of Keynesian thought, Paul. I'd just like to point out something you wrote, but may not have realized its thorough implications. WWII, as you rightly mentioned, was a public works project, but a massive one, and is the most important implied aspect of Keynes' entire manifesto, imho. Expansionary fiscal policy, alone, doesn't cut it. It must be accompanied by public works, in the most dire of times, as the `30's certainly were, and WWII’s recovery, clearly shows, etc., as fiscal stimulus, only, simply goes up the chimney of Wall St. investment and speculation, far too quickly, thus lowering TFP. It must be spread to Main St., through public infrastructure spending, as Keynes suggested, in the worst of times, to spread and slow the velocity of stimulus mechanics, throughout the entire economy, to truly raise TFP…

As to the deeper analysis of Keynes' great work, his "IFA-international financial architecture", of which you do not mention, in your piece, since it really wasn't in his "General Theory", yet is the central achievement of his thought, must be brought to the front, and thoroughly re-interpreted. I would title such a work, "The General Theory of Massive Currency Tariffs, Massive Currency Credits, and TFP Decline"___What Keynes/Einzig tried to prevent in 1945___Nixon instituted in the 1972 era, and evolved by 2008___to the highest, most nefarious, currency trade tariffs, credits/subsidies and off-shoring incentives, the world has ever known… Skidelsky is quite clear on the importance of Keynes IFA contributions, and further, his yet untried balance of payments "Bancor" system. I think if we were to work through a re-interpretation of these more central mechanics of Keynes' thought, we would be better prepared for what the world may shortly face…

Thanks for your great thinking,
and with due respect,
Lloyd Gillespie
(a polymath, autodidact, true Keynesian economist)Macromouse

Saturday, June 7, 2008

Obama___The Perfect Unification Storm___A True Patriot

A Nice, Honest, Young Man___A Virtuous Integrity

Obama has framed a grand strategy, not only for the Democratic Party, but the Republican Party, as well. We could be given no better chance to change the nation, as a whole, for the greater good of all, concerned. I have heard and read many philosophers, political scientists, economists and politicians, etc., in my long life, yet never before, have I seen such an opportunity, arrive on the scene, at a more necessary moment, in our national history___with all the serious turmoil, military, social and economic, in our history. We face a period of unprecedented local and global uncertainty, chaos and fear… After studying most all the world’s great leaders, nations, and our own founding fathers’ ideals, I find Barack Obama to have the most striking and unique vision, for our and the world’s, future. Now, let me expand a bit…

First, I’d like to offer an opinion of what I see as Barack Obama’s fundamentally new patriotic integrity. And, I do see this as an entirely new vision of his special vision of patriotism. I do believe our founding fathers had quite clear views about the patriotism, of their day, though that is far different than ours today. What’s the difference? Well, through the centuries, I feel the constitutional patriotism, that existed in their day, has been quite evolutionarily over-whelmed and accidentally replaced, by a less than sincere legal institutional patriotism, with far less constitutional patriotism, than in days long gone by. Today’s patriotism, loosely attributed to all aspects of the American social contract and fabric, has accidentally evolved into a dangerous factionalism, that Mr. Obama has seized upon, re-uniting to its fundamental core values. We have local citizens natural group patriotism. We have religious institutional patriotism. We have academic institutional patriotism. We have political institutional patriotism. We have military institutional patriotism, and we have a three-fold markets(local, Wall St. and international) commercial institutional patriotism. Every one of these groups has an undue allegiance to their own groups, “group think”, thus fractionalizing the whole, into not the most wholesome of outcomes. Whereas, Barack Obama is walking the middle ground of a very new unifying/unification patriotic integrity, in the center of all of these areas. This is not only new, but unheard of, until this great being stepped onto the political stage, with his new visions, and messages of just such unification. Let’s hope he succeeds…

Second, Mr. Obama has mentioned; “Instead of only taking care of Wall St., it‘s time to also take care of Main St.” “Instead of rewarding corporations to off-shore, I‘ll reward those companies and corporations who stay and produce on-shore.” “Instead of bad trade treaties, laws and policies that allow currency manipulation and unfairness, I’ll create fair trade and currency treaties that foster fairness, by closing tax loop-holes, and closing tax haven excesses, by changing the bad laws, to good laws.” Now, these aren’t the exact words of Mr. Obama, but they are quite a close interpretation of his words and ideas, in this limited area, in my opinion___his other ideas are also based on equilibrated fairness. At least the points are my interpretations of his valid ideas and quotes. Let’s take the first quote, and parse what it truly portends. He’s not at all being partisan, as many may think, in this remark. He’s talking about there being many good Republicans and Democrats on Main St., and a few bad apples at the outer Wall St. level, and all would most likely have to agree with this. He’s most likely seen statements like Warren Buffets; “The center is created by the innovators. The middle players are the imitators of the center. And, the outer fringe has far too many fraudulent incompetents.” In other words, Mr. Obama is advocating removing/eliminating the incompetents from Wall St., as best and as safely as can be accomplished, and the international gambling casino, of “The Shadow Banking System’s” excess speculations, in fictitious wealth, the true originating, harming element in the massive housing, market and energy crises, and replacing it with Main Street‘s higher level of honesty and integrity. So, he’s offering a middle ground solution to all our problems, by respecting a new uniting incentives, patriotic integrity of market changes, that is soundly beneficial, to both Republicans and Democrats, by moving, by law, the incentives of transactions, more away from Wall St. and toward Main St. and the local community of homeowners, and more legitimate businessmen and women, and accomplishing this by respecting the fundamental integrity of our constitutional checks and balances systems, clauses and amendments___which are in line with the economic laws and realities, of other times of historical realities and needs. Believe me, his ideas represent truly sound policies, as great minds since J.M Keynes and our own Hyman Minsky, Paul Davidson and Jane D’Arista, also Plato, Benjamin Franklin, longer ago, and Paul Einzig, from England, have offered this blind world, the same ideas, for over half a century___It’s a true historical shame they and we haven’t listened. Even Bill Clinton hired Professor Paul Davidson to attend and lead an international financial architecture conference, in Europe, in the late `90’s. It’s really a historical shame that Monika got in the way of its fruition, and detracted Bill from pushing the much needed agenda, which I had encouraged him to enact, from the start of his first term, and before___I still possess his signed hard copy replies. But, the same agenda is much more needed at this very juncture of our precarious history. Let’s hope Mr. Obama realizes, and takes up this necessary path, as the other one offered by our own Paul Krugman, I fear, falls far short of the success needed. Davidson’s is “I.F.A.”(international financial architecture) reform, and Krugman’s is “ZIRP.”(zero interest rate policy), or no reform at all, just another Japan, already tried and almost-failed, band-aid, that really contributed greatly, to the present global transactions bubble...

I hope I’ve made a few good points in this short piece, about taking Obama’s middle equilibrated vision of all possible ideas, and truly changing the world, for the better. We can not much longer survive this international gambling casino, of “Shadow Banking” incompetence, moving sound American capitalism, to the communist state of China. And if you don’t think this is what is happening, you’d better study how China is operating in Africa, to corner her commodities markets, especially oil___and at that, with bribes. Bribes so huge, they are effectively buying whole countries for pennies on the dollar. And, you should be warned, they are not buying and selling through the global pool of energy and other commodities. They’re owning directly, from the ground up, and shipping straight to China, thus by-passing capitalist legitimate markets and transactions___They’re operating outside capitalism, on this side of the market, and comparative dis-advantageously on the other side, to us, on the inside of trade capitalism___A very new ominous mechanics, of extreme mercantilism___and at far less than natural global production and trade costs. This process most likely has the capability of communism to truly corner the entire capitalist system, over enough time. It’s not as you may think, even if you are the best economist/historian in the world, as I am also, and Adam Smith’s “Free-Trade Theory” and David Ricardo’s “Comparative Advantage Theory” are not honored by the communist Chinese Party, except to manipulate, and further, will not, and can not succeed, against China’s vast “Graft Capital Communism”___they are a true international manipulative, financial monopoly, as to standard economic theory. They seem to have little respect for our ideas, theories, contracts or treaties. You should realize the West operates in Africa at an extreme disadvantage, as our Sarbanes/Oxley Ethics/Transparency Law requires practically 1000 page contracts of no bribes, and China uses a one page contract___A blank check bribe. Africans can read a blank check bribe much quicker than a 1000 page complicated contract___Which would you do, if you were them? They’re fast driving us out of Africa’s rich commodity and energy markets___which make up about 30% of world supplies___monopoly owned, by communist China? I advise all to take this message seriously, and do the research yourself, to bare out the facts. A good place to start is the newest article on “China Invades Africa”, in the June print issue, or web based e-zine, “Fast Company.” It’s a real eye-opener… Another excellent book backing up the above mentioned is “The Bottom Billion”, by a professor from England. “Bare Branches” is also recommended, authored by two brilliant female professors…

The article above is listed at my blog: Link
and at: Link

So, let’s all contribute, and help get Barack Obama elected, to lead the free world, into a new day…

Monday, June 2, 2008

Letter To A Friend___Ideology's Nonsense

Hi Carole, all I can suggest is to get a copy of Fareed Zakaria's new book, "The Post American World." Since he's an overly optomistic reporter, from Newsweek fame, he may cheer you up, with his view about "The Rise of The Rest." Take it with a grain of salt, and remember, never bet against America. Many have, and they've been wrong, and lost millions/billions. And to answer your questions, I'm still in Mexico Beach, FL, and I don't see too many cheery pictures, here, although driving across country, I saw many good signs of America turning in to solve some of her energy problems. Texas and Luisiana have expanded existing oil refineries extensively. Texas is building wind farms faster than we're baking new loaves of bread. The military is going to build new coal gassification/liquifaction plants. So, there are signs of change, as I met many, many trucks across the country, carrying new wind farm blades and generators. California and many other western states are vastly expanding their wind farms, that are already massive. Florida is already selling commercial solar power, a first in the nation, as far as I know. So some are realizing our problems, but they are truly massive, especially if terrorists keep hitting oil pipelines, around the world. Just imagine, if they hit major Mid-East ports, before we are ready, which is a considerable distance away, and they supply 43% of the world's oil, while the warring states of Africa supply another 30%___pretty bad odds, for not running into trouble, with all the sentiments and passions, in those areas. And, btw, in Texas, they are drilling new wells everywhere. I met many new computerized directional drill rigs, heading to new drill sites, and these were brand new, two and three hundred million dollar rigs___portable rigs___the new style. Midland Texas is booming, and housing is expanding and still increasing in prices, yet Maine is being decimated___housing wise___fuel cost wise___and food price increase wise. It's not a pretty picture, but there are glimers of hope.

The number one problem America faces, is admitting she's truly got a serious energy problem, imo. Secondly, she's got a terribly blind academic and political elite cardre of communities, still worshipping worn and dated ancestral ideologies, the rest of the present global world has found inadequate, yet America still sleeps, under the Reagan/Bush/Clinton/Bush/McCain spell, of blind ideological ignorance. When and if the academic and political blind elites awaken is a good question, that I can't answer, but I sure know they're sound asleep, even the one's most think are awake. The sad truth is, I hear no-one in America truly awake___yet. I like Obama, but for the reason he's possibly open to new ideas, but at the same time, his are quite weak, to the true needs of the present state of America's real problems. As an example, Obama offers a mere $150 billion dollar expenditure for green technologies and energy projects, over the next ten years, while America, at present, exports one trillion dollars of her hard earned wealth, each year, and needs, at the least, that same one trillion dollars per year, spent right here, on energy survival projects, such as a trillion dollars each, possibly over 5 to 10 years, spent on ocean, sugar and coal refineries, practically immediately, to truly solve our energy independence problems. By ocean, sugar and coal, I mean water desalination plants, for the west and south, to grow the sugar cane needed for emergency fuel___now, or the coal to gas refineries, as alternative energy sources, to tide us over, until greener technologies, catch up.

I just wanted to expand on what I meant by America's ancestral worship of defunct ideologies. Of course you know me, always searching for the deeper links of fundamental ideas. Well, it was just this morning I put this idea together, with ideas I've recently been working on. I'd always asked my-self why so many falsely believed in these defunct ideologies, yet didn't see the clear reason until this morning. First, let me pose my premise as a question; Do you think America will follow her defunct ideologies, of left or right, free-trade mythology, into a self-suicide, and apocalyptic death? Or, will she awake, from this possible nightmare scenario? (Now, I'm not criticizing free-trade capitalism, but only trying to show, free-trade can never solve the world's oil depletion problem.) Getting back to ideologies, and how they become the dominant factor of the public mind, is the fact that all belief systems have fundamental mis-conceptions___at base. Take religion for instance; most likely no more than a word, "god", that may have meant no more than the concept for what our early ancestors didn't know or understand, i.e., incompleteness of understanding, yet through years of repeating, took on a meaning all its own, of deep felt mythology, far beyond the original concept, that most likely bared meaning close to the real world, and the happenings around early beings, yet has been exaggerated into an omniscient being of absolute power, even beyond the real world. My point being, that a concept of mis-understanding, can take on a life all its own. Now, as to our present ideologies, of capitalism, politics, government, etc, on and on, we have a similar story, yet with far greater consequences, to the very nation's, and entire world's survival. Just as "What does "god" mean?"; "What does "capitalism" mean?" I think you may see where I'm going with this. But anyway, it's another concept that people have assigned meaning to, without truly knowing its meaning, or many meanings, just the same as the conceptually true meaning of "god." The trouble is one does far less harm than the other___maybe... IMO, not knowing the meanings of the many forms of capitalism, is at the heart of conceptual mis-understandings of all related ideologies, thus rendering them true mythologies.

Probably few realize Hyman Minsky gave the ultimate re-definition of the word capitalism, somewhere in the `50's to `70's, I'd have to check the exact date, but anyway, he stated it as "The Heinz #57 Capitalisms". He gave five or six different specific names, but there are many more. The point is that all ideologies, without most knowing, are completely dependent on the type of capitalism in play, in the nation discussed, at the time of history discussed, and most nations use many forms of capitalism, over the course of their histories. This is the fundamental fact, that makes ideologies true, or false, at any given time___Even that old venerable Free-Trade Capitalism of Adam Smith, and Comparative Advantage Capitalism of David Ricardo. BTW, Minsky died in 1997. He was a true genius, and his work clearly shows the errors of modern economic, political and ideological thought. Just let me give you a few examples; the right rails against FDR New Deal Capitalism, yet three countries___at present___practice FDR New Deal Capitalism, in part or whole___Brazil, Thailand and China, just to name three, while the left also rails against, at least China___and these nations are the most successful, to date. I could go on citing the many variations of capitalism, presently and past used, but my main point is, that all forms of capitalism are required, at different times in history, for all nations' survival. Just take a further example of extreme; if just 25% of the world's oil supply pool is disrupted, all nations will have to resort to FDR-IXC of T, Capitalism(Franklin Delano Roosevelt-Internal Exchange Clearing of Transactions.) We will be forced by natural resource depletion laws, to resort to extreme emergency public works and major capital controls, to survive such a scenario. Free-trade will be traded for controlled trade and markets, but probably not until after we exaust all our reserve energy supplies, through extreme rationing conditions. This is the world I see, if we don't see through our religious worship of our already defunct ideologies, and under-lying fundamental words and false concepts.

I didn't mention IXC above lightly, as the Japanese have already used both FDR New Deal Capitalism and IXC, what our Paul Krugman suggested they do in the late nineties___His name for the same internal capital and exchange controls is "ZIRP", and we are fast approaching the point of having to use "ZIRP"___zero interest rate policy. I've re-nick-named it "ZIPPO", as it's already ignited the global bubbles of real-estate and excessive capital speculations, all around the world___the true problem, we now face. Japan instituted the zero interest rates, that speculators over-borrowed, since the late nineties. If Japan caused this much trouble for the world of speculation, (like who isn't going to borrow at zero interest, short other markets with it for high profits,) and destroy the system, yet just think how much bigger the problem will be if America reaches "ZIRPO-ZIPPO"___Can you imagine the size of that global speculative bubble? And that's just where present ideology is suggesting America go___and it looks like Bernanke and Paulson agree... I pitty us if this path is chosen, especially when there are better alternatives, offered, since Plato, also by Benjamin Franklin, Paul Einzig, J.M.Keyne's, Paul Davidson, and Jane D'Arista...

Carole, the world must awaken to the fundamental facts, wouldn't you say?