|
o
At long last, a good portion of mainstream economists now concede that a ‘double dip’ recession is in the cards for the United States. To head off the pain, sixteen top economists addressed an open letter to the President urging him to “stimulate” the economy with a massive new round of government spending. We feel this is a recipe for driving a recession into a depression. However, there can be few doubts that such a move is being considered in the highest policy circles. Flush from victories in financial regulation and healthcare, the Administration may feel the conditions are ripe to push through another bold initiative.
If so, the United States may find itself in a very diminishing bloc of nations who fail to appreciate the magnitude of the global debt crisis. Its policies will become increasingly at odds with the drift of other world powers. Given American dependence on economic support from abroad, the risks of such isolation are significant.
On July 20th, UK Prime Minister David Cameron made his first official visit to the US. At a joint press conference that followed the private meeting, President Obama and Mr. Cameron papered over the fundamental economic disagreements that separate both governments.
At his core, Mr. Obama is in favor of spending his way out of the current recession. Most of the post-World War II occupants of the White House have followed the same course. Although the policy is short-sighted, it serves nevertheless to protect the competitive advantage of keeping the US dollar at the heart of the international monetary system. Spending expands global credit and creates the illusion of an invincible dollar, increasing the system’s popularity at home and abroad. In a self-perpetuating feedback mechanism, the dollar’s unique international position allows it to get away with even more spending.
That`s like having the annoying relative you hate stay with you permanently, cus if you kick him out, you`re cut out of the will. lol
ReplyDeletethe Bush tax cuts will expire. The pendulum will swing toward trickle up economics. There was 8 years of job loss. There will be 8 years of unemployment benefits. Banks will have to grant the former middle class some disposable income, in order to keep the payments rolling in.
ReplyDeleteThe people may one day wake up and ask why a minority of bankers are controlling the majority of the middle class. Then look out.
The dollar hegemony as the worlds smoke and mirrors reserve currency in trade and finance is dead ,along long with the superpower empire status of a dying de-industrialised Ponzi Empire.
ReplyDeleteMathias Chang explains how the charade/con how the worlds central bankers and fiat /paper money bankers are each manipulating their paper currencies values in co-ordinated scams to prop up the dollar value ,despite the inevitable conclusion of the endgame.
“America is Insolvent. Why Would China's Rating Agency Rate US Sovereign Debt AA When it is No Better Than Junk?”
A short easy to read and understand article explains the main reasons why “junk is junk” an AAA rated dollar is bullshit .
Read the full article here @
http://www.globalresearch.ca/index.php?context=va&aid=20176
Extracts:
The US dollar $, the Euro €, the pound £, the Yen ¥ etc. are all fiat currencies – they have no intrinsic value. Their value is a number arbitrarily printed on the paper and sanctioned by central bankers as “legal tender”.
In essence, they are all junk – toilet paper currencies. So how do they “float” against each other under the global floating exchange rate system?..
How does one compare a junk from another? How does one determine the exchange value of one junk from another? A junk is a junk!
Forget about the market forces determining the values of the various junk currencies. It is determined by central bankers and no one else.
“So how do we know for sure that the US should be rated as junk?
Simple! Apply common sense to the facts before you.
Since the United States defaulted on its debts in 1971, when President Nixon refused global and sovereign creditors the right of redemption in gold for US dollars, it has been living on borrowed time. The United States conned the world into accepting its toilet paper currency and for those who dared to question the integrity of its fiat currency, the mighty US military was deployed to ensure compliance.
The global banking elites then employed subservient economists the world over to tout the merits of the floating exchange rate as the mechanism to determine a currency’s value. Countries were compelled by threats of war or coups to peg their currency to the dollar. The dollar became the “anchor” in place of gold. Trade had to be denominated in US dollar which gave the United States an undue advantage.
This “pegging” gave an illusion of strength of the US dollar and creditworthiness of the United States. While others have to produce and earn an income in a “local currency” and then exchange it for US dollars to import and or purchase goods (as over 80% of global trade is denominated in dollars), the “paper tiger United States” need only to print money to pay for goods and services when its income was insufficient to pay and sustain its standard of living.
For over 37 years, the United States got away with this con! People the world over sold their produce to the United States in exchange for a paper with a number printed on it, a number denoting its value i.e. a 100 dollar note etc. People just accepted the number printed on the paper as reflective of the “real value” of the currency. In reality it has no value. It costs a few cents to print the toilet paper currency.
Through slick propaganda, people were led to believe that the value is as printed on the paper. No one dare to question the absurdity of this proposition….
1. The US has outsourced so much of their previous exports to China and other countries that it does not have enough meaningful products to export anymore to make a substantial difference in the trade deficit.
2. For the past decade, the main exports of the US were, and continue to be “Financial Products” – the junks wrapped up as CDOs and rated AAA and sold to gullible investors (i.e. gamblers) all over the world. The US was the centre of the global derivatives casino, managed by the Shadow Banking Cartel…
The guy sounds like a loser. He believes the gimmicks pulled by Obama when he meets with the chumps of other nations as if Obama is actually trying to do things or figure out how to better the economy.
ReplyDeleteObama is a communist, he is working with many other communists to destroy the country. Healthcare, Wallstreet, Cap and Trade, his failure to give reinforcements to the troops, his crap economic policies, etc., etc... all things to purposely screw up an already screwed up situation.
If you take a healthy person and put them in a battle they become traumatized = PTSD. They need to recover by focusing on happy, positive things and staying away from violence or stressful scenarios. But if you instead take that temporarily unstable person and put them in a battle again they become mentally destroyed.
Obama is doing to the country what drugs do to a recovering addict.
Bush did more damage in 8 years that can never be repaired, now in less than 2 years, it is all obama's fault, he is not doing a good job, but he had only failure from bush to start with, not a good starting point.
ReplyDelete7:09, Obama is not a communist; you don't even know the meaning of the word.
ReplyDeleteWall St. was bailed out under Bush. Cap and Trade didn't pass. It was Bush and Cheney who didn't supply our troops with protective armor. We don't have health care, we have insurance care.
Maybe you're the one who needs drugs.
Obama will ride this crisis until he has given the unions and special interests all the money he can print. Will you fools on the left ever wake up?????
ReplyDelete