ENDLESS ECONOMIC FOLLY
Doug McIntosh
You would think after a decade of writing about the economic stupidity called the United States I would run out of things to write about. Never fear, the supply of economic stupidity is seemingly endless. It appears to me the United States economy, along with its economists, politicians, business and corporate elite, media shills, and increasingly dazed populace, have created a perpetual economic stupidity machine. I stand in awe; I am shocked and awed at the bottomless pit of folly we call the current economic situation. Whether it is my old friend Mr. Magoo spewing such nonsense in his book, or Braying Bernie, his replacement/patsy, or the former Treasury Secretary Summers now whining the Sub Prime "crisis" really, really is serious. Where do I begin?

First with Mr. Magoo, whose book may be reduced to two sentences: "Who Me? and "Housing bubble, what housing bubble?" As for Braying Bernie, Mr. Magoo's hand-picked chump, the less said the better. Braying Bernie is a man who was so power mad he accepted command of the Titanic after it hit the iceberg. We are talking serious stupidity on Braying Bernie's part.

Mr. Lawrence Summer's "Wake Up to the Dangers of a Deepening Crisis" has got to be the most pathetic example of economic analysis I have ever seen. I may even do a line by line analysis of it in another essay. Mr. Summers admits the USA is facing a decline in housing prices of 25% over the next several years. Hey Larry, there have been 50% declines in California in the last six months. Then, he goes on to say one of the "concrete steps" needed is that "fiscal policy needs to be on stand-by to provide immediate temporary stimulus through spending or tax benefits for low-and middle-income families if the situation worsens." HA! HA! HA! Well, it will worsen Larry. And for a former US Treasury Secretary, he of the 10 TRILLION DOLLAR Deficit regime, to suggest fiscal stimulation, in the face of a fiat dollar collapse is DELUSIONAL. Larry, Larry, don't you get it yet? The fiat dollar is in a free fall and you just advocated Weimar Republic hyper inflation. Gold and Silver are the only refuge from the looming hyper inflation Larry. Well, plenty of ammo and a quick trigger finger will be needed also.

However, the big economic news stories of November 26th, 2007 is not the delusional ranting of former guvumit officials, as surrealistic as these rantings are. No, there are two major economic happenings of profound importance for the USA. One, received mass news coverage and is credited with saving Wall Street from the abyss. The other, received scant news coverage and had little impact on Wall Street. I will deal with the official one first. I find it interesting the announcement of an Arab investment firm buying a stake in CitiGroup fails to elicit the same rabid response the Dubai Port announcement did. I can make the argument this bank deal is the final blow killing off American economic freedom. I can also make the argument it shows just how truly desperate the mutant elite running America is. It is a pathetic stock market indeed which grasps at such a feeble straw as this to avoid a several hundred point drop. The amount of 7 billion dollars and change is meaningless in the context of the trillions in debt exposure. Desperate, pathetic and ludicrous is how I would describe both the "deal" and its "salvation" effect on Wall Street. The Arabs have just bought a stake in the Federal Reserve and the economic implications of that were not even mentioned at all. Let the Fire Sale begin. What is all this nonsense about an Independent Nation anyway. Region 10 and the AMERO here we come. If America is going to become an economic whore offering her favors to the highest bidders, at least we should admit it. Instead of pretending like we are still an Imperial Power.

The second news story is the more immediately profound of the two, although allowing foreign ownership of the Fed will have long lasting effects. In a word, the American people's economic consumer confidence collapsed. It did not fall. It didn't shrink. It didn't recede. It collapsed. More than the economic eggheads who have lied so long thought it would. More than the politicians, the corporate and the media elite thought it would. It seems the faked numbers on inflation, minus energy and food, are actually around 25 to 50% a year. It seems the $100 oil, along with the heating oil, the natural gas, the propane, the gasoline; the diesel are all having inflationary effects. It seems the fiat dollar collapse, record lows, day after day, are all having an economic effect out there in the real world. That's the one beyond Sodom on the Potomac called Washington, D.C. in case you didn't know. It seems the long suffering American Sheeple have figured out the 25% housing price collapse Mr. Summers alluded to is only the beginning. It seems the "robust crowds" on Black Friday were merely taking a last wistful look before the economic hurricane hits. Let's see, 5% more people spend 4% less money? I would call that a negative sales event wouldn't you? It looks like 2008 is going to be one hell of an economic year.

Red China just spent $40 billion on a nuclear and Airbus jet plane deal with France. One way China can get rid of its several hundred billion dollar surplus is spend it. Works for me.

As I walked around the stores last weekend I sensed a feeling of nostalgia mixed with despair. Enjoy this Christmas, for I truly feel we will look back at it as the end of an era. The drop in consumer confidence is big, really big. The Powers that Be know this. This is why they are whoring the Federal Reserve to anybody with the cash to pay for her sleazy services. They know the sheeple are aroused and increasingly angry. They know the gig is up. They are afraid. They should be.

Their ship is sinking and the sharks are circling. Our Republic has been looted by thugs and sleaze bags. They are afraid a collapsing economy will arouse a sleeping populace with dire results for them. They should be. The elite has no idea how mean the American people can be once they figure out the economic game has been rigged and they are now in a foreclosed home, with no job, a collapsing currency and soaring food and energy costs. All due to corruption and incompetence from a mutant elite of parasites and globalists. Yes, they will find out just how mean the American people can become.


Doug McIntosh
27 November 2007