a great quote from Robert Rubin recently
a couple paragraphs from my newsletter for July issue
so Haim, you might want to take up empty debate with Rubin also
for the record, I believe Rubin resigned early from Trez Secy under Clinton in June 2000 so that he could short the S&P with futures, and make another billion$
in short, the US$ and USEconomy situation is not fixable because we replaced our wealth machinery with debts, and sent that machinery to Asia
we cannot reverse the process without depression
/ jim
Robert Rubin served as the Treasury Secretary during the Clinton Administration. He was the first person ever to come from Wall Street and the professional currency trader arena, to take the mantle of responsibility for managing the USDollar. He was the chief architect of engineering a strong US$ and a powerful US Treasury bond over the 1990 decade. Analysis points to gold sales from the national treasury as having been perhaps the foundation of the dollar and bond strength. The absence of a strong viable European currency to quickly replace the Deutschemark also contributed to the US$ huge rise. Let’s be plain. It was Wall Street, Manhattan billionaires, and the Ruling Elite raiding our national treasure under Rubin’s aegis and tenure. When their leveraged game went south, LTCM was bailed out by the Fed Financial Property & Casualty insurance programs. These people made billions in the carry trade, borrowing gold and buying the US$ and USTBonds, at publicly insured risk. In a recent speech at a conference, Rubin now warns (close quote):
“Financial markets are under-estimating the extent of the threat posed by fiscal and current account deficits. We are facing a horrendously serious problem. The probability is high that at some point the kind of deficits we see will have serious effects on our markets and economy.”
Although his words are not hypocritical, they surely point to a superstar professional capable to profit handsomely on the rise and fall of the once great USDollar. The risks he cites are the sour fruit of his work in the 1990 decade, where a rising US$ spawned and encouraged the abandonment of the US mfg base to Asia. This base serves to produce wage income and real wealth. Rubin’s tenure enabled wealth production apparatus to be replaced by debt accumulation. Now we warns that the process reversal will lead to great instability and crisis, OF HIS OWN MAKING. |
