On Mon, 13 Nov 2006 14:05:29 -0500, wegona_befree@[EMAIL PROTECTED]
wrote
(in article <1163444729.257159.83950@[EMAIL PROTECTED]
>):
>
> CB wrote:
>> Don't worry, Dims will raise taxes and save the economy, right?
>
> Wishful thinking. It's too late for that.
>
> The monster Goliath is doomed to fall. Maybe after the collapse, the
> apemen in wa****ngton
> will quit thumping their chests and babbeling about how great the USA
> is. The collapse will force our military out of Iraq. We won't be able
> to afford the occupation.
We apparently don't have the will, why should anyone think we would have
the
money.
>
>
>>
>>
>> <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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