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U.S. dollar starts the big slide against major currencies

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  • So in layman's terms... what's this $700 billion bailout claim?

    Is America $700 billion in debt and some congress people are saying let's pretend it doesn't exist and start from scratch again?

    It seems as if one fails to conceive
    The meaning my name strives to achieve

    To a biological form you cannot relate-
    Because a reproductive cell is a gamete not gamate!

    It means to unite, -to become consolidated
    So without me in, is there hope we'd be amalgamated?


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        • Excellent cartoons!

          Here's some commentary on the bailout that they are trying to ram through in the US:

          Minor Heresies » Blog Archive » What I want from Wall Street
          Minor Heresies » Blog Archive » Plugging holes in the dam

          Essentially the author writes that:

          "Your tax dollars and mine (actually, the money is being borrowed all over the world) are being used to buy up worthless pieces of paper representing bundles of mortgages. These mortgages were mostly sold in a devious manner to people who couldn’t afford them for homes priced at twice what the market can sustainably bear. Now many of these mortgages are in default, but the good mortgages cannot be separated from the bad, so the whole deal is poisoned."

          The dollar will naturally bear the consequences of an economic crash in the US.


          • all these businesses are shutting down, i wonder if they'll start closing down universities next..............


            • Originally posted by Al-khiyal View Post

              SAO PAULO, Brazil, September 30, 2008 (AP) — Astounded by the U.S. government's failure to resolve the financial crisis threatening the foundations of the global free market, fingers of blame are pointing at America from around the planet.

              Latin American leaders say the U.S. must quickly fix the financial crisis it created before the rest of the world's hard-won economic gains are lost.

              "The managers of big business took huge risks out of greed," said President Oscar Arias of Costa Rica, whose economy is highly dependent on U.S. trade. "What happens in the United States will affect the entire world and, above all, small countries like ours."

              In Europe, where some blame a phenomenon of "casino capitalism" that has become deeply engrained from New York to London to Moscow, there is more of a sense of shared responsibility. But Europeans also blame the U.S. government for letting things get out of hand.

              Amid harsh criticism is a growing consensus that stricter financial regulation is needed to prevent unfettered capitalism from destroying economies around the globe.

              And leaders of developing nations that kept spending tight and opened their economies in response to American demands are warning of other consequences — a loss of U.S. influence globally and the likelihood that the world's poor will suffer the most from greed by the biggest players in global finance.

              "They spent the last three decades saying we needed to do our chores. They didn't," a grim-faced Brazilian President Luiz Inacio Lula da Silva said Tuesday.

              Even staunch U.S. allies like Colombian President Alvaro Uribe blasted the world's most powerful country for egging on uncontrolled financial speculation that he compared to a wild horse with no reins.

              "The whole world has financed the United States, and I believe that they have a reciprocal debt with the planet," he said.

              It's harder for European leaders to point the finger directly at the United States since many of their financiers participated in the recklessness. London was home to the division of failed insurer AIG that racked up huge losses on credit-default swaps, and many reputable European banks disregarded risk to load up on higher yielding subprime assets.

              But the House's rejection Monday of the U.S. bank bailout proposed by Treasury Secretary Henry Paulson provoked a sharper tone and warnings that America must act. Though global markets on Tuesday recovered some of the ground they lost in a worldwide slide the day before, politicians from Europe to South America insisted the risk of a further plunge remains high.

              German Chancellor Angela Merkel called on U.S. lawmakers to pass a package this week, saying it was the "precondition for creating new confidence on the markets — and that is of incredibly great significance."

              In an unusually blunt statement from the 27-country European Union, EU Commission spokesman Johannes Laitenberger said: "The United States must take its responsibility in this situation, must show statesmanship for the sake of their own country, and for the sake of the world."

              The crisis also has strengthened voices in France and Germany calling for EU regulations to eliminate highly deregulated financial markets, despite objections from Britain, which along with the U.S. is considered by some to practice a freer form of "Anglo-Saxon" capitalism.

              "This crisis underlines the excesses and uncertainties of a casino capitalism that has only one logic — lining your pockets," said German lawmaker Martin Schulz, chairman of the Socialists in the EU assembly. "It also shows the bankruptcy of 'law of the jungle' capitalism that no longer invests in companies and job creation, but instead makes money out of money in a totally uncontrolled way."

              The U.S. government's failure to apply rules that might have prevented the crisis is seen as a betrayal in many developing countries that faced intense U.S. pressures to liberalize their economies. In some developing nations, state enterprises were privatized, currencies were allowed to float against the U.S. dollar and painful measures were taken to bring down debts.

              These advances are at risk now that credit is drying up. Countries with commodities-based economies are particularly vulnerable since more industrialized nations could reduce their demand for everything from soy to iron ore.

              "It doesn't seem fair to me that those of us who endured so much hunger in the 20th century, who began to improve in the 21st century, should have to suffer due to the international financial system," Silva said. "There are going to be a lot of people going hungry in the world."

              Just before meeting with Silva on Tuesday, Venezuelan leader Hugo Chavez said he believes a new economic order is in store for the planet.

              "What's to blame? Imperialism, the United States, the irresponsibility of the United States government," said the self-avowed socialist and frequent U.S. critic. "From this crisis, a new world has to emerge, and it's a multi-polar world."

              China's influence in the outcome of all this could be profound because it is a huge investor in U.S. debt. It is already calling for strict new international regulatory systems to apply to globalized financial markets.

              Liu Mingkang, chairman of the Chinese Banking Regulatory Commission, said Saturday before a weeklong bank holiday in China that debt in the United States and elsewhere has risen to dangerous and indefensible levels.

              The rest of the world is taking notice. Many newspapers made references Tuesday to China's increasing importance in global finance. In Algeria, a large cartoon on the front page of the newspaper El-Watan showed Uncle Sam at prayer: "Save us!" he says, kneeling before a portrait of China's Mao Zedong.

              In London, Jane Ayerson, a 20-year-old Irish exchange student, said Europeans share the blame.

              "The problem started with America, but banks here have been greedy, too," she said.


              • Pure capitalism is basically a system standing at an unstable equilibrium.
                A small jerk can bring the entire system crashing down.

                Pure socialism is a tied up snail - it does not move.

                That is why countris like India have adopted a mixture of both.
                You can call that as regulated capitalism, regulated by the Govt.

                Alan Greenspan and Ben Bernanke are to be blamed.
                Did they wantenly allow the instability to build up?
                They should have laid norms for lending and checked the rot.
                I cannot imagine that the best brains could not fore see this cancer.

                The CEOs of failed companies got hefty bonuses in Millions of dollars.
                For lending the tax payers money recklessly.

                Bush has a war in his own country.
                An economic and financial war.


                • US Dollar backed by Bananas:

                  ""To pay for all this insanity from Hank Paulson, they have two options. They can either raise taxes or they can inflate the money supply. They can destroy these things US dollars [waves a dollar bill at the camera]. Dollars 30 years ago used to be backed by this stuff - gold [waves a gold coin at the camera]. Now thanks to Hank Paulson and Ben Bernanke US dollars are backed by these - bananas [waves a banana at the camera]. They're absolutely worthless. Anyone buying US dollars today is going to lose money."

                  "For the average American, this is what they will experience. The price of food and oil are going to skyrocket due to hyperinflation. The only way they can possibly pay for all these bailouts is to inflate the money supply. This means hyperinflation in America like you had in Germany in the 1920s. This is what the average American will experience: destitution, poverty, social unrest due to flagrant bank mismanagement - and it could have been avoided. But unfortunately the banks in the USA are run by greedy, insane private marketeers and this is the result."

                  "It's not really a doomsday scenario for the rest of the world. Take Iran for example, you've got a lot of oil and gas. Those prices are going to go up. China has huge savings. The Indian people have huge gold reserves. For the rest of the world this is actually a fantastic thing. Only the US and Britain are going to experience this horrible disconnection with the rest of the world economy. So it's a doomsday for them but there's a certain symmetry here. They spent 20 or 30 years with this neoliberal model hoisting trillions of dollars of debt onto themselves and now it's gone belly up." "

                  Press TV - Keiser: US dollar "backed by bananas"


                  • Dear American:

                    I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude.

                    I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you.

                    I am working with Mr. Phil Gram, lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transactin is 100% safe.

                    This is a matter of great urgency. We need a blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.

                    Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.

                    Yours Faithfully Minister of Treasury Paulson

                    Alex Jones' Prison Planet: The truth will set you free!


                    • ... and my personal favourite, CK Liu:

                      "The way the Fed has been trying to stabilize the financial market in this horrendous credit crisis since it burst open in August 2007 is looking like punching new gaping holes in the throat of the patient to deliver more air to his lungs. One of these days, it may accidentally puncture a jugular vein to end the game. The lender of last resort has become a predator of last resort, nationalizing all dying enterprises. But it seems to be racing headlong onto the road of nationalization not so much as to help the common people as to keep dying financial dinosaurs alive. The Fed continues to pretend that firms likes AIG are merely going through a liquidity crunch.

                      The fact is that undercapitalization is by definition a solvency problem. The problem is not that good assets are temporarily hit with prices below their real worth and that new capital is needed to maintain debt to equity ratio. The problem is that all these debts were not worth their face value to begin with. The high inflated market values of these assets were held up by circular trading of debt by assuming that they could always be sold at still higher prices way beyond their true worth. Now that the market is finally adjusting the price bubble downward and a lot of firm who were incredibly profitable on the way up are falling like leave in autumn in a bear market. The Fed is merely trying to inject money to keep prices not supported by fundamentals from falling. It is a prescription for hyperinflation. The only way to keep price of worthless assets high is to lower the value of money. And that appears to be the Fed unspoken strategy. "

                      Too Big To Fail Versus Moral Hazard

                      In simple terms, the US is going to start churning out the dollars by the shipload. Obviously, because there is no intrinsic value to back these new dollars, the value will plummet. Maybe the cartoons of dollar-based toilet paper are not so far fetched, after all.


                      • The failure of the US system is systemic - a cancer that was going to overwhelm the host sooner or later. Launching the war on Iraq was, in my opinion, an asset grab in order to try and shore up the leaking ship that is the US economy. Instead of being a cure, it was a poison that hastened the demise of the US by burning up billions of dollars (if not trillions, in the long term, according to Steiglitz) that could have been used right now.

                        It seems that America still has not learned its lesson, though. The military budget is uncut, and that is cause for worry. It could be that the madmen that run what passes for 'policy' there are conserving their remaining strength for one last fling of military might at correcting the situation. Personally, I hope that the uncut military component is a manifestation of the typical Wall Street gang's greed for cashing into the military industrial complex and its share profits.


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                          • October 9, 2008 -- It appears even technology cannot cope with the global financial crisis: the National Debt Clock in New York has run out of digits for the first time.

                            The electronic billboard hit its limit after US public debt rose above the $10 trillion mark for the first time on September 30.

                            As a temporary fix the dollar sign has been switched to a figure--the '1' in $10 trillion. The clock is currently marking the US federal government’s national debt at about $10.2 trillion.

                            The clock, located in Times Square in New York, shows the amount of money owed by the US government. It was created by the late Manhattan real estate developer Seymour Durst, who put the sign up in 1989 to call attention to what was then a $2.7 trillion debt.

                            The Durst Organization says it plans to update the sign next year by adding two digits. That will make it capable of tracking debt up to a quadrillion dollars.


                            • i wonder how rich america would be if they stopped supporting israel and stopped making wars


                              • Originally posted by Al-khiyal View Post

                                The Durst Organization says it plans to update the sign next year by adding two digits.
                                That will make it capable of tracking debt up to a quadrillion dollars.

                                umm... why? so in the next hundred years we could max that one out too?

                                this whole deal is utterly pathetic now we're in a 'global economy crisis'.

                                how 'bout that for some daily news with your morning coffee.
                                It seems as if one fails to conceive
                                The meaning my name strives to achieve

                                To a biological form you cannot relate-
                                Because a reproductive cell is a gamete not gamate!

                                It means to unite, -to become consolidated
                                So without me in, is there hope we'd be amalgamated?


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