The various stock markets were down between 1.4 and 2.5% today as oil continues to climb on the news that Libya has split in two parts from fighting between Gaddafi loyalists, his mercenaries and rebel forces. This is even though Libya only accounts for 1% of world’s oil production.
The problem with allowing speculative markets in a world where speculators aren’t regulated or taxed is that bubbles are inevitable and once they start they just keep getting bigger until the damage they do causes a collapse. Each collapse is of course worse than the previous one, no problem though, if you are in the bubble making business.
The USD is up and down against the Euro but is weakening overall. The Financial Times of London ran a long article today about the “Battle of Madison” as the idea of quashing labor unions seems a difficult concept for most Europeans to understand.
The rightwing would have you believe that Europe gets its socialist leanings from the Soviets. In fact these values were installed by Truman after WWII, you see Europe got the entire New Deal. Unfortunately the Republicans who regained a 2/3 control Congress in 1946 and began rolling the New Deal back in the US. Most notably they passed the infamous Taft-Hartley Act that allowed the states to opt out of the Wagner Act of 1935 that made labor unions legal. FDR had sent the Army into seize the offices of Montgomery Ward in 1944 for their refusal to allow unionization.
Many people wrongly believe that unions are a Constitutional right, they would be if this were Germany. (Truman supplied their Constitution) It is a right under the UN Charter and you know what Republicans think of that. What you see happening in Wisconsin and the other states that are newly under the control of Republicans is only legal because of the Taft-Hartley Act of 1946. This is the end game of a right wing push lasting 65 years. You see it isn’t just about being filthy rich but making sure they have it all and keep it forever.
People think that Tunisia was a turning point that could change the world forever as the Middle East strongmen seem to be falling like dominos. But the outcome of the Battle of Madison may have far more significance for the coming century as it could determine whether the US regains democracy or becomes a one party state bent on world domination. www.prairie2.com