More Government BS Amidst Real Economic Disaster
by, 01-29-2008 at 12:46 AM (16715 Views)
“The banks and other financials have more losses from the subprime-mortgage mess on their books that they haven't yet confessed. Worse, the mortgage debacle has spread to other types of debt, with banks and other financial companies reporting mounting losses in their credit card and auto loan portfolios. And worst of all, the next big leg of the crisis -- the one I think will mark the true bottom -- has just started. As the economy slows, the default rate is rising for corporate debt, especially for the high-risk, high-yield corporate debt called ‘junk’ by many of us. That's opening a Pandora's box of potential write-downs that could dwarf the losses in the mortgage market.” The next banking crisis on the way By Jim Jubak http://articles.moneycentral.msn.com.../JubaksJournal
The US economy is in deep trouble but for the most part AmeriKKKans are clueless just how precarious the situation really is. AmeriKKKans are woefully ignorant about how the economy works for numerous reasons: an educational system that fails to teach real world financial realities, a mass media wedded to the class interests and agenda of the ruling oligarchy whose mission is to distract and bamboozle us and our own apathy and ignorance. The media and government treat us like mushrooms, they deliberately keep us in the dark and feed us excrement so we will not connect the dots and comprehend the totality of corruption, fraud and treachery that exists. The government lies and manipulates the figures in their economic reports and unemployment statistics. The Bu$h administration is not the only one guilty of such dishonesty although they are the most egregious liars in AmeriKKKan history. Every administration since WWII has done it and for the most part got away with it. Check out an article entitled MANIPULATING THE MASSES by John Williams at http://www.conservababes.com/forums/...sion/index.php to glean an understanding just how pervasive the rigging of government figures and stats is. The really scary thing is, the banks and corporations are doing the exact same thing. When the corporate media uses these figures it buttressed the disinformation and legitimized the agendas the various administrations pushed. This disinformation much like the Bu$h administrations lies about Iraqi WMD, is accepted by the public because it is echoed by the corporate media. These lies are rarely challenged except by a few niche Websites or blogs.
Recently Henry Paulson the Secretary of the Treasury and the Federal Reserve Chairman Ben Bernanke called for immediate government intervention to stem an impending economic downturn. Their pleas to an Executive branch and highly partisan Congress that have done everything to help the military industrial complex, Wall Street and major corporations at the expense of working AmeriKKKans are really not out of concern for working folks. They just want to prop up the system as long as they can and avoid a panic. But Paulson and Bernanke’s pleas have caused alarm around the world as investors and bankers are reading worst case scenario into their statements. Global markets immediately responded by sending stocks tumbling.
Given the fact, the last thing they want to do is create a global panic you know things are really really bad for them to ask the government to get involved. Conditions are so bad the worst news has yet to be reported. The whole system is imploding, the various components are starting to topple like dominoes. There are so many bubbles out there that have already burst or are about to burst its scary: mortgage, credit, credit card and soon the shadow banking industry comprised of hedge funds and derivatives will start to unravel. If bond and insurance markets start to fall it will exacerbate the already evaporating trust between bankers. If this spreads across the board, major panic will set in. Eventually we could see runs on banks or major bank insolvencies. Then the whole house of cards will tumble.
Bu$h’s “economic stimulus” is more smoke and mirrors designed to dupe the masses into thinking the government’s actions will jump start a collapsing economy. The “stimulus package” Bu$h , the Democrats, Paulson and the Fed are pushing is a PR scam. It represents the same fiscal irresponsibility and failed policies that got us in this mess in the first place. Cranking up the Fed’s printing presses, borrowing to dole out “tax rebates” or passing more tax reductions for business will further drive the value of the US dollar down while drastically increasing the already insupportable federal debt. Additional money stock (true inflation) will cause the cost of living to increase while only producing minuscule results employment wise.
Remember, the federal government is broke and in major hock to foreign banks and countries. This means most of the money for the tax rebates must be borrowed or printed out of thin air by the Federal Reserve. Either way it will not solve the problem because the Fed’s inflationary monetary and credit policies caused the problems in the fist place. By now you get the drift, Bu$h’s “stimulus package” is more okey-doke, more PR smoke and mirrors. Bu$h tried that in 2001 and it didn’t work. Just like then, the rebates did not really stimulate the economy nor did they trickle down and improve the lot of the majority of AmeriKKKans. Some businesses did pick up production and their profits did increase but the so called recovery didn’t produce the requisite number of jobs to meet annual increases in the work aged population. The mortgage meltdown has spread to other sectors of the economy and the fallout is also spreading. This is the reason US unemployment is so high despite the government’s rigged figures.
Bu$h’s latest tax rebates are not going to stop the off shoring of AmeriKKkan jobs nor will they reverse the negative impact globalization is having on the US economy and working folks. AmeriKKKans’ purchasing power and standard of living will continue to decline while debt will rise (unless we wake up and stop being mindless consumers) due to the workings of compound interest. Nevertheless Joe and Jane Sixpack will take Bu$h’s rebates and run, not realizing they will suffer in the long run. They will spend the money oblivious to the truth, there are no free lunches.
Total Trackbacks 0