Ok, Ok, the subject is not what we intended with this next post. Freeacre and I are still stumbling around trying to decide on how to present the anniversary post of the Trout Clan Camp Fire. Besides, our anniversary isn’t until the 24th, (thus saith freeacre on the subject).
If you are reading all the stuff that is on the internet about the current economic meltdown, you know that we are in serious trouble. Principally the credit markets are drying up, completely. Because of how we have structured our economic system, everything, and I mean everything runs on credit. Without credit, no trucks run, no business buys inventory, nothing works. I had been anticipating the same thing happening but not from credit drying up. I was figuring on it happening because of the high price or oil. The effect is going to be the same. There won’t be anything for sale when the inventories are gone. The difference is how sudden this situation comes on. With high oil prices, I think it would be slower in that there would be a gradual decrease in the availability of consumer goods. However, in my case, I got a surprise, and since I like to say that we are in for surprises, I guess this is one of them for me.
I suspect that the next weeks are going to indicate whether this credit freeze will be backed up some or not. So far, everything the government has done hasn’t helped at all, just made things even worse. The principle reason this appears to be so is that the fixes are by trying to operate within the economic system. Instead of hanging the crooks and liars out to dry, we are supporting them. I don’t recall any example where a problem is fixed by continuing the problem, but then again, maybe I’m just an old curmudgeon.
I read on LATOC this morning that Paulson literally told the 9 largest bankers on Monday that they ARE going to sell interests in their banks to the government. Read about it here. http://www.nytimes.com/2008/10/15/business/economy/15bailout.html?em
Notice this quote; “No one expected him to present his plan as an ultimatum. Mr. Paulson, according to his own account, presented his case in blunt terms. The nation’s largest banks needed to begin lending to each other for the good of the financial system, he said in a telephone interview, recalling his remarks. To do that, they needed to be better capitalized”.
And this: “Mr. Kovacevich [if Wells Fargo] is also said to have expressed concern about restrictions on executive compensation at banks that receive capital injections. If he steps down from Wells Fargo after completing a planned takeover of Wachovia, he would be entitled to retirement benefits worth about $43 million, and $140 million in accumulated stock and options, according to James F. Reda & Associates, a executive pay consulting firm. Pay experts say the new Treasury limits would probably not affect his exit package”. Well
Whatever leverage Paulson used to get this signed agreement, it worked to the tune of $1.2 trillion. Now, what this means is that all the private banks will be owned, at least in part, by the government. That, my friends, is socialistic fascism. I also read on several sites about the economic war between the American financial elite and the European elite, principally through the banks. All of this appears to be a contest of who is going to control the liquidity flowing around the world, that is, who has the money to loan. It should be obvious by now that this global ponzi scheme is completely based on debt, ie, the ability to loan money, collect interest on it and sell the debt off to some other fool. It appears to me that this is the final bid for global economic domination. Whoever gets hurt by this is just collateral damage, figured into the bottom line.
I read an article on Carolyn Baker’s site that says we should be in mass protest to our government officials over this issue. Here is the article; http://carolynbaker.net/site/content/view/784/1/
Well, we can honestly say that mass protests by anything under a 10 million head count doesn’t count for much with the government. Look at the fairly massive protests that took place during the Congressional House debate on the Paulson bail out plan. It was eventually passed anyway with all kinds of pork added. We are flat out not yet going to have the impetuous for anything near a 10 million consensus in this country, about anything. Plus, how many people are sitting around hoping someone will come up with the magic bullet and fix it all anyway.
We rant and rave about the incompetent SOB’s in government. But, I am going to assert that rather than being incompetent, they are following a plan laid out by the real power brokers in this world. I truly find it hard to believe that those in the power positions to make decisions are unable to evaluate the information coming to them and make decisions that would make sense to the rest of us. Rather, I think this trashing of the worlds economies is deliberate and will fulfill a ‘plan’, whatever that ‘plan’ is. This of course opens all kinds of speculation about the nature of the ‘plan’. When I look at the manipulations of the world’s societies, I can’t help but assume that ‘plan’ is going to be malicious and malevolent for the rest of us and benefit only a tiny minority of the population. Wouldn’t it be something to find out in the end that the top power brokers in the world actually had the best intentions toward the populations that they controlled? Bwaaa haaaa haaaa. Let’s just completely negate all of history while we are at it.
Watch the rest of this week carefully to see if something comes up to relieve the stresses on the economy, even if temporarily. At least that would give people a bit more time to get ready for the really big hit that will come no matter what. All in all, it appears that this crash is going to be a fast one. Comrade Simba has a pretty neat post up about his preparations. Several other sites talk about their efforts to get as self sustaining as possible, survival acres and George Ure are examples. The question will now be: are any of these preparations going to be successful? Are we all going to get sucked into the extreme poverty bin put out for us by the elite? I am reading all kinds of personal testimony of the casualties of this economic mess. I sure as hell know it will be a very cold day in hell before I use a cardboard box under a viaduct for a home, besides I’m getting too old to climb into dumpsters for my daily sustenance. If you haven’t already, get stocked up to ride out a financial hurricane coming at you. It sure enough appears that all the problems we have been predicting for the last 4 years are happening right now. It’s gonna be a cold winter folks.