-- Posted Sunday, 27 March 2005 | Digg This Article
I think the snapshot we're seeing happening to GM's debt woes are just a glimpse of what's to ripple throughout our economy. BUT, even more critical, is that the likelihood of concentric disasters could derail the Fed's program to continue its "measured" plan of hikes in the Fed Funds rate. In that event, the Fed would pause or reverse its "strong dollar" policy of ratcheting up interest rates, and open the credit floodgates again. If bondholders see it this way this they won't like it.This GM thing is not an isolated instance of just one company in trouble; its indicative of a systemic breakdown in our entire financial system.
It may not be as long as figured before we see our cars manufactured in Red China - maybe assembled here, but financed with dollars recycled through the PLA (People's Liberation Army) National Bank. They don't have labor unions in China independent of government control. US domestic UAW labor contracts would be "re-negotiated" (abolished or eviscerated) in the "best interests of the employees". The airline labor unions, as are most other once employee-protective unions - from steel to communications - are largely impotent today. Why should the UAW be any different? It won't be, but under the political "too-big-to-fail" umbrella, American taxpayers will pick up the tab (bank bailout) so the incumbents can get re-elected.
Here's the thing. US globalist corporations will report healthy earnings for this quarter. While unemployed American workers sit at home and see a company making record profits they can only ask, "then why can't I get a good job?". The point is that the corporate socialists running our corporations with government protection, today are making handsome salaries and profits, but depend on the home equity drawdowns of Americans to buy the products that were once made down the street.
Should the Fed interest rate step-up program be de-railed don't expect mortgage rates to become attractive once again - banks don't HAVE to loan you money, you know. Lower, or plateaued rates, are to bailout the banks and corporations, not you. By congress legislating last week to make it more difficult for individuals to declare bankruptcy should be a red flag to individuals that their wealth and savings is up for grabs (confiscation).
We are seeing - and personally experiencing - the greatest wealth transfer in history from a sovereign people to a ruling class. FDR's gold confiscation event is childish in comparison. Even the Social Security scam is trivial when set alongside the indebtedness of US individuals and corporations. Hitler was a pickpocket, and the Rothschild brothers but petty thieves by contrast with how today's predators are enslaving us with paper money.
Keep your head down, keep your savings out of paper investments that can be repudiated, and hold gold close to your breast, or behind your back.
You may not be able to afford much gold right now, but down the road you may not be able to afford any.
- - - CV
-- Posted Sunday, 27 March 2005 | Digg This Article
