Monday, November 17, 2008
$350 Billion of Paulson Bailout for Foreign Investors
Contrairimairi has forwarded this video from Count Us Out. Based on C-SPAN and CNBC clips, Count us Out says that the bailout was not targeted to help the US economy but rather to in large part bail out foreign investors, specifically in China, Britain, Australia and Germany. It seems to me that decades of public indifference to Federal Reserve policy on the false assumption that monetary issues are technical economics rather than political may be coming to an end. Wall Street is twirling the American dog around by its tail, and the public is going be yelping about how much trusting the media's Fed apologists and the Wall Street apologia that has spewed from Ivy League universities has cost it. Americans have put up with declining real wages,caused by the Fed's inflation, for three decades. Now they are witnessing the financial system's destruction of the real economy.
What seems to me to have happened is that sub-prime mortgages were packaged and sold to foreign dollar holders. The sellers, Wall Street, defrauded the foreign investors. The foreign investors are now ready to dump these assets. They may also be threatening to retaliate by broader dumping of dollars.
The investors in other countries may not be all that greedy, which is what Count Us Out argues, but just suckers to Wall Street's fraud. Let's see what the alternatives are.
1. The bailout bill is not implemented. Foreign debt holders sell US securities on the market. They are angry because they've been cheated. The dollar plummets. Perhaps they retaliate against Wall Street and the dollar in other ways. The stock market falls. US taxpayers aren't on the hook for the bailout money. The dollar may cease to be the world's currency.
2. The bailout bill is implemented. Foreign debt holders sell the US securities to the government. The dollar plummets. Foreign investors are not angry and do not retaliate against Wall Street and the dollar. The stock market holds firm or goes up. US taxpayers are on the hook for the bailout money. The dollar continues as the world's currency.
Either way the dollar plummets. With no bailout, a falling stock market would hurt American stockholders, but a broader swathe of taxpayers would be relieved of the cost of the bailout. The dollar might cease to be the world's currency now rather than later. This would hurt consumers in the short run, but impose discipline on the economy in the long run.
Contrairimairi, like many Americans, is upset. She wrote this to me in an e-mail:
>"I don't know about anyone else, but if you thought I was angry before, you ain't seen nothin' yet! The handwriting is on the wall, and I have read it. I am going to start a new round of DEMANDS to Congress. First, STOP this bailout! NOW! Second, BEGIN PROSECUTIONS! I want Barney Frank, Nancy Pelosi, Chris Dodd, Barack Obama, Paulson, Bernahnke, Kashkari, Chris Cox, and anyone else involved in this mess BEHIND BARS! That would include, of course, all their "inside friends", Raines, Johnson, Pritzker, and all the others whose names escape me at the moment, because their are just too %*#@ many of them!
>I think the "Call to Arms" has already passed, and we are smack dab in the middle of this thing. I am gearing up for a whole new round of "taking officials to task" for all that is going on. We formed a revolution 200 odd years ago against taxation without representation. Well, guess what? We have just been hit with the LARGEST "Taxation without Representation" in history. We are the ones who will foot this bill. The American people TOLD our legislators to vote "NO!" on this bailout and they did NOT listen. We were NOT represented! Few of the representatives elected "For the People" remembered us, our children, or our grand children. They said "NO!" to performing their sworn duty to uphold the Constitution. Anyone who thinks the American People should not revolt AGAIN, has their head stuck firmly either in the sand, or somewhere else where the sun can't find it! I'm off to start making my demands, hope everyone else will jump on board!
>PLEASE watch the videos included in this info [see above]. You won't need to heat your house if it's cold where you are, this will BOIL your blood!