Growing warnings of another financial disaster
IT’S OFFICIAL! The American Dream is Dead. BUT WALL STREET’S
LOOTING IS NOT OVER… It’s only just begun!
The American middle class to follow.
Growing warnings of another financial disaster
25 March 2015
Global financial markets are on the road to another crash, with consequences even more serious than the collapse of September 2008. There have been a series of dire warnings from within the ruling class itself that present monetary policies have created massive financial bubbles with devastating consequences.
In an interview with the
Financial Times, James Bullard, the head of the Reserve Bank of St Louis, and a non-voting member of the Federal Open Market Committee, said the Fed had to start normalizing interest rate policy as soon as possible. Continuing the present near-zero rate would feed into an asset price bubble which would “blow up out of control.”
Bullard and others are pointing to what has now become an obvious fact, that the combined effects of quantitative easing (i.e., printing money) and interest rate cuts by central banks are powering a feeding frenzy in global equity and bond markets.
Last week, an analysis of the S&P 500 Index from the Office of Financial Research, attached to the US Treasury Department, concluded that the US stock market had entered a situation comparable to patterns seen in 1929, 2000 and 2007. That is, a major downturn, if not a crash, was looming. Entitling his report “Quicksilver Markets”, the author noted: “Quicksilver markets can turn from tranquil to turbulent in short order.”
There are growing fears of a “liquidity crunch” if all the major investors and speculators, which operate on basically similar financial models, try to make an exit at the same time, only to find that there are no buyers.
According to a report in the
Financial Times on Tuesday, some fund managers have warned “not since the collapse of Lehman Brothers in September 2008 and the freezing of money markets in August 2007 has there been such widespread concern over the structure of fixed income [i.e., bond] markets.” It said that prices of bonds had risen appreciably as investors had “gorged” on the cheap money provided by the low-interest rate regime of central banks and warned that there could be a “liquidity crunch” if they “collectively run for the exits.”
The same situation has developed in corporate and government bond markets, which have surged ahead on cheap money, making commonplace the previously extremely rare phenomenon of negative yields. (The price of the bond moves in the opposite direction to the yield.)
Negative yields mean that investors are in effect paying governments for the privilege of lending them money. The phenomenon is the result of a situation in which, despite the fact that bondholders would make a loss if they held the high-priced bond to maturity, they can still make a capital gain because the outflow of central bank finance will push bond prices still higher. They can simply sell the bond to another investor, who is himself operating under the assumption that he can do the same.
In effect, corporate and bond markets have been turned into a giant Ponzi scheme where profits can continue to be made so long as money continues to pour in. In other words, the modus operandi of what started as a criminal venture in the US during the 1920s has now become the central operating principle of the global multi-trillion dollar financial markets.
The official justification for this system advanced by its promoters is that these measures are necessary to stimulate economic growth. Such claims are refuted by facts and figures. The world economy as a whole is characterized by growing deflationary trends coupled with stagnant or low growth rates.
Yesterday it was announced that in Britain consumer prices for February had failed to show a rise for the first time in 55 years, a sure indicator of economic contraction. At the same time, a key indicator of manufacturing activity in China fell to an 11-month low. Decreases occurred in the key areas of new orders, export orders, employment and output prices.
The day before in Europe, projections prepared by the European Central Bank found that its quantitative easing program, aimed at pumping more than €1 trillion into financial markets over the next 18 months, would do virtually nothing to boost employment. The jobless rate will continue to remain at above 10 percent even after the program has been completed.
The main effect of the QE measures has been to boost European stock markets, which so far this year have risen at a faster rate than in the US, even as European economic output still remains below where it was in 2007, with investment in the real economy down by more than 25 percent on pre-crisis levels.
While the corporate and financial aristocracy continues to enrich itself, the conditions for the working class are subject to an unending austerity drive. The dictates of the financial oligarchy with respect to Greece are the consummate expression of what is a global program: the forcible impoverishment and starvation of ever-wider sections of the population.
In the aftermath of the devastation of the Great Depression of the 1930s, the political representatives of the ruling classes—desperately fearful of socialist revolution—claimed that they could regulate the worst effects of the profit system through so-called Keynesian measures based on government spending to simulate growth and secure a return to “normalcy.”
For a very short period, in historical terms, these policies seemed to bring success. However, they rested on the strength of US capitalism and the boost that its more productive methods provided for the global economy as a whole.
The situation today has been completely transformed. The US economy is no longer the center of economic expansion but is the headquarters of global parasitism. The central position in the world economy is no longer occupied by corporations such as Ford and General Motors, but by Goldman Sachs, JPMorgan Chase and their equally parasitic counterparts internationally, which are not engaged in the creation of new wealth but in its appropriation, often through outright criminal methods.
The utter bankruptcy of the entire profit system is exemplified by the policy debate now taking place in ruling financial and economic circles. It is between those who maintain that the cheap money policies of the central banks must be continued lest a disaster result, and those who insist the taps have to be turned off, and the system purged, if necessary through bankruptcies and financial collapses, in order to try to prevent an even bigger catastrophe.
The various defenders of the profit system, in the media, academic circles and in pseudo-left organisations such as Syriza in Greece, maintain that the perspective of a planned world socialist economy is not possible and therefore the only alternative is to try to “save capitalism from itself”.
In fact, the perspective of international socialism is the only viable and realistic answer to the historic crisis of capitalism. To be realized, it must be made the basis of the political program for which the international working class begins to fight.
Nick Beams
WILL OBAMA CAUSE THE IMPENDING
GLOBAL ECONOMIC MELTDOWN?
"Notwithstanding these powerful trends, the stock
markets continue to power on, providing a graphic demonstration of the degree
to which the accumulation of wealth by global financial elites has become
divorced from the actual process of production."
WIDESPREAD POVERTY IN THE WORLD'S RICHEST COUNTRY
STAGGERING EXPLOSION OF POVERTY IN AMERICA …
as Obama eases millions of illegals into our jobs and hands them billions in
welfare!
CRONY OBAMANOMICS – HOW
OBAMA SQUANDERED AMERICA FOR HIS
LOOTING WALL STREET
BANKSTERS!
http://mexicanoccupation.blogspot.com/2013/09/the-reality-of-obamas-crony-capitalism.html
$3.39T Quantitative Explosion: Fed Owns More
Treasuries and MBSs Than Publicly Held Debt Amassed From Washington Through Clinton.
The fraud of Obama’s “Student Aid Bill of Rights”
By Nancy Hanover
23 March 2015
Last week President Obama announced a series of
executive actions that he dubbed a “Student Aid Bill of Rights.”
The initiative is partially an exercise in damage
control. It follows a series of lawsuits and scandals involving the Department
of Education (DOE). The government agency has become the target of growing
anger for protection of predatory student loan collection agencies, its bailout
of the for-profit career college chain Corinthian
and its overall profit-taking from student loans.
http://mexicanoccupation.blogspot.com/2015/03/barack-obama-and-his-crony.html
The
43 million Americans who owe some $1.3 trillion in student loan debt were
offered zero forgiveness. In fact, Obama does not propose even one measure to
actually lessen the ever-escalating cost of college or encroach on the
lucrative business of student loan debt. All the “rights” remain in the hands
of the government, the banks and hedge funds.
Far
from a “Bill of Rights” Obama continues to deliver a fraudulent bill of goods.
At every point, his administration has protected the financial industry in
looting an entire generation of students, preventing millions of young people
from either attaining the education they desire or making them pay through the
nose for the rest of their lives.
VISAS – OPEN BORDERS FOR DEPRESSED WAGES…
It’s working!
The work that the 400 SCE IT employees do isn't disappearing,
instead it and their jobs are being taken over by foreign guestworkers here on
H-1B visas.
MICHELLE
MALKIN: THE LIES ABOUT HIRING AMERICAN… not in America!!!
OBAMA AND HIS CHICAGO: SINKING IN A CESSPOOL
OF CORRUPTION!
THE
STAGGERING COST OF THE DEMOCRAT PARTY’S AGENDA OF
BUILDING THE LA RAZA MEXICAN
WELFARE STATE on the BACKS OF
AMERICA’S LOOTED MIDDLE-CLASS:
The lifetime costs of Social Security
and Medicare benefits of
illegal immigrant beneficiaries of President Obama’s
executive
amnesty would be well over a trillion dollars, according to
Heritage
Foundation expert Robert Rector’s prepared
testimony for a House panel obtained
in advance by Breitbart
News.
SOCIAL
SECURITY to VOTING ILLEGALS: The Obama – LA RAZA Conspiracy:
MEXICANS ALREADY GET BILLIONS IN WELFARE AND
OUR JOBS!
UNIONS... partnered with Obama to destroy wages and jobs for LEGALS.
THE CONSPIRACY TO DESTROY THE AMERICAN
MIDDLE-CLASS: Unions Partner with Obama and His Wall Street Cronies
THE DEMOCRAT PARTY HAS, WHILE THE GOP
WATCHED, TURNED AMERICAN INTO MEXICO’S JOBS, WELFARE AND DRUG MARKET.
The percentage of foreign-born
workers in the U.S. labor force has more than tripled over the last four
decades and while the U.S. represents just 5 percent of the world’s population
it attracts 20 percent of the world’s immigrants, according to a new report.
OBAMANOMICS: Cut corporate tax, billions in
bailouts for
Wall Street, Cut Medicare, Social Security and jobs to illegals
to
keep wages depressed!
……….there is a reason why Wall Street
invested so much in Obama and are now buying Hillary Clinton.
OBAMANOMICS AT WORK… even as his
crony
banksters loot trillions.
http://mexicanoccupation.blogspot.com/2015/02/did-obamas-crony-banksters-destroy.html
AMERICA:
NO DAMNED AMERICAN (Legal) NEED APPLY!!!
But we
still get the tax bills for Mexico’s welfare state and crime tidal wave in our
open borders!
CIS: For Every New Job in U.S.,
Double
Number of New Immigrants – Legal and
Illegal
NAFTA BORDERS and BILLIONAIRES
AMNESTY: America’s death warrant
THE CONSPIRACY to DESTROY AMERICA’S BORDERS… Obama
and his Wall Street banksters
“This nation no longer is a democratic
republic...rather it has become a tool of the super-rich members of the above mentioned elite who
preselect our presidents based on their cooperation and complicity with the
elite’s ultimate goals. Obama has, in their opinion done superbly carrying out
the plans well laid out for him by his backers.”
WIKILEAKS EXPOSES OBAMA’S SECRET AGENDA OF SURRENDERING
AMERICA’S BORDERS TO NARCOMEX:
BILLIONAIRES
partner with MEXICO, OBAMA and the U.S. Chamber of Commerce to assault the
AMERICAN WORKER…. Amnesty, it’s all about keeping wages depressed and passing
along the real cost of all that “cheap” mex labor to the American middle class.
OPEN BORDERS AND
ENDLESS HORDES OF IMMIGRANTS POURING IN IS ONLY ABOUT KEEPING WAGES DEPRESSED
To
cite just one example, if there is a shortage of U.S. engineers, are 1.5
million Americans with engineering degrees either unemployed or working in
other fields? In all too many cases, U.S. tech companies prefer foreign workers
on temporary visas because they are cheaper and more exploitable than
Americans.
UNDER OBAMA, TWO-THIRDS
OF JOBS GO TO HIS PARTY BASE OF ILLEGALS!
“At
the hearing, Dr. Rakesh Kochar, Associate Director for Research at the Pew
Hispanic Center, testified that in the year following the official end of the
recession (June 2009), foreign-born workers gained 656,000 jobs while
native-born workers lost an additional 1.2 million jobs.”
"We
have a situation where the job market — the bottom fell out, yet we kept legal
immigration relatively high without even a national debate," he said.
"As a consequence, a lot of the job growth has been going to
immigrants."
Mr.
Obama did take action this year to grant many illegal immigrants up to 30 years
of age a tentative legal status that prevents them from being deported and
authorizes them to work in the United States.
Some
Republicans in Congress have criticized Mr. Obama's policy, saying it violates
his powers and will mean more competition for scarce jobs.
OBAMANOMICS: HALF or NEARLY HALF OF AMERICA TEETERS ON THE
EDGE OF POVERTY… and yet the Democrat party is determined to legalize Mexico’s
looting and hand millions more jobs to Mexicans… simply to keep wages depressed
for their campaign contributing paymasters!
OBAMANOMICS and OPEN BORDERS:
The report found that the growth of global inequality has
accelerated sharply since the 2008 financial crisis, as the
values of financial
assets have soared while wages have
stagnated and declined.
OBAMA: SERVANT OF THE 1%
Richest one percent controls nearly half of global wealth
The richest one percent of the world’s population now controls 48.2 percent
of global wealth, up from 46 percent last year.
The report found that the growth of global inequality has accelerated
sharply since the 2008 financial crisis, as the values of financial assets have
soared while wages have stagnated and declined.
IS
OBAMA BUSH’S THIRD AND FOURTH
TERMS ON STEROIDS?
Obama replaced George W. Bush, who left office the most
reviled president in US history. The election campaign was accompanied by an
enormous amount of media marketing, with a candidate who had no significant
political history packaged as the agent of “hope” and “change.”
Upon coming to office, however, Obama pursued the most
right-wing agenda in US history. It quickly emerged that whatever vague
promises he made were insincere, and that his administration was committed to
an acceleration of the policies of the Bush administration—overseeing a
historic transfer of wealth to the rich, escalating military violence abroad,
and deepening the attacks on democratic rights within the United States.
THE FORBES 400 ARE LOOTING AMERICA FOR EVERY
DROP OF BLOOD
THEY HAVE NOT ALREADY STOLEN!
The Rise of bankster-owned Barack
Obama and the final
looting of the
American middle-class.
.. and Hillary Clinton has vowed to banksters that the best
is yet to come!
HILLARY – A DEDICATED SERVANT OF WALL STREET MONSTERS and a
CLONE of BARACK OBAMA!
WHY
DOES OBAMA HATE AMERICA SO?
THE
OBAMA REGIME’S ASSAULT ON THE AMERICAN BORN WORKER RATCHETED UP ONCE AGAIN!