-
-
"The Dangers of Neo-Conservative Economic Policies" by Ron Paul
"The dangers inherent in the foreign policy advocated by the neo-conservatives are well known. While many Americans have become increasingly aware of those dangers, far less attention has been focused on the dangers of neo-conservative economic policies. This issue is of critical importance right now, because many are mistakenly pointing their fingers at the free market as the culprit behind our current economic plight.
There are only a few in elected office who have any real loyalty to free markets and limited government. The agenda of neo-conservatives in the economy calls for a very active central government. Indeed, while there are some neo-conservatives who continue to use the rhetoric of limited government, and who oppose increases in the federal income tax as a way to maintain the political benefits that apply to those who talk about free markets, it is now the neo-conservatives who promote fiat monetary policies even more than those on the liberal left.
While I have been a strong proponent of cutting taxes on all Americans, and therefore supported the tax reductions offered by President Bush, the neo-cons argue that tax rate reduction alone is the key to “getting the government out of the way” of economic growth. Moreover, they invariably argue for tax reductions targeted toward the wealthy, and toward multinational corporations.
Over the years, I have offered several tax plans designed to assist hard working middle-class Americans to pay for their needs, whether these needs be health-care related, educational or to pay the costs of fuel. A few years back when I introduced one such bill, a prominent Republican approached me on the House Floor and asked, half in anger and half in amazement “why did you do that?” Shortly after that, the committee chairman at the time, also a Republican, sent out a release strongly attacking my tax cut bill.
So, while the liberal economic agenda includes more taxes and spending, the neo-con economic program simply looks to target some tax cuts to preferred groups, but ignore the economic big picture. The neo-con economic agenda is to “borrow and spend” and it is that agenda, even more than the tax and spend ways of many liberals, that has cast us in economic peril at this time.
Simply, on spending, the neo-cons and the liberals share views, just as they share similar views on foreign policy. While each side tries to claim the mantle of change, reality is that more of the same is not change.
The fiat monetary policy we now follow is the most significant factor contributing to our economic peril, and it is central to the neo-con agenda. As we hear new calls to empower the Federal Reserve Board, we should be aware that underlying all neo-conservative policies is the idea of monetary inflation. Inflation is the technique used to pay for the regulatory-state and the costs of policing the world."
Article originally appears at link from Congressman Ron Paul's (R-TX) Texas Straight Talk weekly column.
For more speeches, statements, videos and articles by Congressman Paul click here
http://www.house.gov/paul/
-----
Ron Paul's "Campaign for Liberty"
The mission of the Campaign for Liberty is to promote and defend the great American principles of individual liberty, constitutional government, sound money, free markets, and a noninterventionist foreign policy, by means of educational and political activity.
For more information please follow this link http://campaignforliberty.com/
-----
Photo by flickr user PaisleyPitbull
http://www.flickr.com/photos/paisleypitbull/2516320087/...
Licensed under Creative Commons Attribution-Noncommercial-Share Alike 2.0 Generic
http://creativecommons.org/licenses/by-nc-sa/2.0/deed.e... "The dangers inherent in the foreign policy advocated by the neo-conservatives are well known. While many Americans have become ... more -
Peter Schiff predicting our current economic condition back in 2006!
In 2006, Peter Schiff, President and Chief Global Strategist of Euro Pacific Capital, spoke at the Western Regional Mortgage Bankers Association Meeting in Las Vegas and told over 1000 mortgage brokers that they were about to be out of jobs. The entire presentation is worth watching but most of his comments regarding real estate begin at the fourth video (Above video is the intro and the remaining 7 appear below.)
Mr. Schiff, an advocate of Austrian Economics and former Ron Paul presidential campaign advisor, is the author of "Crashproof: How to profit from the coming economic collapse." He has appeared on CNBC, CNN, FBN, Bloomberg, CBS and other networks. CNBC has called him "Dr. Doom" and he is still criticized by the mainstream financial pundits despite his correct predictions of the tech and mortgage bubbles. In 2006, Peter Schiff, President and Chief Global Strategist of Euro Pacific Capital, spoke at the Western Regional Mortgage Bankers A... more -
Ron Paul comments on the Housing Bill or "The Mother Of All Bailouts"
In addition to throwing economic fundamentals out the window, Paul points out the peculiarities that mortgage brokers must now be fingerprinted and that credit card transactions will now be reported to the I.R.S. CONgress ≠ PROgress.
The following is excerpted from Congressman Paul's Statement on H.R. 3221:
"Madam Speaker, For several years, followers of the Austrian school of economics have warned that unless Congress moved to end the implicit government guarantee of Fannie Mae and Freddie Mac, and took other steps to disengage the US Government from the housing market, America would face a crisis in housing. This crisis would force Congress to chose between authorizing a taxpayer bailout of Fannie and Freddie, and other measures increasing government’s involvement in housing, or restoring a free-market in housing by ending government support for Fannie and Freddie and repealing all laws that interfere in housing. The bursting of the housing bubble, and the recent near-collapse in investor support for Fannie and Freddie has proven my fellow Austrians correct. Unfortunately, but not surprisingly, instead of ending the prior interventions in the housing market that are responsible for the current crisis, Congress is increasing the level of government intervention in the housing market. This is the equivalent of giving a drug addict another fix, which will only make the necessary withdrawal more painful.
The provision giving the Treasury Secretary a blank check to purchase Fannie and Freddie stock not only makes the implicit government guarantee of Fannie and Freddie explicit, it represents another unconstitutional delegation of Congress’ Constitutional authority to control the allocation of taxpayer dollars. While the Treasury Secretary has to file a report with Congress, the lack of any effective standards for the expenditure of funds makes it impossible for Congress to perform effective oversight on Treasury’s expenditures.
HR 3221 also takes another troubling step toward the creation of surveillance state by creating a Nationwide Mortgage Licensing System and Registry. This federal database will contain personal information about anyone wishing to work as a “loan originator.” “Loan originator" is defined broadly as anyone who "takes a residential loan application; and offers or negotiates terms of a residential mortgage loan for compensation or gain." According to some analysts, this definition is so broad as to cover part-time clerks and real estate agents who receive even minimal compensation from "originators." Additionally, this database forced on industry will be funded by fees paid to the federal banking agencies, yet another costly burden to the American taxpayers.
Among the information that will be collected from loan originators for inclusion in the federal database are fingerprints. Madam Speaker, giving the federal government the power to force Americans who wish to work in real estate to submit their fingerprints to a federal database opens the door to numerous abuses of privacy and civil liberties and establishes a dangerous precedent. Fingerprint databases and background checks have been no deterrent to espionage and fraud among governmental agencies, and will likewise fail to prevent fraud in the real estate market. I am amazed to see some members who are usually outspoken advocates of civil liberties and defenders of the Fourth Amendment support this new threat to privacy."
(End of excerpt)
Full transcript of Congressman Paul's Statement
http://www.house.gov/paul/congrec/congrec2008/cr072408h...
For more information on H.R. 3221 please visit THOMAS (The Library of Congress)
http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.03221: In addition to throwing economic fundamentals out the window, Paul points out the peculiarities that mortgage brokers must now be fing... more -
Analysis: Blame the dollar
The US economic power horse is running out of ideas and cash as it jostles with a massive national debt, housing and financial crises, rising inflation, and a depreciating currency.
This has all contributed to a growing tendency to live off credit amassed through petrodollars and foreign loans, leaving repayment for future generations.
Today, in much of America, communities and suburbs are dealing with a drastic increase in foreclosures and short sales. This has not been helped by the fact that gas is selling at over $1 a litre ($4 a gallon).
Standard monetary tools such as lowering or increasing interest rates can no longer provide quick fixes to the situation for both economic and political reasons.
Raising interest rates would compound the mortgage crisis while lowering it would drive the value of the US dollar abroad even lower.
But exercising control over the money supply could also damage the US economy: increasing the supply would lower the dollar's value even more, while decreasing supply would exacerbate the loans crisis.
In any case, control over the money supply would be anathema to US economic policy given the country's 'addiction' to deficit financing and run-away consumerism in recent decades.
So the US Federal Reserve is left virtually helpless.
It has, however, tried to help Wall Street by becoming a temporary lender and allow many investment firms the opportunity to avoid bankruptcy. Such an action by the Fed has not happened since the stock market fiascos in the 1930s.
The US government, however, can apply one clear fix to the situation - cut back overspending on a massive scale.
But this option too is off the table in an election year where 'victory' is being promised in endless wars on 'terrorism'.
And it is the recent wars in Afghanistan and Iraq that have contributed the lion's share to sapping America's resources...
Despite a trend by some economists and politicians to blame the current food and energy commodity price hikes on Opec or overpopulation, there is a clear picture emerging of deep structural problems in the world economy.
In particular, the main currency used for global trade in commodities, the US dollar, has been in steady decline not just against the Euro, but also against most other convertible currencies.
According to the US Federal Reserve, the dollar has dropped by around 65 per cent against the Euro, 31 per cent against the British Sterling, 45 per cent against the Canadian Dollar, and by 59 per cent against the Australian Dollar over the eight-year period since June 2000.
While the causes for this slide are debatable (and largely attributed to poor fundamentals in the US economy), the global impact of such a major drop in the value of the dollar is undeniable for two important reasons.
First, most global commodities traders utilise - and favour - the greenback over other currencies, despite a severe decline in its purchasing power.
Secondly, most countries - mainly in east Asia and among the major oil and gas exporters of the Arab Middle East - use the dollar as their reserve currency.
But they are paying the price. Despite their booming economies and elevated public spending, they are experiencing depreciating terms of trade and rising inflation.
More importantly, they have seen the value of their strategic currency reserves drop with the dollar's waning global strength.
(End of excerpt)
Full story at link by Massoud Hedeshi, international development expert, in Vienna// Al Jazeera English The US economic power horse is running out of ideas and cash as it jostles with a massive national debt, housing and financial crises,... more -
Ron Paul invites you to join the Revolution March in Washington D.C. on July 12th!
The Revolution March will be a "peaceful, non-violent march on the streets of Washington D.C. followed by a rally in support of restoring constitutional government as the founding fathers set forth. A R3VOLUTION that calls upon all Americans who believe in Life, Liberty and the Pursuit of Happiness. By involving as many volunteers and participants as we can, we intend to spread the know-how of mass mobilization and direct- action to the movement. As a peaceful law abiding movement, it is our responsibility to wisely and effectively use our constitutional right to assemble. By inviting ALL Americans, we hope to extend the R3VOLUTION to all people of all backgrounds in the hope of forming a more perfect union."
There are 16 confirmed speakers including:
- Naomi Wolf – advocate of progressive politics and author of "The End of America: A letter of warning to a young patriot". Ms. Wolfe will take a historical look at the rise of fascism, outlining the 10 steps necessary for a state to take control of individuals' lives.
- Michael Scheuer – 22 year veteran of the CIA and bestselling author of ‘Imperial Hubris’ to discuss American foreign policy and its implications on terrorism, security, and Iraq
- G. Edward Griffin – founder of Freedom Force International and author of The Creature from Jekyll Island, shares his in depth research and analysis concerning the Federal Reserve System and the forces behind its inception.
- Ron Paul - to speak about the future of the Revolution.
For more information on the Revolution March please visit
http://www.revolutionmarch.com/
* There have also been many Ronvoys arranged from all over the country. They include round trip travel by van and stop at campsites. Cheap lodging has also been arranged in DC. For details please visit
http://revolutionarytravel.eventbrite.com/ The Revolution March will be a "peaceful, non-violent march on the streets of Washington D.C. followed by a rally in support of r... more -
BIS warns of Great Depression dangers from credit spree
The Bank for International Settlements, the world's most prestigious financial body, has warned that years of loose monetary policy has fuelled a dangerous credit bubble, leaving the global economy more vulnerable to another 1930s-style slump than generally understood.
"Virtually nobody foresaw the Great Depression of the 1930s, or the crises which affected Japan and southeast Asia in the early and late 1990s. In fact, each downturn was preceded by a period of non-inflationary growth exuberant enough to lead many commentators to suggest that a 'new era' had arrived", said the bank.
The BIS, the ultimate bank of central bankers, pointed to a confluence a worrying signs, citing mass issuance of new-fangled credit instruments, soaring levels of household debt, extreme appetite for risk shown by investors, and entrenched imbalances in the world currency system.
(End of excerpt)
Full story at link by Ambrose Evans-Pritchard// Telegraph
-----
Image: Bank of International Settlements Headquarters by David Croll posted at Wikimedia Commons
http://en.wikipedia.org/wiki/Image:BankIntZahlungsausgl...
Licensed under GNU Free Documentation License
http://commons.wikimedia.org/wiki/Commons:GNU_Free_Docu... The Bank for International Settlements, the world's most prestigious financial body, has warned that years of loose monetary poli... more -
Perot Charts » Charting Government Fiscal Irresponsibility
Why this web site now? Because we are running out of time. The American people must wake up and face the reality that promises made in the past will soon bankrupt this nation...
"Ross Perot is the father of fiscal charts. PerotCharts.com will help Americans understand the serious fiscal challenges facing our nation. These new electronic charts will also serve to hold elected officials accountable while accelerating needed actions to help ensure that our collective future will be better than our past."
Hon. David M. Walker
President and CEO, Peter G. Peterson Foundation
Former U.S. Comptroller General (1998 - 2008)
Click the following link to view the "Challenges Facing Our Country" presentation from PerotCharts.com
http://perotcharts.com/challenges/ Why this web site now? Because we are running out of time. The American people must wake up and face the reality that promises made i... more -
RBS issues global stock and credit crash alert
The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.
"A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist.
(End of excerpt)
-----
Full story at link
By Ambrose Evans-Pritchard, International Business Editor// Telegraph
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/...
Image by Reuters The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next thre... more -
"Dollar Crisis Nearer Than Our Politicians Think?"
The Richter Report writes:
On June 3, 2008, The Gulf Times, a newspaper in Qatar, published an editorial which should send chills down the spine of any American who cares about the status of the dollar as the world's reserve currency. The title of the opinion piece said it all: "Paulson dollar hype is not worth a dime."
The article was published so as to coincide with Treasury Secretary Paulson's visit to Saudi Arabia, Qatar, and the United Arab Emirates. In that part of the world, if something gets published, it is a good bet that the government approves of it. Secretary Paulson has recently been quoted in the press as having claimed that the U.S. has the world's most liquid and open markets. He has also uttered the usual garbage about the "fact" that the U.S. supports a strong dollar policy. This, at a time when our total money supply (M3) is expanding at an annualized rate of between 16-17%! The truth of the matter is that our leaders support a WEAK DOLLAR policy. Do not listen to what these people say. Pay attention to what they do!
The reckless expansion of our money supply is THE REASON why the dollar buys less and less with each passing day. Inflation is always a monetary phenomenon. Higher prices are merely a symptom of excessive money/debt creation by central banks, governments, and by fractional reserve banking institutions.
Many nations have "pegged" their currencies to the dollar and are suffering severe problems with inflation as a result. If the U.S. actually had a "strong dollar" policy, the prices of oil, gasoline, diesel, natural gas, coal, uranium, corn, wheat, rice, soybeans, coffee, sugar, pork bellies, beef, chicken, orange juice, lead, zinc, nickel, copper, potash, steel, cement, molybdenum, rhodium, silver, platinum, palladium, and gold would be lower...
(Full story at link) The Richter Report writes: ... more -
Weimar Inflation in America
By James Turk
(Excerpt from main article)
Crude oil is $132. Corn is $6.The cost of everything is rising. Inflation is worsening, and it’s not hard to understand why. M3, the total quantity of dollars, is now growing by 17% per annum. Weimar inflation has arrived in America.
The Federal Reserve is following the footsteps of the central bank in Weimar Germany. It is the same path taken by many central banks that have issued countless fiat currencies based on nothing but government promises. It is the path to the fiat currency graveyard, and the once almighty US dollar – which long ago used to be “as good as gold”, just like the Reichsmark once held that same exalted title – is knocking at the graveyard’s gate.
Full article at link.
http://www.kitco.com/ind/Turk/turk_may262008.html
-----
James Turk is the Founder & Chairman of GoldMoney.com http://goldmoney.com/ . He is the co-author of The Coming Collapse of the Dollar, which has been updated for a newly released paperback version, now entitled The Collapse of the Dollar http://www.dollarcollapse.com .
Photo from Bernd Widdig's book “Culture and Inflation in Weimar Germany.”
Reprinted at www.kitco.com By James Turk (Excerpt from main article) ... more -
"It’s not an oil crisis, it’s a dollar crisis"
By Peter Schiff
President & Chief Global Strategist of Euro Pacific Capital
Author of "Crashproof: How to Profit from the Coming Economic Collapse"
"It is unfortunate that the Supreme Court, in its ruling this week that U.S. currency is unfair to the blind, did not make the next logical step and declare it unfair to everyone who buys gasoline.
In their search for explanations as to why oil has surged past $130 per barrel, Washington, Wall Street, and the financial media are as clueless as cavemen after a freak summer snow storm. Despite the head scratching, the blame game is nevertheless in full force. Speculators and big oil companies are being trotted out as scapegoats, and increased margin requirements and taxes on windfall profits and futures trading have been mentioned as appropriate sanctions. It should be clear that this is pure farce, and that no one understands what is actually happening.
The reality is that after years of reckless consumption and dollar debasement, Americans are now being priced out of markets over which they formerly held unchallenged title. As more affluent foreigners consume more of the resources and products they previously supplied to us, Americans are being forced to cut back. The rising dollar-based price of gasoline is simply an illustration of this global trend.
Poorly concealed behind contrived government statistics, the signs of America’s falling standard of living are everywhere; all one has to do is look. We are unloading SUVs for less desirable compacts, and are paying more to fly on crowded planes (where we pay to check luggage and dine only on what we bring onboard). We drink our lattes at McDonalds or not at all, and we increasingly forego dining out, trips to the mall, and vacations, just so we can scrape together enough to fill our gas tanks and kitchen pantries, pay taxes and insurance, or make credit card, mortgage or car payments.
The collective belt tightening is simply the down payment on the Government’s massive bailout of Wall Street investment banks and mortgage lenders. As the Fed creates money to buy bad mortgages and other shaky securities held by banks and brokerage firms, the value of the savings and wages of everyone on Main Street will continue to fall. As a result, the costs of products previously taken for granted have begun to bite.
The various housing bills and stimulus packages now passing through Congress will add significantly to the staggering final price tag. In the end, the “free lunch” currently being dished out by Washington will be the most expensive meal ever served. The cost will be borne by ordinary Americans citizens every time they open their wallets. Four dollar gasoline is just the beginning.
For all the talk of increased global demand, few seem to understand from where it actually comes. The surge in global demand is both a function of the increased purchasing power of foreign currencies and the fact that foreigners are choosing to spend more of their incomes themselves. In other words Greenspan’s famous “global savings glut” is turning into a global consumption binge, with Americans unable to crash the party. This trend will only get worse as the dollar-denominated price of just about everything that is either imported, or capable of being exported, goes through the roof.
We can look for scapegoats all we want but the simply fact is Americans are going to have to get used to a much lower standard of living. Those who have been putting all the food on our tables are finally pulling up chairs themselves.
For a more in depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar denominated investments, read my new book “Crash Proof: How to Profit from the Coming Economic Collapse".”
-----
Photo by Sheri Manson By Peter Schiff President & Chief Global Strategist of Euro Pacific Capital ... more -
Zimbabwe inflation now over 1 million percent
Weary Zimbabweans are facing a new wave of price increases that will put many basic goods even further out of their reach: a loaf of bread now costs what 12 new cars did a decade ago.
22 May 2008- ANGUS SHAW (Associated Press)
(AP Photo/Tsvangirayi Mukwazhi)
...
Full story at link. Weary Zimbabweans are facing a new wave of price increases that will put many basic goods even further out of their reach: a loaf of ... more -
"The Inevitable Collapse of the Dollar"
A short video by YouTube.com user GHoeberX covering America's unsustainable pattern of economic growth and the consequences of the path that we're on.
"We must borrow $3 billion from foreigners every business day to maintain our extravagent spending. Our national debt now is increasing $600 billion per year, and guess what, we print over $600 billion per year to keep the charade going. But there is a limit and I fear we are fast approaching it." ~ Congressman Ron Paul, M.D.
"Foreign interests have more control over the US economy than Americans, leaving the country in a state that is financially imprudent. More and more of our debt is held by foreign countries – some of which are our allies and some are not. The huge holdings of American government debt by countries such as China and Saudi Arabia could leave a powerful financial weapon in the hands of countries that may be hostile to US corporate and diplomatic interests.” ~ David Walker, US Comptroller General
"There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved." ~Ludwig von Mises
Recommended reading;
The Dollar Crisis, Richard Duncan
Crashproof: How to Profit from the Coming Economic Collapse, Peter Schiff
The Collapse of the Dollar and How to Profit From It, James Turk & John Rubino
A Bull In China, Jim Rogers
The Revolution: A Manifesto, Ron Paul A short video by YouTube.com user GHoeberX covering America's unsustainable pattern of economic growth and the consequences of th... more -
"House of Cards": Economic Crisis
This video produced by YouTube.com's aravoth delivers the economic diagnosis of the United States. Supporting arguments and commentaries are made by Peter Schiff (President of Europacific Capital), David Tice (Prudent Bear Fund Manager), Don Luskin (Trend Macro CIO), Steve Forbes (Forbes President & CEO) and Ron Paul (U.S. Congressman and 2008 Presidential Candidate).
"Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy." ~Congressman Ron Paul, M.D.
"For those who thought a Democratic congress would end the war in Iraq, think again: their new budget proposes supplemental funds totaling about $150 billion in 2008 and $50 billion in 2009 for Iraq. This is in addition to the ordinary Department of Defense budget of more than $500 billion, which the Democrats propose increasing each year just like the Republicans." ~Congressman Ron Paul, M.D. This video produced by YouTube.com's aravoth delivers the economic diagnosis of the United States. Supporting arguments and comm... more -
America's Total Debt Report: $53 Trillion and Soaring!
"America has become more a debt 'junkie' - - than ever before
with total debt of $53 Trillion - - and the highest debt ratio in history.
That's $175,154 per man, woman and child - - or $700,616 per family of 4,
$33,781 more debt per family than last year.
Last year total debt increased $4.3 Trillion, 5.5 times more than GDP.
External debt owed foreign interests increased $2.2 Trillion;
Household, business and financial sector debt soared 7-11%.
80% ($42 trillion) of total debt was created since 1990,
a period primarily driven by debt instead of by productive activity.
And, the above does not include un-funded pensions and medical promises.
2 great questions:
Can the production of debt forever replace the production of goods and savings?
Can Americans forever borrow their way to prosperity?
Easy Answer > NO WAY !!"
----
From "The Grandfather Economic Report"
by Michael Hodges "America has become more a debt 'junkie' - - than ever before ... more -
Congress asks Big Oil to justify big profits
Ha! Asking someone to change their ways of getting hard, blooded and cold cash it is never been easy. The fact is that this is sooo late. These guys should have been acting on this issue back in 1980's and they should have something better to offer by now to the American People. What I mean, they are sucking from the economy for so long and seating in their comfortable chairs for so long and have not come up with an alternative to their blooded worldwide mess. You got to read the whole article and see how these big fat cats gets away with murder. Ha! Asking someone to change their ways of getting hard, blooded and cold cash it is never been easy. The fact is that this is sooo la... more
-
Great Depression to Come Again?
Sinister outcasts from Princeton's economist Krugman - He expects the US housing market to drop 25% overall.
"I'm not one of those people who thinks the Great Depression is coming back, but there's lots of echoes. [...] I think we know more than we did then, and just the fact that we have a big federal government is a stabilizing factor. But the current problem is still pretty awesome."
At the same time, he admits that "what we're having looks like a minor-key version of the bank failures in the early 1930s. Now it's mostly not banks, it's markets that were serving the function of banks and institutions that were doing banklike stuff, and it's not as bad - at least so far. But it's a question. If we were actually having a string of bank failures, then we would know what to do. The government would essentially seize the banks and guarantee the deposits. But what do you do when you have a wave of failures of things like the auction-rate securities market, which was effectively a funny way of doing banking? If you look historically at other financial crises, they typically end up with big government bailouts. But how's that going to work in this case? We don't even know who to bail out. And part of the problem is we don't even know who owes what to whom."
I am wondering if today they really know more about troubles in the financial markets than in the 30's. The situation seems to be very different today - notwithstanding the perplexity about the economy's inner workings, which then as now seems do dominate. Not comforting, I would say...
What do you think? Sinister outcasts from Princeton's economist Krugman - He expects the US housing market to drop 25% overall. ... more -
World Economy Set To Crumble?
"Reality has finally caught up to the stock market. The American consumer is underwater, the banks are buried in dept, and the housing market is in terminal distress. The Dow is now below its 200-Day Moving Average -- the first big "sell" signal. Anything below 12,500 could trigger program-trading and crash the market. The increased volatility suggests that we are watching a "real time" meltdown."
....
The warning signs began quite long ago, subtly, slowly, but most people chose the illusory comfort of denial. Basically, what is happening is what Karl Marx, a remarkable economist among other talents, long ago was the first to predict. He said that capitalism contains within it the seeds of its own demise. He was absolutely right. "Reality has finally caught up to the stock market. The American consumer is underwater, the banks are buried in dept, and the ho... more -
Can't use those dollars at the Taj Mahal
Now we can add India's most famous tourist attraction to the growing list of dollar rejectors. What once was the currency of choice around the world, the dollar is taking a major beating by businesses around the world. Now we can add India's most famous tourist attraction to the growing list of dollar rejectors. What once was the currency of choi... more
-
The Dollar is a "Worthless Piece of Paper"
That's according to Iranian President Mahmoud Ahmadinejad. Looks like he is taking a cue from Jay-Z and Giselle. He suggested that OPEC stop trading oil in US dollars as its steady decline over the last year has affected revenues of OPEC members as they sell their oil exports. That's according to Iranian President Mahmoud Ahmadinejad. Looks like he is taking a cue from Jay-Z and Giselle. He suggested tha... more
-
related topics
Dollar Crisis
Contributors (70)
Dollar Crisis
