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Wednesday, January 19, 2011

$100 trillion for more credit

It sounds like a lot of money but if Apple Computer is worth $400 billion, with talk of it going to a trillion market cap in two years, that would imply the annual need for global capital of $10 trillion or ten times the value of one computer corporation. Cheap huh?

World needs $100 trillion more credit, says World Economic Forum

The world's expected economic growth will have to be supported by an extra $100 trillion (£63 trillion) in credit over the next decade, according to the World Economic Forum.


This doubling of existing credit levels could be achieved without increasing the risk of a major crisis, said the report from the WEF ahead of its high-profile annual meeting in Davos.

But researchers warned that leaders must be wary of new credit "hotspots", where too much lending takes place, as the world emerges from a financial catastrophe blamed in large part "to the failure of the financial system to detect and constrain" these areas of unsustainable debt.

"Pockets of credit grew rapidly to excess – and brought the entire financial system to the brink of collapse," said the report, written in conjunction with consulting firm McKinsey. "Yet, credit is the lifeblood of the economy, and much more of it will be needed to sustain the recovery and enable the developing world to achieve its growth potential."

The global credit stock has already doubled in recent years, from $57 trillion to $109 trillion between 2000 and 2009, according to the report.

The WEF said the continued demand for credit could be met "responsibly, sustainably – and with fewer crises". However, it cautioned that to achieve this goal, financial institutions, regulators, and policy makers need more robust indicators of unsustainable lending, risk, and credit shortages.


  1. Correct me if I am wrong, the entire worlds GDP is around 54 trillion dollars? and we can create another 63 safetly?

    What will happen to commodity prices then? such as oil?

    Ah, it will be Opec's fault of course.

  2. Slightly more interesting than Tunisia. I had to check my globe. Do I really need to worry about Tunisia this morning?

    What a ridiculous article. This is obviously just a number plucked out of the air and a story built around it.

    While there is obviously an amount of extra credit that will be required to oil the wheels of economic growth, no one knows how much that amount is. However, one thing I can tell you for certain is that it definitely isn't the suspiciously very round number of $100 trillion.

    $96.7 trillion or $104.45 trillion or any non-round number would have been so much more believable than $100 trillion.

  3. It was Tunisia or another chapter on Shudder Island.

  4. We have to start "getting away" from oil, immediately. There's just not enough of it (Oil *flow rate* hasn't increased since 2005.)

    Agricultural commodities are a lot easier. We have enormous amounts of arable land lying fallow.

  5. You been on the trail with Desert Rat Stella? Alittle saddle sore?

  6. Actually, Tunisia could end up being a hell of a story.

    Not because of Tunisia, itself, but if that deal starts to spread.

  7. Never ask a lady how she got saddle sore.

  8. Why is it with all the women on this blog it is always about sex? I'm not complaining, just asking.

  9. See my: Wed Jan 19, 07:48:00 AM EST

    bye bye.

  10. I hate the market. I think we'll be in recession by the 3rd qtr.

  11. If not recession, at least some ultra-minimal "growth" rate ( 1.0% - 0.5%, etc.)

  12. So, it seems that the US flooding the whirled economy with more paper money is a necessary thing.

    That even more "easing" is required and Federal stimulus of the economy will be required to achieve the liquidity the whirled needs to grow?

    doug'll blow a gasket!

  13. Mrs Clinton, in her role as Sec of State, has warned our Islamic allies of just that, rufus.

    That our friends will either have to ride that tiger, or be eaten by it.

    I assume, based upon the Saudi support for the deposed President, that he was an "Old School" Muslim.

    The protesters/rioters do not appear, based upon news reports, to be Islamic Fundamentalists. No, indeed, they seem to be liberal, progressive republicans.

    Just the sort of cultural movement that Mr Bush gave such great lip service to. Which, now in application, is something our government is now warning our Islamic allies to "head off at the pass".

    Go Team USA!

  14. The continued bombings in Iraq seem to indicate that the insurgents, there, are targeting the entire population base.

    Killing ever more Muslim policemen, then they've killed Christian church goers.

    These Iraqi terrorists, they target across the sectarian divides.

    They seem ever more nondenominational as they rage against the machine.

  15. Federal agents are investigating race as a possible motive behind an abandoned backpack containing a functional bomb after it was left along the downtown route of a Martin Luther King Jr. Day parade in Spokane, Wash.

    Investigators would not disclose what kind of explosive it was, except to say that it was "potentially deadly," and could have caused "multiple casualties," had the device detonated.
    Spokane Mayor Mary Verner said the attempted bombing was unacceptable.

  16. DR: Mrs Clinton, in her role as Sec of State, has warned our Islamic allies of just that, rufus.

    Joe Lieberman will not run for Veep in 2012. That means Hillary will.

  17. Deuce: Why is it with all the women on this blog it is always about sex? I'm not complaining, just asking.


    I don't think I harp on that subject.

  18. Spokane Mayor Mary Verner said the attempted bombing was unacceptable.

    Not to mention against the law.

  19. My Doc and hundreds of thousand others will quit,
    but Rufus/Dufus knows "better."

    Obamacare Sucks

    65 percent of the doctors believed care would deteriorate with only
    18 percent predicting it would improve.

    Nearly two-thirds of U.S. doctors surveyed fear healthcare reform could worsen care for patients, by flooding their offices and hurting income, according to a Thomson Reuters survey released Tuesday.

    The survey of more than 2,900 doctors found many predict the legislation will force them to work harder for less money.

    "When asked about the quality of healthcare in the U.S. over the next five years, 65 percent of the doctors believed it would deteriorate with only

    18 percent predicting it would improve,"

  20. What? You mean someone did something racial and it wasn't in the bigoted South?

    Oh My Word.

  21. "I don't think I harp on that subject."

    Harpies give me a hard-on.

  22. "Killing ever more Muslim policemen, then they've killed Christian church goers."

    Christians are being eliminated from Iraq, Muslims are NOT.

    Esp Shia Muslims in the employ of the Iraqi Government.

    Another moronic 'Rat "fact."

  23. Or, as Trish would put:


  24. You know, I still ain't seen any of them Massachusetts Doctors moving to Mississip.

  25. Brilliant, Rufus/Dufus,

  26. Morons in DC that score 50 percent on a rudimentary Civics test know better than highly educated, highly skilled doctors.

    In Rufus/DufusWorld

  27. Central Planning is more efficient than market economies.

    ...in you know whatWorld

  28. I'm sure they'll show up any day now.

  29. ""Our present survey suggests that greater attention should be paid to understanding the present opinions of the health care provider constituency before proceeding down a path of reform.

    Without the physicians supporting change it will be difficult to accomplish," the report concludes."

    Ask people that KNOW SOMETHING about medicine for input on healthcare reform?


  30. Interesting that no one in Massachusetts is lobbying for Repeal of Romneycare, isn't it?

  31. Rufduf reduced to inanities...

    What else is knew?

  32. Socialism always trumps free markets.

    ...trust us.

    This time.


  33. Inanities?

    In Mississip we call those "Facts."

    ie. NO Mass Doctors have showed up in Mississip, and

    No one in Mass is lobbying for the repeal of Romneycare.

  34. Where are the "Free" Markets in Fire Protection?

    Police Protection?

    National Defense?

    Social Security?

  35. We're talking "Healthcare," Doug; not pet supplies.

  36. My doctor is not moving anywhere, he'll just quit.

    As will hundreds of thousands others, before their planned retirement dates.

  37. ...mere anecdotes, of course, as opposed to the survey of real Docs in the Real World.

  38. Doug, are you telling me that you want to live in a country that allows sick children to die from lack of healthcare.

    Please note: This is a purely rhetorical question, since, obviously, you do.

  39. Rufus II said...
    We're talking "Healthcare," Doug; not pet supplies.

    stupid beyond belief

    Nancy Pelosi, genius.
    Doctors, morons.

  40. Doug, I'll bet you can't find the names of 10 Docs that quit in Mass because of Romneycare.

  41. That's me, Rufus:



  42. The Bar may now spit on me when I walk in.

  43. Rufus II said...
    Doug, I'll bet you can't find the names of 10 Docs that quit in Mass because of Romneycare.

    Yeah, doubt if I'll be coughing up the airfare anytime soon.

  44. Well, you're sure giving a lot of "expert" opinions of Docs quitting.

    Maybe you should peruse the intertubes awhile, and see if you can find a "reference" for Docs that have, actually, done what you say they'll do.

  45. If Canadacare and Romneycare were both sucessful, it would not indicate medicine directed from DC for 300 million citizens would be a good idea.

    But neither Canadacare nor Romneycare are.

  46. Doc said he would quit when it happens, not now.

    This argument belongs in kindergarten.

  47. And, the fact of the matter is, Doug, Ol' chum, that the Republican Governor of Texas wants to "do away" with Medicaid in his state.

    That will, without a doubt, leave thousands of Babies/Children Dying from lack of medical care.

  48. Maybe you should refute the linked survey.

    ...but you can't.

  49. This comment has been removed by the author.

  50. Socialised healthcare will save babies like welfare saved black families.


  51. The people of Canada like Canadacare, Doug. They've kept it, and no one seriously proposes ending it. Same with Mass. When it's polled, something like 90% want to keep it.

    And, as far as your Doc. What can I say? I threaten a lot of things. Sometimes I'm just talking to hear my head rattle. Sometimes I'm bluffing. Sometimes I change my mind.

    But, in Mass everyone (Docs included) seem pretty happy.

  52. That was a silly non sequitor. There is no similarity in those situations at all.

  53. Canada ships patients to the US to access modern medicine.
    The reverse does not occur.

  54. There is nothing in that poll about 'quitting.' By the tens, or hundreds, or kazillians.

    A lot of Doctors won't take Medicare patients. Other make a fortune of of them. The world goes 'round.

  55. There is speculation about what if the Chinese decide to sell their US treasuries?

    Actually there are a lot of things that could be done including some unconventional.

    The first line of defense would be to have standby agreements with other holders of US debt.

    The second would be for the Fed to step in and start buying. The treasury could then force cash rich corporations to exchange some of their excess cash for tax exempt treasuries.

    A similar tax exempt retail US Bond program would mop up a lot of excess liquidity caused by the fed purchases.

    A stiff tariff could be applied to all Chinese imports with the proceeds used to purchase back treasuries.

    Obviously the current situation including excess federal spending has to stop.

  56. The Republic of Texas already has Universal Healthcare. All one has to do is show up at any ER in the state, and you will get treated. Free.

  57. That will, without a doubt, leave thousands of Babies/Children Dying from lack of medical care.


  58. Deuce,

    I believe the worry is that folk, the Chinese in particular, won't step and buy new US bond issues. Old ones also need be rolled over. Of course if the Chinese dumped their bonds that would be bad but I think the more immediate concern is the regular new issues that need be peddled...

    ...and the Fed is already wading in and buying those new issues. The ECB is buying new issues in Europe as well.

  59. China to buy 200 planes from Boeing.

    Good for the local economy. I'll thank China by going to WalMart and getting a $29 purse.

  60. I want the restriction on the sales of US debt to put a break on federal spending.

  61. The US should be buying debt not selling it.

  62. good opinion piece from John Bolton, Financial Times.

    China should take careful note: neither Mr Hu nor the PLA ought to assume that Mr Obama truly represents broader US public opinion. There could be a different president two years hence, ready to reverse his agenda of international passivity and decline. Beijing can certainly take advantage of Mr Obama for now, both because of his philosophical and leadership weaknesses. But so doing could cost them in the future, if America in 2012 goes to the next level in rejecting Mr Obama’s failing policies.

  63. It really doesn't work quite that way, Gag. (But, if it did, the citizens would still be paying for it - albeit, in a very inefficient manner.)

  64. Ol' Hu is meeting the Washington Press Corps. Prolly not his most revered moment. :)

  65. The main key is we've got to get our citizens back to working, and working at good jobs from which we can collect reasonable taxes.

    A Big key to this is get the Yuan fairly valued. This will, probably, require a large jolt from Congress.

  66. Hu looks like a Mafia Chieftan in front of of the Grand Jury.

  67. Deuce, since you won't reply to me, then take my name off the list of "regulars" and I will leave.

  68. Well Rufus, it does work that way. Pure and simple. It works that way in Mississippi too. I've seen it. I have also seen it at Baptist East, Methodist, and at the Med in Memphis.

    And you are right, we are all paying for it, that is, those of us who pay insurance premiums, copays and taxes.

    We should hold Hu hostage and ask for a ransom. The deficit level would be a good round number. Maybe do a little waterboarding while we are at it.

  69. "Deuce, since you won't reply to me, then take my name off the list of "regulars" and I will leave."

    Deuce, if you can't respond to all of my shenanigans, well, then….Then…Bend over so I can spank you ass.

    I'm sorry, Selah, I couldn't resist. It was funny. I wouldn't read too much into it. At least you're not getting attacked every other comment.

  70. Farewell to you, Melody, good luck in here.

  71. Hang around Ms. T. The EB pushed the self cleaning button the other day. It seems to be working.

  72. Nah, Gag, the key is the word "Emergency." A child, or anyone, can have a serious (potentially lethal,) Chronic condition, but will not be able to receive "treatment" through the "Emergency" Room until, and unless, their condition is "Emergent."

    This can lead to such a deterioration of said condition that it becomes Fatal.

    A prime example of this can be "Gall Bladder Disease." They won't treat it until it becomes Gangrenous, and Septus. If the patient is in the wrong place, and under the wrong circumstance when the condition finally becomes "Immediately Life-Threatening" death can easily ensue.

    Even if the "timing" is perfect, ie the patiient has the emergency room readily accessible when the gall bladder "goes" and is able to get in the door the resulting surgery, and recuperation will be much more expensive than it would have been if the condition was treated before it became "Emergent." Of course, the extra cost is "On You."

    This is just one example. There are many others.

    The fact is: We're pretty much "Spending the Money;" We're just not getting a very good Bang for the Buck.

  73. Come on, T. Deuce has been through a mess trying to clean this blog up for us. If he missed an email, or something, call his attention to it. Several of us had our emails go in the junk mail well the other day.

    You know how hard "Blogger" is to work with.

  74. I don't she was talking about email, Ruf.

  75. I'm lost, Melody. I looked through the thred, but didn't see where she was "unresponded" to.

    I guess I'll go mind my own business.

  76. Rufus

    not to go on about this, but...

    it would be good if they were going for emergencies, but they are going for colds, broken fingers, small cuts, headaches,etc. and they are not being turned away.

    If you don't believe me, go hang out at the ER one night. You will see what I am talking about. It is being abused big time, and there is nothing in Obamacare that addresses it.

    No one in Texas or anywhere else in the U.S. is going to die due to a lack of universal healthcare.

  77. Go away, Bob.

    You're trespassing, and then Deuce, and Whit have to follow along behind and clean up your mess.

  78. That's just not true, Gag. I Have "hung out" in those emergency rooms. Those people are there because they're sick, or injured. Nobody wants to wait 3 hrs, or longer, in an emergency room.

    And, yes, I'm sorry, but we do have thousands die for lack of medical care, every month. It just doesn't make headlines when some person dies in their home from lack of treatment, or medicines.

  79. ER is NOT the place to go for:

    "it would be good if they were going for emergencies, but they are going for colds, broken fingers, small cuts, headaches,etc. and they are not being turned away"

    A decent medical system should encourage other, more efficient, ways of dealing with those kinds of maladies. Unfortunately if it is free in one place and not another demand will shift.

  80. Whit was having problems with the email we had on file, it kept bouncing back. Everyone else who sent it in got the invite. We tried yours at least three times.

    Send in a good email and then follow the directs please.

  81. I didn't read the thread. I just read the last comment which was T's and assumed she meant that Deuce didn't respond to any of her comments. I could be wrong. Maybe it was an email.

    It made me laugh out loud. My comment was meant to show her how absurd it was.

  82. And if it is about the invite it doesn't matter anymore since the comment section was opened up to the public.

  83. Where in the world did you guys get the idea that ER is "Freee?"

    You go to the ER, and you WILL get a Bill for anywhere from $1,000.00 to $4,000.00, or higher.

    They will bill you, and they Will take steps to collect (I was in the bidness, remember?)

    They do get "stiffed" a lot by people that don't have insurance, and Those are the bills that "Me, and Thee" get to pay.

  84. I'll have to ask my doctor why he doesn't move to Missisppi only to have Obamacare inflicted on him there.
    Poor guy does not possess the genius of Rufusbrain.


    The damage has already begun

    Repeal of ObamaCare can't come soon enough -- as several damaging provisions are set to take effect this year. For starters, it has effectively stopped the construction of physician-owned hospitals throughout the country.

    Section 6001 of the health-care law required physician-owned hospitals to obtain their Medicare certification by the end of last year.

    Without it, they can't treat Medicare patients.

    And the facilities needed to be open to get that certification.

    So construction halted at 45 hospitals as the New Year arrived. Work on countless others will never start, having been effectively banned by ObamaCare.

    Original Article

  85. ER abuse has not declined under Romneycare.

  86. "Of course, patients may have trouble finding not just a hospital, but a doctor. A Physician's Foundation survey revealed that 40 percent of doctors plan to "drop out of patient care in the next one to three years." Sixty percent said ObamaCare will "compel them to close or significantly restrict their practices to certain categories of patients" -- typically those on Medicare or Medicaid.

    Health reform will force many folks to give up their current insurance, too.

    New rules requiring insurers in the individual and small-group markets to spend at least 80 percent of premium dollars on medical claims are intended to ensure that consumers get good value for their money. Instead, they'll push many plans out of existence. And with fewer competitors to keep them honest, the insurers that survive will have an easier time raising rates.

    Other measures kicking in are petty -- but punitive. For example, people can no longer use tax-free Health Savings Accounts on basic over-the-counter drugs. Instead, they must pay for a doctor's appointment -- and then get a prescription for a pricier pharmacist-dispensed drug.

    Consider the case of Claritin, an allergy medication that recently was approved for OTC use. A report from the National Center for Policy Analysis found that longtime users of the drug saw their daily costs fall 80 percent, from about $2.50 to just 50 cents. ObamaCare reverses this trend by encouraging people to opt for higher-priced prescription drugs when a cheaper OTC medication would work just as well.

    And some measures are cut-off-your-nose-to-spite-your-face punitive -- like the new $2.5 billion excise tax on pharmaceutical companies. Drug manufacturers won't simply swallow this new bill; they'll pass it onto consumers in the form of higher prices.

    Thus, by (for example) increasing the cost of care for patients who need cholesterol-lowering statins or cancer-fighting meds, ObamaCare harms our health.

    Public discontent with ObamaCare will only grow as its provisions begin to take effect this year. Congress should repeal it with all due speed.

    Read more: http://www.nypost.com/p/news/opinion/opedcolumnists/the_damage_has_already_begun_pzcq1MmzRb3O626H6Q7PqI#ixzz1BWb5yO3Y"

  87. $2.5 Billion Excise Tax?

    Lordy, they may have to raise their prices A Whole 1/2 of 1%

    That'd be a penny on a $2.00 bottle of aspirin for you, Doug.

    Sally Pipes? Gimmee a break.

  88. The only address I can find for T is a comcast one.

  89. Bob hasn't shown up at all today? Not one post?

    That's interesting.

    After going to bed last night in the shittiest POSSIBLE mood, I woke up feeling grand.

    Hungover but just fucking grand.

    As if someone had performed an exorcism overnight. Or the medication fairy paid a visit.

    Now I think to myself: Trish, you wrote a post describing bob's semen everywhere.

    Repeat: Trish, you wrote a post describing bob's semen everywhere.


    THAT is insanity.

    Also. Insanely funny.

    More the latter.

    I LIKE to imagine Rat with Evil Bob's goo dripping off the rim of his hat while he barks, "Stay the course! Say the curse! Lester Crown! Boners!"

    Tell me that is not hilarious.


  90. I like to imagine rufus sitting at the end of the Bar, "the dead seed of a poet farmer" flying everywhere, dripping from the ceiling, nonchalantly covering the top of his Bud Light with his hand.

    Blathering about solar panels.

  91. Just to keep the pot stirred:
    Hawaii Gov. Neil Abercrombie suggested in an interview published today that a long-form, hospital-generated birth certificate for Barack Obama may not exist within the vital records maintained by the Hawaii Department of Health.

    Abercrombie told the Honolulu Star Advertiser he was searching within the Hawaii Department of Health to find definitive vital records that would prove Obama was born in Hawaii, because the continuing eligibility controversy could hurt the president's chances of re-election in 2012.

    Read more: Hawaii governor can't find Obama birth certificate

  92. I LIKE to imagine Rat with Evil Bob's goo dripping off ...

    Why? Never mind, don't answer.

  93. Tell me that is not hilarious.


    That is not hilarious.

  94. Maybe it's because I'm not wearing my red attire but I can't do that freaking test.

  95. I've seen it before. Worked it out once but forget now.

  96. If you imbeciles don't quit talkin' about the psychopath, he's never going to leave, and the administrator will die at his keyboard trying to keep the threads cleaned up.

  97. It is not working for me yet.

  98. No comments for two hours. Everyone is trying to get this stupid test.

  99. Maybe I'm tired, or maybe I'm missing something, but, as of Now, I'm Not smarter than a Chinese 2nd grader.

  100. I can't see. I think it's that red dress. (on the next thread.)

    It's blinded me.

  101. It took me four or five tries but I did it. What's my prize?

  102. Don't knock the red dress. Red is the warmest and most energetic color in the spectrum.

  103. "I LIKE to imagine Rat with Evil Bob's goo dripping off ..."

    Because it's damned funny.

    Oh, look.

    I said damned.

  104. I got it twice, but each time forgot how i did it . obviously you can not have two frogs together once you start moving to the other side.

  105. Red, I'm begging you, I ask you for little, get that thought out of your head.

  106. Cheater? Yes, and I'm good at it. At least I don't lie about it.

    That's one thing I'm not is a liar.

  107. Why?

    Now I'm just sorely tempted to have that thought on constant replay.

  108. I don't take tests when I don't have to.

    They make me anxious.

  109. .

    Now I'm just sorely tempted to have that thought on constant replay.

    Your constant ruminations on comforting balls and semen are telling.

    One can only suggest that this Friday (or sooner) you shower, get dressed up, put on those black leather and cloth, 2 inch high heels, and go to a nice (non-virtual)Country and Western bar where your drinking will be appreciated.



  110. .

    Among the Sauk and the Fox Tribe, it is important that people do not look back at the grave of one who is gone because they believe that they may become tied to the spirit. Being tied to the spirit is considered very bad luck. The spirit may take the living person who is tied to it into the next world.


  111. 'Scuse me.

    This IS a bar, is it not?

    If my drinking isn't appreciated here - where the standards of behavior are...well, let's just say they're pretty damned low - it's certainly not going to be appreciated among the civilized.

    C'mon. Quirk.

    It was funny.

    Well, okay.

    It was funny to ME.

    Uproariously so.

    Christ, I haven't laughed like that in months.

  112. .

    Admittedly, there was a poetic quality to it.

    Funny? Somewhat, at first. But then I have a weird sense of humor.

    Continuing it?

    Not so much.

    It's not the type of joke you can replay.

    If you will be a commedienne, you need to learn pacing. And when to move on.


  113. The second move is the tricky one. and the third and the fourth, the fi..

  114. "If you will be a commedienne, you need to learn pacing. And when to move on."

    Stuff it, old man.

    Are you never not some kind of asshole? Not some kind of wet blanket?

    This is why I like to imagine you with bob's goo running off of your antlered fez.

    It's a blog, not a comedy club.

    Deal with it.

  115. .

    It's a blog, not a comedy club.


    Especially in your case. As exemplified by your comments in the next stream.

    When you have to say "But this is the REALLY funny part" it usually isn't.