JP Morgan economists are floating the notion that the USD rally is over. If that’s true and it’s always really been a question of when and not “if”, then the wild ride could start in earnest. The USD has only been “strong” as other countries have been trying to cope with China tying the value of its currency to the USD. But this has been building a bubble that will burst at some point. Throw in the fact that those credit derivatives we’ve heard so much about have not gone away and banks around the world have been buying them to try and shield themselves from wild currency swings. This sets up the big Wall Street banks for another crisis requiring a massive government bail out.
The Obama Administration apparently felt it had no choice but to continue the Bush policy of guarantying the big banks since they threatened to plunge the world into total chaos. With the US government choc a bloc with Bush Crime Family appointees, trying to deal with such a crisis would be “heck of a job Brownie” times a thousand. Thanks to the Republican Senate blocking Obama’s appointments and any banking reform, little has changed.
The real problem is that the money doesn’t exist to do another bailout, it didn’t really exist to do the last one but everybody went along with the illusion. This time the magic may not work. The consequences of the USD collapse are unpredictable. In history one of the first things that happened when the dominate currency collapsed is that international trade stops overnight as a realignment of power occurs. US businesses are already finding China increasingly difficult to deal with as it becomes more apparent China doesn’t want or need or perhaps fears US involvement in its economy.
After the last crisis in 2008 we lost 11 million jobs as another big chunk of our economy was out sourced by the multi-national corporations that pass themselves off as the US Chamber of Commerce. The 27 companies that really fund the US C of C create what is often described as the “shadow government”. Bush pushed the privatization of government functions and the concentration of all business activity in the hands of these overwhelming monopolies.
The orchestration of the tea bag rallies was a pilot project funded by these same corporations. Some liberal pundits are predicting the end of the tea bag movement with their failure to block health insurance reform. Rumors of their demise are greatly exaggerated. Rush, Glen Beck and the others are predicting the end of the world now that this socialist takeover has begun and their rhetoric is becoming increasingly violent. To these people; empty Wal-Marts would prove they were right all along. www.prairie2.com