AlterNet: How Bad Will the Economy Get? Really, Really Bad

[marmar]

How Bad Will the Economy Get? Really, Really Bad

By Thomas Greco, Jr., AlterNet. Posted July 14, 2009.

Historically, every financial and economic crisis has been used to further centralize power and concentrate wealth. This one is no different.



Historically, every financial and economic crisis has been used to further centralize power and concentrate wealth. This one is no different, and in fact the moves being promoted by the Obama administration and the central banks of the Western powers will take the whole world to the pinnacle of financial despotism -- unless enough people wake up and claim their own "money power.”

In recent months, the Fed has expanded its "assets" from about $800 billion to more than $2,000 billion. Those so-called assets are securities it bought from financial institutions and loans made to central banks in other countries. But the Fed refuses to name the specific recipients of those funds, while admitting that by doing so they are manipulating the value of the US dollar on foreign exchange markets. (Congressman Alan Grayson Grills Fed Vice Chair Donald Kohn.)

Where does the Fed get the money to buy those "assets" or to make those loans? Quite simply, it creates the money. Unlike you or me or any other economic entity, the Fed has the power to create Federal Reserve dollars by effectively writing a check against no funds. This is the function known as "Open Market Operations."

What is the economy experiencing now, and what is in prospect for the future? Despite unprecedented inflation of the money supply, we are now (mid-July, 2009) in a period of depression. How can we have simultaneous inflation of the currency and still have economic depression?

It is a matter of where the money is going. While the public sector (federal government) is being lavishly funded to maintain a global empire, and the banks are being bailed out to try to keep a dysfunctional and destructive financial system from collapsing, the private productive sector is being starved for credit. As a result, businesses are bankrupting, people are losing their jobs and their incomes, and lower levels of government are being squeezed because their tax revenues are shrinking. .........(more)

The complete piece is at: http://www.alternet.org/workplace/141281/how_bad_will_the_economy_get_really%2C_really_bad/

[Double T]

1. Criminals don't have to rob the banks, they are already running the banks.

Banks are receiving 0% interest rates from the FED and leveraging dollars at 15:1....AGAIN; the very thing that got US in this GD mess in the first place. Goldman Sachs is now a bank operating as a hedge fund. Preserve the super wealthy and destroy the commoners. Fraud and corruption are the mainstays of our economy.

[Loge23]

2. Goldman Sucks and Morgan Stealy are doing well

So where's the money going?

[nevergiveup]

3. For millions of Americans

including myself, the economy is already "really really bad" and for good measures I will throw in another "really" and say it is really really really bad.

[INdemo]

4. So way back when..the banks(and Wall St) said either give us the money or

else the US economy will totally collapse...
What happen was.........The bank execs and CEO's recovered their personal losses(from the bail out money)in the market and now everything is cool..And Obama said we will not allow exec million dollar bonuses and the banks said "Who are you" and got those bonuses. And President Obama found out real quick just who had the power..Wall St planted Geithner in the administration to insure they would get their way and they got their way..Wall St continued the CEO million dollar bonuses and the insider trading and Obama said "You cant do that" and Wall St. said who are you...We have the power and don't forget it...
So as far as jobs and this economic stimulus ..this recession will be over when the banks and Wall St. say its over..Never mind the increase in spending at the retail level..This is the baby boomers being forced to reach into their 401K and get some money to live on..no no call it the 201K...I forgot Wall St downsized