• Question
  • The Impending Global Liquidity Crisis - Part 2

    Asked on 6/9/2007

    can run up more debts!” (http://elainemeinelsupkis.typepad.com/money_matters/)

    Get it? It’s all just recycled dollars---debt piled on debt piled on debt piled on debt-- repeat ad infinitum. America’s equities portfolio = 1% assets, 99% pure helium.

    This may explain why Treasury Secretary Hank Paulson has been frantically beating the bushes for “foreign investment” to keep the stock market bubble afloat. He has no interest in rebuilding America’s industries or increasing our competitiveness. No way. What he’s looking for is a quick liquidity-fix to keep the over-bloated stock market sputtering along while more wealth is shifted to mega-rich corporations. In fact, no one in Washington is even talking about renovating America’s battered manufacturing sector. What do they care if we turn into a nation of busboys and bed-pan cleaners? They’re just hanging around long enough to sell off whatever’s left of our national assets then it’s “off to new markets in the Far East”.

    And, they are doing a great job, too! The United States is handing over 1.5% of its national wealth every year to foreign investors while the American public continues to snooze away.

    We’re having a giant garage sale and everything must go---roads, water, mineral rights, natural gas etc. We’re getting “picked clean” and no one seems to care.

    The boys in Washington and Wall Street don’t work for you and me. They’re destroying the currency and selling everything that isn’t bolted to the floor. Then, they’ll pack-off to Asia and Europe where they can begin the scavenging-cycle all over again.

    How bad will it get in the USA?

    Consider these comments from Princeton University economist Alan Blinder, who recently attended the business summit at Davos, Switzerland: (summarized by Rep. Ron Paul)

    “Word has it that there may be plans yet again to “outsource” highly skilled American jobs to other countries. Approximately 40-million American jobs could be at stake and yet US workers have not been told or consulted about it, until now. Just to put the number of 40 million into perspective, that is more than twice the amount of people that are employed in manufacturing. (According to Alan Blinder) The ‘choice’ jobs of skilled Americans could be lost and given to foreign countries within the next decade or two.”

    40 million high-paying US jobs will be outsourced to lower-wage countries within the decade?!?

    This is a blueprint for the economic destruction of America!

    Maybe this will finally convince the dozy American public that the corporatists who run Washington are a disloyal gaggle of traitorous swine. “Globalization” is public relations swindle designed to steal jobs, plunder the economy, and shift wealth to ruling elites.

    The name of the game now is to keep the stock market flying-high for as long as possible while the transfer of wealth continues unabated. That means the hucksters on Wall Street will have to devise even better scams for expanding debt---increasing margin limits, escalating derivatives trading, loosening accounting standards, inflating the booming hedge fund industry, and---the new darling of Wall Street---increasing the mega-mergers, the biggest swindle of all.

    These over-leveraged mergers create boatloads of new credit, but add nothing to GDP. They reflect the basic disconnect between the stock market and the real economy. May is on track to be the biggest month for global mergers ever recorded. Marketwatch reports:

    “For the year to date, companies have announced at least $2.2 trillion in deals worldwide. Of these, US companies have engaged in $830 billion”.

    But look at the figures---Do they sound familiar?

    Once again, the insightful Elaine Supkis makes this observation:

    “Note that the 'deals' roughly equal our trade deficit. This isn't accidental. They are one and the same! And I will never see this fact stated so baldly in our media. No one dares say it in public.”

    Wow; she’s right. Our trade deficit is

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  • Categories: Your Life in Retirement, Politics and Policy

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