muses of the moment

April 14, 2012

Prof Black talks about Green Slime

Filed under: Bailout Nation, Credit Derivatives, Economic Crisis, Odds 'n ends — totallygroovygirlfriday @ 1:13 am

Another great article from Prof William Black explaining the breakdown in “market self-correction”. The farther the core banking profits are from the saver and investor, the less market self correction there will be.

Click here.

The infected, odiferous, and bad tasting pink slime (aka, the “higher standard”) secretly added to our burgers for over a decade would be embarrassing to any system that pretends to the label “free enterprise,” but it has special resonance amongst economists.  Adam Smith’s most famous saying, which captures his central vision of markets, is a seemingly paradoxical tale about butchers.  He wrote that we could rely on the butcher providing us with wholesome meat not because of his altruism, but because of his far more reliable devotion to self-interest.  Our butcher may not care about us, but he cares about whether he gets our business.  This causes him to act reliably as if he cared for our well-being.  He knows that if he sells us unfit meat we will cease buying meat from him and his business will fail.  Pink slime is inconceivable in Adam Smith’s ode to the self-interested butcher.

And that’s why groovygirl buys meat from a local farmer down the way (and that local farmer is working with the processor as the butchering takes place). And she has physical gold and silver outside of the banking system.


  1. W. Black is a sage voice in the onslaught of economic lunacy. Thank you for sharing this.

    Comment by strayingfromtheflock — April 14, 2012 @ 3:38 am

  2. Strayingfromtheflock,

    gg wishes Prof Black was the one forming gov policy.


    Comment by totallygroovygirlfriday — April 14, 2012 @ 7:48 am

  3. gg, perhaps when those of us who make it through to the next paradigm set to plan a functioning economy, prof. Black will be one of the new generation of scholars to help guide us into a new future

    Comment by strayingfromtheflock — April 14, 2012 @ 11:09 am

  4. If you want to know how Blythe Masters and company go about destroying countries, read the following article by Bullion Bulls Canada –

    The mechanics of this economic rape…

    “First of all the bankers duped governments and institutions all over the Western world into placing trillions of dollars (and/or euros) in bets that interest rates were about to soar higher – just before they crashed interest rates to the lowest levels in history. This swindle is known as “interest rate swaps”.”

    “The second (and even more destructive) form of fraud perpetrated against these governments didn’t even require their participation – merely their naïve acquiescence. The bankers began placing huge bets (totalling at least $60 trillion) that these nations would default, and then had the audacity to call these bets “insurance” (credit default swaps).”

    “After the banksters (primarily based in Wall Street) got assorted chumps to take the wrong side of this $60 trillion, unregulated mountain of bets – betting that these Euro governments would not default – they then began to systematically burn-down the economies of Europe one by one.”

    “In a nutshell, the Wall Street terrorists can manipulate the interest rates of these nations to (literally) any number they choose via the fraudulent manipulation of the credit default swaps market.”

    Once they are done with Europe, they will gang rape the U.S. and Japan.

    Comment by sw — April 15, 2012 @ 2:21 am

  5. Louis,

    Good link from Lira.


    Comment by totallygroovygirlfriday — April 15, 2012 @ 8:55 am

  6. gg hopes so.

    Comment by totallygroovygirlfriday — April 15, 2012 @ 8:56 am

  7. SW,

    Good links on Blythe.


    Comment by totallygroovygirlfriday — April 15, 2012 @ 8:56 am

  8. In regards to the Lira article, Warren Pollock has a few words to say about Gonzalo Lira’s immature behavior and waffling positions.

    Comment by sw — April 15, 2012 @ 1:53 pm

  9. “The President Of Iceland Tells Us How He Had The Balls To Stand Up To Britain” –

    “He [Olafur Ragnar Grímsson] says Iceland’s lesson is that ‘If you want your economy to excel in the 21st century […] a big banking sector, even a very successful banking sector, is bad news.’ ‘You could even argue that the bigger the banking sector is, the worse the news is for your economy,’ he adds, later blaming the huge growth of Iceland’s banking sector on the prevailing European banking philosophy and incompetent rating agencies.”

    Comment by sw — April 15, 2012 @ 6:02 pm

  10. Yes, watched this video. Very good.


    Comment by totallygroovygirlfriday — April 16, 2012 @ 11:32 am

  11. Excellent quote!!

    ‘You could even argue that the bigger the banking sector is, the worse the news is for your economy,’


    Comment by totallygroovygirlfriday — April 16, 2012 @ 11:33 am

  12. Is this kid someone’s son on this this forum? I can only imagine that he pulled the William Black info from here as he sounds somewhat uneducated. All fitness connoisseurs and GG fans will appreciate what this kid is trying to say, so I have more respect for him than half the recent UC graduates…..GG, may I request you go on this program and discuss natural gardening?

    Comment by Bob — April 22, 2012 @ 3:16 am

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