Friday, April 16, 2010

THE MOTHER OF INVENTION?? update I

Part II of Drokes interview with the long wave master has some nice parts....

Barker: I picked up that term from, Redistributive World Empire, from Immanuel Wallerstein. There’s an interesting group called World Systems Analysis that studies the advance of civilizations, cultures, etc. Wallerstein has said that in the past he has said that any world economy has ultimately evolved into a redistributive world empire. Rome is the classic example of this type of empire, where the bread and circuses were required to pacify the masses and the Roman Senate was completely corrupt and of course the Caesars became corrupt and ultimately Rome collapsed. What’s interesting is that Wallerstein’s work has always seen that progression from a world economy to what he calls a redistributive world empire. This time around, however, he’s proposing that each long wave is a kind of birth pang of global socialism. Incidentally, Wallerstein has very left-leaning socialist inclinations. He believes that instead of going toward a redistributive world empire we’re going to go toward global socialism. Of course if you look at what has happened in the last year and the way we responded to the global financial crisis, you have to say, “Oh my goodness, Wallerstein may be right after all.” But if you look closer, what really has transpired is what looks more like a Redistributive World Empire where the middle class is taxed really for the interest of an elite class of political and business managers. I guess another term of Redistributive World Empire would be crony state capitalism. And state capitalism isn’t the same as international free market capitalism.



So basically in the book I present three scenarios. Scenario one is what Wallerstein says, namely that each long wave leads to a bigger crisis of capitalism with the birth of global socialism. I don’t think that’s where we’re headed. Then I examine the observation that in the past a crisis in the world economy always produced a redistributive world empire. You’d have to say that’s the most likely outcome where we’re headed based on the evidence. My proposal is the Great Republic, and I truly believe there is a great chance to go in the direction of true international free market capitalism as a result of the crisis that we’re sailing into. I think as you look around and see the austerity in Ireland and see the Germans preaching austerity to the Greeks, it’s important to realize that austerity is not a redistributive world empire. I actually believe that a sovereign debt collapse would be the ultimate mother of invention leading to the necessity of a Great Republic. There’s definitely the potential for such a collapse to produce change towards the Great Republic.

Read the rest of the interview its very worthwhile...gl gang

update I important summary on GS news....hot off Taibbi's comment section...

"Yeah, unfortunately no one is going to jail since this is a civil matter. It’s basically the legal equivalent of letting your best friend punch you in the stomach because you nailed his sister."

http://news.goldseek.com/ClifDroke/1271340000.php

30 comments:

  1. double top on oil with a doji.....lets see how that works......

    ReplyDelete
  2. oh and add a big reversal candle....thats a nasty formation called a kung pao chicken..

    ReplyDelete
  3. btw keep your eye on the 2.70 level on ALU over the short term for a buy

    ReplyDelete
  4. GM all. What are you doing with Jag, buy, sell or hold on the 1st qtr. declining production and increasing costs? tia.

    ReplyDelete
  5. Jag has disappointe....ANV EGO GFI all better gold miners...But the performance this year should be in SWC PAL.....I am more heavily weighted in SSRI and SLW since they will perform better in a "growing economy" since they are considered to have some industrial play...but my advice is to have a core and use it to trade around

    ReplyDelete
  6. GM all. What are you doing with JAG--buy, sell or hold--with production falling? And, kli, what is 2.70 for alu, I see a nice gap at 2.83 which hasn't been filled, also looks like a cup & handle formed since early Feb., but there are lots of those on the charts these days. TIA. - Nancy

    ReplyDelete
  7. miners have bounced off support.....gold has bounced off support.....hehehe.....watta game

    ReplyDelete
  8. OMG....My May 165 GS puts are up over 800%, my GS May 150 Puts...are up over 1000%...OMG!!!! GS just accused of fraud...I bought these last week ...looking for a pullback on GS...OMG!!!!! :)

    ReplyDelete
  9. Now up over 1500%...oh man!!!!!!!! Do I hold the 150's into the weekend guys? TexasBlondie

    ReplyDelete
  10. dont get greedy blondi but it does look like this will have legs

    ReplyDelete
  11. KLIguy! The evil empire is coming down!!!! The evil empire is coming down!!!!

    This day is long overdue! The wicked witch of the markets is dead!

    ReplyDelete
  12. re: Evil Empire coming down..... I doubt it, just a needed poke by Current Admin to pass Financial Reform! If it were true, why a civil suit should it not be Criminal.....

    ReplyDelete
  13. Kli...up over 3000% now...I'm taking some...and going to keep holding some of the May 150 puts...OH geez Kli...unreal. TY Kli...you are right, TXB...BTW, I bought 3000 shares of ZSL, plus shares of TYP, TZA, and SMN Monday...Unreal...this morning when BAC fell after decent earnings I picked up FAZ...:) I was already short GS(added more when the news hit(for once ty CNBC!)...:)!!!! I love you guys!!!!! I hope they take the GS SOB's way down! TXB

    ReplyDelete
  14. Tom. Excellent point. This could be a big ploy to get a big talk/no action financial overhaul passed.

    ReplyDelete
  15. Congradulations TXB, that demonstrates the value of options versus other methods. Take profit on this and do not give any back. I imagine the GS prop desks are a bit busy on this day. Sweet revenge. - Analyze.

    ReplyDelete
  16. Right now, there are thousands of lawyers in New York City drinking champagne.

    ReplyDelete
  17. KLI: Where are you? What's your opinion of the Goldman Sachs story?

    ReplyDelete
  18. Sorry gang....buying a Dragon system for my computer ...i gots a lil project going i will divulge in a lil while....meanwhile.....yes it is all rigged so TXB DONT get toooooo greedy. My guess is Wayalat is going to be right and we get our DOW take down to 10500 ...beyond that dunno. Hoping we get heavy miner takedown....if your core is low then rebuild a little here...but I want a bigger shakeout... Joe was laughing his ass off at the GS news....so he is in the same camp....he knows its all gamed alll planned

    ReplyDelete
  19. The GS announcement was chump news, letting some air out 12 points short of S&P 1225. $1 billion will take some time to litigate and may barely even impact 2010 bonuses. The bigger concern for GS is possible loss of the Ponzi support business to rival JPM. I will be a cynic and say the lowest for this news is around 10,950 on the DOW, 20 dma.

    The bigger news is the slight induced panic caused a flight into the 10 year Treasury, now at 3.774% and bring oil down to $82.91 .

    As for TXB always good to take profits on options especially with the decay factor.

    ReplyDelete
  20. couldn't agree more red....Joe was rolling over on this news....he couldn't stop laughing...for that matter i couldn't either...the duplicity has no bounds......there will be NO prison rapes by bubba for the boyz

    ReplyDelete
  21. Red agree, not sure what month you are holding TXB but you have a natural volatility contraction kicking in about now today that will drop those premiums for OPEX into the close. - Analyze.

    ReplyDelete
  22. Is this a good time to short GS? Or is it too late already?

    ReplyDelete
  23. Analyze...holding the May...Thanks guys for the advice...Cramer clown on now...saying this will be a kangaroo court..govie needs to go after someone...basically what this joker is saying on CNBC...I took some more off the table..before lunch...but I may hold the rest into next week...TXB Now they are saying the SEC knew since 1997...Stanford was a ponzi(report just out)...geez...we have no one able to protect the little guy! TXB....

    ReplyDelete
  24. good entertainment today gang and grats TXB.....great job.

    ReplyDelete
  25. Kli...got lucky..."trade" for all of the ages...Held some of the May 150s...up 1700% at the close...we could get there early next week...if not I'll cash em' out...figured why not...I wonder if GS is short GS? LOL...TXB...BTW, I learn alot here...so thanks a bunch guys!

    ReplyDelete
  26. Hi Kli
    Why the Goldman announcement on options expiration day?

    ReplyDelete
  27. Drinks on TXB!!!

    -C

    ReplyDelete
  28. Tom,

    Probably so Timmy and his boys could get rich. They are probably on the phone with their Swiss bankers as I type this.

    ReplyDelete
  29. Every item of news is carefully choreographed for effect. This economy is on life support. If this occurred today you can bet it was completely discussed, debated, and planned to the nth degree. Is GS shorting themselves ....dunno but you can bet they were shorting the financial sector today. This is it. Imo we will get a nice buy. Maybe as red said it won't be too low . Watch next week closely the take down probably wont last long.

    ReplyDelete
  30. Starting at 1:30 in the link, this is a gem.

    That's-why-I'm-leavin-it-all...-up-to-you-who-who....you de-ci-ide...whatsha-gonna-do...

    http://www.youtube.com/watch?v=RRLhHE--BxU&feature=related

    ReplyDelete