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Subscribe to RSSAs European banks find it increasingly harder to get cash they need to operate, central banks from around the world opened their vaults Thursday to head off another credit crunch like the one that crashed the financial system in 2008 and sent the global economy into a deep recession.
Exactly three years to the day after the collapse of Lehman Brothers touched off a credit panic, confidence in European leaders is fading as they scramble to head off a default on Greek debt and ease fears that Italy may headed for the same fate.
After a year and half of failed attempts at a solution, the world economy has entered A “dangerous new phase” International Monetary Fund Managing Director Christine Lagarde said in a Washington speech Thursday.
“Without collective resolve, the confidence that the world so badly needs will not return,” Lagarde said.
The crisis stems from a downward economic spiral that has trapped Europe’s weaker economies, starting with Greece. Burdened by a debt load that exceeds its gross domestic product, the Athens government has been forced to cut spending and raise taxes to convince stronger economies like Germany and France to backstop its bonds. But those budget cuts have sent the Greek economy lurching in reverse, shrinking economic growth and forcing deeper cuts in services and higher taxes.
For a time, the hope was that the crisis could be contained to Greece and the weakest “peripheral” economies in the European Monetary Union. But the confidence contagion has now spread to Italy, Europe's third largest economy. This week, after the Italian government failed four times to trim its budget, investors demanded a huge premium to buy a fresh round of Italian bonds. The final budget plan, approved Wednesday, calls for tax increases that will create an even bigger drag on Italy's economy.
Germany and France, the last hope of a European bailout, have seen their economies grind to a halt as the crisis widened. Investors have bailed out of European bank stocks, fearing they could lose large chunks of capital if governments default on the bonds they hold. Some bank stocks are now trading for less than half the reported value of the assets on their books, a sign that investors believe those assets will inevitably have to be written down.
European leaders have been working for more than a year to assemble a financial backstop, similar to the reponse by the U.S. Treasury and the Federal Reserve to the collapse of credit markets in 2008. The European Central Bank has stepped in on a limited basis to buy Greek and Italian bonds to prop up those markets. But those efforts have not been big enough to calm jittery bond investors.
Treasury Secretary Timothy Geithner, one of the architects of the plan to stop the 2008 financial crisis, was in Poland Thursday pushing a similar plan to European officials to help stop the current problems.
The European Union has established a bailout fund, the European Financial Stability Facility, or ESFS, which stands ready to intervene if a default appears imminent. But most observers doubt that the $750 billion euro fund is adequate.
Geithner was expected to suggest to EU leaders that they leverage the fund to make it more effective in fighting the contagion.
International Monetary Fund Managing Director Christine Lagarde speaks to CNBC about the financial crisis in Europe.
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It sounds pretty scary to me with Timothy Geithner pushing a plan similar to the one he masterminded in 2008. Look at the situation, the economy, unemployment in America now and send Geithner packing. He has been part of the problem for years when he served on the NYFed.
The potential for the crash of the derivatives market was made crystal clear to the Clinton administration by Brooksley Born. She was marginalized by the administration and eventually resigned. A key member of the Clinton administration was Timothy Geithner.
This guy has a long track record. But hey, at least he's not a tax cheat....oh...wait...
In other words, the American taxpayers are going to bail them out like we bail out the whole freaking world nowadays.
Arieus
Did you read the Article? The banks of Europe are going to bail them out, not us.
The problem with the US stimulus is that it wasn't big enough. If you are going to do something it needs to be done right, if you expect it to work. And that is what Geithner is saying about the amount of their stimulus. If a shark bites your leg off a bandaid isn't going to help much.
It's easy to see that there is a serious problem and just how serious it is when you are looking at a shark attack victim and his leg is bitten off just above the knee. What with blood spurting everywhere.
You can tell immediately that a bandaid isn't going to fix the problem.
I think that, if the American public could actually "see" the problem we were and are having then it would be a different story. Then you could see the Democrates and Republicans standing over this man and the Democrates saying "we need to call an ambulance" and the Republicans going "no it will cost to much, let's try a bandaid first and see how that goes".
Then a little while later the Republicans are saying "see, it didn't help, he is dying. I'm sure glad we didn't waste our money on an ambulance".
Iamsapien2-4106880
your forgiven ( somewhat) for not knowing....because of course MSNBC is downplaying this.....But according to the "AP" (Associated Press)
"Gold fell 2.5 percent Thursday after the U.S. Federal Reserve and four other central banks said they will provide European banks with dollars in three loan installments through the end of the year."
If you only get your news through NBC/MSNBC....you are sadly misinformed.....and don't give me that "FAUX" news crap either.....this quote is from the AP..not right wing at all.
Here's the link to the full story
http://hosted2.ap.org/vastr/4a4a5652e5cf4b09ac1da4d6aea7cf9e/Article_2011-09-15-US-Commodities-Review/id-2fd6df938d8747d1a03c8544ce88b95e
The PIIGS are well known for their socialism, Big Government, and political corruptions. Their people believe they are entitled to social welfare and other freebies paid for by heavy taxation of the "other guy" and by sovereign debt. Their Big Government consists of multi-level bureacracy that protects the interest of big corporations and labor groups at the expense of the working people. Corporate lobbyists and labor unions fund corruptible politician's re-election campaign with the expectation that their financial support will be repaid with favorable regulations and government office appointments. The result is the economic collapse of the PIIGS.
Sounds familiar? It's also happening in America.
I hope the Europeans are not as dumb as Americans and that they say no to printing and devaluing their currency to bail our their banks and the economies of bankrupt countries in their union.
"The crisis stems from a downward economic spiral that has trapped Europe’s weaker economies, starting with Greece. Burdened by a debt load that exceeds its gross domestic product, the Athens government has been forced to cut spending and raise taxes to convince stronger economies like Germany and France to backstop its bonds. But those budget cuts have sent the Greek economy lurching in reverse, shrinking economic growth and forcing deeper cuts in services and higher taxes."
Does this statement sound vaguely familiar about the US (as Greece)? We are incurring new debt (unknown amounts but we're talking hundreds of billions) to prop up Europe, on top of our current debt, on top of the President's new "jobs" spending bill........ We haven't gotten to the cutting part yet, just the spend/tax more part, but we are trying to convince other countries to carry our debt.
Riddle me this: What happens when the US and others prop up Europe on money printed with nothing backing it up (IE- The Fed selling and buying the same bonds)? Won't that further undermine all of the participating "healthier" countries? Wouldn't that tend to undermine all currencies?
In 2008, during the Great Bailout, the Federal Reserve doled out billions of dollars to banks all over the world and the U.S. Treasury doled out billions to banks and corporations like McDonald's & Harley Davidson (yes the same Harley Davidson who has moved its manufacturing to China).
Here we go again. Why is that Geithner looks with concern on foreign banks, but a jobs bill might as well be toilet paper at home?
Republican/democrat--both are scary.
Perhaps you would have preferred another global depression. The Fed did not "dole out billions of dollars" to the banking system, they made loans. It turns out all of them have been repaid, with interest long ago. The program worked by unfreezing the credit markets.
Why not just ask the god king for help....after all, he seems to have figured out how to destroy the US economy......
replytoj001
Yes I read the article, and regardless in wehat you think, the american government is going to be giving them lots of money as they alwyas have.
Our government has been bailing out europe more than twice this year alone to keep them afloat.
So yes, the money bailing them out is the American dollar.
The people are just sheep to these higher-up's, they only care for themselves, middle america is doomed! The US WILL GO BELLY UP, then the new gobal currency BANCOR will be phased in the dollar won't be worth anything its time to change goverment to make them sign contracts to be able to run for office until then, WE ARE IN QUICKSAND AND NOT GETTING OUT EVER. this will happen soon. We have to change the way politics is done in AMERICA!
What does this tell you all , money no longer has value since governments no longer have holding of gold.WORLD OF I OWE YOU meaningless , valueless bit on and memory drive somewhere with no real value.WE need go back too real hard value money not just bunch of worthless IOU's
Arieus The USD is worthless and if you think any governent has assets too cover the "dollar" they use your wrong. Workers of the world all have been riped of and your paychecks have been high jacked and turned into a IOU that you never well see.
I like the ambulance theory iamsapien the most. Ugly any way you go. Plain yucky choice.
The final budget plan, approved Wednesday, calls for tax increases that will create an even bigger drag on Italy's economy.
So if tax increases (raising rates) will put a drag on the Italian economy, why wouldn't tax increases put a drag on our economy?
Seems the new term for raising tax rates is "revenue increases". MSNBC has gone to that after Obama used it over and over.
Revenues to the government rise when the nation prospers. These dimwits should be focused like a LASER on how to create a stable sustainable economy based on prosperity.
All we have to wait for now is the 2nd Great Depression world wide.
Printing useless dollars is not going to save anyone or the world. We need to reset ourselves, file bankruptcy and start from ground zero, and speaking of Ground Zero (NY). This is the problem in America. We are spending billions to rebuild a memorial and new building when we don't need to.
People that died in 9/.11 should have a small memorial that is dedicated to the people, not this costly monumental memorial site that will keep sucking the taxpayers dollars every year for maintenance and upkeep.
We are overspending and no one seems to want to stop it.
When my parents died, we paid for the cemetery plot and tombstone. This is all that was needed for the people that were killed on 9/11, and then put up a nice memorial wall for them with their names on it.
Simple, elegant, and cost effective.
AHHHHHHH, KEYNESIANISM IS ALIVE AND WELL AFTER ALL!
Here I thought the TEA Party and Conservatives were finally getting the message across that dysfunctional Liberal Progressive Keynesian economics haven't worked for nearly 100 years. But, obviously if they're sending Timmy "Turbo Tax" Geithner he'll be carrying uncle Ben Bernanke's solution with him. Monetize the debt.
Let's see we've tried QE1 and QE2 and they did NOTHING but fail miserably. Maybe they'll call this one QEU1 and because its named differently it will magically work? The Liberal Progressive idiocy is slowly deteriorating into true insanity. Not only have they destroyed the greatest creditor nation in the world, now they're after the rest of the West's wealth also.
The Socialist Liberal Progressives will just keep sucking the blood out of every viable economy in the world until the BRICS (Brazil, Russia, India, China and South Africa) become the new global economic powers. The fundamental transformation of America was their first step, now finishing off the EU will create their social and economic justice for the collective. Little do the Liberal Progressives now that they will all just be incorporated into the proletariat by their elitist Bourgeiosie.
From each according to his ability, to each according to his needs.
Sad, but true! We will never have stability as long as the fox is protecting the henhouse.
"Collective resolve" means every country ante up......or else.....Gloom and Doom.
And, with Mr. Geithner in Poland, I am so sure he is going to take care of the situation WITHOUT U.S. funding. Ha !!!
The FED will save them? HAH! Is that where the 8 or was it 16 Trillion they passed out that no one can find out to whom? This whole thing is brought on by all the Progressives who have been sneaking around working for a one world order for years. They tied everything together so any trouble anywhere spreads like wild fire. The FED has done nothing since FDR invented it with a bunch of his rich friends except undermine and weaken our economy. Geithner telling Europeons how to save their economies. Good God could there be a bigger joke on them?
By the By who the heck is this "Central Bank" like our FED who controls them, who chooses them? We better start finding out answers to all of this while we are still a country and not just one of the members of the one world order.
All I can say after reading all of this is to quote George Carlin when he said, "We do not live in a democracy; we live in the illusion of a democracy" and he couldn't have been more correct - God rest his soul.
@Iamsapien2-4106880,
Loved your ideology. I'm going to Email it to the White House if you don't mind.
BlueBurner #1.9,
You may want to do a google search for: "Chantilly VA Jun 5-8 2008" .
This should give you some idea of who is really running the show and how much power that they wield.
This is why we'll never escape the financial quagmire that the world faces.
What's wrong with Euro nations holding the white collar criminals responsible for the recession fully accountable? Sue them for the millions of dollars needed for a full recovery.
What's not obvious about the scam that caused the 2008 recession? Predatory lenders generated hundreds of thousands of bad loans/mortgages with paper work that did not meet legal standards with loopholes to exploit in order to foreclose on buyers. Those loans/mortgages were bundled up to be sold in groups. They were allegedly a mix, from AAA rated safe loans with low profits through the entire range down to risky loans with high profits. Wall Street executives had their e-mails seized by the US government and they were caught bragging about selling "crap" bundles to customers. The rating agencies were lying their butts off to over rate these bundles because they are owned by Wall Street giants and made billions of dollars in the deal.
The Goldman Sachs branch in the United Kingdom was a key player in selling those bundles to countries such as Greece, Spain, Portugal and other countries.
If it were blue collar crime, a guy mugs you in the street for a couple of hundred bucks, he gets caught, and he goes to prison. This is white collar crime that involves an estimated $20 trillion world wide. Yet no one has gone to prison or been held fully accountable. There are fewer financial corporate giants to monopolize most of the investment world wide and almost all of those white collar criminals are still there.
The SEC and other fines for those corporations needs to be higher and go to pay for any additional stimulus. Central banks shouldn't be there simply to bail out these white collar criminal slobs.
Geithner, Paulsen, Greenspan and Bernanke knew about what these slobs were doing to cheat the world and let it happen up to the point of collapsing the economy. European "experts" also knew and refused to intervene to prevent the collapse. Unfortunately, the world may not be able to move on from this recession without ripping Wall Street and the European counterparts a new orifice.
It's a self perpetuating snowball. And it's gaining speed as it flies downhill. The crash is coming.
You can throw in our politicians. They also are a big part of the problem.
The material that it is comprised of is not snow!
Chris, you got that right.
Chris gets a vote for being right and concise.
The very same people that were REMOVING the regulations that controlled the Banking & Investment Companies.
The very same people that were BLOCKING others from making regulations to control the DERIVATIVES.
The very same people that were PROMOTING the JUNK Investments and claiming they were AAA.
The very same people that were saving that Freddie & Fannie were SOLVENT.
Are the very same people that are IN-CONTROL - NOW...
Bingo AC!
Umm, that's because banks don't care about people.
They have a bottom line and stock holders to answer to.
The central banks and all banks/financial istitutions for that matter should be made to de-leverage. You cannot not keep growing exponentially in America OR Europe.
You freakin financiers are dreaming. Your pot of gold is running out. The people cannot and will not continue to borrow money within a government structure that bails out banks and other countries' banks! We do not trust you! We do not trust our governments!
Who, strangely enough, are people too.
There is no law stating you have to buy a car or a house on credit. Why shouldn't a lender make money off of the loan? What many consider to be predatory loans are really government regulations and the DOJ forcing banks to lend money to those with a less than stellar credit rating under the guise of equality. People seem to have this idea in their head that government, laws, and regulations are there to oppress the populace when it is the populace who create the need for them. If you think a law or regulation is questionable, investigate its history and you might be surprised at the reason. If you think a banker is being unfair, ask for more regulation. Financial Institution growth happens when there is a need for their service, what exactly are you asking for? An end to capitalism?
there is no pot of GOLD just pot of worthless IOU's
Some of us are asking for the end of socialism for the wealthy. Our 4 biggest banks have 8 trillion in assets and have been getting billions in 0% loans to play the market. The big time thieves, are manipulating the commodities market and driving up the price of oil and gas. Many of the bastards belong in prison and nobody is trying to control them.
We routinely pay a bank 600k for a 200k house even when the taxpayer backs the loan.. All government guaranteed loans should be made directly for a small interest. This would leave trillions in the hands of our people instead of thieving banks. Ir's past time for us to quit acting like pawns and peasants to a corrupt banking system. We are desperate for a financial system that serves instead of rapes our people. They have a license to steal and they use our own money to rob us.
Frank, what is the solution you are proposing? Your statement has me confused. If I ignore all the allegations you are making and take it to bare bones you are saying this:
I assume you mean bailouts? The term "socialism" is throwing me here since socialism is when the government controls the means of production, in this case capital and interest. Do you mean some kind of welfare or are you asking the government to take direct control of all banking?
All government guaranteed loans are interest controlled by law. Banks have to be a part of that program and follow federal rules to make that kind of loan. You can't blame the banks, the interest rate and requirements are out of their control and in the hands of your Federal legislature.
Are you asking for socialism in banking or are you wanting to get rid of socialism in banking?
@jim10
Laws get passed because people lobby congress to pass them. Rich people pay for people to lobby congress. Banks are the richest so they get more of what they want than anyone else. The government didn't force banks to loan money, the banks came up with a clever plan to crash the market, eliminate competition, and blame the government for the whole thing. They also got a giant bailout and forclosure insurance payoffs to boot while the american people got shafted repeatedly.
I'm well aware of how the system works.
Post hoc ergo propter hoc until you can show otherwise.
Let me get my tin-foil hat to decipher this one. Darn, don't have one. Perhaps wishful thinking so you can have your preferred enemy to blame?
Define "shafted" in non-ostentatious way, please. One example should suffice.
They're always after me lucky charms.
Did you read the article? the banks are bailing out the governments. Italy failed FOUR times to cut the budget, so they are raising taxes which will drag the ecomony. Two French banks had their rating lowered yesterday because they held large amounts of Greek and Italian debt (bonds) Interest rates are going up because of hte risk of npt being repaid. Look at it like an insurance premium, if you are a lousy driver your rate is going to be higher than a good driver.
You can't spend what you don't have.
Where is the evidence that raising taxes will drag on the economy? We had surpluses here until they cut taxes for the upper 2%. Government spending was/is responsible for education, defense, disaster relief, roads, dams, bridges, medical care for retirees and indigents, police, fire, research, parks, transportation and yes Social Security. Government employs millions of people doing work that must be done, unless like they said in the Republican debate the other night your goal is to "let them die" Taxes are now the lowest they have been in fifty years.
Any reading of the economy shows the money is increasingly going up from the middle and the low. How else do you explain why the ones who caused the crash got bonuses equal to 500 years of the average employees salary?
Yes, under democrat control money is going from poor and middle class to the rich. That's always what happens in socialist states, a vast population of serfs and an oligarchy at the top. Only capitalism allows everyone the ability to make his own way.
Government is full of useless leaches, cranking away at regulation after regulation without any regard to how much it kills business and capitalism, then everyone wonders why companies aren't hiring. The whole problem is people like you expecting government to do everything for you, government needs to be gutted.
Pat ... I don't know what "material" your reading but the US has the one of the highest marginal tax rate in the world.. This is why buisisneses set up shop overseas and America has few (if any) exports. The article is accurate that raising taxes DURING A RECESSION will not only prolong it, but could cause Ivestors to Sell of bonds rendering the currency low in value. This is econ 101 and Democrats know this. They sell the lie that "THE RICH" are the problem..... well who are the investors...
Perry/Rubio...
Nonsense: Corporations left America for slave labor. They are making record profits and actually paying low to no taxes. When the CEO of Disney made 600 million in salary and god knows what in bonuses he had children working in Haiti for 12 cents and hour.
Our corrupt financial and corporate systems are a disgrace to America and the human race. there is nothing the want do. Contrary to the propaganda, they are under regulated and under taxed. The capital gains tax is only 15% and we have companies making billions paying nothing.
Doesn't matter who you borrow from if your never going to repay the loan does it? Hold on to your hats, might be all you have left.
People ask yourself what Wall street is going up & partying about! It's your money you, your children & your childrens children will be paying for the next round of theft by central banks & big business. The right outcome is that the crash is allowed & the ones who shouldnt be in business get out. the longer we allow our braindead politicians to push back this inevitable crash the bigger the debt & final collapse gets. we will all be better off to take the mediciane now while the pill is smaller later the pill will kill you & I mean kill. They will start WW111 to kickstart the dead heart of the horse they've flogged to death.
Until the Euro-trash actually reduce the size and reach of their governments they will not resolve the problem. The US is almost their as well and we don't seem to be doing much either except forming committees and "studying" things.
Of course reducing the "size and scope of government" is the goal of the squeeze going on right now being hoisted on the people. You want to blame government, I say it is wall street and stock markets around the world and global industrialists who are responsible for the current mess. It's 1929 all over again. greed and the desire for power is what's driving the select few who are hoarding the profits from the worlds output. The only hedge against free for all capitalism, is government (at least the ones who aren't bought and paid for by the same industrialists, you know who you are) who is of course "we the people".
They don't want to pay taxes (see the other story in this business section about the 12,000 offshore tax cheats) commensurate with what they use, they don't want to pay fair wages, they don't want environmental restrictions, they don't want unions, they don't want to answer to any authority. All they want to do is collect more and more and more. As usual they make money the old fashioned way, they steal it from poor people.
They create financial disaster so they can consolidate their power. When the majority of people have no assets and millions of people are out of work, corporate profits go through the roof, just as they are now. When the people are finally cowed, they suck everything up and get whatever they want, just as they are now eviscerating environmental laws, killing unions, lowering taxes on themselves.
Capitalist Bush/republican congress - 5% average unemployment
Socialist Obama/democrat congress - 9% average unemployment
Facts trump leftist propaganda every time.
Valhalla Phil must be skipping economics along with homeroom.
Pat; Thank you for an excellent post. You have described it exactly as it is. Best regards.
Here are a few more facts:
BushII Administration -
1. Energy Industry friendly -
a. Crude oil average 8+years - $47+USD a barrel
b. USA became the #1 solar energy producer in the world
c. USA became the #1 in NG proven reserves in the world
d. USA lowered its dependance on electricity generated by coal over 5%
2. Industry environmental regulations - EPA was forced to base their regulations on established science...
Obama Administration -
1. Energy Industry - Unfriendly
a. Crude oil average over $90+USD per barrel, even though they were $37+USD a barrel Jan 2009.
b. Incresed taxes, regulations, and has restricted drilling, killing thousands of jobs.
2. Industry Environmental regulations -
a. Restricted use of high sulphur coal -
Driving up the cost of electricity for US consumers
Driving EXPORTS of coal to China by 800%, even though the USA only has a 100+year supply of medialogical coal and it is needed to make steel.
b. Increased dependance on 'rare earths' for EV, HS trains, and other 'Green Tech', even though the USA currently mines and produces ZERO and China produces 97% of the worlds supply.
c. Promoting drilling for energy in Foreign Countries ($2+Billion to Brazil)
d. Promoting the use of Ethanol, which has decimated the rain forest and water tables in the US corn belt. Even Al Gore has stated that Ethanol was a bad IDEA, last year ethanol subsidises to the energy industry cost the US Taxpayer $7+Billion...
3. Banking industry -
a. EQ has resulted in the USD falling in value by 15%.
b. Charging the US Banks almost ZERO percentage, while they are charging the US Consumer 20+% interest and paying their executives the highest bonuses in History...
If Ron Paul had his way, then there would be no Central Banks to assist Europe during their financial crisis. Congressman Paul would just let those countries needing help fall underneath the bus.
If Congressman Paul can get Republican support and run for President, then anyone can. Heck, I don't see any reason why Mickey Mouse or Donald Duck couldn't be nominated by the Republicans. The Mouse and Duck were both born in the US and are older than 45. This seems to be the same qualifications of Congressman Paul.
I'm pretty sure Dr. /Congressmen Paul is the only possible candidate with a doctorate who studied anything other than their portfolio and campaign contributions/poll numbers.
Go Paul!
Crystal 5> Exactly right. Ron Paul and his son are among the few who genuinely understand the problem. The last thing Europe needs now is more money from the IMF etc. when they can't pay back what they already owe.
Some would suggest your president doesn't meet your qualifications, but I digress. Lending the eurosocialist more money is simply compounding the current crisis.
Those countries are going to fall under the bus regardless. There's not enough money to shore up their debt. The European pols are buying time and just hoping against hope that "something" will happen to resolve the problem in the interim. But nothing is going to happen by magic. It's just wishful thinking on a grand scale because they don't know what else to do. Nemesis is coming to seek his revenge!
If the EU, Japan, & USA do not regulate/control their INCREASING levels of SOCIAL give-away programs...
They are going to become the 22nd century USSR...
The USSR did not fail because the USA - WON.
The USSR FAILED because of its INCREASING internal social cost and failing infrastructure...
Almost thirty years later, many parts of the former USSR are still 'third world' countries...
There are societies in the world that have existed for THOUSANDS of years and have economies that are viable and growing...
They have National Energy policies...
They support strict illegal drug laws...
They ENFORCE Immigration laws that protect their Citizens and JOBS...
I know one that has a historical 1% unemployment rate, VAT & Energy taxes, but the average citizen pays no personnel or property taxes, and they have universal health care. And it is the 22nd largest economy in the World...
Rick in the Forrest you hit the Jack Pot about Ron Paul.This guy is looking better and better.
AC Robertson
Wow! I don't know where to begin since you have posted so much garbage on here I'm going to need a bulldozer to clear it all out.
The USSR failed due to our relentless Military build up that their economy could not keep up with. Why couldn't their economy keep up with it? This goes to thr root of Communism. Communism would work great in a perfect world, the problem is that this is not a perfect world. The USSR failed because the people in charge took far to much from their working class. When you have a government that says "of your 100 acres, whatever you grow on 10 acres is yours and whatever you grow on 90 acres is ours", you get people spending way more time, effort and resources on their 10 acres than on the governments 90 acres. Lack of Productivity and our Military build up killed the USSR.
Sounds like you should move to Taiwan. Just be aware, China doesn't like Taiwan.
AC Robertson
Let's not forget that Bush Jr.'s administration took a Budget surplus (i.e. more money was coming into the US treasury than was going out) and left office with a Budget Deficit.
Let's not forget that Bush Jr.'s administration took an unemployment rate of 5% and left office with an Unemployment rate of 7% and rising.
Let's not forget that Bush Jr.'s administration took a stable US economy and left office with a US economy on the brink of total collapse.
Let's not forget that Bush Jr.'s administration took a $5 Trillion National Debt and left office with a $10 Trillion National Debt.
Let's not forget that Bush Jr.'s administration started 2 Wars, who's costs were "off the books".
Let's not forget that Bush Jr.'s administration raised the Debt Ceiling 7 times.
Let's not forget that Bush Jr.'s administration cut taxes to the Rich/Super Rich to the detriment of us all.
Let's not forget that the Republicans blackmailed the President to keep the Bush Jr. Era tax cuts.
Let's not forget that the Republicans refused to compromise on the Budget.
Let's not forget that the Republicans ran in 2010 on a platform of JOBS, JOBS, JOBS, and have done NOTHING to create more jobs.
T. Bill Rate - Ron Paul for President. How much did the Fed devalue the dollar today by printing money for European banks? How much more is food and gas going to cost me next week? Every week the basic necessities go up in price.
Yo Money Maddness,
The Fed has not devalued the USD, that would take legislative approval. The Federal Reserve Bank doesn't print money for Euro Banks, printing money is illegal. The US government budget funds the IMF which can spend money any way it sees fit. Basic necessities are going up in price because the emerging economies need these comodities to continue growing. This high demand is coming from Brazil, Russia, India, and China. This increased demand causes world prices for comodities to go up. Why don't you complain to Bejing about rising prices for your basic comodities? Sorry, the Fed can't help you here.
What are central banks? Aren't they where we send most of our tax money so it can be more easily ripped off.
July 21, 2011. The first top-to-bottom audit of the Federal Reserve uncovered eye -popping new details about how the U.S. provided a whopping $16 trillion in ...
sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3
LOL!!!....I love it....The central banks "opened their vaults" and pulled out all this money to ship over to the European Banks. First off there is no vault in any central bank with dollars or euro's in it. The federal reserve has no reserves. These people don't store cash in vaults. They might have a little gold and silver, but definitely no cash...it'd be like you holding your own IOU, which I guess would be an IOME. Pointless....Secondly the way this is done is the central bank will simply "credit" the treasury and commercial banks by entering some digits into a computer and pressing send....Then....POOF...money magically appears in the banks credit accounts. The credit that was just created out of thin air is then lent out at INTEREST, meaning there is an immediate shortage of money in the system. The reason....Though the principal money was obviously created, THE INTEREST MONEY WAS NOT...Translation....THERE WLL NEVER BE ENOUGH MONEY IN THE SYSTEM TO PAY OFF THE INTEREST! (P<P+I)...More money (debt) will be needed to be created out of thin air to pay off the loan when it comes due....And so on and so on this goes until a) you achieve bankruptcy or b) until eternity. If this sounds like a complete SCAM, well.....that's because it is folks. Wake Up!...End the FED. They are the manufactures of economic calamity.
Hence, we must return all economies and national currencies to the fiscal discipline of the gold standard. Central banking is a non-productive illusion. It does not create wealth. It only causes the illusion of creating wealth, and disrupts productivity of valuable goods and services. This cannot go on forever. It will end up like a punctured birthday balloon, which will be all for the better so we can start over.
DJMilagro: You are exactly right. How strange to be robbed by a combination of financial institutions that do nothing but take money. Banks, wall street, hedge funds, insurance companies and the commodities market produce nothing and take mountains. We have evolved a system where the wealthy non producers rape the people and we act as though there is no way to change.
Insurance is worse than the old Mafia protection racket and banking as it operates is open legalized thievery. Our politicians act like there is nothing that can be done to created a better and fairer economy. They are shameless liars.
yomama -1125210> That was a simply brilliant and humorous (darkly so) expanation of how it works and why it can't and won't work. Thanks.
It seems like Europe is the Titanic and is sinking. The US tax payers already in a life boat of their own, through the Obama administration, have thrown the European banks a line that they has been tied to the Titanic. Once the Titanic sinks, it will pull us totally down under also. We should cut that line and put our own house in order by stopping all this silly wasteful spending.
But those budget cuts have sent the Greek economy lurching in reverse, shrinking economic growth and forcing deeper cuts in services and higher taxes.
How much you want to bet the same thing happens to us? It'll just take longer...
The terrible paradox of this high stakes support of large banks is that no matter how much funding central banks and the IMF extend to the large financial intermediaries, that funding in whatever form they extend it will not create jobs, stimulate capital investment, generate tax revenue for governments or incubate formation of new entrepreneurial ventures--because the financial intermediaries are not lending it, and because none of this is changing the "mood" or forward thinking of the people who actually start businesses and create jobs. Unfortunately, it is convenient to write one or a few checks to a few large institutions and then hope for the best, but it is not working. If we intend for this strategy to work effectively, rather than just bandage over the ugly problem, then we need to find effective lending and investment practices that extend these large sources of capital to the grass roots individuals whose mood will help reverse the current pessimistic and niggardly trends. Put the money in the hands of those of us who traditionally have taken risks and hired people, and influenced industries, and commercialized new products, and spent money in our communities, and paid the taxes that support our public services. The absurdity of these petrified public policies is only entrenching the vested interests even more, and missing the target of reaching those of us who form new ventures and initiatives at the individual level of economic development and new technology.
Obama (insert slanderous remarks here) Obama blah, (note to self change Obamas to Obummers) (insert another slanderous remark here.)
Take that Demo(insert derogatory ending).
This all started when (change 2007 to 2010 and ignore any previous considerations) (insert Obama's campaign and make conflicts which started in 1990 and 2001 to Obama time frame) and his new war (change from 0 casualties to massive risk to American lives). I'm tired of (Obama derogatory name) bailing out (refer to all bailouts as Obama's including the ones by Bush).
God bless America and (gun slogan) (add comment if you don't like it, leave).(Find a way to add something about maternal bears)
Banks are already to big, with to much power. No wonder we are drowning. Let some of the companies have a little and save the world.
Maybe Italy should melt down all of that gold they have in the form of Italian museum artifacts, not to mention the tons of 24 kt. gold crucifixes and chalices the Vatican has stowed away to pay a few of their bills..
hey US GOVERNMENT...fuccc EUROPE...do you really think the EURO was ever worth more than the dollar? go fuccc themselves.
let the catholic church bail them out...sell the pope mobile
Tim Geitner ~ son of Peter Geitner. Peter Geitner ~ Ford Foundation liaison to Ann Dunham In Indonesia in the 1980's. Ann Dunham ~ mother of you guessed it : President Barry Hussein Obama. Do the math.
dont worry europe, jesus and the prophets will answer your prayers
to much technology offsetting job growth , and what few jobs that are left china is cheating them away ... we need to create a totally new spectrum of jobs and make it mandatory that people collecting unemployment be trained . to many high end educated people that dont want to get dirty working for a living to many chiefs and not enough indians , we are letting Mexicans in by the millions to do jobs that we wont do , mainly the the blacks are being left in the dust by the Mexicans . hard work should be praised ,,not looked down on ,,,
...just like a high price lady of the night - "...greek will cost you extra..."