Socio-Economics History Blog

Socio-Economics & History Commentary

Hidden Profits From Swine Flu Hysteria!

November 14, 2009 Posted by | Medicine & Health | , | Comments Off on Hidden Profits From Swine Flu Hysteria!

Max Keiser: Dollar Toilet Paper for China!

November 14, 2009 Posted by | Economics | , , , , , , , | 1 Comment

Paper Promises, Golden Hordes!

  • Gold is signalling a coming currency crisis. We are already seeing it in countries like Vietnam. The Vietnamese populace have been buying up gold and driving gold prices to US$1,300/ounce internally. The Vietnamese Dong has weakened considerably. As more Vietnamese sell their Dongs to buy USD to buy gold, the Dong will be under more pressure.
     
  • India and Sri Lanka are the 2 new additions, of central banks, who have publicly announced they are buying gold. What most people don’t realize is that it is a repudiation of the USD. Central banks around the world are increasingly worried about the fiat USD world reserve currency. We will see this trend continue and more countries will be settling their international trade in gold (ie not in USD). The major nail in the coffin will be when the Persian Gulf Oil countries abandon the USD in the oil trade. They will likely adopt a basket of commodities and gold.
     
  • Gold is not so much an inflation hedge. It is more of an insurance policy against profligate government spending, financial crisis and monetary collapse. The Economist reports:
      
    TWO hundred metric tonnes of gold would occupy a cube of a little more than two metres on a side; it would fit into a small bedroom. But India’s purchase of that volume of gold from the IMF last month has had an outsize impact on the markets, helping push the price well above $1,100 a troy ounce.
     
    For bullion bulls, the implication is clear: central banks no longer trust the creditworthiness of other governments. And if they have lost confidence, private investors should do the same. The next step in this chain of reasoning is to assume a stampede (or at least a quick trot) by other central banks into holding the yellow metal. Gluskin Sheff, a Canadian asset-management firm, suggests that if China followed India’s lead, bullion could hit $1,400 an ounce.
     
    However, it is a big leap to assume that Asian central banks are abandoning the dollar. Even after the purchase, gold will be just 6% of India’s reserves. In any case a headlong retreat from the dollar would be counterproductive, since it would damage the value of Asian central banks’ existing holdings of Treasury bonds and bills. And those countries, like China, which peg their currencies against the dollar, are forced to buy large amounts of Treasuries as part of that strategy.
      
    It may be that, at the margin, central banks would like to increase the proportion of their reserves that are held in the form of bullion. The nature of reserves is that they insure against emergencies. And in an emergency gold is more likely to hold its value than paper money.
        ….
    Some of the more pessimistic commentators see the recent credit excesses as the inevitable consequence of a system based on paper money and call for the return of the gold standard to prevent future crises. This column has argued that the current system is unsustainable. Debtor countries like America and Britain have huge fiscal deficits, but retain at the same time the ability to depreciate their currencies and offer near-zero interest rates on their short-term debt. This does not look like a good deal for creditors.
     
    A gold standard clearly protects the interest of creditors since it ties the value of money to a scarce resource. A government cannot create new gold. But the law of volatility applies. If you fix one part of the economic system, trouble has to show up elsewhere. When countries on the gold standard suffered a shock they had to let the real economy, rather than their currencies, take the strain.
       …….
    Given the Depression it is hard to see governments ever wanting to tie their countries to a gold standard again. But the result is that foreign creditors have a right to be more suspicious of debtor countries. Even if they do not resort to outright default, they can always achieve partial default through currency depreciation.
     
    Indeed, the law of volatility can be invoked again. Developed-country governments have attempted to control bond yields through quantitative easing and to support stockmarkets through ultra-low interest rates. But they cannot support their currencies as well without risking problems in the bond and equity markets. Gold’s surge may indicate that investors fear the next stage of the crisis will occur in the foreign-exchange markets.

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November 14, 2009 Posted by | Economics | , , , , , , | Comments Off on Paper Promises, Golden Hordes!

Doctors Learned Why Ukrainians Are Dying!

  • This article in Russian news highlights the anomalies in Ukraine. What  the exact cause of death is. It implies that it is not A/H1N1, at least not the main culprit, but another virus that causes cardiac arrest and total destruction of the lungs. MIGNews reports :
      
    All victims of the virus in Bukovyna (22 people at the age of 20-40) died not from bilateral pneumonia, as was previously thought, but as a result of viral distress syndrome, i.e the total destruction of the lungs.
     
    At first the cardio-pulmonary insufficiency comes, and consequently cardiogenic shock is developed, which causes cardiac standstill and death, told the chief of bureau of the Chernivtsi regional forensic examination, doctor of science, Professor Viktor Bachynsky, UNIAN reports.
     
    “During a bilateral pneumonia some morphological picture is observed. As of data of deaths, there is no such morphological picture. The virus, which causes death, is very aggressive, it does not strike the trachea, but immediately gets into the lungs and causes heavy swelling and solid hemorrhage. Mixed types of parainfluenza and influenza A/N1N1 lead to this state. This is a very toxic strain, which has not yet answered to the treatment of the Ministry of Health”, – said Viktor Bachinsky.
     
    According to him, there is a need to change the treatment standards, because those which were used earlier, resulted in nothing – doctors failed to save all people infected with the virus in the reanimation. The belt ventilators did not help also.
     
    For this reason a group of professors of Chernivtsi Medical University appealed to the Ministry of Health and National Security and Defense Council with a demand to review the standards of treatment of patients in Bukovyna. Scientists-morphologists sent to Kyiv reports, studies and analysis of critically ill patients and people who died of virus.
     
    Viktor Bachinsky noted that the virus is extremely toxic, it is able to penetrate not only through respiratory apparatus but also through the eyes. Chernovtsy scientists recommend in any case use masks and even wear protective spectacles. An important condition to prevent deterioration of the situation is also the observance of quarantine regime.
     
    06:19 p.m. Ministry of Health does not consider it is necessary to publish data on the number of confirmed cases of influenza pandemic in the laboratory. “Ukraine is in the A/N1N1 influenza pandemic, and now it does not matter how many of these cases will be detected, we should treat everybody equally,” – said Deputy Minister of Health Vasyl Lazoryshynets at a briefing on Friday.
     
    Vasyl Lazoryshynets also reminded that in Ukraine since the beginning of the epidemic 1,25 mn people became ill with pandemic influenza, influenza and acute respiratory diseases, including 61,000 people – over the past day, which is by 8,500 less than the previous day. 65,615 people are treated in hospital, including 392 – in the reanimation, 60 have artificial pulmonary ventilation.
     
    Since the beginning of the epidemic in Ukraine 239 people died, including 26 people during the last day, most of them are in the Ivano-Frankivsk, Chernivtsi, Lviv and Ternopil Regions. He also said that according to the laboratory data, 14 people died of pandemic influenza, Interfax-Ukraine reports.
     
    06:25 p.m. To date, swine flu in Ukraine is dominant, but not the only strain, said the head of mission of the World Health Organization in Ukraine Yukka Pukkila.
     
    Yukka Pukkila said that the strain of pandemic virus is detected in 22 cases of 34 samples sent to the control laboratory, which collaborates with WHO in London.
     
    At the same time, Yukka Pukkila stressed that, besides Californian flu in Ukraine there is a large number of varieties of acute respiratory viral diseases and many other viruses that infect the respiratory system, reports Liga.

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November 14, 2009 Posted by | Medicine & Health | | 3 Comments

Ukraine: 265 Dead – 1,308,911 Infected & 69,691 Hospitalized!

  • Only 5 oblasts (city/region) have not exceeded the epidemic threshold out of 27 oblasts. 55,363 were newly infected, 4,076 were hospitalized and 26 died yesterday. The number of dead is 25-26 for the past few days. Previously, it was around 10-15 dead per day. The hospitalization of 69 thousand means that we can expect the mortality to go higher. Infection rate is coming down from high of 200,000 per day. Google Translate Table:
     
    1,308,11 Infected
    69,691 hospitalized
    265 dead
     

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November 14, 2009 Posted by | Medicine & Health | | 1 Comment