Friday, July 10, 2009

who will be bitten in the end?

The Commodity Futures Trading Commission has indicated in testimony before Congress this week their intention to crack down on speculative trading especially in oil without waiting for legislation. It seems much of the worst abuses were illegal all along but the Bush Crime Family simply refused to enforce the law. (sah-prise, sah-prise) In the same vein, the DOD is again moving to enforce anti-trust laws on the books since the 1870’s and not enforced since the 1970’s. At least this is what the Obama Adm. says they are doing. I’m not selling my position in canned goods.

The Obama Adm. has also stated they will "pull back the veil" on the people that have been doing the market manipulation that brought us to this point. The small problem is that many of the people who work for Obama used to work for these same companies. There is an old saying about ex-poachers making the best game keepers. We shall see.

Still even if Obama’s regulators and prosecutors move aggressively to contain this pathogen they still have to deal with the underlying problems this disease has caused. It has so weakened the body of our economy that there is a risk of imminent death of our way of life or at least so crippling that democracy could become a wistful memory.

Economic numbers continue to track the slide of 1930 and many are worse, especially if you peel back the whitewash that has been laid over the methods the government uses to make its reports. For example the government has been denying the true number of homeless people but if you look at the numbers of homeless school kids, it is clear there is a massive problem. We know this only because of a law passed some years ago that requires schools to keep these statistics.

The things that keep these problems from being more obvious is that the social safety net is keeping us from having millions of starving people in the streets and the credit card from China is keeping store shelves in the US filled and that keeps people working in the service economy. This is all being maintained by printing money, these dollars are becoming increasingly difficult to unload on anyone. The global instability over the past year has driven smaller countries toward the Dollar but that trend is reversing and at some point will either become a rush to get rid of Dollars or they will simply fade away as they are replaced by other currencies from countries who actually have something to sell.

Republicans chant that our problems are from Americans not living with in our means. But Republicans are completely dependent on this play money that isn’t really worth anything. Hypocrisy is a way of life for Republicans but at some point the reality of this has to grow teeth. The question is who will be bitten by this.


Anonymous said...

It would be nice if the people that are now in the administration would be working to use their inside information to help prevent such problems in the future...but it looks to me as if they are using their knowledge and positions to protect the industry, not the citizens or the country and prepare themselves to return to the same industry having protected the industry from any real change or indeed trying to see if we should look at the "money" industry as something that has to be regulated to protect not only American citizens but the country.

But I think the people that actually pull the levers think that what is good for Wall Street (and the other markets) is good for America and find it easy to see that while Wall Street has had some great times in the last thirty years Main Street and Mockingbird Lane have not had good times and has at best stayed static while Wall Street has enjoyed some great times and got the people that have been left out to actually bail out Wall Street. I'd think Wall Street views the average American with contempt for being being so stupid to expect to work and produce goods and services and be rewarded for it rather than be smart enough to "con" people out of money.

We have been lied to for years and a lot of the reasons was to help business and Wall Street at the expense of working and retired artificially low rate of inflation so that wages (as in union contracts) and such things as Social Security payments do not go up to match the actual increase of the cost of living.

Andis said...

Your post is directly inline with that explosive article done by Mat Taibbi. I just wish our country had the maturity and attention span it takes to eat an elephant this big, one bit at a time.

Anonymous said...

Tis a pity that few will read Tabbi's articles and until people wake up the Goldman Sachs and others will get to play the tunes the rest of us dance to for a while longer and when they go down it will be the end of American capitalism and the death will be well deserved.