Monday, February 22, 2010

Starting over

The FDIC cleaned up another failed bank chain and three smaller banks on Friday at an “estimated” cost of 1.1 billion. It’s an estimated amount since the Feds needed to guarantee billions of commercial loans that remain on the books as the assets transfer to the new owners. The watchdog agency created by Congress to monitor the banks estimates that nearly half of all commercial loans are currently under water. These are the “good” loans, not the ones that have already failed but unlike home mortgages these loans must be renewed every five years or so and if they are underwater at renewal time, they default.

The spreading defaults create more unemployment of course and it is becoming a way of life for many who find their jobs are gone forever. By April some 2.7 million will lose unemployment if Congress doesn’t approve yet another extension. As the economy continues to spiral down, the states continue to have revenues fall short of projections, lower and lower projections.

As it appears that stimulus money will not be continued, the governors of the states are getting panicking. The cuts they’ve already made are hurting their local economies and less people working means less sales and income tax. Lower incomes translates into falling real-estate prices and less tax revenue and draconian cuts in local government. Then you get another round of cuts from the state and it feeds back again.

The Tea Baggers want no government as long as their benefits aren’t cut. They say government doesn’t create jobs, private business does, but how will that happen with all the jobs going to India and China. The service sector can’t sell service to people whose jobs are gone. The only thing keeping the service sector going is selling to the government or its employees. The retail sector is selling Chinese goods to people who are either working for the government or getting unemployment from the government.

Without China providing goods on credit and the government printing the money to buy them with, the economy would grind to a halt. This is a bubble that cannot last. Past bubbles were single sector bubbles. Savings and Loan, Dot com, Enron, real-estate, stock market or credit defaults, as these bubbles popped, it all consolidated into one big bubble.

China could revalue their currency at anytime and it would be the end of the US economy as we know it. Starting over with no manufacturing base, crumbling infrastructure and a worthless currency is a challenge that not insurmountable, but it will be a rough ride for a generation at least.


Fake_William_Shatner said...

The "Web of Debt" -- a book by E. H. Brown, really spells out that our "commercial banking" system was doomed to failure from the get go.

The MAIN issue now, is pointing the rabble with the torches and pitch-forks. Glenn Beck and Media Inc. are way ahead of us, and like it or not, we need to embrace the Tea Baggers or they go to the "Rogue's" like Sarah Palin -- who is the same corrupt insider Republicans. It's only that Tea Baggers are a SINGLE group, in that they are angry and you can separate them as low information and high information (Libertarians, mostly) -- the Low information Tea Baggers pay $500 to listen to Sarah Palin and the High Information TB group is outside protesting the co-opting of their movement and are NOT getting covered by Media Inc.

Meanwhile, with the Fascism official since the Supreme Court gave corporations rights we could only dream of -- Obama cannot solve anything. And congress and the senate cannot solve anything. And the Justice department cannot investigate because the culprits are still in office and running the committees.

Fake_William_Shatner said...

>> So what can WE do? Glad you asked;
We need to get organized and start embracing high information Tea-Baggers. I think that Libertarians COULD get behind alternative energy if explained as; "A solar panel on your roof means you don't depend on Big Government and your electric bill." The Media Inc. pundits like Neal Boortz do a good job of informing Libertarians so that they never know their own best interest. We have to TALK more like anti-Big government folks, since the Big Government we needed to defend us, is not Big CorpGov and cannot be the solution anymore.

We need a movement that doesn't have a "leader" #1 because Liberals are not followers, and #2 because the NeoCons are too effective at bribing or extorting or removing Leaders of any movement that gets too big. So we create a mission statement -- get people to sign on, and we ONLY follow people pushing the mission -- we remove NAMES and only have comments. Know them by their comments.

Next, we create "green zones" -- target areas that are small and desperate. A state that is about to default is desperate. So the movement, finds a solvent bank in that state and anyone who can moves accounts there -- and we TELL the Governors and people who have to make things run; "This is the Progressive Party backing you up, and we will remove these funds if you don't create a state bank." The "State Bank" concept, will allow a state to create infrastructure, and use it as collateral. Since they can loan out 10 for every 1 dollar, that means they can begin paying workers immediately, and pay themselves back with the taxes. Read up on Brown's ideas on the benefits.

I'm also looking at ways to create alternative networks so people can communicate and trade when we can't count on what we are used to -- I'm pretty sure these ideas can work, but only with enough people supporting them and it growing large enough for a benefit and so that it cannot be co-opted or destroyed by one person.

Think if it as if we were occupied by an enemy who is not after the nation but the Middle Class. And then realize, that is exactly what we are dealing with. So how do you deal with that if violence allows them to win because they own the media that would inform everyone of the who, what and why? How do you win when any business that comes along is foreign owned and you have no infrastructure (unlike the LAST Great Depression)? How do you win when the monetary system is owned by the occupier? And eventually, a false flag or inspired Timothy McVeigh, will justify getting rid of anonymous comments on the Internet, and all the POPULAR media outlets get co-opted and targeted by the last growing job market; Paid Blogger?

You win by creating your own, independent economy and communication and removing dependency as much as possible. These are all possible with current technology -- we just need concerted will.

The BEST industry movement I can think of right now is the "Green Roofs" projects. Alternative energy has been a target to crush, because it decentralizes and makes people independent, as well as becomes a source for jobs not dependent on Services and Banksters trading paper.

I'm going to try seeing who I can get to be interested, but I'm not going to share the HOW of it, on the Internet. NeoCons are fools, but they are quite competent at destroying things and they are on a mission.