(unedited)
The Fed, the Treasury, Congress, all of them, apparently is endowed with an unlimited capability to do the wrong thing at the wrong time. Lowering the prime rate and providing money to unchartered private investment banks who have engaged in fraud are examples of doing exactly and precisely what shouldn’t be done to shore-up our economy.
The current financial crisis can’t be fixed by congress authorizing the federal government to purchase bundles of defaulted home loans using funds guaranteed by the taxpayer. The so-called “bailout”, $700 billion worth, will serve only to further devalue the U.S. dollar. And so goeth the dollar, goeth everything else that is “economic”.
As a matter of fact, U.S. monetary policy over the last fifteen years has focused on the de-valuation of the U.S. dollar. Yep, hard to believe, isn’t it? This means the Clinton/Greenspan/Rubin administration and Bush/Bernanke/Paulson administration had the same plan. It’s been same-o, same-o, Democrats and Republicans, different flavors, but nevertheless still “ice cream” . In this case, it’s different ideologies, but nevertheless still crooks .
The plan to devalue the dollar is one part of a counter-intuitive, convoluted and private scheme steeped in the belief that a steadily weakening dollar is needed in order to create wealth. The other part of the scheme is to encourage maximum leverage. In other words, buy an asset for little or no money down, and the weakening dollar fires inflation and increases the asset’s value. Ergo: the creation of wealth. It’s ridiculous. It’s a casino game for Plutocrats.
The bailout will not address any of the major financial and economic woes faced by our nation. Our chartered banks need money, our household debt is too great, and our disposable income is in a sharp decline. In some instances people are choosing between medicine and food. The bailout won’t help in any of these critical areas.
The only thing the bailout will accomplish is temporarily supporting Wall Street stock values. This may not be that noticeable because the slide of the market will be fast. However, investors will have an opportunity to sell their shares and avoid really massive losses.
With their coffers recharged with cash, some investors will again leverage their money by repurchasing the same assets, this time at salvage values. Other investors will take their money off-shore or invest it into commodities. The cycle will repeat itself, leveraged purchasing and deflation of durable goods and inflation of commodities. Complicated, in a way…it will be easier to see going that it is to see coming. The majority of Americans will become further indentured. It will reach the point our entire system of monetization will need to be replaced.
The only thing that won’t change is the debt the public owes to banks. Wages will decline and so will our personal wealth, our personal assets such as home and property. Our equity in our homes will go negative, but we will still need to repay our debts. People will walk away from their homes. The next crisis will emege.
The next crisis will stimulate an agenda to replace the current U.S. (and worldwide) system of monetization. This crisis won’t be called another financial storm of the century. It will be called the mother of all storms. Or Armageddon. It will bring great pain and upheaval to our nation. I doubt it will be a bloodless change-over to a new system of monetization. I pray I am wrong.
Our elected representatives are ether co-conspirators or they are hostages. If they are co-conspirators, they should be thrown out of office by the voters. They should be charged with treason. There is an undeclared war between America-the-nation-state, and Amerika-the-Korporate-state. I am not holding my breath until the public figures this out.
If congress isn’t co-conspiring, then they are hostages suffering from version of the “Stockholm syndrome”. They have bonded-with-the-perpetrators; the Wall Street brokerages and private investment bankers.
What ever be the reality, conspiracy or hostage, Congress has switched their allegiance away from the American people. Our elected representatives now show their loyalty to a powerful abuser, an extortor.
The irony is this perpetrator didn’t just burst into the room, Congress created it – a tentacled monster of private banksters – through its own misfeasance, both acts of omission and commission. In passing the bailout legislation, Congress has mistakenly or consciously grabbed a bull its tail.
Seeing as Congress is us, and you are me, and we are all together, we will either kicked in the teeth or shit on…perhaps both.
And, by-the-way, just when did the DJIA become the tell-all of U.S. economic health? {My next post will discuss this.]
~Rhome~
PLEASE NOTE: Today is Nov. 19, 2009 more than a year after this point. I took it as necessary to bold face excerpts.
Peace,
~Rhome~
Posted by rhomethyrst 
Rhomethyrst's Voice... 