Wall Street’s big money players didn’t take well to the public declaration by President Obama that financial reform was the next priority. After defeating the Republicans in Congress, the White House is feeling that it’s game on. On top of this they announced getting a new treaty with the Russians reducing nuclear weapons without giving up defensive missiles (something Bush couldn‘t do and he just let the treaty expire).
So big money is taking the offensive. They all but declared Treasury bonds worthless after a weak showing at the auctions Wed. and Thursday and incredibly they are saying investors have more faith in corporate bonds than in Treasury bonds. The only way that the United States of America will default on its bonds will be if things are so bad that investors will have already burned their worthless corporate bonds and stock certificates in the fireplace for heat. There is a reason the same people who are saying bad things about Treasury bonds have installed personal vaults and filled them with gold and not corporate bonds.
Treasuries are of course tied directly to the value of the USD and with Wall Street already at war with the Euro, the Dollar is up to new post crash highs. China has said publicly they aren’t sure how many bonds they want to own since they rightly believe there is no future owning sovereign debt. They are buying things you can stand on like copper mines and farmland in east Africa. The dictators and despots that China is buying these things from are still taking USD in payment for now. But in the future they know they will be trading with China and not the US since we have nothing to sell them.
Part of today’s cost from letting the Wall Street crooks who call themselves the Masters of the Universe run the country for the last thirty years is 320 million USD to pay for closing four more banks.
Add to that more jobs lost everyday, more businesses closed and the average income of Americans continues to decline. Personal income declined almost 2% nationwide and this was for the first time since 1949. ’49 was the only year of decline after the Great Depression and it was caused by disastrous policies forced through by a post war Republican Congress and that resulted in a Democratic majority for the next forty plus years. It will be decided in the next two years what the next forty years will look like. Wall Street is betting on a feudal system with a plantation revival. www.prairie2.com