Archive for the Russia Category

Gas / Au / Ag / Cu: The Great Commodity / Currency Wars: What’s Up? What’s Down? What’s Really Up? What’s Going Down? (November 17, 2014)

Posted in "Fiat ______", Carbon Surcharge & Dividend, China, Debt/Deficits, Dollar - World's Reserve Currency, Football, Foreign Policy, Gold Standard, Middle East, Money, Peak Oil, Russia, Silver Standard on November 17, 2014 by e-commentary.org

. . .

E1          “Today’s high-tech town criers, LED scoreboards broadcast the news from every street and street corner.  They proclaim that gas prices are down, gas prices are down, gas prices are down.  The most public and publicized scores in our economy are even more prominent than football scores.”

E2          “Is supply up because Saudi Arabia has strategically increased the supply?  Is demand down because the world is in recession?  What’s really up?  What’s really going down?”

E1          “What’s real?  The great trifecta is at play.  Saudi Arabia is advancing American political interests by undercutting Russian oil sales while also underpricing American fracking operators and undermining Iranian producers.  Prices now below about $80 a barrel undermine American competitors who are fracking the production of oil at a cost of typically $85 a barrel.  An American operator who cannot compete and goes down will not later reenter the market.  Saudi Arabia can effortlessly constrict supply and drive up the price.”

E2          “The Republicans will provide tax benefits and government subsidies for the frackers and increase the national debt.”

E1          “That’s for real.  If Russia and Russians can endure the very real impact of the sanctions and continue to circumvent the use of the dollar, they may end up prevailing in the ‘Cold Currency War.’  The public scoreboards provide daily clues to developments on the international battlefield.”

. . .

E2          “Now when the price of oil is down is the time to adopt a carbon premium and dividend program.”

E1          “Never happen.”

E2          “Nothing will happen until it is too late.”

E1          “Not when gas mongering SUVs are flying off the shelves.”

. . .

E2          “The PM markets for elements 79 and 47 are distorted.  Now that the physical quantities of Au and Ag are so tiny in comparison to the exploding paper market, the spot price is another illusion.  Sellers of physical quantities are setting prices that exceed the former ‘spot price plus markup’ formula to reflect the limited physical supply.  However, no generally accepted ‘physical spot price’ has emerged.  In a world of fraud, illusion and dishonesty, the ‘market price’ is not the ‘market price’ and another ‘market price’ must be concocted to provide realistic information.”

E1          “The market is unreal.  However, it is hard to fix the metals market when the metals market is fixed.  Information is sketchy, incomplete and possibly inaccurate.  China, Russia, India, Brazil and other governments and the Chinese, Russians, Indians, Brazilians and other citizens are amassing massive amounts of physical gold.  Manipulating the acquisition price of physical gold lower via machinations in the paper market facilitates the transfer of physical gold to folks who are not always happy with us.”

E2          “That may be the most counter-productive policy in recent memory.  Some countries are rallying around gold to provide a counterpoise to the dollar.”

E1          “That is surreal.”

. . .

E2          “Morgans were minted from 1878 to 1904.  Peace dollars from 1921 to 1935.  Even among those who are not interested in the numismatic value of a coin, the premium for George T. Morgan’s creation is more than the premium for Peace dollars.”

E1          “A hint of aesthetic sensibility among the junk metal set.  Morgans may have been minted again in 1921.”

E2          “One fellow said that he maintains 70 percent of his precious metals inventory in silver to serve as a medium of exchange and 30 percent in gold to serve as a store of value and secondary medium of exchange.  However, the dollar is still the unit of account.  Wonder what he knows.”

E1          “Metals perforce do not pay interest, yet when banks start charging interest to hold funds, metals become the non-interest burdened asset.  What percentage of his assets are in metals?  And why?”

. . .

E1          “The ISIS or ISIL or Islamic State or whatever is proposing to issue their own currency by minting real gold dinars and real silver dirhams.”

E2          “The IS is also in the business of selling oil on the black market at reduced prices which lowers the world price.  Another factor in the analysis.”

E1          “And the scoreboard up ahead proclaims: ‘Unleaded – 3 dinars and 99 dirhams per liter; Diesel – 4 dinars and 49 dirhams per liter.  Free oil check and window washing.’”

E2          “A mecca for the gold bugs.”

E1          “‘27 inch flat screens from China for 99 dinars.’”

E2          “If gold is denominated in dollars, the dollar is king.  If gold is denominated in gold, then gold is king.”

E1          “Aren’t they obligated to field a football team first?”

. . .

E1          “If I couldn’t make light of it, it would get too heavy.”

. . .

[See the related e-commentary earlier this year at “Texas Votes To Secede From U.S. And Join Mexico; Russia Blows Up World In Response (March 17, 2014)“, “NATO: Nations Aggressively Taking Over (March 31, 2014)“, “Distrust But Verify (July 21, 2014)” and “World’s Reserve Currency War I = Cold War 2.0 = WW III (?) (September 8, 2014).”  See also the background e-commentary at “The Silver Standard: The Value Of (Sort Of) Real Money (July 15, 2013)“, ““Fiat Gold” / Fool’s Gold (May 2, 2011)” and “Is The Gold Standard Really The Gold Standard? (January 18, 2010).”

Bumper stickers of the week:

He who has the dollars has made the rules; he who has the gold will make the rules.

Folks (and governments) will use Fe and Pb to acquire and protect Au and Ag.

We seek stasis, we get entropy.

World’s Reserve Currency War I = Cold War 2.0 = WW III (?) (September 8, 2014)

Posted in China, Dollar - World's Reserve Currency, Energy, Fracking, Global Climate Change, Global Warming, Market Solutions, Peak Oil, Russia on September 8, 2014 by e-commentary.org

. . .

7          “Someday someone will realize that the attacks on Saddam Hussein in Iraq and on Muammar Gaddafi in Libya were motivated in part by their efforts to undertake oil sales in something other than American dollars.  If the American dollar is no longer the world’s petro dollar and reserve currency, America will not be able to dictate and drive world economic affairs.  America wants Europe to be dependent on America and American gas and on the American dollar, not on Russia and Russian gas and on some financial measure and medium other than the American dollar.  And along comes Putin who is peddling oil and gas using something other than the American dollar.”

8          “That makes Putin ‘Public Enemy No. 1.’  So the U.S. is imposing economic sanctions on the Russians which are also economic sanctions on the Europeans and others.  The only way for the U.S. to compel continued use of the petro dollar is to be the empire providing, controlling and protecting the petro supply.  Now the U.S. is trying to provide rather than just control and protect the supply.  For decades, the U.S. imported oil and gas from countries that disregarded environmental standards and now the U.S. is disregarding environmental standards and seeking to export gas produced using fluids and processes that are destructive to the land and water here in the good old U.S. of A.  What are we doing?”

7          “America is on the retrograde in overdrive.  Until recently, America ‘imported’ oil and ‘exported’ the pollution necessary to produce it.  Now America seeks to ‘export’ gas and ‘import’ the pollution and degradation necessary to produce it.  Pollution and degradation are externalities that are not paid by the oil and gas companies.  If the oil and gas companies internalized the costs of the pollution and degradation, they could pass the costs on to the consumer and allow the consumer to decide how much oil and gas should be produced.”

8          “And look at those we call our allies.  Among other countries, Britain, France, Poland and Bulgaria are refusing to embrace fracking and the resulting environmental damage.  U.S. interests are interested in obtaining access to the gas reserves in the Ukraine and using fracking techniques to extract the gas.  The lawyers and the lobbyists have been deployed.  The sons of the Ruling Class like Kerry-Heinz and Biden are positioned and poised to make a killing.”

7          “Only after many others get killed.  America cannot secure and dictate the distribution of the gas to Europe and others as quickly as Russia and Europe will be required to respond to the economic sanctions.  Russia and Russians are much more resilient and resourceful than America and Americans.  The Russians won World War II for the West.  Starting World War III with them is not likely to end well.  The Russians will develop workarounds to circumvent the economic sanctions and may dislodge the almighty dollar from the world stage.”

8          “The Europeans also need to learn to accommodate, but they could balk this winter at freezing to fuel the U.S. dollar.”

7          “They could sew American dollars together to make a shawl.  Americans devised ‘Hoover blankets’ from newspapers and Europeans could craft ‘Benjamin blankets’ from American bucks.  No one will strenuously dispute that it is or soon will be ‘Cold War 2.0’.”

8          “The Chinese may break the tie.  China and Russia and other countries could work together to circumvent the sanctions and develop a competing and competitive international economy devoid of the dollar.  Russia could provide China with access to the Arctic and allow them to proceed in the South China Sea.”

7          “Then America would boycott all Chinese goods.  See how they like that.”

8          “A friend is convinced that all the gold in Ft. Knox and all of Germany’s gold in the Federal Reserve Bank of New York was transferred to the Chinese to stave off a sale of Treasury bonds.  They may be prepared.  The economic sanctions are seen as exercises of ‘soft power,’ yet they may expose how soft the American economy really is today.”

7          “That is why so many powerful interests are lobbying so aggressively for the U.S. to use ‘hard power.’  Wars are big business; wars are good for business.  Look at all the misinformation involving the attack on the aircraft flying on flight MH17 that is bandied about to justify military action.  False Flag capers are the easiest way to get the populace to rally ‘round the flag.”

8          “Here there be dragons.”

. . .

8          “Here there be no angels.  The Russian oligarchs who control the gas fields are as corrupt as the U.S. bankers who control oil and gas prices.  Look at the shenanigans and manipulations during the summer of 2008.  No one does anything.”

. . .

Bumper stickers of the week:

Strategy: Cut off your face to spit your face

Dollar slaves; Dollar serfs

Distrust But Verify (July 21, 2014)

Posted in Afghanistan, Foreign Policy, Iran, Journalism, Middle East, Military, Newspapers, Press/Media, Russia on July 21, 2014 by e-commentary.org

. . .

1          “Somewhat ironic that it is a rhyme from a Russian proverb made famous by Reagan.”

2          “Is it irenic?  I phrase it ‘distrust and verify’ because we have a civic duty to do our own research.”

1          “America is demonizing Putin, ostracizing Russia, antagonizing unknown forces, and militarizing the world.  Triggering World War III on the hundredth anniversary of World War I is not a righteous aspiration.”

2          “The phrase does not apply just to the misrepresentations of Putin and Russia foisted on the public today by those in power in the West.  When it comes to the Middle East and most matters of international affairs, it is also ‘reader beware’ in a world of pap, pablum and propaganda.”

1          “Who knows what is really going on in the Middle East or Gaza.  The ‘One Hundred Plus Years War’ is going strong and may go on until one people is wiped out.  And the apologists and propagandists pass themselves off as analysts and pundits.  Too many newspaper columnists and television personalities are just ideological blowhards.”

2          “So many graduates of the Edward L. Bernays School of Disinformation.  The truth is so elusive, because advancing the untruth is so often in the economic interests of the wealthy and the well connected.”

. . .

1          “Those who want America to go to war today are the ones who started the failed and failing wars in Iraq and Afghanistan yesterday.”

2          “The only thing you can say with a high degree of confidence is that those who want America to go to war are clearly not seeking to advance America’s best interests.”

. . .

Bumper stickers of the week:

Distrust But Verify

Distrust And Verify

“All Governments Lie” I. F. Stone

Bomb, bomb, bomb, bomb, bomb [pick a place, any place], bomb, bomb, bomb, bomb, bomb [insert the place].

Texas Votes To Secede From U.S. And Join Mexico; Russia Blows Up World In Response (March 17, 2014)

Posted in Europe, Foreign Policy, McCain, O'Bama, Race, Russia on March 17, 2014 by e-commentary.org

. . .

1          “What did you expect.”

2          “You can’t really blame them.”

1          “They really deserved it.”

. . .

1          “Most national security issues are exacerbated by the personal insecurities of those in power who inflame the personal insecurities of the people who are powerless and frightened.”

. . .

1          “In last night’s special election, Texans voted overwhelmingly to secede and create a sovereign and independent nation heavily dependent on grants, welfare, kickbacks, foreign aid and transfer payments from the United States of America.  Scholars are remarking that it was the first honest plebiscite in recent Texas history.”

. . .  

2          “In related developments, Austin seceded from the seceding Texas and joined the People’s Republic of Portland.  A concert is scheduled.”

. . .

1          “Remember the Monroe Doctrine.  The policy viewed further efforts by European nations to colonize land or interfere with states in North and South America as acts of aggression requiring U.S. intervention.”

2          “The young United States of America issued the Monroe Doctrine at a time when the U.S. Navy had one row boat and the U.S. Army had one musket that was shared by underpaid and courageous patriots.”

1          “Remember the Monroevich Doctrine, the son of the Monroe Doctrine.  Another American idea exported to the world without due credit.  The policy views further efforts by European and American nations to colonize land or interfere with states in Russia as acts of aggression requiring Russian intervention.  Even some Republicans insecure about their manhood admit that Russia’s Monroevich Doctrine clearly justifies Russia’s actions even if we do not like them.”

2          “The Russians or the actions?” 

1          “Or the Republicans?” 

. . .

1          “Just between you and me, Putin is as insecure and as dangerous as the Republicans who are having fun criticizing him, but Putin is more of a nasty thug and a nut job.”

2          “Throughout the decades, we have always relied on the Russians to be about as rational in a pinch as we are.”

1          “Most of the time.”

. . .

1          “A more measured response short of blowing up the world would have been so . . . lame.”

. . .

2          “Once again the Black Irishman is tasked with being the adult in the room.”

. . .

This article must be revised to reflect the following correction:

Texas did not vote to secede from the U.S. and join Mexico.  Russia did not blow up the world in response.  We regret the error.

[Have a peaceful St. Patrick’s Day and productive twenty-fifth anniversary of the World Wide Web.]

Bumper stickers of the week:

Free Texas.  Take Texas.  Pleas, please.

Keep Austin Weird.  And free.

Remember The Monroevich Doctrine

Possibly Just Barely Maybe Hopefully Gettin’ Through The Day (March 3, 2014)

Posted in Economics, Freedom / Liberty, Markets, Minimum Wage, Personal Stories Series, Personal Story, Russia on March 6, 2014 by e-commentary.org

. . .

_________________           “I was up all night trying to figure out who to pay and how much to pay.  Everyone wants to be paid everything right now.  I tried to figure out who really needs the money.  Everyone needs the money.  I tried to figure out who was waiting the longest.  Everyone has waited too long.  I tried to figure who has been helpful and understanding.  A few people have been nice about it.  I tried to figure out who I would need in the future.  I need most of them because they provide my basics in life.  I didn’t have to try to figure out who has made threats and been mean to me.  In my head, I took one dollar from someone and added two dollars to someone else.  Then I added up the total payments and again had spent more money than I have again.  I tossed and tried again and turned and tried again and tossed and cried again.  Then I got up tired and went to my first job that will not provide enough money to pay my current bills.”           

. . .

Bumper stickers of the week:

The real value of money is the freedom it provides to be generous

Colorado:  All is fine; taxes are up; life goes on

When Texas threatens to secede, do the Russians threaten to attack?

U.S.A and Russia:  When you have someone in a corner, you are also in the same corner 

Boycott The Olympic Boycott (August 12, 2013)

Posted in Boycott Series, Gay Politics, Government Regulation, Russia, Society, Sports on August 12, 2013 by e-commentary.org

. . .

A          “Boycotts are often the most effective moral and economic means to vote against oppression and repression or in favor of truth and justice.  Do not buy a product or do buy another product.  However, boycotting an Olympics is more of an act to ‘cut off your nose to spite your face.’”

B          “Spite and nose cutting are not pretty.”

A          “Send the athletes to compete.  The Olympics are often expressions of nationalism, jingoism and aggression with all manner of doping, deception and dishonesty.  However, there is the possibility that a hard-working kid gets a chance at a bigger stage and a few minutes on the winner’s podium.”

B          “Even if the Russian policy toward gays and gay marriage is reactionary, America should react by sending its athletes who have trained hard to perform.”

A          “Prevailing at an away game on foreign soil and celebrating with restraint is always more sublime.”

. . .

B          “Let the pitchers pitch.”

A          “Pitch your pitch on the pitch.”

. . .

Bumper stickers of the week:

Play ball!

Just win, baby, with dignity and without dope.

Centrist-Conservative Beats Corporatist-Culture Warrior (November 12, 2012)

Posted in Blue States / Red States, China, Elections, Iran, Journalism, Newspapers, O'Bama, Political Parties, Presidency, Press/Media, Romney, Russia, Southern Strategy, Spending on November 12, 2012 by e-commentary.org

. . .

C1        “Or should the headline read ‘Black And Browns Outwit Whites And Green (Paper).’”

C2       “Or ‘Ascetic Triumphs Over Bully.’  The election was a ‘campaign’ conducted in ‘battleground’ states by ‘operatives’ operating in a ‘war room’ who unwittingly are continuing to prosecute the ‘Great American Civil War.’”

C1        “The ‘Republican Southern Strategy’ is the ‘Republican National Strategy’, yet the Republicans were not able to conquer more than the ‘Contemporary Confederacy.’”

C2       “For two score or perhaps two score and four years since Nixon patented the policy, the ‘Southern Strategy’ was the go to play in the Republican playbook but may now need to be revisited.”

C1        “America is divided between the ‘Educated States’ that vote Blue and the ‘Uneducated States’ that vote Red.  States such as Massachusetts, Maryland, Colorado, Connecticut, Vermont, New Jersey, Virginia, New Hampshire, New York and Minnesota are the ‘Educated States’ that vote Blue.  States such as West Virginia, Mississippi, Arkansas, Kentucky, Louisiana, Alabama, Nevada, Indiana, Tennessee and Oklahoma are the ‘Uneducated States’ that vote Red.  Those who are less educated are motivated by and respond to fear.”

C2       “Nevada is the only exception in that group.  The citizens may not sport as much formal education, but Nevadans are a spunky group of transplants.”

C1        “And O’Bama and Reid also ran a great ground game in Nevada and in all the other battleground states.”

C2       “The residents of the upper Midwestern states such as Wisconsin, Iowa, Michigan, Illinois and the pivotal Ohio do not sport as many sheep skins, but they exercise horse sense in abundance.”

C1        “Wherever you find oil and gas, you find racism and corruption.  Oklahoma, Texas, Louisiana, North Dakota and Alaska.  With the discovery of oil, Alaska transitioned from Minnesota to Mississippi.  Astute pollsters note that these states tend to vote Red.  And then along comes North Dakota that elects to elect Heidi Heitkamp as a Senator.  Dead dinosaurs are destiny.”

C2       “Demographics are destiny.  Demo-graphics versus Republica-graphics.  And the outcome is graphic.  The Last Great White Hope is hopeless.  The rich White boys who want power are facing a reality that even the Red States are becoming Browner and Blacker.”

C1        “A strategic planner who seeks to locate a business that exploits the workers and despoils the land migrates to a Red State.  An enterprise that requires an educated populace searching for a sustainable quality of life migrates to a Blue State.  There are exceptions in pockets like Austin and a thousand other havens and oases, yet the general rule is true.”

C2       “Virginia’s senatorial contest between the Klan and Confederate Party candidate George Allen and the Centrist Party candidate Tim Kaine reveals the schism in many states that are described as Purple.  North Virginia went with Kaine and South Virginia went with Allen in a state where there are now more North Virginians than South Virginians.”

C1        “The educated electorate in North Carolina did not do it this year because it is so desperately small.  Curious that Bank of America’s decision to locate in Charlotte years before the 2008 election may have provided enough additional voters to provide the margin for O’Bama in the state in 2008 but not in 2012.”

C2       “South Florida is populated by transplanted Northerners who voted for O’Bama and North Florida is an appendage of Georgia and voted for Romney, but there are more Northern voters in South Florida than South voters in North Florida.”

C1        “And a few Browns.”

C2       “And a few Browns.  In an election that looked like it would be bought by a few faceless billionaires showering money from above and using Anger Mongering radio, billions of ordinary citizens on the ground really did made the difference for O’Bama.”

C1        “And two candidates shot themselves in the foot and then put the foot in their mouths and proclaimed that rape is akin to a sprained ankle or a trick knee.  New Hampshire was in play until Tuesday night and after the smoke and mirrors cleared on Wednesday morning, the smarter gender is in control in the first all-women delegation.  And the neighboring Bay Staters are banking on Elizabeth Warren.”

C2       “Brown did not do well in Massachusetts.  Tammy Baldwin, an openly gay female Senator-elect from Wisconsin, and Krysten Sinema, an openly bisexual Representative-elect from Arizona of all places, were not the pick of the billionaires.”

C1        “Tammy Duckworth, a wounded veteran from Illinois, finally made it.  Unfortunate that Pete Stark, the lone atheist, lost his seat.” 

C2       “The first Hindu member of Congress, Tulsi Gabbard, and a combat veteran.”

C1        “With Pete Stark gone, someone else must take up the Carbon Tax effort.  God voted under the name ‘Sandy’ as a single issue voter this year.”

C2       “Without showing any photo id.  The place is going to look like America.  Blue States such as Washington and Colorado have declared peace in the war on drugs and legalized the recreational use of marijuana.  Chalk up another win for freedom and liberty.”

C1        “And Washington, Maine and Maryland now allow an individual to decide if he or she wants to get married.”

C2       “Another win for freedom and liberty.  And Minnesota voters rejected a proposed constitutional amendment to ban marriage equality.”

C1        “Washington state is awfully pushy.  All the talented folks will migrate there.”

C2       “When the Nobel Committee signals that it will reward the conclusion, someone will connect the dots between freedom and liberty in a state and clean and green growth and development.  The Blue States vote for freedom and liberty.”

C1        “In 2004, O’Bama came to national attention aspiring for one United States of America, but only a little more than half of America will ever give him a chance.”

C2       “And now that petty pernicious pol Mitch McConnell is committed to making O’Bama a two-term President.”

C1        “We are the Red States of America and the Blue States of America.  There is no shame in candid self-awareness.” 

C2       “And yet the two countries confront many common concerns.  Iran is still Iran, China is still China, Russia is still Russia, and the fiscal fiasco is straight out of Wile E. Coyote.”

C1        “Europe may implode; the Middle East may explode.  Someone may want to take a look at the numbers that underpin entitlements and unnecessary defense/offense spending.  They still don’t add up.”

C2       “For decades, the Blue States have subsidized the Red States, yet we may see Illinois, California and/or New York, three small Blue countries in America, in need of major subsidies.”

C1        “Someone will say something about immigration.”  

. . .

[See the “e-ssay” titled America Recycles Day, November 15 (November 15, 2010).]

Bumper stickers of the week:

Women are people too.

The odds for the election of the first gay Buddhist Brown woman to the White House should be available soon.

George Will:             Romney:         331;    Obama:        217

Michael Barone:      Romney:          315;    Obama:        223

Glenn Beck:               Romney:          321;    Obama:        217

Dick Morris:              Romney:          325

Carl Rove:                   Romney:          279

“I have been assured that everything is in place for a Romney sweep of the Electoral College and the popular vote.  Talk is cheap.  Are you man enough to put your money where your mouth is.  $100 that Romney takes it.”  “I don’t have any assurances.  There is $1000 where my mouth is.  If you are man enough.” 

“I have been assured that everything is in place for a Romney sweep of the Electoral College and the popular vote.  Talk is cheap.  Are you man enough to put your money where your mouth is.  $100 that Romney takes it.”  “I don’t have any assurances.  There is $1000 where my mouth is.  If you are man enough.” 

Invest or Invade? (December 15, 2008)

Posted in China, Foreign Policy, Russia on December 15, 2008 by e-commentary.org

World War II involved a skirmish between and among the world’s Type A personalities (USA, Britain, France, Russia, Germany, Japan).  One of the central messages of that War is that it is much easier to take by investment than by invasion.  The Germans and the Japanese learned that lesson well.  The Chinese seem to be embracing the “invasion by investment” strategy and may find the need to invade the USA mooted if they can acquire this country in the open market or in Bankruptcy Court.

The Russians have come full circle and won a few battles in the continuing Cold War because their natural gas heats European homes.  Russia has successfully invaded Europe by investment.  Pipelines are mightier that troop lines.  Russia owns part of Europe.  The Russians, however, are reverting to the old paradigm.  They want to invade.  They may want to invade because the US has been quietly antagonizing Russia.  Bush/Cheney/Rumsfeld broke the military that may not be able to respond.  American is sliding into “second world super power” status.  Problems are on the horizon.

Bumper sticker of the week:

Invasion by investment