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Global economic disaster


Tiger Moth

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I went through a few of the links. Scary stuff indeed! Thanks guys, you've left me very depressed. :sad:

 

I needed it though. I needed the cold water splashed on my face.

 

I don't think America's fear is socialism. They fear the word but if socialism can be packaged and marketed under a different term, the american people will buy it. We have it to some extent anyway.

 

I think what America's fear is not having it all. We are spoiled and we don't want to be told we have to tighten our collective belts and live without all the things we are accustomed to. That's we pass on so much of our debt to our chidlren and children's children. We are the most selfish bunch of sons of bitches there are.

 

We don't want to change. The '73 gas prices didn't end big cars. We still had the SUVs years later.

 

If gas prices drop for any considerable time. Long enough where memories get a wee bit fuzzy we'll buy the next line of gas guzzlers that automakers come up with.

 

Culturally, its how we are. We are own worst enemy. The hyper infaltion of the '20s turned a whole generation of Germans into fiscal conservatives and the german government were inflation averse for decades. Americans wouldn't have changed.

 

The political system is skewed. Its the person that promises everything, even if its not possible, that usually wins. The truth and stark reality doesn't get votes. The opposition tears you apart in ads.

 

I'll continue to think that half of us don't know and the other half don't want to. We're truly and royall f**ked. We simply don't want to make the necessary change as a nation. When we finally are forced to by forces (be they economic, political or otherwise) it will be too little too late.

 

As far as FEMA, i've posted on them before. They have martial power ability and can suspend habeus corpus and the very tenets of the constitution under the guise of 'national emergency'.

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During the WWII era, Arizona had several detention centers. The idea of more modern detention centers should not surprise us. I listened to one lawyer a while ago and she claimed one detention site is located on a military base and is run by the Border Patrol (Homeland Security). I go by the place every once in a while and what the lawyer said is that the detention center is on an Air Base so it doesn't have to comply with local laws. Curently, people are arrested, detained and brought to a Federal court but with the new detention centers, people will be arrested and detained and the cost of taking them to court will be done away with. Sounds a little like 1984.

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Culturally, its how we are. We are own worst enemy. The hyper infaltion of the '20s turned a whole generation of Germans into fiscal conservatives and the german government were inflation averse for decades. Americans wouldn't have changed.

 

The political system is skewed. Its the person that promises everything, even if its not possible, that usually wins. The truth and stark reality doesn't get votes. The opposition tears you apart in ads.

 

One huge difference between European and US voters is that European voters tend vote with their purses, i.e. the party which promises the most social stability and wealth, mostly wins. In the US extra economical motives, like abortion, gay rights, family values, seem to have played a major role in past elections except that last one.

Also the US voters seem to be much more handicapped by narrow ideological doctrines than in Western Europe (see "socialism" and health care), otherwise it would be hard to understand why GWB was elected two times even though the income of the majority of US citizens while health care costs went up...

 

IMHO the US voters had asked to be fucked big time.

Only when the GOP ideological house of cards went up in flames people seem to take off they ideological lenses for the first time in over a decade.

 

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I have been wondering why the FED did this and donâ??t think the answer is a very good one.

 

The FED and Treasury paid AIGs creditors (counterparties on the credit default swaps) including overseas banks 100 cents on the dollar. The $80 billion in payments were not made public at the time. AIG could have been forced into bankruptcy but the FED took it over instead. Why would the Fed do that and then not negotiate down the payments to creditors?

 

According to the general counsel to the NY Fed Reserve Bank (Geithner was the chairman of the NY Fed when the decision to bailout AIG was made): it was easy to explain at that time "why an entity you kept out of bankruptcy was paying its legitimate and lawfully incurred debts. That didn't seem hard."

 

Of course it didnâ??t seem hard. It was taxpayer money so why not pay the global banking cartel 100%. The Fed also uses its time worn excuse that the global economy was going to collapse. That hardly explains why the Fed didnâ??t make creditors take a partial haircut as it used the US taxpayer to save the world. Negotiating down the payments to be made on CDSs would not have collapsed the world economy it is a serious load of shit that Bernanke is shoveling. It also fails to explain why foreign taxpayers did not have to bailout those foreign banks if those banks were going to collapse.

 

The question of whether to do something so egregiously costly and controversial should have been decided by representatives of the people. This crisis has exposed some extreme shortfalls in American democracy to the point one has to question whether a country is democratic when the people have no say whether to assume a mountain of debt that will take decades or even a century to repay.

 

Using the American taxpayer in this way, and recklessly paying 100% of a private institutions debts is like having a whole new taxation regime that is answerable to no one and serves the purpose of a cartel that sits above the government.

 

According to John Coffee, a Columbia University law professor who is called up by Congress to testify when they need an explanation, â??the swaps might've been settled at 20 cents on the dollar. In other words, the government had leverage and chose not to use it."

 

"So I think that there has been an absence of hard bargaining here, and it is because the Fed puts its highest priority on its loyalty to the banking system and tends to subordinate economizing with taxpayer dollars."

 

Quotes above are from this article:

http://www.mcclatchydc.com/251/story/65609.html

 

So the AIG excuse for looting the American people is no longer a secret yet it continues. Interesting times.

 

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