In this treacherous environment, it has become quite a tour de force to draft financial analyses reflecting on what is really going since underneath the relative tranquil surface, there is a wild ocean seeking to break through the very thin layer of varnish. Time to press the panic button!
Over the millennia people have depended on their governments to thrive and prosper. They believe that they have chosen their leaders accordingly. And each and every time their hopes failed to materialize, they just picked new politicians to fulfill them, engaging in a back and forth dance from one end to the other of the political spectrum. As a matter of fact breaking this vicious spin has become a vital for the survival of Mankind. How long is this going to last? Whi While not mentioning any time frame, the IMF said early this month that the world depression has already started. BofE confirmed the latter statement by admitting that the banking system looked like South Sea bubble. Here we go again?!
Debts and credit are not going to save us from a global demise, which *The Powers That Be* (TPTB) have delayed - again - to make the matters a lot worse. As of July 07, the EBC was engaged in a sinister policy pushing the weakest states into a debt-compound spiral that can only end in bond crises and/or the disintegration of Europe's monetary union, Pritchard reported. The problem is that there is more money destruction than creation and trying to stabilize the system is impossible since it is a pyramidal scheme. The bailout bubble keeps growing and will engulf us all eventually. ECB declared that governments have reached their borrowing limit.
The French workers in the auto part industry are infuriated and already consider a factory blow up if they are not compensate for their lost jobs. This is only a glimpse of what lies ahead, as the economy crumbles even further. A Hungarian website portrays the European Union as a complete rip-offs, not only because of its financial breakdown but a dark history that has helped shape 'The proto-totalitarian constitution (07/21/09)... more
Trichet said the large injection of funds in an effort to stimulate European economies had been the right response, but said there was a need to get public finances back under control as soon as possible. "There is a moment where you can't spend any more and you can't accumulate any more debt. I think we are at that moment," Trichet told Europe 1 radio.- Advertisement -
As America lives the end of the empire Michael Hudson
argues, some are finally realizing the truth - Both Obama's 2009 stimulus and President Bush's 2008 tax rebate were
'too small' - and fret about the implications. As of July 20, Bloomberg.com even mentioned that the U.S. rescue tab may
reach $23.7Tn. Do you think they care about a
$1Tn interest rate payment yearly? Those are now advocating for more government borrowing and stimulus
package. Indeed, its only recession since the Great Depression to wipe out all job growth from the previous expansion,
the WSJ recently said. There is
actually even a plan 'C' set up as a
Doctrine of Preemptive Bailouts which could cost taxpayers an additional $3.5TN. Cynically speaking,
Obama turns out being the best
President money could buy. Early this month, California was the first state to go under as it started printing its
own IOUs. This is simply beyond frightening! Another layer of toxic debts to out it bluntly. The situation is so dire
that it is also a place where
$100,000 a year will make you go broke due to its Tax System.
Martin Weiss writes: This is a day of reckoning for California and, ultimately, for all of America.
More and more Baby Boomers must rethink their retirement plans and admit that there won't be much left for their
kids who too are sliding down the social ladder. America's middle class is simply
vanishing. No matter how one looks at the picture, the evidence leads to Bernanke and Co since they are
the one in charge of keeping an eye on the flow of credit throughout the system. And obviously 'they' have been
lying about the nation's money supply, commonly named M1. Turning a
blind eye to their duty also condoned an unprecedented corruption: Bernanke, Paulson, Lewis, Thain should be
arrested, Judge Napolitano declared 2 weeks ago.
Soon there after, Congresswoman Kaptur
compared Federal Reserve to counterfeiters bankrupting the
system ! All of this on C-Span, a well known political broadcast!
Movie 'Global Ground Zero' Soon Playing
Alas it won't be a Hollywood blockbuster since wallets will be empty. 239 million people unemployed projected worldwide by the end of 2009. A study explained in FTimes.com that 'EU was doomed even before the crisi$' and this until 2041-2060. One cannot make this stuff up!. Countries are so deep in debt, they risk drowning in red ink, Kenneth Rogoff claimed in March 2009. The latter asserted that Government budget deficits are headed into the stratosphere. He called United States, Britain, Ireland and Spain 'ground zero' countries. He continued:
Countries with European-style growth rates could handle debt obligations of 60% of GDP when interest rates were low. But with debts in many countries rising to 80 per cent or 90 per cent of GDP, and with today's low interest rates clearly a temporary phenomenon, trouble is brewing. Many of the countries that are piling on massive quantities of debt to bail out their banks have only tepid medium-term growth prospects, raising real questions of solvency and sustainability. Italy, for example... Other countries, such as Ireland, Britain and the U.S., started with a much stronger fiscal position but may not be much better off when the smoke clears.
Of course as long as easy money was coming in, it was great. But as the tide goes down, China found lending irregularities in major banks; and of course Chinese authorities were quick to say that it wouldn't impact financial results for the sake of sustaining confidence as credit conditions in the West deteriorate on a daily basis. Although predictions are tricky since the wizards of the finance have succeeded in creating tricks that none could have guessed, the European site, GEAB, is following the cumulative impact of three 'rogue waves' and its entailing major upheaval, which they assume will occur by September/October 2009.
The genius pundits at the B.I.S (the central bank for central banks) released a study, on bloomberg.com, demonstrating that policy makers have a tendency to be late, tightening financial conditions slowly for fear of doing it prematurely or too severely; all of which will sow the seeds of the next financial 'boom-bust cycle'. That is great news isn't it? It merely means that our mega-college degrees in charge of the planetary welfare can assess the mess we are in but cannot do a thing to get us out of it. Why are they paid so much to fail their jobs? If you do not smell a rat, others do. Let's call a spade, a spade: this is a conspiracy! If you have read this far, you ought to take a glance at the revelations of Matt Taibbi on how Goldman Sachs' was involved in every major market manipulation since the Great Depression... this is in Rolling Stones Magazine, folks!