To: Luce Wildebeest who wrote (39897 ) 6/14/2001 4:17:50 PM From: Crystal ball Respond to TRADE WAR: GE+HON M&A versus AIRBUS, Europe will Veto Merger from PROTECTIONIST concerns that General Electric's and Honeywell combined aerospace and aerospace engine systems will threaten AIRBUS. This may be the real reason why Boeing BA moved to Chicago for central HQ coordination of its US and North American market. It may also explain the deliberate sabotage at Boeing BA in Seattle. But of course, CNBC, (GE is it's parent) is missing this link, the BIG ISSUE. Just a reminder, I predicted this TRADE WAR, and pointed out that it really stems from Greenspan's unprecedented insane raising of Federal Reserve interest rates starting 18 months ago, IN ORDER TO BAIL OUT CORRUPT ASIAN BANKS and give advantage to Communist China fostering the WTO and PNTR "permanent most favored nation trade status", and the resulting stress on world OIL dsitribution to JAPAN in favor of Communist China, (both of which get 90% of their OIL from the Middle East Arab OPEC nations) and resulting rise in world OIL prices, OIL CURRENCY price rise in concert to US DOLLAR FED FOMC INTEREST RATE HIKES, for which I WARNED THEN THAT THE EUROPEANS WOULD NOT STAND FOR THIS, the result is not so much the Japanese bank failures, and change of Prime Minister and ruling party, but more so the fact that the EURO fell, has stayed down (AN EXPORT ADVANTAGE FOR EUROPE) which harmed US Corporate earnings in Europe, as payment in Euro-Dollars converted to less higher valued US DOLLARS and helped accelerate the 2nd Greenspan induced worldwide recession. This sets the stage for corporate shutdowns, layoffs, rising unemployment but most important INITIAL INVENTORY OVERSUPPLY, followed by less manufacturing and ultimately lower production and INVENTORY SHORTAGE AND HYPERINFLATION, which is now, together with this TRADE WAR raising their ugly heads on the horizon. As I stated, with the death of LIQUIDITY, Greenspan cost the world financial economy over $10 TRILLION DOLLARS OF LIQUIDITY and his cowardly refusal and absolute mental lapse or insane state of denial refusing to lower FOMC interest rates with cuts of 100 to 150 more basis points to under 2 year treasury rates to allow local banks to borrow from the FEDERAL RESERVE BANKS and buy TREASURY NOTES to create OPEN CARRY and create MULTIPLIER EFFECT GROWTH OF LIQUIDITY from loans in the local economy, liquidity is dead, MONEY IS THE FIRST SHORTAGE as seen in the markets this week as the Kraft deal soaked up the current float of liquidity and caused the markets to drop, as we are currently in the red yet again, on the NASDAQ and NYSE, threatening to crash stock markets, and create the final stage I warned about, SHORTAGES, HYPERINFLATION, WORLD DEPRESSION, WORLD WAR. Jack Welch is absolutely right, and should not make any more concessions on GE and HON avionics/aviation/aerospace to the Europeans. The Honeywell is not a failure for Jack Welch, he is perhaps the greatest corporate leader of FREE TRADE and FREE ENTERPRISE the US has. This is a fight lost by a corrupt system governed by the Federal Reserve and a lackluster Congress. EUROPE AND THE SAUDIIS ARE JUST REACTING AND PROTECTING THEMSELVES FROM THE INSANE FOMC and failed monetary policies of Greespan. Greenspan should resign or be impeached. We are now on the eve of a world TRADE WAR. So be it, let loose the dogs of War.
