Halloween is here and the trickery and treatery treachery continues to cause market turmoil. That is, AIG's business with feeding and playing with the Derivatives Beast is now unwinding in the typical way such deals end: the monster eats its master. Right now, it is eating up $144 billion of US taxpayer funds. Also, the DTCC is in the news again because of its own relationship with this same fearful monster, the Derivatives Beast. And the Japanese savers are now being eaten by this same critter! Who would have guessed? And commodity inflation is again, taking off as Japan drops its interest rate to 0.3% and the US to 1%. Who would have guessed again? HAHAHA.

The utter insanity and panic over the fact that the Japanese Carry Trade has died is obvious. Unlike last year, when everyone was so pious about how Japan was in this terrible depression while inflation raged in the streets of Tokyo, the G7 nations hammered China nonstop about raising the value of the yuan. But not a peep about the very weak yen which was dropping against all currencies except Zimbabwe! Well, now that the carry trade has violently unwound, the G7 is demanding it back! They need it for LIQUIDITY. Just as I stated several years ago! And I was right! Wow! Give me the Nobel Prize for Economics!

During the last few weeks, I have read many commentaries trying to explain the current mess that world trade is in today. Virtually no one seems to understand the trap we are in is due to trade imbalance, not banking difficulties. The banking problems grew out of the trade problems. And worse, the trade problems grew out of the difficulties of the US empire funding its military arm via debt, not taxes. Also, I wish to talk about the history of China's money. For China was the inventor or leader in the use of currencies, paper fiat money and global trade relative values. It is also a tragic history which is even more important.