"The crash we have been expecting finally happened last week and it was global in scope. The resulting recession/depression will be severe, since recent recessions have been staggered, meaning they never occurred all at once everywhere. While some national economies fell into recession, others were healthy and could pull the weak ones back up with their demand. When all economies crash at once, only governments can stimulate demand by massive deficit spending. But the United States, home to the world’s reserve currency, has been engaging in massive deficit spending throughout the last expansion, leaving it in a very weak position to do more. But do more it must, as we have seen with bailout after bailout in recent weeks, all of which will be added to the deficit and the public debt. That will increase interest rates, thereby plunging the U.S. economy further into full-scale depression. The result will most likely be a collapse in the value of the dollar and the end of the United States as a military hegemonic superpower."
Finally the voice behind the Signs of the Economic Apocylypse which many readers here will have followed for several years was able to write the draft epitaph.
The analysis and the history is simple. The banks and associated institutions successivelt prepared, produced and published fraudulent balance sheets.
On the basis of these convoluted lies - which even their highly prized and highly praised, not to say highly priced and highly paid CEO's were happy to claim a sedentary ignorance they declared profits , bonuses, rewards and dividends that when paid destroyed the capital base of those institutions.
Now, forced to expose the extent of their lies which runs worldwide to trillions , they have turned to the only source of succour, support and funds ... the poor sap, the taxpayer.
Nicely timed as the US is sat like a constipate awaiting the result of a rigged election.
No-one dare raise a voice of protest. Anywhere.
Worst week for global markets since 1929
"Amid the market turmoil, the reality of the decay of American capitalism was summed up by the fact that General Motors felt compelled to announce that it was not contemplating filing for bankruptcy. After decades of plant closures, wage cuts and attacks on the benefits and pensions of auto workers, justified by the claim that they were necessary to restore the biggest US auto maker to profitability and enhance its competitive position, this one-time icon of American capitalism is teetering on the edge of collapse."
18/3/05 GM makes you sick
US manufacturing industry has failed to understand and react to a rapidly changing world. Emboldened by the strident, pre-emptive, transformational world of the Bush imperialist gang, exporting by force of arms and bribery their distorted vision of democracy, their own has been disembowelled.
Black Monday II coming soon at a Stock Market near you.