Why are we perpetually expected to trust the clearly distorted opinions expressed by the mainstream media regarding the economic crisis facing not just the USA, but the entire world?
These deliberate misrepresentations of economic facts are intentionally naive notions or outright lies about the direction of our economy. By prolonging the inevitable pain we only worsen the crash ahead. And history proves it's coming, trust me.
What we fail to foresee as a society is that history not only repeats herself when we neglect the signs of what's ahead, but provides all too many obvious signals for those bright enough to listen. We should not be misled by the political rhetoric of a supposedly "healthy economy". These lies are built on the premise that greater calamity ahead will eventually, if manipulated effectively, overshadow the gross and ill-advised missteps which drew us to this precipice of societal and economic collapse.
This week's convenient manipulation of our commercial banking industry was cheerfully touted as a "cash infusion". What occurred was no such thing, but an outright bailout of Citibank, a desperate and failed business, brought to its knees by the corrosive greed of managers caught in their own addictive cycle of profit and results at any cost. Go ahead, sell the farm. We'll make it up later, right? ..Not so fast, Shifty.
The demons of these schemes and slippery accounting are finally coming home, and they want to be paid!
Fed Chairman Bernanke continues to chase the Fed Funds rate ever lower. That's great for equity markets right? Not a Bailout, mind you but, here we go again, another "cash infusion".
The cost of borrowing for a commercial bank is at historically low rates. That's good, right?
Check to see the interest rates being paid by banks to account holders just to "hold" our money. Several percent is quite a spread, dangerously unprecedented, I might say. The money supply in our economy is evaporating, and nothing is done to alleviate the hemorrhage.
Merely acknowledging the problem would help.
Want to feel better? Another run to China-Mart ought to help.
Now watch as government agencies rush to cover the piracy of our financial markets caused by the so-called "subprime crisis". You can paint a happy face on anything, but the hard truth remains that future income models for these companies are disappearing, just vaporizing before your eyes. Today's equity and money markets are fabricated on an opportunistic illusionist's view of the universe. The Fed Chairman and your own government rely on optimistic and unsophisticated investors to prove "functionality" of their theorems and elliptical market manipulations.
Now our own country is running short of "investors".
China, Saudi Arabia and The UAE, welcome aboard.
Well, I'm not asking for help. If we'd learned, as a society, to live well within our means, these events would be far less significant than the potential apocalypse they portend.
Nothing in these markets, or our universe, occurs in the proverbial "vacuum" of space.
If Bernanke, or anyone else, is scrambling to avert catastrophe, it's because it's too late, and their past calamitous errors have come back with a vengeance.
When the Fed pretends to "fix" anything, be assured; they're not going to pay; you will.
Wake-up and plan accordingly. DR
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