Busted: Bankers and The Global Economy

September 18, 2008

Inflation: Economic Global 911 in Process

In the last few months, Busted Bankers has discussed the distinct and strongly lingering likelihood of a larger global downturn or collapse in global financial markets. In the past, you didn’t hear any of that in the States except among a smallist number of bloggers and from a few Scot and British financial specialists. These bankers approximately timed and named the general events that would transpire. Those general events have come home.

bankers

busted: bankers

In the United States, we are chiefly concerned with covering up and dealing with public embarassment on virtually all levels. The inability to admit weakness is a larger flaw than the weakness itself. The confidence crisis here is based in that embarassment along with the truth that investors are spinning in circles looking for a “safe place” to shelter their money. Investors and consumers alike are discovering that there is little safety: that all the gains that have been made over the last decade or more could easily be swallowed whole.

Politician John McCain heralded the idea that “economic fundamentals” are strong. Unfortunately for politicians that long for a rosy picture, the global financial crisis was not created by healthy economic fundamentals, but through misappropriation, greed and fraud in the mortgage and finance industry as well as through creative banking instruments. That cold reality is beyond the realm of economic fundamentals, although even the Federal Reserve system in the U.S. wants to make these corrupted banking standards part of economic fundamentals. This global crisis may make that desire and tendency unpopular, if not impossible.

The news is so bad on so many fronts this week, that the hit list would be as long as it would be redundant. What is important is what lessons can be learned from the mortgage meltdown and the resulting decline and collapse in national and global markets. Bankers and other authorities still want to stay the course of all the policies they have set in the vain hope that money will continue to pour into their coffers or at this point in time, look forward to a future where they can begin old policies and fraud anew.  This is no less than a dog returning to vomit and the same self-destruction. Human beings are capable of so much more!

Still, the bad news is that we are not at the bottom yet. The United States keeps looking for the bottom of the cycle as it reaps what it sowed. The world is coupled into the U.S. economy, so the world will waver and wax as well. It’s a tough season for investors and a tougher season for large investors, including those insurance companies that modern society has grown to depend on.

Bear Stearns was bailed out in March. Lehman is being piece-mealed at fire sale prices. Fannie Mae and Freddie Mac are once again under government control. Merrill Lynch was bought for pennies on the dollar. Insurance giant AIG is getting a conditional “bridge loan” from the Federal Reserve. Washington Mutual is parceling out their resources in an auction. The United States is creating more debt that cannot be repaid, further expanding the national debt and the slavery of the American taxpayer as the job market shuts down. What about capitalism and free markets?  The Federal Reserve is funding it all including creating inflation. The United States is one hell of a customer.

It’s not doom and gloom. The solution is simpler living. The U.S. has grown accustomed to the seductive idea that more is better. Business is addicted to that thinking. That kind of attitude dies hard, even when the economic gun is pointing in your face. However, lowering expectations is exactly the medicine that is needed to weather the economic storm.

Experts will tell you that you must not panic and pull your money out of funds in an effort to save what you have. The truth is that if every investor/customer did that, the lack of confidence would collapse the market and worsen the mess we are in. Even though every banker and investor hasn’t followed that advise yet, you are expected to act sanely in an insane world. Trust me they say. Weathering a storm that you are not directly responsible for is tough news. Continuing to live the same life without compromise with the same or greater expectations that you used to live with is tougher yet. That is for Warren Buffet, which will cost him and others like him dearly. Simplification is the only real medicine for sickness that the world and the investor has. The only problem is that the stubborn patient isn’t listening as a global heart attack looms. Nothing less than perfection will do. ~ E. Manning

Market Note: Here is the real news today. Central bankers are pumping billions of dollars in American greenbacks into monetary systems to “sustain the market.” Who asked the blighters? What central bankers are doing is fueling the fires of inflation which makes the repercussions of bailout fever more difficult. Yet, nobody asks the question why. Central bankers, under the pretense of helping the market are profiteering and “making themselves useful.” The reality is that they are stoking the fire of U.S. inflation and inflation globally, while taking gold in exchange into their larder to count among themselves as they gloat. The winner of this “market sustenance” is the central banker or the body of International Bankers. Curiously, this is not fostered by the Federal Reserve system directly. However, the central bankers are all in on the same scheme: corporate profits. They do this by bleeding the system and holding the gold while creating more fiat money to lower the value of currency, in this case the staple of the global economy, the dollar which is managed by the Federal Reserve. The end result will be higher prices, devalued currency and more finanical pressure, not less. Don’t be fooled. Markets and panic will heat up whether they do so today or tomorrow. What does this mean for the United States? STAGFLATION. 5AM CST

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3 Comments

  1. […] Economy Truth Laid Bare in the Banking World, the Digital Economy and the New Empire « Inflation: Economic Global 911 in Process Central Bankers foster U.S. Stagflation Today September 18, 2008 Market Note: Here is the […]

    Pingback by Central Bankers foster U.S. Stagflation Today « Busted: Bankers and The Digital Economy — September 18, 2008 @ 7:57 am

  2. All I did was turn economic fundamentals on and it was like having investors working for me. And that’s where the bottom comes in. It’s just the bad news.

    Comment by Grady Butler — September 19, 2008 @ 7:38 am

  3. […] Read this post penned earlier this morning. Global Economic 911 in Progress […]

    Pingback by Hot Link » Blog Archive » Central Bankers foster U.S. Stagflation Today — October 2, 2008 @ 5:57 am


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