The British are experiencing an economic disaster driven by austerity and corporate tax evasion, but their PM announced today that there will be five more years of the same only worse in his budget. He’s also setting them up for even harsher measures if the Euro collapses.
According to people who claim to be informed on the subject, the Euro has weeks or months to live at best. Reports are that businesses are already laying plans for operating in a post Euro environment. With the European Central Bank refusing to step in, this is certainly the outcome to be expected.
It’s impossible to predict the fallout from ending the Euro. It could actually be a good thing, allowing for the smaller countries to control their own debt by inflation. Only with the bankers moving to grab power it definitely won’t be a good thing at all. How this will all shake out with the big zombie banks in the US is anybody’s guess. Doubtless they will use it as an opportunity to grab more power. However, some people seem to be concerned about resistance from the peasants.
The US Senate has retained a provision in the Defense Authorization Bill to allow indefinite detention of Americans taken prisoner anywhere in the world (including your house). Prisoners can be taken secretly at anytime with no more cause than their say so that you might be whatever they choose to define as terrorist. No evidence is required, no probable cause to get a warrant, no hearing, no trial, no public disclosure that you are a prisoner, not where you held, nor whether you are dead or alive; forever.
The Udall amendment to strip this blatant repeal of the Constitution from the Defense bill failed today with 61 votes against including 13 Democrats plus Leiberman. This law will end the concept of habeas corpus after 800 years. President Obama has vowed to veto the law if it reaches his desk. I would say that would be a defining moment if he doesn’t.
A similar repeal of Constitutional rights during the reign of the Bush Crime Family was itself repealed the following year by Congress. I suspect that bank lobbyists maybe the real impetus behind this amendment, but only four of the Democrats serve on the Banking Committee voted in favor of. Still that is a third of the Democrats who voted on the dark side.
In other news, American Airlines became the last legacy carrier to file for Chapter 11 protection from creditors. It’s not even pretending this about anything but breaking its unions. It claims it has a 900 million dollar annual disadvantage from its competition because it pays decent wages. AA isn’t in any real trouble however, since it has 3 billion in the bank.
Standard & Poors downgraded six of the biggest zombie banks today. We’ll see in the next couple of days if this triggers some sort of disaster involving that unimaginable mountain of derivatives these banks are involved in. A credit downgrade can easily trigger a margin call on Credit Default Swaps used to insure the bonds of banks. This was what brought down Lehman Brothers and AIG triggering the credit collapse of 2008 and confirming we are in fact in a Great Depression.
Bank of America recently moved 47 trillion in derivatives to its banking division from Merrill Lynch in order to cover a margin call. This came after a credit downgrade in September putting the taxpayer on the hook to cover 17% of all US bank deposits if the BoA fails because of it. Bank of America along with Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co all were downgraded after hours today. Tomorrow might be one of those days you tell the grandchildren about around the campfire, under bridge where they live.
President Hoover (I mean Obama) continues to claim we are climbing slowly out of our current difficulties. I guess you can’t blame Obama for cheerleading, Herbert Hoover could have did something since he had a willing Congress. If Obama acknowledged our current predicament, it would only make it worse, and it wouldn’t affect the death cult in control of Congress. They would blame him for “talking down” the economy while continuing to do everything they can to seal our fate. Our fate is really in our hands, you just need to stay one step ahead of the military’s terrorist round up. www.prairie2.com