I have recently found numerous useful videos and links concerning the current economic crisis. I believe that the economic danger that the entire world is in cannot be overstated. If you want to know what I believe this, then this is where I recommend you begin:
First, I recommend a very clear visual explanation of the current crisis involving sub-prime mortgages: Part 1, Part 2. It is called "The Crisis of Credit, Visualized". This is about the easiest way to understand what is happening in the economy right now if you only have 10 minutes. I would like to point out that according to the explanation in this video, it appears that the bailout package is nothing more than the American people paying the loans that banks took out so they could leverage them into mortgages. In other words, we are paying for the risks that they took to make a little more money. How absurd, considering we received none of the benefit of the leveraged mortgages!
The next piece I would recommend is an explanation of the mechanism of the Fed. A good place to start is an interview with political and economic guru, G. Edward Griffin, who explains why the Fed and its large brethren banks are a scam.
Considering that the banks' practice of creating money out of nothing (selling us debt) is the cause of inflation, watching this interview (only the first 8 1/2 minutes) ought to invoke a note of horror as one realizes that the ultimate economic effect of this inflation is to reduce the amount of money the middle class has and increase the amount of money the top tier has.
If the preceding links do not convince you that something is fundamentally wrong with how our economy is working, then I urge you to at least listen to Gerald Celente, whose social, political and economic trend-casting has been astoundingly accurate.
So who should we turn to? Who has a solution? If only the government were run by persons like George Soros. Then perhaps we would have a few critical minds who have a clear vision of how problems need to be solved rather than avoided. Though perhaps Soros' infamy would preclude him in particular from being considered a leader; nevertheless, his understanding of how people function in large groups is impressive. I have already mentioned Peter Joseph and the Venus Project who have a very optimistic vision of how the world could be. Perhaps we just need the appropriate goal. George Soros, of course, is not nearly as optimistic, at least for the near future.
Something big is about to happen. It's time to have Plan B prepared, folks.
-Priam's Pride
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2 comments:
I don't know.
Things have always been screwed up, so doesn't it seem more likely that we'll muddle through the way we did the early 70's crisis?
I do think this one is worse because the long range reaction to the 70's crisis involved redistributing income upward and then gaming monetary and trade policy so that people on the losing end didn't notice. The end result was no market for manufactured goods built in the United States (goods which declined by almost a quarter under Bush's stewardship by the way).
This being said, in the long run The United States has a great record of being able to muddle through and pragmatically readjust. Churchill said you can always count on the U.S. to do the right thing, after exhausting all the other options.
That's still worth something I think.
I do agree with you for the most part, Jon. Unfortunately, it looks as if the government is too slow to be able to handle this crisis. The banks should have been bailed out before they were on the brink of bankruptcy. But, to be fair, the banks don't deserve to be bailed out in the first place. They screwed the pooch, so they ought to be the ones to take the hit.
What worries me is that there might not be enough time to exhaust "all the other options" before economic failure loosens the Union.
Although in 240 or so years, the United States seems to have come to prominence with good judgment and a share of luck, there is no rational basis for presuming that these things will continue to be on America's side. All three branches are no longer as apt at making judgments as they used to be when the nation was founded. And when judgment fails, luck is not far behind.
The first sure-sign of government collapse is the utter inability to handle a crisis when it occurs. The problems are evident and there are many good ideas out there, but because the senate and the house are so busy trying to push their pet projects through, they continually cannibalize any effort at doing something useful. Besides, dumping enormous amounts of money into the system isn't exactly a creative solution.
This is a problem for the whole world. Frankly, I rather expect that we will see some major changes all over the world in the next couple of decades. And many of them will be violent.
I would applaud your optimism, Jon, except that I believe that this is what the world needs. It is time to reconsider the direction in which the world is heading. Thus, I take myself to be the optimist, because I believe that something good will eventually come out of this. But it's going to have to get worse if that is to happen.
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