lunedì 1 agosto 2011

IL MILLEPROROGHE NON COMPROMETTE LE CAUSE

IL MILLEPROROGHE NON COMPROMETTE LE CAUSE PER IL RIMBORSO DELL’ANATOCISMO & C.

Il giudizio intentato dal correntista contro la banca, per far valere la nullità della clausola anatocistica (nonché le altre affette da nullità) è imprescrittibile, ai sensi dell'art. 1422 c.c.- Nulla può, dunque, in tal caso la norma sulla prescrizione ed il Milleproroghe. Mentre è soggetta a prescrizione l'azione promossa dal correntista ai fini di conseguire la ripetizione delle somme che assume di avere pagato a titolo di anatocismo. Ma il pagamento, secondo le Sezioni Unite della Cassazione (si legga con la dovuta attenzione la Cass. SU 24418 del 2010), avviene solo con la chiusura del conto e non con l’annotazione. Quindi i correntisti che hanno intrapreso (o vorranno intraprendere) le cause per la restituzione dell’anatocismo possono stare tranquilli. La Magistratura è cosa ben diversa dall’attuale Governo. Sul sito http://www.studiotanza.it/ vi è il testo completo dell’articolo. E’ importante non fare il gioco dei filo bancari!

FATE CIRCOLARE AL MASSIMO QUESTO MESSAGGIO

Avv. Antonio TANZA - Vicepresidente Adusbef
Corso Porta Luce, 20 - 73013 Galatina (Le)
tel. 0836.566094 fax. 0836.631656

SBANCA LA BANCA !

SBANCA LA BANCA! - GLI INVESTITORI INTERNAZIONALI HANNO CAPITO CHE IL TOP DEL MARCIO DEL SISTEMA-ITALIA È NELLE BANCHE (E DI COLPO NON SI VEDONO PIÙ I DITINI ALZATI DEI PASSERA E DEI PROFUMO) - IL TIRO A SEGNO È DOVUTO ALLA FORTISSIMA ESPOSIZIONE AI TITOLI DI STATO (DIVORATI PER GARANTIRSI FACILI GUADAGNI E OGGI SVALUTATI) CHE PESANO NEI BILANCI PER 200 MLD € - AGGIUNGERE LA DIFFICOLTÀ A RECUPERARE I CREDITI (CHE PESANO PER 85 MLD NEI BILANCI DI UNICREDIT, INTESA, MONTE PASCHI, UBI, BANCO POPOLARE)...

Vittorio Malagutti per "il Fatto quotidiano"

PASSERAPASSERA

Banche ancora nel mirino dei mercati finanziari: ieri i titoli dei nostri istituti di credito sono stati bersagliati dalle vendite. E ora in Borsa valgono anche meno della metà del loro patrimonio netto.

"Le banche italiane? Pronte ad affrontare le prove più dure, garantiva nemmeno due settimane fa Giuseppe Mussari, presidente dell'Abi cioè la Confindustria del credito. Il 15 luglio, data delle dichiarazioni di Mussari tutti e cinque i grandi istituti nazionali sottoposti agli stress test dalle autorità di controllo europee avevano superato l'esame. Promosse a pieni voti Intesa, Unicredit, Monte Paschi e Ubi, con qualche riserva il Banco Popolare. Tutto bene, allora? Proprio per niente. Perchè dal 15 luglio a oggi i titoli bancari italiani sono entrati nel frullatore dei mercati. Forti ribassi, seguiti da fiammate al rialzo. Il clima resta pesante, come dimostra la giornata di ieri.

Giovanni BazoliGIOVANNI BAZOLI

Il fatto è che i grandi investitori internazionali vendono Italia a piene mani e se la prendono con le banche perchè queste concentrano al massimo grado tutte le debolezze del nostro sistema. A cominciare dalla fortissima esposizione ai titoli di Stato, di cui le banche hanno fatto incetta negli ultimi due anni per garantirsi facili guadagni.

Nei bilanci degli istituti, in base agli ultimi dati disponibili, sono parcheggiati qualcosa come 200 miliardi di Btp le cui quotazioni sono scese molto negli ultimi mesi. Di conseguenza gli stock di titoli in portafoglio alle banche si svalutano. Inoltre i banchieri vedono crescere i costi della raccolta, perché devono offrire ai risparmiatori che comprano le loro obbligazioni rendimenti competitivi con quelli dei titoli di Stato.

ALESSANDRO PROFUMO E MOGLIE SABINA RATTIALESSANDRO PROFUMO E MOGLIE SABINA RATTI

In prospettiva quindi i margini di guadagno degli istituti di credito italiani, già inferiori a quelli di buona parte dei maggiori concorrenti internazionali, sembrano destinati a scendere ancora. E un primo segnale concreto potrebbe arrivare già nei prossimi giorni, quando verranno resi noti i conti semestrali delle banche quotate. Gli analisti si attendono risultati stabili nella migliore delle ipotesi e comunque non proprio esaltanti.

Poi c'è il problema delle sofferenze, cioè i crediti difficili da recuperare. Alla fine del 2010 questa voce pesava per 85 miliardi nei bilanci dei primi cinque gruppi bancari (Unicredit, Intesa, Monte Paschi, Ubi, Banco Popolare), ovvero ben oltre il doppio rispetto alla fine del 2007, quando l'economia reale è entrata in crisi. E' vero che di recente il trend di aumento delle sofferenze ha rallentato il passo.

Giuseppe MussariGIUSEPPE MUSSARI

E anche i prestiti alla clientela hanno ripreso ad aumentare. Tutto questo però non basta ancora, soprattutto se la ripresa economica resta debole come negli ultimi mesi. Di conseguenza le banche saranno costrette ad accantonare ancora somme importanti a copertura dei crediti a rischio, penalizzando così il conto economico.

Se si sommano tutti questi fattori negativi, Btp, sofferenze, bilanci deludenti, il minimo che può succedere in Borsa è il tiro a segno sugli istituti con targa italiana. E il ribasso è amplificato dai programmi computerizzati di trading che vendono in automatico titoli, oppure strumenti derivati con azioni come sottostante, sulla base di complessi algoritmi. Una batosta tira l'altra e le quotazioni si stanno pericolosamente avvicinando ai record negativi fatti segnare nel marzo 2009, nel pieno della bufera finanziaria globale. Anzi, a ben guardare, il Monte Paschi ha già superato, al ribasso, quella soglia.

Federico Ghizzoni UNICREDITFEDERICO GHIZZONI UNICREDIT

Le grandi banche italiane, come Unicredit e Intesa, ormai valgono in Borsa meno della metà dei loro mezzi propri. Per il Banco Popolare questo rapporto è addirittura arrivato al 20 per cento, per il Monte dei Paschi si aggira intorno al 30 per cento. Valori lontani da quelli dei maggiori concorrenti internazionali tedeschi, francesi, britannici che in media vantano mezzi propri pari o di poco superiori alla capitalizzazione borsistica. E allora, se le banche italiane sono così penalizzate la colpa non può essere solo delle scommesse al ribasso degli speculatori. Il problema è che gli investitori temono che i banchieri tricolori si siano infilati in un tunnel di guai da cui faticheranno molto a uscire.

domenica 31 luglio 2011

La Polizia italiana, la Russia, i crimini contro le banche

Nonostante la POLIZIA SAPESSE BENE DAL SETTEMBRE 2006 da dove venivano commessi crimini telematici sui conti bancari, molti correntisti italiani sono stati processati senza motivo, negli anni seguenti. Perché ?

Eventi & Dintorni: EUROSCHIAVI

euroschiavi.jpgAppuntamento in libreria con Euroschiavi La grande frode del debito pubblico - I segreti del signoraggio - Chi si arricchisce davvero con le nostre tasse (Marco Della Luna, Antonio Miclavez, Arianna Editrice, pag. 400): "L'Italia è sempre più povera a causa di un debito pubblico in continuo aumento che comporta un'elevata pressione fiscale. Il debito pubblico è un'invenzione costruita da politici e banchieri al fine di arricchire gli azionisti privati della Banca Centrale italiana e europea. In passato, le banche che emettevano denaro lo garantivano con la copertura aurea, si impegnavano a convertire le banconote in oro e sostenevano un costo di emissione. Oggi, le monete non sono coperte da riserve di oro, non sono convertibili e il loro costo di emissione è praticamente zero, ma il guadagno di chi le emette, ossia il signoraggio, è del 100% del valore nominale. Quando lo Stato domanda soldi alla Banca Centrale paga il costo del valore nominale (e non il solo costo tipografico) con titoli del debito pubblico, ossia impegnandosi a riscuotere crescenti tasse dai cittadini e dalle imprese. Tutto ciò avviene attraverso la Banca Centrale Europea, un mostro giuridico creato dal Trattato di Maastricht, esente da ogni controllo democratico come un vero e proprio Stato sovrano, posto al disopra delle parti. Euroschiavi svela i segreti e i meccanismi di questo sistema di potere che si è eretto e mantenuto sul fatto di essere ignorato dalla gente, soprattutto dai lavoratori, dai risparmiatori e dai contribuenti, e indica come porre fine legalmente a questo saccheggio. Il libro è di facile comprensione sia per chi si interessa di politica e finanza sia per il lettore non specialista. Euroschiavi offre un'impressionante documentazione delle modalità con cui il moderno "Signore" (le Banche Centrali) ha costruito un sistema di potere e di leggi che pone al suo servizio lo Stato, il fisco, la Pubblica Amministrazione e tutti noi. La Costituzione italiana, quella europea, i trattati, le leggi, sono manipolati o disattesi per occultare i traffici e gli interessi dei grandi banchieri proprietari delle Banche Centrali che si arricchiscono sulla pelle dei popoli.".

sabato 30 luglio 2011

How to Liberate America (and Europe)

How to Liberate America

How is it that our nation is awash in money, but too broke to provide jobs and services? David Korten introduces a landmark new report, “How to Liberate America from Wall Street Rule.”
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American economy, image by Beverly & Pack

The dominant story of the current political debate is that the government is broke. We can’t afford to pay for public services, put people to work, or service the public debt. Yet as a nation, we are awash in money. A defective system of money, banking, and finance just puts it in the wrong places.

Raising taxes on the rich and implementing financial reforms are essential elements of the solution to our seemingly intractable fiscal and economic crisis. Yet proposals currently on the table fall far short of the need.

A newly released report of the New Economy Working Group, coordinated by the Institute for Policy Studies in Washington, DC, goes beyond the current debate to call for a deep restructuring of the institutions to which we as a society give the power to create and allocate money. How to Liberate America from Wall Street Rule spells out the steps required to rebuild a system of community-based and accountable institutions devoted to financing productive activities that create good jobs for Americans and generate real community wealth.

We can’t afford to pay for public services, put people to work, or service the public debt. Yet as a nation, we are awash in money.

Over the past 30 years, virtually all the benefit of U.S. economic growth has gone to the richest 1 percent of Americans. Effective tax rates for the very rich are at historic lows and many of the most profitable corporations pay no taxes at all.

Despite the financial crash of 2008, the financial assets of America’s billionaires and the idle cash of the most profitable corporations are now at historic highs. Their biggest challenge is figuring out where to park all their cash.

Read the report: How to Liberate America from Wall Street Rule

Unfortunately, most of those who hold the cash and the corporations they control have lost interest in long-term investments that build and expand strong enterprises. The substantial majority of trades in financial markets are made by high-speed computers in securities held for fractions of a second. Business pundits still refer to this trading as investment. It bears no resemblance, however, to the investment required to put people to work rebuilding a strong America.

Corporations are using their stores of cash primarily to buy back their own stock, acquire control of other companies, invest in off-shoring yet more American jobs, and pay generous dividends to shareholders and outsized bonuses to management.

It was not always so. In response to the Great Depression, our country enacted financial reforms that put in place a system of money, banking, and investment based on community banks, mutual savings and loans, and credit unions. These institutions provided financial services to local Main Street economies that employed Americans to produce and trade real goods and services in response to community needs and opportunities.

This system, which Wall Street interests dismiss as quaint and antiquated, financed the U.S. victory in World War II, the creation of a strong American middle class, an unprecedented period of economic stability and prosperity, and the investments that made America the world’s undisputed industrial and technological leader.

David Korten's Agenda for a New Economy tilt left gifDavid Korten'sAgenda for a New Economy

-Buy the book.


-Read the blog series.

In the 1970’s Wall Street interests began pushing a deregulation agenda that led to a transfer of financial power from Main Street to Wall Street. Wall Street’s mega-banks lost interest in real investment and developed a new business model. They now specialize in charging excessive fees and usurious interest rates, providing leverage to speculators, speculating for their own accounts, luring the unwary into mortgages they cannot afford, bundling junk mortgages to sell them as triple-A securities, betting against the clients to whom they sell the overrated securities, extracting subsidies and bailouts from government, laundering money from drug and arms traders, and offshoring their profits to avoid taxes.

The consequences include the erosion of the middle class, an extreme concentration of wealth and power, a costly financial collapse, persistent high unemployment, housing foreclosures, collapsing environmental systems, the hollowing out of U.S. industrial, technological, and research capacity, huge public and international trade deficits, and the corruption of our political institutions.

Wall Street profited at every step and declared its experiment with deregulation and tax cuts for the wealthy a great success. It now argues for extending the same measures even further.

How to Liberate America from Wall Street Rule spells out details of a six-part policy agenda to rebuild a sensible system of community-based and accountable financial services institutions.

  1. Break up the mega-banks and implement tax and regulatory policies that favor community financial institutions, with a preference for those organized as cooperatives or as for-profits owned by nonprofit foundations.
  2. Establish state-owned partnership banks in each of the 50 states, patterned after the Bank of North Dakota. These would serve as depositories for state financial assets to use in partnership with community financial institutions to fund local farms and businesses.
  3. Restructure the Federal Reserve to function under strict standards of transparency and public scrutiny, with General Accounting Office audits and Congressional oversight.
  4. Direct all new money created by the Federal Reserve to a Federal Recovery and Reconstruction Bank rather than the current practice of directing it as a subsidy to Wall Street banks. The FRRB would have a mandate to fund essential green infrastructure projects as designated by Congress.
  5. Rewrite international trade and investment rules to support national ownership, economic self-reliance, and economic self-determination.
  6. Implement appropriate regulatory and fiscal measures to secure the integrity of financial markets and the money/banking system.

How to Liberate America from Wall Street Rule is the product of extended discussions among representatives of a diverse group of organizations committed to deepening and reframing the conversation on financial reform to focus attention on the serious financial system restructuring required to build a strong new American economy adequate to the social and environmental challenges of the 21st century. It may be freely shared, reproduced and distributed with appropriate citations.

Click here to read the report.


David Korten author picDavid Korten is co-founder and board chair of YES! Magazine and co-chair of the New Economy Working Group. He is the author of Agenda for a New Economy, The Great Turning: From Empire to Earth Community, and the international best seller When Corporations Rule the World. He is principal author of How to Liberate America from Wall Street Rule, which shows how America can restore economic health and financial integrity by rebuilding a system of accountable local financial services institutions much like the one that financed the achievements that made America the envy of the world.

Interested?

Lawsuit: Thesing and Bloomberg Finance v ECB

Action brought on 27 December 2010 - Thesing and Bloomberg Finance v ECB

(Case T-590/10)

Language of the case: English

Parties

Applicants: Gabi Thesing and Bloomberg Finance LP (London, United Kingdom), (represented by: M.H. Stephens and R.C. Lands, Solicitors)

Defendant: European Central Bank

Form of order sought

- Annul the decision of the European Central Bank communicated by letters dated 17 September 2010 and 21 October 2010, refusing access to the documents requested by the applicants;

- Require the European Central Bank to grant access to those documents to the applicants, in accordance with the Decision of the European Central Bank of 4 March 2004 on public access to European Central Bank documents (ECB/2004/3)1; and

- Require the ECB to pay the costs of the application.

Pleas in law and main arguments

By means of the present application, the applicants seek, pursuant to Article 263 TFEU, annulment of a decision of the European Central Bank communicated by letters dated 17 September 2010 and 21 October 2010, whereby the European Central Bank refused the applicants' request for access to the following documents pursuant to the Decision of the European Central Bank of 4 March 2004 on public access to European Central Bank documents (ECB/2004/3):

A note entitled The impact on government deficit and debt from off-market swaps. The Greek case (SEC/GovC/X/10/88a);

A second note, entitled The Titlos transaction and possible existence of similar transactions impacting on the euro area government debt or deficit levels(SEC/GovC/X/10/88b).

In support of their action, the applicants submit the following pleas in law:

Firstly, the applicants allege that the European Central Bank misconstrued and/or misapplied Article 4.1(a) of the decision of the European Central Bank dated 4 March 2004 (ECB/2004/3), which provides for an exception to the general right of access conferred by article 2 of that decision, as:

The European Central Bank failed to construe article 4.1(a) as requiring consideration of public interest factors in favour of disclosure;

The European Central Bank failed to give any sufficient or proper weight to the public interest factors in favour of disclosing the requested documents;

The European Central Bank overstated and/or misidentified the public interest against disclosure of the requested documents.

In addition, the applicants allege that the European Central Bank misconstrued and/or misapplied article 4.2 of the decision of the European Central Bank dated 4 March 2004 (ECB/2004/3), which provides for an exception to the general right of access conferred by article 2 of that decision, as:

The European Central Bank ought to have construed an "overriding" public interest as meaning a public interest that is strong enough to outweigh any public interest in maintaining the exemption;

The European Central Bank ought to have concluded that there was an overriding public interest, in this sense, in favour of the disclosure of the information requested.

Finally, the applicants allege that the European Central Bank misconstrued and/or misapplied article 4.3 of the decision of the European Central Bank dated 4 March 2004 (ECB/2004/3), which provides for an exception to the general right of access conferred by article 2 of that decision, as:

The European Central Bank ought to have construed an "overriding" public interest as meaning a public interest that is strong enough to outweigh any public interest in maintaining the exemption;

The European Central Bank ought to have concluded that there was an overriding public interest, in this sense, in favour of the disclosure of the information requested;

The European Central Bank overstated and/or misidentified the public interest against disclosure of the requested documents.

____________

1 - Decision of the European Central Bank of 4 March 2004 on public access to European Central Bank documents (ECB/2004/3) (OJ 2004 L 80, p. 42).

An email sent to Bloomberg about ECB practices

An email sent to Bloomberg about the European Central Bank practices - (Italiano - Français)

Dear Elisa Martinuzzi and Alan Katz at Bloomberg,

I just read your article

Bloomberg Sues ECB to Force Disclosure of Greece Swaps

I want to point out that there are more ECB secrets worth investigating and that
need to be exposed in open view.

1) They don't want to tell how much euros are floating around by refusing to tell
the aggregate value of CREDIT LINES in Euro.
See here:

2) They conduct strange Open Market Operations for hundred millions euros
by buying toxic assets from mostly unkown companies, here is an Italian list of them:

3) We still don't know how much is the credit line offered to ECB by the Federal Reserve
to do their (ECB) bailout and rescue operations in Europe to both firms and states:

4) The European Court of Auditors refuses to investigate the criminal practice of the ECB
that put the FACE VALUE of irredeemable banknotes in the liabilities side of the balance
thus hiding that value from the profit side, evading taxation and evading returning this value
(seigniorage) to the EU member states: Irregolarità in ambito BCE/SEBC

5) More still unanswered questions have been exposed in EU and Italian Parliament:
Question for written answer to the Italian parliament:
Question for written answer to the EU Commission:

If you feel so, you can contact us for further information and/or an interview.

Kind regards,
Marco Saba
Italian Center for Monetary Studies

This open letter can be published freely everywhere.

venerdì 29 luglio 2011

ECONOMIA. SCILIPOTI (MRN) PERPLESSO

ECONOMIA. SCILIPOTI (MRN) PERPLESSO CON CONFINDUSTRIA E SINDACATI

Roma, 29/07/2011: "E' apparsa su tutti i giornali l'intesa appena stretta
tra la Marcegaglia, residente della Confindustria, la Camusso, segretaria
generale della CGIL e Mussari, presidente dell' ABI. E' vergognoso che i
rappresentanti delle imprese da una parte e dei lavoratori dall'altra, si
stanno schierando a difesa del sistema bancario, chiamato a restituire 50
miliardi di euro ai correntisti, per oneri illegittimamente percepiti".
Questa la dura la reazione dell'On. Scilipoti, segretario politico del
Movimento di Responsabilità Nazionale, in riferimento agli articoli di
stampa di ieri, quasi facenti seguito all'esposto presentato dal deputato
MRN alla Procura della Repubblica di Roma e di Milano, alla Consob, alla
Banca d'Italia e all'Autorità Garante della Concorrenza e del Mercato.
"Ora - continua l'On. Scilipoti - si presentano alla collettività con volti
sereni, tutti coesi e determinati a fate pressione sul Governo, affinché
adotti concrete iniziative volte a favorire lo sviluppo." "Se i
rappresentanti istituzionali sostenessero le istanze dell'On. Scilipoti,
oltre a compiere un gesto di coerenza rispetto ai loro fini istituzionali,
potrebbero essere validi collaboratori del Governo, chiamato ad affrontare
il difficile momento di grave crisi economica che sta attraversando Il
nostro Paese. Così facendo, invece, pare che il lobbismo bancario stia
facendo convergere l'attenzione di alcuni esponenti del Governo verso la
salute dei bilanci degli istituti di credito." Si chiede il deputato MRN:
"Ma Confindustria e Sindacato debbono rappresentare gli interessi delle imprese e delle famiglie, oppure spalleggiare gli "INTERESSI" delle
banche?".

The Coming Global Instability, Part I

The Coming Global Instability, Part I (July 28, 2011)
by Charles Hugh Smith

The root causes of global financial instability cannot be wished away or "solved" with modest policy tweaks: they are systemic.

Systemic financial instability is spreading rapidly around the globe. Nobody knows the precise timing, of course, but if we consider the systemic causal forces at work, it seems the future is now: the next few months could see unstable markets gyrate wildly and unpredictably as the latent instability breaks out and plays out into the 2012-2013 timeframe.

This is an excerpt from my new book An Unconventional Guide to Investing in Troubled Times which has just been issued in Kindle ebook format; a print edition will follow in September. (You can read the ebook now on any computer, smart phone, iPad, etc.--see below.)

Here are a few of the structural causal factors behind the coming global financial instability:

1) What was once considered “impossible” has been normalized to the point that truly unprecedented imbalances are now accepted as "normal." But the normalcy is illusory.

For example, it is now considered “normal” that the Federal government borrows $1.6 trillion every year to prop up the Status Quo, fully 11% of America’s Gross Domestic Product (GDP) and 40% of all Federal expenditures. This stands in stark contrast to the traditional view that deficits in excess of 3% of GDP a year are inherently destabilizing. Now we borrow roughly four times that much (including the off-budget “supplemental appropriations” that run into the hundreds of billions of dollars every year) and the political and financial Elites evince a complacent faith that these extremes are benign and sustainable.

Those who believe unprecedented central bank and State interventions in global markets are not just necessary but positive point to Japan, a nation that thus far is untroubled by debts far in excess of 200% of its GDP. They also point to the rapid growth in developing countries as the engine which will grow the world’s financial pie so everyone’s slice gets bigger every year.

But the fundamental problems in the global economy have not been addressed--they’ve just been papered over with trillions of dollars in printed or borrowed money. Behind the paper-thin façade of “extend and pretend” normalcy, the foundations of the financial Status Quo in China, Japan, the European Union and the U.S. rest on shifting sand. By avoiding structural reform in favor of facsimiles of reform and by “fixing” over-indebtedness with more debt, the political and financial Elites have simply increased the height the world will have to fall to correct the imbalances.

In the forest fire analogy, fixing debt crises by adding more debt is like putting out a small fire: that suppression of a healthy cleansing of the system only guarantees a monstrous fire later.

2) The global economy is now based on a widespread trust that central banks and governments will never let assets fall in value. This insulation from risk is known as moral hazard, as those who are insulated from risk will have an insatiable appetite for risky bets because any gains will be theirs to keep but any losses will be covered by the central bank.

The financial authorities’ success in propping up assets like stocks in the U.S. and real estate in China over the past three years has strengthened this moral hazard into a dangerous quasi-religious faith that central banks and governments have essentially unlimited power to keep asset prices aloft via printing money and easy credit.

3) This isn’t just a failure to reform an opaque and broken financial system: conventional economics has failed. This Grand Failure of Conventional Economics has gone unnoticed, as all those wedded to the Status Quo keep applying “lessons learned” during The Great Depression of the 1930s. They are pursuing the magical-thinking hope that the old rules still apply, even though the fundamentals have changed dramatically.

The Grand Failure of Conventional Economics is more than failed policy: it is a profound blindness to the resource limitations of our planet. Not one of the many strands of conventional economics recognizes the limits on growth in production and consumption as measured by GDP (Gross Domestic Product).

When the planet's human population reached 500 million, there were sufficient resources to enable a doubling to 1 billion. Then 1 billion tripled to 3 billion, which has doubled to 6 billion. Now, as China, India and other nations are industrializing, the 600 million high-consumption "middle class" of the developed economies is expanding four-fold to 2.4 billion.

There simply isn't enough oil and other resources on the planet, in any remotely plausible scenario, for 600 million of China's 1.3 billion people to live on an American scale of consumption, not to mention 600 million of India's 1.2 billion, and another billion avid consumers in other developing economies.

4) Conventional economics is also incapable of grasping the profound consequences of disruptive technologies that are creatively destroying the old foundations of centralized economies and replacing them with decentralized models of much greater efficiency. These new technologies are resistant to controls imposed by concentrations of power such as central banks and governments. Centralization—what I call the “factory” model—reaped enormous gains in the industrialization era; now centralization is increasingly counter-productive, as coordinated monetary manipulations have destabilized the global economy.

Industries that were once mainstays of the economy have been destroyed by irresistibly efficient Internet, communications and digital technologies: long-distance telephony, travel agencies, musical recordings, print media and retailing, to name a few. Next to be disrupted: education, healthcare, finance and government, precisely those industries widely considered immune to creative destruction.

5) These forces are incomprehensible to conventional economics partly because they are triggering simultaneous effects such as deflation and inflation which have been understood as linear and sequential. Disruption of old industries is deflationary to price and employment even as massive government money printing and support of moral hazard is inflationary. As “hot money” flees old industries and seeks higher returns from speculation, asset bubbles expand and pop as capital is misallocated into overcapacity. As money is devalued by these monetary policies, bizarre analogs of money such as derivatives, mortgage-backed securities and tulip bulbs arise and then implode in what I term the speculative supernova model.

6) This dynamic intersection of disruptive new decentralizing technologies, resource depletion and the grand failure of conventional economics is unprecedented in human history; we would have to look back to the era that was transformed by the invention of the printing press, the explosive rise of Renaissance commerce and the discovery of the New World for historical precedents. The difference is the accelerated pace of transformation in our digital era: changes that took 200 years to unfold between 1500 and 1700 will likely be compressed into the next 20 years. The predictability of this process of creative destruction is low; nobody knows what will happen five years hence, much less 20 years hence.

Francis Bacon wrote in 1620 that the printing press "changed the whole face and state of things throughout the world." The same can be said of the Internet and other digital technologies, and the transformation of the global economy is far from complete.

7) From the long view, conventional economics developed in the era of ever-cheaper, ever-more abundant energy and the miraculous "low hanging fruit" productivity gains made possible by cheap energy and centralized mass production. Like a creature born in the morning that has only seen daylight, conventional economics has never experienced night and so it has no conception of darkness.

Thus the current failure of conventional economics is not the failure of individuals or policies--it is a profound conceptual failure. Conventional economics, based on limitless “growth,” globalized financialization, and ever-greater central bank-Central State intervention in markets, is incapable of understanding a world of resource limits and a financial system that is increasingly vulnerable to unpredictable cascades.

Behind the present rose-tinted façade, the only limitless resources are paper money and propaganda. Everything else is limited by real world constraints. An economy that consumes ever-greater quantities of real-world resources such as oil, and harvests renewable resources such as timber and wild fisheries at rates far in excess of their renew rates, will soon encounter shortages and higher prices as those with paper or electronic money bid for the remaining reserves.

8) The markets now depend on massive State and central bank intervention for their veneer of stability. The “ratchet effect” is in full force: every crisis requires ever greater State borrowing and ever larger interventions by central banks. If this vast machinery of intervention were withdrawn, the system’s fundamental instability would be revealed.

This intervention is not limited to monetary policy; official statistics have been gamed to support the Status Quo assertions of a return to prosperity. This legerdemain has two unintended consequences: it discredits the statistics and the government that issues them, and it undermines market correlations that had been valid for decades. Investors and speculators alike are rushing to the lifeboats to find they’re only paper mache stage props.

Part II will be published tomorrow.

Germany's Fourth Reich has conquered Europe

Jim Rickards: Germany's Fourth Reich has conquered Europe

Section:

10:40a ET Thursday, July 28, 2011

Dear Friend of GATA and Gold:

The latest European bailout arrangements essentially establish a German "Fourth Reich" to rule Europe, geopolitical analyst James G. Rickards tells King World News today. While the excerpt of the interview posted at the King World News blog doesn't include it, Rickards' interview also covers the effect the U.S. debt ceiling issue likely will have on the gold market. For that we'll just have to wait for the full audio of the interview to be posted. The excerpt, headlined "Germany's Fourth Reich Has Conquered Europe," can be found at the King World News blog here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/7/28_Ji...

Rickards will speak at GATA's Gold Rush 2011 conference in London on August 4-6, and there's room for a few more people to attend:

http://www.GATAgoldrush.com

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.