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Originally Posted by Wolfehunter
Do you think the major banks are at it again to start another great depression?:hmm:
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It already IS in a depression. But nobody wants to admit. What the Fed is doing I do not see as the cure, but as preventing the necessary painful healing process, which necessarly will claim many victims especially amongst banks. So much for the often propagated self-regulation of the market. America accepted totally unhealthy finance policies for too long, and since very very long time lived beyond what it could afford. the mortage crisis is the most obvious symptom of this. The lousy stnadards for accepting credits. and now, slowly but surely winning in pace, the creditcard crisis. All this is a different name for one and the same desease: spending more than what one earns, living beyond what one can afford, living on tick.
almost all western nations live on tick and have significant debts, incrasing them from year to yar, they all spend more than what they produce in income. But nobody drove this behavior to such extremes, like america.
I am wondering, really, the lack of strategic awareness fascinates me. For those holding huge dollar reserves, like China, this policies and the situation today means they have losses countin in dozens if not hundreds of billions. how comes that America takes it just for granted that other nations have nothing better to desire to bleed for America this way, and will accept to bleed on in the future? Sooner or later the others will decide that they have enough of this kind of game that costs them billions and billions to their own disadvantage - and then they will get rid of their dollars, drown the market with them, and switch to euros or whatever. and when that happens and several actors do it within a significantly short period of time - it is day one for America. no, that is no wishful thinking by me (of which I often get accused), it is a reasonable conclusion. gulf states think liud about leaving the dollar. OPEC does not hide that it thinks about it. China already seems to have gone into the launching process for this operation, some economic and financial observes say. but America acts as if all these signals are either not there, or mean nothing. Instead one accepts the luxuary of waging two wars costing trillions of dollars (independant calculation that also take into account following costs for the national amerifan community come to numbers of 3-5 trillion dollars).
Whoever becomes the next american president - Americans better pray that he is aware of the link between economy, finances and the war. This administration is not, or it is unscrupellous enough to ignore it. McCain is quoted with having made statements saying something like that he cannot see what Iraq has to do with the american economy. If he was serious, then god may be merciful with you. If such a mind becomes president, then Prost Mahlzeit. But in the end, the world pays more for these wars, than America itself. Because america finances these wars with borrowed money, and selling more and more worthless treasury bonds.
It escapes my understanding how a power seeing itself as a superpower, can accept such lifethreatening strategic vulnerabilities, and even starts a competition with it'S own military by outsourcing srvrices to mercenary companies where the serviceman can earn ten times and more as much money than what his poendant in the armed forces earns. It makes no sense, and even increases the load of costs the ameircan tax payer has to come up for. and that means more cuts in other areas of civil society: health, traffic, education, etc, making more debts, borrowing more money - and again, in the end the international community pays the major load of the mess.
Some political, economic and financial decision makers seem to be completely disconnected from reality.
I do not even touch the issue of rotten morals to destroy the future perspectives of the young ones this way.