Archives About Staff BagNews is dedicated to visual politics, media literacy and the analysis of news images.
January 17, 2008

The Latest Invasion

(click for full size)

Economist-Invasion-CoverIsn’t it strange that The Economist would use a military analogy to illustrate the bailout of major U.S. financial institutions by foreign governments — particularly by countries in the Persian Gulf?  (After China, isn’t that Kuwait coming in from the right?)

Also, and I’m not sure about this, but isn’t gold more a medium of intergovernmental exchange, whereas the foreign cash coming in is for stakes in U.S. financial institutions that have squandered it on real estate loans, and other kinds of speculation?

(Makes me think the gold analogy is supposed to make these bailout investments seem more official somehow.)

Any thoughts?

The invasion of the sovereign-wealth funds (The Economist)

(image: Jan 19th 2008 edition. economist.com)

  • rapier

    Sorry, gold stopped being a method of settlement or exchange between central banks in 1971, only 37 years ago.

  • rapier

    Oops. continued from above. I don’t think any “official” backing of the bailouts is implied. The image is a hodge podge of metaphors bringing to mind, the failing expensive war in Iraq with shadows of Vietnam and that failure Because every helicopter rescue brings to mind the embassy evacuation which was arguably the most important image in post WWII American history. The final signifier of loss. The ultimate shame. Now that shame is being compounded, rubbed in our faces, as the very vehicle of our retreat and loss is being shown coming to rescue us, from abroad!
    These erstwhile rescues of our financial institutions by foreigners is going to produce political shock waves of gigantic scope. Put it on your radar. The great financiers and money men are going to be taken out and shot again and again over the coming years, figuratively.
    The gold in this image is a reminder that the dollar is garbage. Further hints of the shame of the 70’s as Nixon abondoned the gold exchange rate mechanism. As a practical matter the gold in nonsense in the picture. Then again,showing dollars just wouldn’t do the job.

  • http://msm.grumpybumpers.com mcc

    Sorry, gold stopped being a method of settlement or exchange between central banks in 1971, only 37 years ago… The gold in this image is a reminder that the dollar is garbage. Further hints of the shame of the 70’s as Nixon abondoned the gold exchange rate mechanism.
    Clearly the gold is a “dog whistle” message reflecting The Economist’s secret editorial devotion to Ron Paul.

  • Steve

    Cut and paste, yuk… at least they could have rotated the blades to different degrees on each ‘cop(y)ter. Cheap art.
    This cover seems to fall into “the terrorist’s” plan to attack the US economic structure – not buildings and people like our leaders have repeatedly made us (US) believe.
    There will be a huge transition of wealth. Follow the money.
    The Democracy in retreat headline is most telling.

  • http://www.naiahedc.org Uncle Bestraffe

    Thoughts? Disgust, primarily. I’ve felt the US economy was a Kabuki dance since the mid-80s. Now I see it was actually worse, like some sort of Ponzi scheme, only it’s too late to divest.
    I moved the bulk of my holdings into foreign large and small caps four years ago. My latest statement shows a healthy return, boosted a bit by this latest “development”–highlighted by your cover shot.
    US Blue Chips? Ha. It does sort of show how all of this stuff is connected. First they kill off language in the first blow against journalism (circa 1984)…”war” on drugs, invading Grenada, then Panama….endless war for the sake of war. Then they work on partisan bickering and other nonsence while buying off Congress; finally, with GWB/Cheny–well, was there ever any doubt? I worked technology in Real-Estate in the early 90s, and I could see where this sub-prime crap would end up quite clearly–my advice to anyone who cared to listen? Go 15-year fixed from a local bank or preferably, credit union.

  • http://ruinsofempire.blogspot.com/ Rafael

    When your only business book is the Legend of the Five Rings, everything looks like a war.

  • http://stealthadvisor.blogspot.com stealth advisor

    On Gold:
    Gold is probably in a bull market. It tends to do well in extreme cases. I think the run up in gold has been pricing in, in advance, the major problems that are now coming to light. Soft commodities, wheat, corn, etc. and oil are similar cases.
    With the current melt down in housing, world stock markets, CDOs, CLOs, CDSs, (those are all derivative “investments”) the Fed will have to cut interest rates potentially back to historic lows.
    The effects of this may be:
    1. Higher gold, oil, soft commodity prices
    2. Lower stock prices world wide (underway today)
    3. Lower Dollar at least eventually if not lower now…
    4. Higher unemployment
    5. Recession
    6. Lower housing prices in many markets for years
    One should probably reallocate in consideration of current events.
    -stealth

Refresh Archives

Random Notes