The G20 Meets To Solve Global Financial Problems

Over this autumn weekend in Washington DC the leaders of a group of nations are meeting to plot the recovery of the global economy. I am impressed that they are taking ‘a’ weekend to solve a problem that appears to be bigger than all of us and continues to grow at an alarming rate. I want to remind you that the Earth turns ever so slowly in the grand scheme for things – 24 little hours to be exact, and I don’t see how so much can be accomplished over the weekend. What, does everybody have to be back behind their presidential desk on Monday?

Why is it with things that have been discovered to be terribly wrong do we feel that this gives us the expectation that it can be righted in a period of time that is shorter than the time that it took for the problem to get screwed up enough that we recognize it as a problem? It is as if no one was paying any attention to the situation until it became impossible to do business as usual, after which; everyone became cognizant of a problem and now we have to rush and fix it. The problem that prevails now is how are we going to fix a problem that we never knew was a problem.

Am I confusing you? Good, because that is the problem. Everyone is confused as to how to fix it! As a boy, my Grandmother would send me into the garden that my grandparents had on the back forty with instructions to pick all of the ripe fruits and vegetables that we were going to use for the rest of the week. Being a city boy, I picked everything that resembled a ripe fruit or vegetable and returned to the house in five seconds flat. Of course, some of them were terribly green and my Grandmother took me to task regarding the picking of fruits and vegetables. She said that you must only pick what you need keeping in mind that there is a tomorrow.

The economies of all of the nations, both rich and poor are enlaced. Somebody drops a vase in Djibouti and an attendant is sent to clean it up in Kansas City, or Cartagena. What one country does regarding its trade policy effects all of the others trading around the globe eventually. Protectionism, a practice that helps one, is done at the expense of all others who would trade goods with that country. Transactions between countries afford one an advantage over the other if a trade imbalance can be sustained based upon the value of each country's currency. Countries that do not allow their currency to float on the market can be suspected of manipulating the market if they continue to support large trade deficits with trading partners China is a good example of this practice.

Since the dollar is the standard by which all other countries set the value of their currencies, it stands to reason that the best way to hedge the market to your advantage is devalue your currency in relationship to the standard. Another method of taking advantage of the market is to extract a profit at the expense of those with whom a country trades – OPEC has done just that. The down-side of these tactics is what the global market is experiencing today. The monopolization of the market by individuals interested in dominating the supply and demand equation is apparent. Greed is the other name that would fit well in explaining the current global situation.

As each entity squeezes the market to gain market share at the expense of all others, the flow of cash slows and credit expands. The exchange rate for the payment of debts due cannot keep pace with the amount of money owed. The trade deficit rises to the point that the country suffering from the trade imbalance can no longer make substantial payments against the deficit. The balloon eventually will burst; creating a financial situation that we are currently experiencing.

Many methods and remedies will be applied to this global economic situation with little success. The devaluation of the dollar is inevitable. The continued loss of jobs world-wide will indicate the lost of battlefront after battlefront. Without exception, the onset of recession will touch each country in turn as the Earth slowly turns. Just like day turns to night, so will the progression advance.

Prepare yourself as best you can…

Who Cares If We Are The Greatest Superpower

The United States has discredited itself in so many ways over the past eight years that it becomes difficult to pinpoint when we actually became the focal point for the anger of the rest of the free world. No one can do it right all the time, but we seemed to get it wrong with an alarming degree of success. In areas where our military strength would have carried weight and made a difference, we deferred to others who took advantage of the situation for personal gain. When diplomacy would have gotten a standing ovation from our peers we chose instead to be heathens slaughtering the innocent in the process.

Within our own country we forsook the poor, the helpless of our countrymen, allowing them to suffer unnecessarily during the height of their despair. The greatest nation in the world was duly noted for not being able to save its own people from drowning, from dying needlessly. Who cares if you are the greatest super-power in the world if you have no desire to do the humane when it comes to your own people, and yet we have done this on too many occasions to count. Katrina is an open sore that will never heal in my lifetime.

Knowing that is was happening; we allowed the seedy to be greedy in preying upon our less fortunate to such a degree that it threatens to consume us all. In pursuit of money at all cost, we have systematically allowed the destruction of the foundation of our economy. The dollar and our way of life are fast receding into darkness. Jobs that once were disappearing overseas are simply disappearing into the vast ‘Black Hole’ formed by the greedy. We are so dumb, that we have allowed the same low class of individuals to be in charge of saving us from what they invented. Are we really that stupid? It appears so!

I can’t say enough bad things about the man who sat on the toilet while all of this was being accomplished. Nero fiddled, but this guy simply defecated and not always in the proper receptacle. So where is all of this leading to; what will become of us when there is nothing else to lose, nothing else to flush down the toilet? I can assure you that one individual will be basking in the sun on a playa down in Argentina when it becomes more than apparent to you and I what is going to happen to us. His ranch is ninety thousand acres of primo terra, and it didn’t come cheap. If I remember correctly, that is where the Nazis ran off to when World War II was over and the Germans lost. Those that know the grand plan are not telling you and me for fear that we will riot sooner than the end of the year. Oh! Did I tell you there is no extradition treaty with Argentina; well, now you know!

Last year I sent all of you a message that you probably did not understand, or dismissed it as something that guy down on the island is jabbering about. Well, I am back with more gibberish for you, only this time the guy that has predicted accurately about other less than taste maladies is backing me up.

I don't know who the author of this quote is, but I believe that it came out of a book on Economics that I was reading back in the seventies when it was alright to smoke 'pot' to help expand your ability to expound on your thoughts. Can't do that today and live in peace, but getting back to my original thought; the quote goes like this...

"When ninety-seven percent of the wealth is owned by three percent of the population, there will be a revolution" - author unknown

Gerald Celente, the CEO of Trends Research Institute, has made a few predictions in the span of a decade and been correct on all of the predictions. I have included an article here from Alex Jone's Prison Planet by Mr. Celente that should bring you down to Earth for a short moment. Please read it and couple this article with my suggestions to each of you on how you can survive the coming events. If you threw my previous article on this subject in the trash can, I forgive you, but will not send you another because I don't have time.


Rod Davis - I put my name in this one because its for real!

The Slippery Eel That Is The Economy

With each day I read the tea leaves in the bottom of my teacup and instantaneously I have a panic attack. I don’t know about you, but this is not looking good at all. The Stock Market is not my barometer as to what the economy is doing, but it is never far from wrong. I check the reports from Wal-Mart to get an indications of where the country is going – don’t laugh! Think about it, if Joe the Plummer isn’t buying the best that he can purchase for the lowest price that he can find, Wal-Mart is where he will be for the best price.

When the Republicans decided to give away the money in the bank, where did it show up in the realm of economical statistics – within the stats put out for Sachs-Fifth Avenue that Christmas. Sachs had a seasonal increase of five percent in sales while Wal-Mart had a decrease of one point five percent. Clearly those that have the money will spend it, and predictably so in the places where it is indicative of who is spending of the money. Rich guys don’t go to Wal-Mart!

Secretary Paulson and the SEC guy – Christopher Cox have said with emphatics that they need ‘Bailout’ money to buy the bad debt from the banks and make the world start to go around again. Noticing that the world has not started to go around as predicted since we gave those two ‘hamburglers’ the money, I have to wonder if they really intend to give banks any money. On yesterday, Henry Paulson said as much. With seven hundred billion dollars of our money that he promised that he would spend a certain way that we all thought would be the right plan as stated by them, this guy is suppose to be doing what he said he was going to do. But he isn’t and he is telling us that he isn’t going to do what he said he was going to do – to boot.

Hank Paulson and his department are blowing the money and we are all watching as these guys do it. No money is getting to Main Street. No money is being used to take the toxic debt away from the banks. No money is going to people that want to make loans. Money is going to all the wrong people… shareholders, to finance the buying of other banks, to banks that don’t even want the money, and to, of all people, AIG. Why is the Bush administration allowing this BS to continue without complaint? Why isn’t Congress lamenting this gross misuse of government funds for frivolous crap?

Well, you have been placed on ‘Red Alert’ regarding this issue and as usual no one will shout out to their Congressman about this until it is too late. When Congress comes back to ask for another trillion to rescue the banks, you will know that you have been robbed by a sly slick criminal while you watched daily!

Will Bailing Out the Banking Industry Really Help?

The Bush administration continues to put forth a policy that will, in the end, bring down the house of cards surrounding Wall Street. As has been the case before now, Bush continues to protect big business and the rich at the expense of the consumer. Taxpayers are being asked to foot the bill once again; the same taxpayers whose jobs have been out-sourced overseas. Where is the logic in trickledown economics in a global economy?

Previously, I suggested that the way to recover from this dilemma is to simply renegotiate the loans of delinquent customers in such a manner that each of the delinquent consumers will again be able to make the payments on their respective loans. Notice that I didn’t make one reference to shelling out money to achieve this goal. This would improve the liquidity, to some degree, for local loan agencies. If every delinquent homeowner were allowed to keep his home, and if these marginal loans could be bungled for purchase by investors willing to take the risk, then we could see a two pronged attack to resolve the issues facing the banking industry overall.

The Secretary of the Treasury has this brilliant idea to immediately throw billions of dollars onto a fire that can only be put out over time with what I call ‘trickle up’ economics. If the money used to shore up the economy was done by printing more paper money as part of the buyout that will signal the devaluing of the dollar. Once the dollar, used by most of the free world as the currency of choice in trading loses its value, we will began to see the dollar swirl within the confines of the toilet bowl and disappear forever as the currency of choice in trading. China, the Pacific Rim investors, and the Arabs will have a terrific choice to make, one that we will have no say in the makeup of.

Instead of letting investors take the cream off of the top, the policy should be to allow the cream to rise to the top by supporting the consumer base. One can only hope that these educated individuals will began to realize that it has been the consumer that supported the American economy in the past, and only the consumer can return this economy to where it was previous to the mass deregulation instituted by the Bush administration. Yes, I do blame Bush and the Republican dominated Congress because none of the deregulation was done with Democrats in agreement of these new regulations, and you can point your finger at Phil Gramm – thanks for nothing Phil.

This writer and others with no measure of discipline in economics predicted that the Bush doctrine on economics would destroy the delicate balance held by the United States in the global economic arena. I complained to everyone that I could write to that we are about to, with this grand tax cut program that rewards the rich at the expense of the poor deal a death stroke to the United States economy. You simply cannot spend every dime that you have (surplus – from the Clinton administration), ring-up deficits by charging where possible (the selling of bonds) and mismanage your house (taxes received) the way that the Bush administration has done and survive.

I continue to warn that if the Bush administration continues to try to bring this problem under control by buying out every failed bank that we will be involved in the most volatile non-recoverable situation ever. It will surpass the 1929 crash of Wall Street in comparison like an anthill next to Mt. Everest.