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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Amelia Carhartt who wrote (12148)	10/1/2008 11:15:20 AM
From: Secret_Agent_Man	2 Recommendations Respond to of 71475

think again-click on the vid market-ticker.denninger.net You have heard that its all "American Gambles" You have been told repeatedly by George Bush and Henry Paulson that this bill is about a "rescue" of Main Street, not Wall Street. You have been lied to repeatedly. The bill The Senate intends to try to ramrod down your throat is neither about Main Street or really even about Wall Street. You are going to get VERY angry. Sit down before you read further. ""Hundreds of billions of dollars are going to bail out FOREIGN INVESTORS. They know it, they demanded it, and the bill has been carefully written to make sure that can happen." - Brad Sherman , D-California" That's right folks. You are going to have $700 billion - about 25% of the total federal budget - put on your personal credit card (via taxes forever) in order to bail out foreign investors. Oh, and the best part of it is that the underlying assets involved do not even have to be in the United States! Here is the definition of a "troubled asset", right from the bill: "(9) TROUBLED ASSETS.—The term ‘‘troubled assets’’ means— (A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress." Notice that conspicuously missing from the definition is the requirement that the asset's underlying thing (that is, the property that was mortgaged, etc) lies within the United States. Also note that Treasury must tell Congress if they add "new types" of debt, but that Congress has no right of review or censure. That is, it is perfectly legitimate under the bill for a foreign bank to sell or swap any "crap sandwich" it may hold (irrespective of how or where it originated, so long as a mortgage is the basis for it somewhere) with a bank domiciled in the United States, and said bank may then "PUT" it into the TARP. Note also that Representative Sherman said on Kudlow last night that when this was raised with Secretary Paulson he was told that if Congress tried to restrict the ability of the Secretary to purchase assets "laundered" in this fashion from foreigners, that the bill would be vetoed. Here 'ya go folks. You better make this viral and spread it to everyone you know. Right here, right now. You better get on the phone to your Congressfolk at house.gov and senate.gov and make clear that you will not stand for this bill being passed. IF THIS BILL PASSES YOU WILL WIND UP EATING $700 BILLION OR MORE - REMEMBER, THIS IS A REVOLVING CREDIT LINE, NOT A MAXIMUM AMOUNT - OF FOREIGN BAD DEBT FROM THE CHINESE AND ELSEWHERE. THAT'S RIGHT - THE PURPOSE OF THIS BILL IS TO SCREW YOU, THE AMERICAN TAXPAYER, BY OFFLOADING ALL OF THE TROUBLED DEBT AROUND THE WORLD ONTO YOUR HEADS! ARE YOU GOING TO LET CONGRESS GET AWAY WITH THIS? YOU HAVE LESS THAN 48 HOURS TO STOP IT. NOW YOU KNOW WHY IT WAS SUCH A "RUSH JOB" - THE AMERICAN PEOPLE WERE BEING CONNED OUTRIGHT BY BOTH PAULSON AND BUSH. PERIOD.

To: Amelia Carhartt who wrote (12148)	10/1/2008 11:53:20 AM
From: the navigator	Read Replies (2) \| Respond to of 71475

I nearly gagged the other day when, I think it was the Japanese Finance minister very gravely said US legislators must pass the bailout bill. Like he cared what happened to us! They only care what happens to us to the degree that it impacts them... news.yahoo.com US 'casino' mentality blamed for planet's meltdown By ALAN CLENDENNING, AP Business Writer Tue Sep 30, 5:21 PM ET SAO PAULO, Brazil - Astounded by the U.S. government's failure to resolve the financial crisis threatening the foundations of the global free market, fingers of blame are pointing at America from around the planet. ADVERTISEMENT Latin American leaders say the U.S. must quickly fix the financial crisis it created before the rest of the world's hard-won economic gains are lost. "The managers of big business took huge risks out of greed," said President Oscar Arias of Costa Rica, whose economy is highly dependent on U.S. trade. "What happens in the United States will affect the entire world and, above all, small countries like ours." In Europe, where some blame a phenomenon of "casino capitalism" that has become deeply engrained from New York to London to Moscow, there is more of a sense of shared responsibility. But Europeans also blame the U.S. government for letting things get out of hand. Amid harsh criticism is a growing consensus that stricter financial regulation is needed to prevent unfettered capitalism from destroying economies around the globe. And leaders of developing nations that kept spending tight and opened their economies in response to American demands are warning of other consequences — a loss of U.S. influence globally and the likelihood that the world's poor will suffer the most from greed by the biggest players in global finance. "They spent the last three decades saying we needed to do our chores. They didn't," a grim-faced Brazilian President Luiz Inacio Lula da Silva said Tuesday. Even staunch U.S. allies like Colombian President Alvaro Uribe blasted the world's most powerful country for egging on uncontrolled financial speculation that he compared to a wild horse with no reins. "The whole world has financed the United States, and I believe that they have a reciprocal debt with the planet," he said. It's harder for European leaders to point the finger directly at the United States since many of their financiers participated in the recklessness. London was home to the division of failed insurer AIG that racked up huge losses on credit-default swaps, and many reputable European banks disregarded risk to load up on higher yielding subprime assets. But the House's rejection Monday of the U.S. bank bailout proposed by Treasury Secretary Henry Paulson provoked a sharper tone and warnings that America must act. Though global markets on Tuesday recovered some of the ground they lost in a worldwide slide the day before, politicians from Europe to South America insisted the risk of a further plunge remains high. German Chancellor Angela Merkel called on U.S. lawmakers to pass a package this week, saying it was the "precondition for creating new confidence on the markets — and that is of incredibly great significance." In an unusually blunt statement from the 27-country European Union, EU Commission spokesman Johannes Laitenberger said: "The United States must take its responsibility in this situation, must show statesmanship for the sake of their own country, and for the sake of the world." The crisis also has strengthened voices in France and Germany calling for EU regulations to eliminate highly deregulated financial markets, despite objections from Britain, which along with the U.S. is considered by some to practice a freer form of "Anglo-Saxon" capitalism. "This crisis underlines the excesses and uncertainties of a casino capitalism that has only one logic — lining your pockets," said German lawmaker Martin Schulz, chairman of the Socialists in the EU assembly. "It also shows the bankruptcy of 'law of the jungle' capitalism that no longer invests in companies and job creation, but instead makes money out of money in a totally uncontrolled way." The U.S. government's failure to apply rules that might have prevented the crisis is seen as a betrayal in many developing countries that faced intense U.S. pressures to liberalize their economies. In some developing nations, state enterprises were privatized, currencies were allowed to float against the U.S. dollar and painful measures were taken to bring down debts. These advances are at risk now that credit is drying up. Countries with commodities-based economies are particularly vulnerable since more industrialized nations could reduce their demand for everything from soy to iron ore. "It doesn't seem fair to me that those of us who endured so much hunger in the 20th century, who began to improve in the 21st century, should have to suffer due to the international financial system," Silva said. "There are going to be a lot of people going hungry in the world." Just before meeting with Silva on Tuesday, Venezuelan leader Hugo Chavez said he believes a new economic order is in store for the planet. "What's to blame? Imperialism, the United States, the irresponsibility of the United States government," said the self-avowed socialist and frequent U.S. critic. "From this crisis, a new world has to emerge, and it's a multi-polar world." China's influence in the outcome of all this could be profound because it is a huge investor in U.S. debt. It is already calling for strict new international regulatory systems to apply to globalized financial markets. Liu Mingkang, chairman of the Chinese Banking Regulatory Commission, said Saturday before a weeklong bank holiday in China that debt in the United States and elsewhere has risen to dangerous and indefensible levels. The rest of the world is taking notice. Many newspapers made references Tuesday to China's increasing importance in global finance. In Algeria, a large cartoon on the front page of the newspaper El-Watan showed Uncle Sam at prayer: "Save us!" he says, kneeling before a portrait of China's Mao Zedong. In London, Jane Ayerson, a 20-year-old Irish exchange student, said Europeans share the blame. "The problem started with America, but banks here have been greedy, too," she said.

To: Amelia Carhartt who wrote (12148)	10/1/2008 5:37:07 PM
From: Killswitch	1 Recommendation Read Replies (2) \| Respond to of 71475

The Japanese do care what happens here. Last month they had a current account deficit for the first time in many many years due to dramatically falling exports. If we start hurting more and stop buying their exports they are going to feel the pain too. edit: And by the way, this is the reason that all countries supplying our imports (China, Japan, etc.) will do all they can reasonably do to prop up the USA currency and bonds. They will do this for waaay longer than you might expect.