Do you believe today's massive, precedent setting U.S. government...

[Mr_Jefferson_24]

... bailout of our financial markets only postpones the inevitable collapse of the U.S. economy?

And secondly, do you believe this puts us on the fast track for hyper-inflation?

------------------------------------

US economy: Rudderless and reeling from direct hits

By Paul Craig Roberts
Online Journal Contributing Writer

---snip---

The open question is: what do these new liabilities do to the Treasury’s own credit standing?

For now, this question is submerged. The traditional practice of fleeing to the US dollar and US Treasury bonds during periods of financial stress and uncertainty has boosted the dollar and kept interest rates low. But sooner or later the large US budget deficit, worsened by recession and bailouts, and the large trade deficit, which requires constant recycling of dollars held by foreigners into US financial and real assets, will result in renewed effort on the part of foreigners to lighten their dollar holdings.

When this time arrives, US interest rates will have to rise in order for the government to be able to continue to rely on foreigners to recycle the dollars acquired in trade to finance the US government’s annual budget deficit.

The current financial problems have pushed into the background the larger problems of the US budget and trade deficits. Goods and services for American markets that US corporations outsource offshore return as imports, which widen the US trade deficit. Moving production offshore reduces US GDP and employment and increases foreign GDP and employment. Moving production offshore reduces the export capacity of the US economy while raising the import bill.

Therefore, how is the trade deficit to be closed? One way is through the dollar’s loss in exchange value, which would reduce American consumers’ real incomes and leave them too poor to purchase the offshored goods and services. . . .

[msongs]

1. ultimate welfare for corporate whore robber barons - they will take the cash n run

leaving everyone else to pay the bill.

Msongs
www.msongs.com/political-shirts.htm

[RoccoR5955]

2. Though I voted Yes and Yes, there is one caveat.

Now that we live in a socialized economy, like they have in China, they will probably make the economy do what they want, with more bailouts, commissions, and legislation.

Today is the beginning of total fascism in the USA.

[liberalmuse]

3. This type of 'fix' never bodes well.

It will come back to bite us all in the ass, probably sooner than later.

[rurallib]

4. And furtermore

I believe the economy was maneuvered into this situation so the Bushies could push through one last miserable piece of legislation.
AND - this will now be the major talking points (lack of money) for repukes to vote against/ try to stop ANY future social legislation.

[Mr_Jefferson_24]

7. I agree, while BushCo has certainly demonstrated...

...levels of ineptitude and corruption never before seen in our executive branch, bringing the U.S. citizenry to its knees via economic collapse is, I think, very much part of the overall scheme.

This is the template they're using:

http://www.crisispapers.org/Editorials/germany-1933.htm

It is said that history repeats itself -- and that's because it does.

[harun]

5. This type of fix simply encourages the type of behavior that got us in to this mess (n/t)

[AlCzervik]

6. postpones it and it does nothing to address the systemic problems.

there are no regulations for risk and i doubt there will be any in the future.

[Indenturedebtor]

8. It addresses their systemic solution to the Democracy Problem

People were escaping their debt through bankruptcy (which they didn't manage to do away with altogether), and foreclosures. Now the government has made it impossible to escape. There will be very few to none of new social programs, existing ones will likely have to shrink, and in the meantime the investor class made a ton of money on this bubble, and will now escape without losing jack.

We lose, then we lose some more, then we lose again. This is class warfare and we are losing again.

It's much easier to enslave people when you can call slavery freedom you know. In their perfect world we work our entire lives for THEM. In order for interest to make money some asshole has to pay the interest. That asshole is you. Try to escape the interest and it's foisted off on the government which is the collective asshole for you and I.

[Mr_Jefferson_24]

9. Kick for a larger sample.

[nadinbrzezinski]

10. This type of fix has never really been tried before

if it doesn't work... you betcha, will be worst

Pray it works, and it stabilizes the markets or we will be doing a '31 imitation very soon

[Mr_Jefferson_24]

11. Kick for a larger sample.

[Mr_Jefferson_24]

12. Kick for a larger sample.

[Mr_Jefferson_24]

13. Kick for a larger sample.

[Mr_Jefferson_24]

14. Kick for a larger sample.