Thursday, 1 March 2012

Sudoku - but insolvent

Numbers and figures, everywhere...

A displacement activity is the result of two contradicting instincts in a particular situation. Birds, for example, may peck at grass when uncertain whether to attack or flee from an opponent; similarly, a human may scratch his or her head when they do not know which of two options to choose.
Displacement activities often involve actions to bring comfort such as scratching, drinking or feeding...

... or playing Sudoku; it suits the German Finance Minister Schaeuble, playing a game on numbers; the limitation to 9 digits might be helpful to understand Draghi's 1012 figures.

And, when there are no more numbers to play with, George has the answer:

“The British Government has run out of money because all the money was spent in the good years,” the Chancellor said. “The money and the investment and the jobs need to come from the private sector.”


It would be interesting to learn more about George Osborne's definition of "the money", "the investment" and "the jobs". I am afraid he would avoid the answer as would he want to tell us the truth he would have to say:

"We are now and finally entering the really bad years as we exported most of the labour and jobs; deliberately, but so cleverly and to such an extent where those countries now fortunately covering what were our jobs will unfortunately not come out with those again any time soon; we failed the investment into education and innovation, training, R&D, any infrastructure and, regrettably, the good money we stuffed into the bad banksters' throats created a snowballing system that we are now lethally hooked on. Yes, you too: private sector; we will have to declare this the biggest Ponzi game in the history of money, ever.

Awkwardly, I can only declare the game over once its over."

As so often good old China has the answer to it all. Here is a must read: some extracts of the letter "To the indebted nations of Europe", written by Huang Xiangyang, a senior writer with China Daily.

We want you to know that we are your friend in your time of need.
But that does not mean you should take China's help lightly.
To be frank, some of us don't understand why the rich are holding out their hands to the poor and asking for money. For common Chinese people, the wealth of your nations is unimaginable. The average monthly income of your citizens - at around $4,000 in countries such as Germany and Belgium - is 12 times that of the average Chinese citizen. The Chinese workers in the factories in coastal cities have to work 12 hours or longer each day with basically no days off, while workers in France enjoy two months of paid vacation, national holidays and regional festivals each year. If we can save 50 percent of our earnings, surely it should be possible for you to save just 1 percent of yours.
Perhaps now that China has shown its goodwill toward you with its chivalrous purchasing of European debts, we can expect some demonstration of goodwill from you. I think you should recognise China's market economy status as soon as possible. After all it is of no substantial significance. China is going to get the status anyway in a few years' time according to the World Trade Organisation rules. Good relations are all about reciprocity.

I hope everything goes fine with you.

Well, first, I congratulate Mr. Xiangyang for being able and allowed to explain our situation to us so clearly; this expresses China's openness and gives us a clear picture of where we are.

Alone, while I thank you for your frankness, Huang, none of our Misters Neo or Lib want to hear the truth; as the cow they hand-in-hand with their generous lobbies milk still fills their buckets it is business as usual. Some play Sudoku, probably helpful to delay Alzheimers; others declare their country for insolvent; both issues and persons have in common: no consequences.

I referred to the below video before... in October 2010; nobody is interested, most laugh but it is not funny:

The game goes on. While America is exploring new ways of not calling the emergency printing of green floods "QEx,-y,-z" the BoE still uses the old fashioned term of Quantitative Easing; yet, Mr. Draghi has made progress, he is much more innovative by digging out old, proven technologies that precisely explain the weapon's function:

Admitted: LTRO (Long-Term Refinancing Operations) sounds what it is but boring; so Draghi's "Dicke Bertha" (Big Bertha) is a much more loving expression and really, being made from pure hard German Krupp steel is a much more trustworthy operation: now totalling to +€1trillion, while facing enormous cuts else- and everywhere. No problem for Draghi's, in fact anybody's Bertha!

Whether you call it LTRO-1 or -2 or-n, Target2, Bad Bank, trash-buying-ECB or Eurobond it is all the same quantitative easing; while they desperately wish all those tricks of QE finally created inflation it is a nonstarter, a pop and no kick while banksters celebrate Christmas and Easter in one every time Draghi fires Thick Bertha; speculatively inflated costs meet deflated goods leading us further into depression. And all we do is watch, some hope, few try to discuss, most couldn't care less.

I might contact Mr. Draghi and explain to him what that "Dicke = thick = Big" in Big Bertha also translates into.

Carpe diem!

P.S. as much as I hate to come back to it: the EURO is history, it is writing its own oblong death's oath. For the Pound it would have been better to have ended in 2002; good memories are golden.


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