Posted on 11/03/2007 3:25:26 AM PDT by HisKingdomWillAbolishSinDeath
The world’s financial system came precariously close to seizing up recently.
In fact, as far as some big banks and financial institutions were concerned, for a moment in time, the system was in a full-blown cardiac arrest. Liquidity, the flow of money—the lifeblood of today’s economic structure—came uncomfortably close to clotting up in August this year.
Defibrillators sizzling and money flowing, central banks around the world acted in concert to jump-start financial markets, slashing lending rates and injecting nearly a half trillion in dollar steroids into the economic pulmonary system.
But contrary to what the big media outlets may have reported, it is actually inconsequential whether or not central bankers succeeded in temporarily stabilizing markets.
Irrevocable damage to America’s economic system has taken place.
And because the world’s largest economies are so closely intertwined, the effects will not be limited to the United States. Confidence in the world’s financial system—a system based on the dollar as the reserve currency—is failing, not because of a liquidity crunch, a popping housing bubble, or the myriad of other commonly cited economic causes, but because of broken faith. The result in the end will be a new world financial order—one without America at the head.
(Excerpt) Read more at thetrumpet.com ...
” Muslims outside the United States interpret America’s policies in the Middle East not as an effort to spread democracy but as a blatant neocolonialist attempt to solve its economic problems by force. Arabs and Persians alike argue that America’s fiscal irresponsibility has forced the nation to seek solutions through military aggression.
Many believe that America’s misguided adventure in Iraq was a desperate attempt to capture both a reliable source of cheap oil and a major export market for the United States. ...” bla bla bla
This article is from Hamid Varsi,”
Bad case of projection......this what the Muslims would do in the fourteenth century. Hey Muslims...learn how to develop an economy, not steal or destroy one.
Apparently not............It is still relative and undefined or constantly redefined situationally.
REAGAN came along and blew away the facade of lies entombing America... his words shredded the clouds and let the light of truth illuminate the “Shining City upon the Hill”. There is nothing new in this crap writing... nothing that I have not been told before... and over decades. Some FReepers must be spending too much time watching Dancing With the Stars or The Bachelor.
LLS
A weak dollar may help spur foreign investment but it sure does nothing for the average American's buying power.
Exactly! Even 'flipping' houses isn't new - just a new name. We knew a lot of people in the 70's who moved every other year, building on the increasing value of their homes - it worked for them till the interest rates skyrocketed in the 80's. That created a huge bust in the construction industry nationwide that lasted for years (my parents, as contractors, nearly lost everything) until rates and prices came back in balance. The 'flippers' of the day ended up in their latest, largest, most expensive home, heavily mortgaged because they didn't see the end of the market, and had to stay put for 10 years. It's part of having a free market that cycles come and go, and people tend to forget the lessons of earlier times. That's partly because our education system refuses to teach economics or anything else that involves critical thinking...
Chicken Little Society *ping*
Your buying power is a reflection of your income more than the relative value of the dollar. No job = no buying power. As the dollar falls, Eurocrats are begging us to do ANYTHING to bring it ‘back up’. THey know we are taking their markets away from them - we may even be so lucky as to compete with china gobally. The fall of the dollar smells of international collusion between those who would do us harm. Unfortunately for them, they have failed.
Typical gold-bug non-economics. In other words, total BS. It starts with the big lie (”The world’s financial system came precariously close to seizing up recently.”) and goes downhill. I hope to make lots of money on the people who believe this stuff.
This does sound suspicious. It sounds like they were giving attractive packages that actually had something bad hidden inside.
It's like a pitcher trade in baseball where the trading team knows that the traded pitcher has a medical condition that will blow his arm out, but they don't reveal it.
“Gee, I’m confused what with the sky constantly falling on my head over the years.”
I’ve been paying attention to the “we’re running out of energy!” propaganda on the news lately. The American public is being brainwashed and it’s working very well. We’re playing right into the hands of the environmentalists and energy producers who want higher prices and more restrictions on American consumers.
We ARE NOT running out of energy. Many sources of energy have been set out of bounds for political reasons. Boy, are we ever going to wake up.
Brilliantly written stupidity.
“If the dollar collapses the whole world would be rushing to buy our American made products.”
What products??
Doomsday is nigh.
Been nigh for a long time now, in fact.
But it’s really, truly here this time. Eventually.
Space,
The people who are trying to pass this off as some form of anti-Americanism or anti-Bushism are whistling past the graveyard imo. Here’s an article you might find illuminating.
http://articles.moneycentral.msn.com/Investing/SuperModels/AreWeHeadedForAnEpicBearMarket.aspx
Disclaimer: I’m no financial maven, but I’m no naif either. Both articles ring true to me. YMMV.
James
I happened to be a sentient being then, and opined (mimicking the Judean People's Front in "Life of Brian") that, yeah, except for the price controls, gas lines, unemployment, crumbling cities, decaying infrastructure, bad hair, stupid clothes and horrible cars...it is just like it.
Sheesh. And the media is doing their best to whip up panic. Gotta get people living in a state of fear.
All true except that apparently, up until now, there has never been the degree of outright fraud foisted upon the rest of the world that, up until now, considered the soundness of U.S. economy beyond question. Brokers of mortgage securities and those that rate those securities burned the very people that depend on the honesty the US economy implies. I know of no other time in the history of this country where the integrity of this country's economy was so seriously called into question. And to compound the damage, I don't think there has been any other time in this country's history when we depended almost entirely upon other countries financing our economy.
Any comparisons made with past bubbles or spikes are now meaningless and amount to whistling very nervously while continuously looking over your shoulder past the graveyard.
Not trying to be a wise a$$ here, but what would those products be? Where are the factories that will manufacture these products and where will the workers come from? The country started on the shift from a manufacturing economy to a service economy in the Carter years....that’s thirty years of momentum that will have to be reversed.
ROTFLMAO!
Europe is like a spoiled child, when times are great they’re right behind you but when you hit a bump they’re off the wagon. Remember the old adage “You can always depend on France to be there when they need us” same goes for the rest of them. Have no fear they’ll be back. Where else are they gonna go?
In fact the British real estate market just recently reached its peak, and is only now starting to soften.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.