Activism Discussion: The Coming Major Economic Crash

The Coming Major Economic Crash
Posts: 13

Report Abuse

Use this form to report abuse or request takedown.
The requests are usually processed within 48 hours.

Page: 1 2   Next  (First | Last)

RH
2006-11-13 11:38:59 EST
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 supports 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 reported 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 support 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 support
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 support 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 corporatists 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 ship 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
article 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 old casinos! 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


Ken C. M.
2006-11-13 12:01:39 EST
RH wrote:
> 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 supports 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 reported 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 support 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 support
> 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 support 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 corporatists 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 ship 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
> article 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 old casinos! 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
>

Like another complete whack job conspiracy theory to me.

Ken

Robert Murray
2006-11-13 13:55:57 EST
Hello RH,

I thought I heard that China is, or was, buying dollars. I figure they were trying to prop up the dollar in order to continue its massive trade surplus with the US as long as they can.

I happen to think maybe the dollar should fall. My reasoning is thus: Due to massive productivity gains in the '90s a unit amount of labor has much more economic value than before the '90s. So money earned before the '90s has less economic value than money earned after the '90s. Thus the value of the dollars earned before the '90s should decrease relative to current dollars, or in other words, the dollar should fall. If not, then the dollar is overvalued, there will be a massive outflow of dollars from the US to foreign economies, and there will be a shortage of dollars here at home to keep the economy going. More dollars should be printed in order to create more jobs and eliminate our economic bottleneck caused by too much productivity.

To offset the increase in money supply and increased productivity, the economy could embark on major new projects that would have been impossible before. I am thinking of the colonization and industrialization of the near-Earth environment. We now have the productive capacity to undertake this, and it would be a good way to put people to work and get this country moving again. Also, here on Earth, I think we should revive the Moho project of the '60s and try to develop geothermal energy as the major energy source on Earth for the long-term. This again would be a good way to absorb the major productivity increases.

Bob

--
Dr. Robert Murray
Omicron Research Institute
www.omicronrsch.com
8063 N Stoddard Ave.
Kansas City, MO 64152-2025
(816) 695-1334

"RH" <halcon7roho@yahoo.com> wrote in message news:1163435939.179855.237280@b28g2000cwb.googlegroups.com...
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 supports 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 reported 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 support 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 support
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 support 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 corporatists 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 ship 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
article 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 old casinos! 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

Robert Murray
2006-11-13 14:01:38 EST
Hello Ken,

The massive trade deficit and increasing numbers of people unemployed or underemployed are very worrisome to me as well. I forget which former Fed chairman predicted a dollar "crisis" in the next five years, and that was two or three years ago. But it isn't just RH saying it. We can't sustain this trade deficit much longer and rely on other countries to produce all of our good and services instead of producing them ourselves. We are spending our "savings" -- wealth we generated in past decades, and before too long that will run out and this entire economy will be bankrupt. All we have to do to prevent this is get people working again and get this country moving in some meaningful direction, instead of sitting dead in the water while other countries like China are moving forward at breakneck speed.

Bob

--
Dr. Robert Murray
Omicron Research Institute
www.omicronrsch.com
8063 N Stoddard Ave.
Kansas City, MO 64152-2025
(816) 695-1334

"Ken C. M." <ken@up-yours-spammer.net> wrote in message news:w8udncdpOvloOcXYnZ2dnUVZ_vqdnZ2d@giganews.com...
RH wrote:
> 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 supports 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 reported 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 support 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 support
> 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 support 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 corporatists 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 ship 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
> article 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 old casinos! 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
>

Like another complete whack job conspiracy theory to me.

Ken

W*@yahoo.com
2006-11-13 14:02:15 EST
The monster Goliath is doomed to fall. Maybe after the collapse the
apemen in washington
will quit thumping their chests and babbeling about how great the USA
is. Such a collapse would force our military to get out of Iraq. We
wouldn't be able to afford the occupation.



Ken C. M. wrote:
> RH wrote:
> > 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 supports 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 reported 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 support 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 support
> > 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 support 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 corporatists 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 ship 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
> > article 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 old casinos! 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
> >
>
> Like another complete whack job conspiracy theory to me.
>
> Ken


Don S
2006-11-13 15:36:02 EST
wegona_befree@yahoo.com wrote:

>The monster Goliath is doomed to fall. Maybe after the collapse the
>apemen in washington
>will quit thumping their chests and babbeling about how great the USA
>is. Such a collapse would force our military to get out of Iraq. We
>wouldn't be able to afford the occupation.
>
>
>
>
Why do all the nut case's have "yahoo" address's?

Ken C. M.
2006-11-13 16:02:44 EST
Don S wrote:
> wegona_befree@yahoo.com wrote:
>
>> The monster Goliath is doomed to fall. Maybe after the collapse the
>> apemen in washington
>> will quit thumping their chests and babbeling about how great the USA
>> is. Such a collapse would force our military to get out of Iraq. We
>> wouldn't be able to afford the occupation.
>>
>>
>>
>>
> Why do all the nut case's have "yahoo" address's?

Because thats what they are a bunch of crazy YAHOOs.

Ken

RH
2006-11-21 10:27:14 EST
The total collapse of our corrupt economic system is something to look
forward to. After all is said and done, people will look back and know
that it was a good thing that had to happen.

Out with the old, in with the new! It's time for this dysfunctional
human family of ours to
quit acting like it's retarded. We are perfectly capable of building a
great civilization here, and we most certainly will.

This dreadfully screwed up garden (the world) will gradually become
more beautiful than you can imagine.

For more details visit:
http://www.share-international.org


Blash
2006-11-21 11:07:25 EST
RH at halcon7roho@yahoo.com wrote on 11/21/06 10:27 AM:

> The total collapse of our corrupt economic system is something to look
> forward to.

Now, how did I know that this post was from a "kook"???


Lawyerkill
2006-11-21 11:20:12 EST

RH wrote:
>
> This dreadfully screwed up garden (the world) will gradually become
> more beautiful than you can imagine.

Im going on down to yasgurs farm
Im going to join in a rock n roll band
Im going to camp out on the land
Im going to try an get my soul free
We are stardust
We are golden
And we've got to get ourselves
Back to the garden


LK<---stealing some of RH's magic mushrooms

Page: 1 2   Next  (First | Last)


2021 - UsenetArchives.com | Contact Us | Privacy | Stats | Site Search
Become our Patron