The problem of US economy is structural - the bubble structures
are already in place. Significant part of the economy feeds
on the printing press already - the Wall Street, the
financials all add up to 40% of Gross Domestic Product. The
manufacturing has been totally destroyed (ask about a bear
market, that's where - just look at all these abandoned
factories in downtowns of every major American city - broken
windows and stuff). Restructuring is necessary, and it just
can't be achieved without significant pain. Financial people
will have to lose their jobs. The Real economy will have to
pick up these lost jobs. The Fed CAN avoid significant rise in
unemployment with its printing press, but... at this point,
it seems, if they save the Financial system instead of
directing help toward the real economy, we will get
hyperinflation. By trying to inject printed money directly
into financial system they are doing the wrong thing, IMHO.
The job shift will be into
berserker financial economy, again! If a country produces
nothing, well, it's only a matter of time before the currency
becomes completely worthless.
In other words - well, if the Fed does NOT allow significant
part of the financial system to evaporate this time, I'm
afraid, stuff will hit the fan in a form of Weimar.
How can we get manufacturing back? The answer is, a sound
currency. Government funding directed toward manufacturing
rather than berserkers would be nice.
And, for God's sake, deal with this Derivative bubble!
Regulate it, ban it! If the Fed tries to save it, ban the Fed!
(banning the Fed is maybe the best idea).
Stop managing markets, and care about
the real production, the real economy. Inject money where
it's needed most. Let the WS drown in its own chit.
At this point we need new leadership. Need to replace
the crook Paulson. Maybe, ban the Fed altogether, since
it's an organization that simply transfers the real wealth
to the banks and financials in the most unfair way.
Unfortunately, right now I don't see any restructuring
happening, and I see the Fed desperately trying to preserve
the financial berserkers. Thus, my bet is, until we get
a policy change, we will be moving toward the dollar being
worth zero. That means a much higher stock market. We need
to save this country from these destructive policies! |
