“But before ringing in the New Year with a rather grim foreboding, let me at least describe what financial markets came to know as the “old normal.” It actually began with early 20th century fractional reserve banking, but came into its adulthood in 1971 when the U.S. and the world departed from gold to a debt-based credit foundation. Some called it a dollar standard but it was really a credit standard based on dollars and unlike gold with its scarcity and hard money character, the new credit-based standard had no anchor – dollar or otherwise. All developed economies from 1971 and beyond learned to use credit and the expansion of debt to drive growth and prosperity. Almost all developed and some emerging economies became hooked on credit as a substitution for investment in tangible real things – plant, equipment and an educated labor force. They made paper, not things, so much of it it seems, that they debased it. Interest rates were lowered and assets securitized to the point where they could go no further and in the aftermath of Lehman 2008 markets substituted sovereign for private credit until it appears that that trend can go no further either. Now we are left with zero-bound yields and creditors that trust no one and very few countries. The financial markets are slowly imploding – delevering – because there’s too much paper and too little trust. Goodbye “Old Normal,” standby to redefine “New Normal,” and welcome to 2012’s paranormal.”
PIMCO’S BILL GROSS’s SUMMARY OF PREDICTIONS FOR 2012
For 2012, in the face of a delevering zero-bound interest rate world, investors must lower return expectations. 2–5% for stocks, bonds and commodities are expected long term returns for global financial markets that have been pushed to the zero bound, a world where substantial real price appreciation is getting close to mathematically improbable. Adjust your expectations, prepare for bimodal outcomes. It is different this time and will continue to be for a number of years. The New Normal is “Sub,” “Ab,” “Para” and then some. The financial markets and global economies are at great risk.
Rajeeb Hazra, General Manager of Intel Technical Computing Group holding “Knights Corner” – Intel® Many Core Architecture co-processor capable of delivering more than 1 TFLOPS of double precision performance.
In 1997, ASCI Red at Sandia National Lab broke the teraflop barrier, using almost 10,000 Pentium chips to reach one trillion calculations per second. Total development cost was $55 million.
Intel® Xeon® processor E5 family, world’s first server chip to support the PCI Express* 3.0 I/O integration, debuts on TOP500 list, powering 10 supercomputers.
Intel’s “Knights Corner” product, the first commercial co-processor based on the Intel® Many Integrated Core (Intel® MIC) architecture, was shown for the first time breaking the barrier of 1 TFLOPS double precision performance**.
Intel announced additional investments and new partner projects with R&D laboratories to pursue the goal of achieving Exascale performance by 2018.
Intel processors power 85 percent of all new entries to the latest TOP500 list of supercomputers, with Intel Xeon processor 5600 series being most popular selected for 223 systems.
Confessions of John Perkins Tells The Story
About His Activities As An Economic Hit Man
“The concept of corporatocracy is that corporations, to a significant extent, have massive power over governments, including those governments nominally elected by the people. They exercise their power via corporate monopolies and mergers, and through their subsequent capacity to leverage broad economic interests, which allows them the luxury of being declared “too big to fail”; this is accomplished by legal mechanisms (i.e., lobbyists, campaign contributions to office holders and candidates, threats to leave the state or country for another with less oversight and/or more personally beneficial subsidies, etc.), which renders them immune to vague accusations and prosecution. It may also refer to an unrealized form of government or theoretical corporate governance in national or international affairs.”
“Economic hit men (EHMs) are highly-paid professionals who cheat countries around the globe out of trillions of dollars. They funnel money from the World Bank, the U.S. Agency for International Development (USAID), and other foreign “aid” organizations into the coffers of huge corporations and the pockets of a few wealthy families who control the planet’s natural resources. Their tools included fraudulent financial reports, rigged elections, payoffs, extortion, sex, and murder. They play a game as old as empire, but one that has taken on new and terrifying dimensions during this time of globalization.” [Via: http://en.wikipedia.org/wiki/Confessions_of_an_Economic_Hit_Man]
Interview – Confessions of an Economic Hit Man – Part I
Interview – John Perkins – Confessions of an Economic Hit Man – Part II
AS THE CHINESE POPULATION OVER 65 TRIPLES IN NUMBER
A few reasons to think China will become a super power.
China’s economy: $123 trillion, 3 times America’s by 2040 per capita income will hit $85,000, more than double the forecast for the European Union … China’s share of global GDP— 40% — will dwarf that of the United States (14%) and the EU (5%) 30 years from now,” one brief generation. China’s political system is more capitalist than America’s as China is rapidly turning into a capitalist consumer economy. China’s massive investments in education, ahead of America is resulting in the next generation of China’s high school enrollment rate reaching 100%, and the college rate hitting about 50%.
China’s locking up global resources, using U.S. dollar reserves and China’s quietly buying up future rights to commodity-resources worldwide. China’s rural economy of 700 million adding to growth rate as China’s government statistics underreporting progress. Yes, China does have a long-range plan to conquer America as China’s aware of Pentagon strategies. The “Goldman Conspiracy” is helping China sabotage America so by 2040 China will be the world’s biggest superpower (again). Source>>>>
China’s greatest challenge as an emerging economic superpower is also among the hardest for countries to overcome — it’s getting old:
“In a shift that is intensifying the economic competition between China and the United States, China’s working-age population has plateaued in size and will begin getting smaller sometime in the next five years, according to demographers and recently released census data. The number of 20-to-24-year-olds, a main source of entry-level and factory labor, is already shrinking, the leading edge of an eventual decline in the overall population.” Source>>>>
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