by Leonce Gaiter
Unemployment benefit payouts hit a 26-year high. Foreclosures up 30% from a year ago. Layoffs abound. 43 states face budget deficits, forcing them to cut jobs, programs, and funds for education and social services.
A major story on CNN.com is, “‘Mad Men’ star’s hair is ‘bane of my existence.’” The Fox News front page promises Glenn Beck on the “Washington State Christmas Scandal.”
Economists fear deflation and depression. Two of the Big Three automakers may not survive through the end of the year.
The Washington Post’s Kathleen Parker writes about a 27 year-old on Facebook, and a Hillary Clinton cardboard cutout. Jackson Diehl luxuriates in a bubble bath of quid pro quo and self-congratulations for his attendance at a Bush photo-op.
Food stamp usage nears an all-time high with more than 31.5 million Americans using the program. Americans are losing their livelihoods and having trouble buying food to eat.
I sense a disconnect.
Paul Joseph Watson
Monday, December 15, 2008
Frighteningly accurate trends forecaster Gerald Celente says that America will see riots similar to those currently ongoing in Greece and that the cause will be a hyper-inflationary depression, leading to the inevitable use of troops and mercenaries to deal with the crisis as Americans are incarcerated in internment camps.
As we have highlighted before, Celente’s accuracy is stunning – he predicted the 1987 crash, the sub-prime mortgage crisis and the “panic of 2008,” and is routinely cited even by mainstream news networks as highly credible.
The cause of the riots would be a hyper-inflationary depression, Celente told interviewer Lew Rockwell, causing Americans to revolt in similar circumstances that we have witnessed recently in Iceland and Greece. The trouble would be sparked off by Obama declaring a “bank holiday” whereby people won’t be able to withdraw their money.
“What’s going on in Greece with these riots has nothing to do with a 15-year-old boy being killed, that was only the spark that ignited the pent up, really hatred and disdain, people have for the scandals and corrupt government and the same thing is going on in this country as well,” said Celente.
Celente reiterated his prediction of a revolution and riots in America, and said that the first signs of it could even emerge before the end of the year.
CARD CHECK: “You have nothing to lose but your chains”
By Mike Whitney
Global Research, December 9, 2008
Even though the Federal Reserve is now the biggest single participant in the financial system, the myth of a “free market” still lingers on. It’s mind boggling. The Fed has expanded its balance sheet by $2 trillion, guaranteed $8.3 trillion of dodgy mortgage-backed paper, provided a backstop for bank deposits, money markets, commercial paper, and created 8 separate lending facilities to ensure that underwater financial institutions can still appear to be solvent. The whole system is a state subsidized operation buoyed on a taxpayer-provided flotation device which bears no resemblance to an invisible hand. More astonishing, is the massive power grab engineered by the Fed which has taken place without the slightest protest from 535 shell-shocked congressmen and senators. Elected officials have either kept their finger in the air to see which way the political wind is blowing or timidly caved in to Treasury’s every multi-billion dollar demand. It’s flagrant blackmail and everyone knows it. Congressional oversight is an oxymoron.
Anyone who has followed the financial crisis from its origins knows that the Fed’s bloody fingerprints are all over the crime scene. Still, that hasn’t stopped well-meaning liberal economists (Krugman, Stiglitz, Reich) from supporting Bernanke’s increasingly unorthodox attempts to flood the financial system with liquidity (“quantitative easing”) and invoke whatever radical strategy pops into his head. In fact, many of the experts believe that Bernanke should do even more given the sheer size of the meltdown. There’s growing support for a gigantic stimulus package ($700 billion) which will focus on road construction, infrastructure, state aid, extensions to unemployment benefits and green technologies. The Obama camp hopes that government programs and deficit spending will make up for the huge losses in aggregate demand which threaten to drag prices down even further in a self-reinforcing deflationary cycle. Even so, its natural to wonder at the wisdom of giving even more power to the very people who created the mess to begin with and who seem more interested in proving their depression-fighting theories than throwing a lifeline to struggling homeowners, consumers or auto workers. Maybe its time to try something different.
by Michel Chossudovsky
Global Research, November 15, 2008
The financial crisis is deepening, with the risk of seriously disrupting the system of international payments.
This crisis is far more serious than the Great Depression. All major sectors of the global economy are affected. Recent reports suggest that the system of Letters of Credit as well as international shipping, which constitute the lifeline of the international trading system, are potentially in jeopardy.
The proposed bank “bailout” under the so-called Troubled Asset Relief Program (TARP) is not a “solution” to the crisis but the “cause” of further collapse.
The “bailout” contributes to a further process of destabilization of the financial architecture. It transfers large amounts of public money, at taxpayers expense, into the hands of private financiers. It leads to a spiraling public debt and an unprecedented centralization of banking power. Moreover, the bailout money is used by the financial giants to secure corporate acquisitions both in the financial sector and the real economy.
Since the beginning of trade, the fat cat banksters just won’t go away.
The following excerpts come from Andrew Carrington Hitchcock’s History of the Money Changers
Economists continually try and sell the public the idea that recessions or depressions are a natural part of what they call the “business cycle”. This timeline below will prove that is simply not the case. Recessions and depressions only occur because the Central Bankers manipulate the money supply, to ensure more and more is in their hands and less and less is in the hands of the people.
F. William Engdahl
November 24, 2008
On Friday November 21, the world came within a hair’s breadth of the most colossal financial collapse in history according to bankers on the inside of events with whom we have contact. The trigger was the bank which only two years ago was America’s largest, Citigroup. The size of the US Government de facto nationalization of the $2 trillion banking institution is an indication of shocks yet to come in other major US and perhaps European banks thought to be ‘too big to fail.’
Paulson demanded, and got from a labile US Congress, Democrat as well as Republican, sole discretion over how and where he can invest the $700 billion, to date with no effective oversight. It amounts to the Treasury Secretary in effect ‘spitting into the wind’ in terms of resolving the fundamental crisis.
The clumsy way in which US Treasury Secretary Henry Paulson, himself not a banker but a Wall Street ‘investment banker’, whose experience has been in the quite different world of buying and selling stocks or bonds or underwriting and selling same, has handled the unfolding crisis has been worse than incompetent. It has made a grave situation into a globally alarming one.
The announcement by US Treasury Secretary Henry Paulson together with Federal Reserve chief Ben Bernanke, that the US Government will bail out the two largest guarantors of housing mortgage debt—Fannie Mae and Freddie Mac—far from calming financial markets, has confirmed what we have said repeatedly in this space: The Financial Tsunami which began in August 2007 in the relatively small “sub-prime” high risk US mortgage securitization market, far from being over, is only gathering momentum. As with the Tsunami which devastated Asia in wave after terrifying wave in December 2004, the financial Tsunami we are witnessing is a low-amplitude, long-wave phenomenon of trillions of dollars of financial securities being unwound, defaulted upon, and dumped into the market.