Don't worry, Dims will raise taxes and save the economy, right?
--
CB
America needs Michael Savage to be her Media General
http://www.homestead.com/prosites-prs/index.html
<maxhemust@[EMAIL PROTECTED]
> wrote in message
news:1163437045.676576.303960@[EMAIL PROTECTED]
> Bush's Chernobyl Economy
> By Mike Whitney
>
> In the next few months, a financial crisis will arise somewhere in the
> world which will jolt the American economy and trigger a swift and
> precipitous decline in the value of the dollar.
>
> This is not speculation; it will happen and there is nothing that the
> Bush administration can do to stop it.
>
> All of the traditional sup****ts for the dollar have been removed by
> the shrinking economy, a massive $800 billion account deficit,
> dramatic increases in the money supply, and the reckless manipulation
> of interest rates.
>
> Now, the noose is tightening. Our foreign trade partners can see that
> we are drowning in red ink and are refusing to buy back our debt in
> the form of US Treasuries. This is a death sentence for the dollar. It
> means that in a matter of months the once-mighty greenback will crash
> through the floor and free-fall through open space.
>
> Mike Swanson of the WallStreetWindow explains the worrisome details
> related to last month's trade deficit:
>
> "Just a few days ago the US Treasury re****ted that the net capital
> inflows from the rest of the world into the US fell for a 6th month in
> a row. Private (purchases) from abroad fell to $34.7 billion in August
> and from $72.9 billion in July. Asian central banks made up for the
> shortfall. If they hadn't the current account deficit would have
> exploded. The NY Times quoted Ashraf Laidi, a currency analyst at MG
> Financial Group as saying, "foreign central banks saved the dollar
> from disaster. The stability of the bond market is at the mercy of
> Asian purchases of US Treasuries."
>
> Swanson poses an interesting theory, but it can't be verified since we
> the Fed stopped printing the M-3 (which would provide the relevant
> facts about the current cash inflows) and since China and Japan have
> slowed their purchases of UST Bonds.
>
> Jim Willie of GoldenJackass.com, offers an entirely different theory
> in his recent article "Spent Dollar Momentum". Willie opines:
>
> "Behind the scenes are the many illicit London-based firms busily
> buying US Treasury Bonds with freshly-printed money from the Dept of
> the Treasury. Their tracks are covered by the blackout on the money
> supply statistic. (M-3) An isolated US government with a well-oiled
> printing press as the primary sup****t device makes for a dangerous
> currency situation."
>
> Willie's "conspiracy theory" jives nicely with the US Treasury's
> figures on the "Foreign Financing of US Government Debt" (June 2006)
> Surprisingly, between 2005 and 2006 our friends in the United Kingdom
> purchased an additional $142 billion of USD bringing their stockpile
> of dollars to $201.4?!?
>
> Why?
>
> Why would UK investors suddenly stock up on dollars when everyone else
> in the currency market is bemoaning the greenback's systemic problems?
>
> Could it be that banks in the UK are just hiding the paper trail for
> friends in America who want to forestall a collapse in the dollar
> until after the election?
>
> Of course, there could be another explanation for the irregular
> activity in cash inflows, (purchase of US Treasuries) that is, that
> we're still living in a "faith-based" Wonderland where our overseas
> trading partners are more than willing to buy an endless supply of
> worthless paper from a well-meaning Goliath who is busy spreading
> democracy to the "great unwashed" in developing world.
>
> ...
>
> Last week an article by Ambrose Evans-Pritchard appeared in the UK
> Telegraph, where he stated:
>
> "(Treasury Secretary) Paulson re-activated the secretive sup****t
> team to prevent markets meltdown. Judging by their body language, the
> US authorities believe that the roaring bull-market is just a sucker's
> rally before the inevitable storm hits.the plunge protection team is a
> shadowy body with powers to sup****t stock-index, currency, and credit
> futures in a crash. Otherwise known as the working group on financial
> markets, it was created by Ronald Reagan to prevent a repeat of the
> Wall Street meltdown in October 1987".Paulson has set up "a command
> center at the US Treasury that will track global markets and serve as
> an operations base in the next crisis." (Members include the heads at
> Treasury, Federal Reserve and Securities and Exchange Commission)
>
> Evans-Pritchard adds: "Mr. Paulson has asked the team to examine
> systemic risk posed by hedge funds and derivatives, and the
> government's ability to respond to a financial crisisWe need to be
> vigilant and make sure we are thinking through all of the various
> risks and that we are being very careful here. Do we have enough
> liquidity in the system?'"
>
> And, finally, Evans-Pritchard queries: (Do) Mr. Paulson and Mr. Cox
> (SEC) know something that we do not: whether other hedge funds are in
> the same sinking boat as Amaranth Advisors and Vega Management,
> keel-hauled by bets on natural gas and bonds? Or whether currency
> traders with record short positions on the Japanese Yen and Swiss
> Franc are about to learn the perils of the Carry Trade, a high-stakes
> game of chicken where you bet against fundamentals with high leverage
> to make a quick profit. Everybody knows it will blow up if the dollar
> goes into free fall".
>
> So what is Paulson anticipating?
>
> Gabriel Kolko offers us a clue in a CounterPunch article "Why a Global
> Economic Deluge Looms":
>
> "The entire global financial structure is becoming uncontrollable
> in crucial ways its nominal leaders never expected. Instability is its
> hallmarkContradictions now wrack the world's financial system, and if
> we are to believe the institutions and personalities who have been in
> the forefront of the defense of capitalism, it may well be on the
> verge of serious crisis."
>
> Deregulation and reduced market transparency have created a plethora
> of financial instruments which are relatively untested and
> extraordinarily volatile. By eliminating the "rules of the game"
> market-savvy investors have raked in the profits but reshaped the
> economic landscape in a way that no one can predict what the ultimate
> outcome will be. Hedge funds are now loaded with over-leveraged
> debt-instruments that promise a generous return in an up-tempo market,
> but certain doom in an economic downturn. Now, that all the arrows are
> pointed towards recession the devastating effects of this new
> "liberalized" system will be felt throughout the global economy.
>
> No one knows what is in store for these high-risk hedge funds which
> have only been in existence for a short time and which Americans have
> dumped trillions of their hard-earned savings. As Kolko says, "The
> credit derivative market was almost non-existent in 2001, grew fairly
> slowly until 2004, and went into the stratosphere, reaching $17.3
> trillion by the end of 2005."
>
> Is it any wonder why the main players at the Fed, the Treasury and the
> SEC are feeling a bit jittery?
>
> Any shock to the markets could set off a system-wide cataclysm. Just
> this week, for example, Taiwan was bracing for a stock market crash
> following the surprise indictment of first-lady Wu Shu-chen. Even
> relatively small incidents like this on the other side of the world
> create the potential for contagion that can spread rapidly in this new
> world of globalized markets. The danger is even greater when those
> markets are built on a foundation of sand.
>
> Hank Paulson was doubtless selected as Treasury Secretary as the best
> possible "industry-insider" to oversee the unwinding of America's
> humongous account imbalances and flimsy "deregulated" markets. His job
> is to ensure that, at the end of the day, US banking giants, the
> Federal Reserve, and western elites still control the global economic
> system and that the dollar reigns supreme. Whatever happens to the
> American middle class in the process is of no consequence.
> ...
>
> The country is now facing a Chernobyl-type meltdown and the prospects
> for changing direction appear to be minimal. The foundation blocks for
> sound economic growth and prosperity have been replaced by a misguided
> faith in military adventurism and police state repression. The results
> are plain to see.
>
> We are now more vulnerable to a seismic economic event than anytime
> since the Great Depression. The cor****atists and the money-lenders
> have absconded with the nation's wealth; gutting the manufacturing
> sector, creating enormous equity bubbles, and raffling off our vital
> industries to foreign investors. At the same time, the Bush
> administration has sown dragons-teeth around the world leaving the US
> with precious few friends to throw us a lifeline when ****p starts
> taking on water.
>
> Hard times are on the way; only this time it'll be detention centers
> instead of soup kitchens.
>
> ###
> The above is an excerpt of a very long/detailed article. See the whole
> thing here:
>
> http://www.counterpunch.org/whitney11092006.html
> ===============
>
> The collapse will be a good thing. A new economic system that is good
> for everyone, will be created to replace the corrupt US economy!
> Shortly after the total collapse of the stock markets - watch for the
> one prophesied by all the major world religions. All will be well.
> http://share-international.org/
> ---------
>
> "Without sharing there can be no justice;
> without justice there can be no peace;
> without peace there can be no future...
> "Man must change or die. There is no other course."
> Maitreya, the World Teacher
>
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