'저는 그들의 땅을 지키기 위하여 싸웠던 인디안들의 이야기를 기억합니다. 백인들이 그들의 신성한 숲에 도로를 만들기 위하여 나무들을 잘랐습니다. 매일밤 인디안들이 나가서 백인들이 만든 그 길을 해체하면 그 다음 날 백인들이 와서 도로를 다시 짓곤 했습니다. 한동안 그 것이 반복되었습니다. 그러던 어느날, 숲에서 가장 큰 나무가 백인들이 일할 동안 그들 머리 위로 떨어져 말과 마차들을 파괴하고 그들 중 몇몇을 죽였습니다. 그러자 백인들은 떠났고 결코 다시 오지 않았습니다….' (브루스 개그논)





EMERGENCY IN GANGJEONG ON SEPT. 2! (See the below blog)

URGENT PLEA: DEAR FRIENDS of JEJU ISLAND, ISLAND OF WORLD PEACE (Click!)

Please check HERE(Click) for continuous updates of emergency in
Gangjeong, Jeju Island since Aug. 24, 2011 and site links on the struggle against Jeju naval base construction !

8월 24일 및 이후 제주도 강정 마을 긴급 관련, 계속되는 영문 업데이트 및 국문 사이트, 링크들은 여기(클릭)를 보세요!

RELEASE Kang Dong-Kyun(Gangjeong village mayor, 54), Kim Jong-Hwan(villager, 54), and Kim Dong-Won(photographer, 25)! (Facebook: Click HERE)

강정 마을회 까페 사이트(클릭) 강정 마을회 웹사이트(클릭)


Thursday, July 22, 2010

Text Fwd: [Matthias Chang] America is Insolvent. Why Would China's Rating Agency Rate US Sovereign Debt AA When it is No Better Than Junk?

Global Research
July 19, 2010
America is Insolvent. Why Would China's Rating Agency Rate US Sovereign Debt AA When it is No Better Than Junk?

by Matthias Chang

For all intent and purposes, the United States is insolvent.

This is not my personal assessment but that of world renowned “experts” and economists, and financial institutions. Just google “US Debts” and you can find thousands of analysts stating that there is no way that the US can ever pay off its debts. The US cannot even liquidate the accumulated interest on the outstanding debts. The debts are in the trillions!

The Casey Daily Dispatch observed:

The simple reality the Fed is waking up to is that the structural underpinnings of the economy are damaged beyond any quick or easy fix. That’s because until the debt is wrung out of the system, either through default or raging inflation – there’s no chance of it actually being paid in anything remotely resembling current dollars – the equivalent of an economic Black Death is going to plague the land.

The American rating agencies, Moody’s, Standard & Poor’s, and Fitch Ratings still give the thumbs up for the United States – a whopping AAA rating. These same agencies gave AAA ratings to the CDOs and other financial products peddled by the Too Big to Fail Global Banks when they were in fact junk. It took the financial tsunami to expose their fraudulent practices.

So I don’t give too much credence to the ratings by these crooked institutions.

The National Inflation Association (NIA) believes that the real credit rating of the US should be junk. But you don’t have to believe them either.

So how do we know for sure that the US should be rated as junk?

Simple! Apply common sense to the facts before you.

Since the United States defaulted on its debts in 1971, when President Nixon refused global and sovereign creditors the right of redemption in gold for US dollars, it has been living on borrowed time. The United States conned the world into accepting its toilet paper currency and for those who dared to question the integrity of its fiat currency, the mighty US military was deployed to ensure compliance.

The global banking elites then employed subservient economists the world over to tout the merits of the floating exchange rate as the mechanism to determine a currency’s value. Countries were compelled by threats of war or coups to peg their currency to the dollar. The dollar became the “anchor” in place of gold. Trade had to be denominated in US dollar which gave the United States an undue advantage.

This “pegging” gave an illusion of strength of the US dollar and creditworthiness of the United States. While others have to produce and earn an income in a “local currency” and then exchange it for US dollars to import and or purchase goods (as over 80% of global trade is denominated in dollars), the “paper tiger United States” need only to print money to pay for goods and services when its income was insufficient to pay and sustain its standard of living.

For over 37 years, the United States got away with this con!

For over 37 years, people the world over sold their produce to the United States in exchange for a paper with a number printed on it, a number denoting its value i.e. a 100 dollar note etc. People just accepted the number printed on the paper as reflective of the “real value” of the currency. In reality it has no value. It costs a few cents to print the toilet paper currency.

Through slick propaganda, people were led to believe that the value is as printed on the paper. No one dare to question the absurdity of this proposition.

But now, we have reached the stage of total collapse of the global fiat currency system. Every country in the developed world is implementing the policy of “quantitative easing” (the central bankers’ jargon for creating money out of thin air) in a desperate effort to pay off mounting debts and compounding interest in the trillions. To a lesser extent, developing countries are also following the Washington consensus. The global financial system is flooded with toilet paper currencies.

What will be the endgame?

Let’s pause and think for a moment. Let’s apply common sense.

The US dollar $, the Euro €, the pound £, the Yen ¥ etc. are all fiat currencies – they have no intrinsic value. Their value is a number arbitrarily printed on the paper and sanctioned by central bankers as “legal tender”.

In essence, they are all junk – toilet paper currencies. So how do they “float” against each other under the global floating exchange rate system?

This is where the fun starts.

How does one compare a junk from another? How does one determine the exchange value of one junk from another? A junk is a junk!

Forget about the market forces determining the values of the various junk currencies. It is determined by central bankers and no one else.

Whether a US dollar is equivalent to Ringgit 3.40 or Euro 1.18 or Yen 90 is arbitrarily decided by the respective central banks. And there is nothing you and I can do about it. If it serves the interest of a country to have its currency devalued, the central bank of that country will allow its currency to devalue and vice-versa.

Sometimes, the central bankers get their accomplices, the hedge funds to jointly manipulate the forex market through derivatives trading. And as long as the central bankers and their accomplices maintain the fluctuations in any one period of time in accordance with the parameters previously agreed by the central bankers, nothing much will happen. It is when central bankers cannot agree on the parameters that problems will emerge, often resulting in trade wars and even “hot” wars.

Don’t believe me?

I will give two examples:

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