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-- achieve it by looting the Treasury;-- build a crushing debt burden;
-- undertake "the most drastic curtailment in public spending in American history;"
-- provide no fiscal stimulus for the economy; in fact, do the opposite by requiring no mandate that banks lend; instead, let them speculate and use hundreds of billions to buy real assets (the "real economy") on the cheap after their stock prices have been manipulated to crash;
-- impoverish tens of millions of Americans through reduced social services when they're losing jobs, homes, savings, pensions and futures; and at the same time
-- privatize America to pay for reckless spending - everything: "public services," infrastructure, highways, national parks, various other state assets, the entire State sold on the cheap to plunderers for profit - "the State is being taken over by the banks, the State is being privatized;" the public has no idea what's happening or that their government is betraying them.
America is for sale as a commodity. Serfdom is planned for most people, and Obama is as much at fault as Bush so let's be clear. He's either a consenting co-conspirator in the looting of the country or a willing dupe letting it happen in his name. Either way, he's part of a crime syndicate driving world economies and most people everywhere to ruin to enrich and further empower a select Wall Street elite - the same ones and their lobbyists that provided millions for his campaign.
On March 12 at the Business Roundtable, Obama assured attending CEOs that serving corporate America is Priority One, especially the financial elite with as much of the nation's resources as they need. He said that the "only way we can truly unlock credit and heal our financial system for good is to address the state of our banking system. And I know that this crisis is at the top of your immediate concerns - and I promise you, it is at the top of mine as well." He means that he'll continue to:
-- stiff-arm the public with empty rhetoric, hollow promises, and little in the way of real help;
-- strip-mine the nation's wealth for Wall Street and the rest of the FIRE sector (finance, insurance and real estate); and
-- provide smaller amounts for other business sectors at his discretion but not enough to keep bankers and vulture investors from buying much of it on the cheap.
Follow the data as the plot unfolds. On March 12, the Fed reported that American household net worth plunged by the largest amount in over half a century during 2008 Q 4 - a record 9% from Q 3 and the sixth quarterly drop in a row. Net worth represents total consumer wealth - homes, savings, pensions, investments, and other material assets minus liabilities.
It hit an all-time high of $64.36 trillion in 2007 Q 2, then fell every quarter ever since. Through 2008 Q 4, it's at $51.48, or a drop of 20% from its peak and declining. At the same time, US credit quality is deteriorating as measured by the cost of buying default insurance (CDSs) on government debt - it's soaring as it is for private companies like GE and Berkshire-Hathaway.
It costs US bond investors 98 basis points for protection, up from 7 basis points in late 2007, or a 14-fold increase, and it's no surprise why. Debt creation has skyrocketed to unimaginable levels raising the specter that today's deflation will become tomorrow's inflation, perhaps hyperinflation, and that's bearish for bonds, stocks, the economy, and ordinary people losing purchasing power.
It's got China worried according to a March 13 New York Times report. As the largest US debt holder, Premier Wen Jiabao wants assurance that the investment is safe at a time he has reason to have doubts. "To be honest," he said, "I am definitely a little worried," and why not. Money creation has been excessive. Interest rates are rock bottom, and America is reeling under a mountain of unsustainable debt as it continues to add more of it. According to some, interest rates have only one way to go - up, although it's likely to be a while before it happens.
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