Tuesday, November 16, 2010

They grow 'em big in Texas

The Dow was down for the seventh straight day losing a month of gains and is flirting with 11,000 again. This comes as Asian countries are signaling that they will deal with the Fed’s policy of printing money by throttling back on growth to control inflation. Markets continue to fall including non food commodities such as gold which has lost $80 from its high and the USD continues to strengthen. All of this exactly the opposite of what should happen with the Fed printing new money now expected to exceed one trillion by mid-summer.

The main reason the USD is up on the Euro again today is that the debt woes in Ireland and Greece are again in the news. It turns out Greece has a lot more debt than they have been letting on, so bailing them out is becoming problematic and Germany and Austria are starting to balk. Ireland got in this predicament by bailing out three large banks at taxpayer expense and it too may not be able to survive without Europe’s (largely Germany’s) help even though they continue to deny needing help.

The rightwing trolls like to claim Europe’s debt crisis is a failure of socialism and the US is going down the same path. In fact the similarities come not from socialist parts of Europe that are doing very well thank you, but come from the US in the form of crony capitalism with Wall Street banks in the thick of it. The US could go down the same path but only if we allow ourselves to be led down the that garden path by the neo-feudalists.

We are bombarded constantly with everything but the truth about what is happening, how it came to be and why. Alternately we are told it’s the nature of economics to cycle up and down or we’re told that it’s the fault of some scapegoat or another. Even when the Wall Street bankers are mentioned it’s just that they are a little bit greedy and not that they are completely to blame for the mess we are in and why we stay here. More accurately it’s not the bankers but the handful of billionaires that give them their marching orders.

None of what they have done would have been possible without the decriminalization these activities by the Republicans and a smattering of Democrats who all were corrupted by money. People who act independently end up like Bernie Madoff. If you want to retire to a beach house you only commit the crimes approved of by your superiors in the crime family.

Paul Krugman brought up a bit of history in his blog that I had forgotten. Half of the S&L bailout taxpayer costs from back during Bush the elder’s reign came just from the state of Texas. They grow their crony capitalists big in Texas. www.prairie2.com