[col. writ. 9/24/08] (c) '08 Mumia Abu-Jamal
In a matter of months, a new man will take the oath of office for the presidency.
He will be hobbled by a sea of red ink, and therefore bereft of most of the resources to bring his campaign promises to reality.
For as the fires continue to rage throughout the financial markets, they will turn tax returns into smoke.
As an old saying (sorta) goes, 'stuff rolls downhill.'
As businesses tighten up, credit tightens up, and spending tightens up.
This economy (as even the Mad Prince Bush has urged) relies on consumption, or shopping, to function. Anything that weakens this process has a whiplash effect throughout the economy.
Earlier this year, American financier George Soros announced, shortly after the failure of the economic talks at Davos, Switzerland, that the U.S. economy has reached a new stage marking an end of the era. "The current crisis is not only the bust that follows the housing boom", Soros explained, adding, "It's basically the end of a 60-year period of continuing credit expansion based on the dollar as the reserve currency."
Soros made these observations in January of 2008.
What created this crisis was rampant crony capitalism, and unless that is addressed by deep structural transformation, these problems will only worsen.
That is virtually inevitable.