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Financial catastrophe imminent?

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Copyright © by W. R. McAfee, Sr. All rights reserved.

 

Sir Mervyn King Thinks He

Sees a Financial Crisis

Bank of England Chief Has an Epiphany

Financial catastrophe imminent?

Uncle Merv ought to know.  He and his ilk at the Bank of International Settlements (BIS—that owns and funds the world’s central banks; the only banks that can print money for a country) in Basel, Switzerland, and the ten square mile area known as The Mall in Washington, D.C., worked to set it up.

A three-minute backgrounder. (again).

Wall Street and England’s parliament, and their confederates, are the designated lightening rods to draw the rocks during this economic “collapse.” More

Stimulus Part Deux? It’s Only Electrons After All

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House approves $447 billion omnibus spending measure

“The House voted Thursday to approve half a dozen spending bills contained in one large package, as the chamber races to complete its work before adjourning for the year.”

Should we be “grateful” that only $3.9 billion is earmarks?
House OKs $3.9 billion in earmarks in spending bill

Why not? Let one Starve on the Sanctuary:

“Earmark sponsors also defended the projects as important to the nation’s economic recovery. For example, Rep. Sam Farr (D-Carmel), who secured $800,000 for the Monterey Bay Sanctuary Scenic Trail, said the project would help generate tourism dollars.”

Edumicate the masses on the aquatic livestock….that they cannot catch legally :
“Rep. Jeff Flake (R-Ariz.), a leading critic of pork-barrel spending, singled out for criticism $200,000 provided for the Aquatic Adventures Science Education Foundation in San Diego. ”

and tantalize them with tattered jean design:
“$250,000 for textile research at UC Davis.”

Yes Legislative Branch – there is a Santa Claus – and he resides within and close to the American Taxpayers wallet uhm – heart.

sniff. sniff.

The G-20 Washout

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http://www.informationclearinghouse.info/article21252.htm

By Mike Whitney

November 17, 2008 “Information Clearinghouse” — As expected, the G-20 Economic Summit in Washington turned out to be a total bust. None of the problems which have pushed the global economy to the brink of disaster were resolved and none of the main players who gamed the system with their toxic securities were held accountable. Instead, the visiting dignitaries gorged themselves on stuffed quail and roast rack of lamb before settling on a toothless “Statement on Financial Markets” which accomplished absolutely nothing. The one noteworthy clause in the entire document is a two paragraph indictment of the United States as the perpetrator of the financial crisis. At least they got that right.

From the text:

“Root Causes of the Current Crisis: During a period of strong global growth, growing capital flows, and prolonged stability earlier this decade, market participants sought higher yields without an adequate appreciation of the risks and failed to exercise proper due diligence. At the same time, weak underwriting standards, unsound risk management practices, increasingly complex and opaque financial products, and consequent excessive leverage combined to create vulnerabilities in the system. Policy-makers, regulators and supervisors, in some advanced countries, did not adequately appreciate and address the risks building up in financial markets, keep pace with financial innovation, or take into account the systemic ramifications of domestic regulatory actions.

Major underlying factors to the current situation were, among others, inconsistent and insufficiently coordinated macroeconomic policies, inadequate structural reforms, which led to unsustainable global macroeconomic outcomes. These developments, together, contributed to excesses and ultimately resulted in severe market disruption.”

Bingo. The contagion started on Wall Street and that’s where the responsibility lies. It was the result of the Fed’s reckless low interest rates and lack of government oversight. This allowed market participants to create massive amounts of leverage via speculative bets on under-capitalized debt-instruments. The resulting collapse in value of all asset-classes across the spectrum has created a gigantic multi-trillion dollar capital hole in the global financial system which has precipitated violent swings in the stock markets, tightening credit, currency dislocations, soaring unemployment and deflation. Almost all of todays economic woes can be traced back to legislation that was promoted by key members of the Clinton and Bush administrations. (Many of who will now serve in the Obama White House) The G 20s statement puts the blame squarely where it belongs; on the Federal Reserve and Wall Street. More

Economists’ Open Letter Calls For Active Response to Economic Crisis

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October 8, 2008

http://www.progressive-economics.ca/2008/10/07/open-letter/

Ottawa: Today, 85 economists released an Open Letter criticizing the federal government for its inaction in light of the deepening global financial crisis, the growing probability of a worldwide recession, and structural weaknesses in the Canadian economy. The letter challenges government claims that Canada¹s ³fundamentals² are strong, and highlights the significant deterioration in Canada¹s economic performance over the last two years. Despite recent government statements, there remains a wide disconnect between the appropriate policy response to the looming downturn, and the ³stay-the-course² approach still being enunciated by the Prime Minister.
 

 

http://www.progressive-economics.ca/2008/10/07/open-letter/

For further information or comment, please contact:

 

 

 

www.canadianactionparty.ca Telephone Connie Fogal at: 604 872 2128

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