Is this another contrived crisis?
I have been talking about the collapsing US economy for years (before this blog existed) but the way in which Paulson and Bernanke are trying to pass this bailout bill has caused me even greater concern. After years of saying the credit crisis was contained and no big deal, all of a sudden they want to ram through Congress in a matter of days near dictatorial powers for the executive branch? The power to spend unlimited amounts of money with no oversight? They admit the bill was written months ago, so why the haste? As obvious as the pending collapse was to see, the repulsive scent of fraud and corruption is obvious to smell. Did they really believe they could handle the situation, or is this actually proceeding exactly according to plan? There is something we’re not being told about their true objectives. I don’t trust it for a second. The creature from Jekyll Island
What is the Federal Reserve? A banking cartel. Explanation below. The origin of the current financial crisis?
FDR steals the people’s gold, and ends the gold standard. Nixon ends the Bretton Woods agreement. The solution. Greenspan was right, derivatives do spread risk… but they don’t cap it.
I’m sure you have often heard the saying “if it ain’t broke, don’t fix it” — something similar should have been said many years ago about the complicated financial derivatives causing so many problems today. The risk associated with mortgages didn’t need to be spread out across the entire industry, the only result such a goal could ever have accomplished is to generate huge profits for massive risk takers abusing the system of “spreading risk” by dumping their crap on everyone else. Is Argentina a vision of America’s future?
A warning to China?
If China decided to diversify even a small fraction of its current US dollar reserves into gold, they would certainly cause the price to increase dramatically which could prove to be quite a lucrative strategy, especially given the size of their domestic gold production today. Is it possible western powers are flexing their muscles by demonstrating how unprofitable such a move would be by dropping the price of gold and reversing the course of the dollar with such ease? I can imaging the conversation between a Chinese and American official would go something like this… Welcome all bankrupt commodity funds
A few months ago Jim Rogers announced an interest in buying airlines, the interviewer (shocked and amazed) highlighted the obvious (as if he didn’t already know) that many are going bankrupt, and Jim responded by saying, “Good… bankruptcies are signs of a bottom, not signs of a top”. He is a regular customer of the industry, and he knows there exists strong demand for their service at current prices, which means they could probably get away with some price hikes to restore profitability. It’s all about the debt
The US federal debt now stands at about $9.6 trillion. Just let that number sink in for a moment… believe it or not, it gets worse. The debt is rising faster than income, a rapidly growing percentage of the debt is owed to foreigners, and the age of maturity is dropping like a rock. Inflation or Deflation
Many prominent and respected pessimists (a.k.a. realists) like Nouriel Roubini are not concerned about inflation, instead they applaud lower interest rates and government intervention as necessary to restrain the chaotic forces of the free market and valiantly battle the ominous perils of deflation. They are right, but only after they are very wrong, let me explain. |
Highest Rated
|
