Global Economy: IS IT ON THE SKIDS?
Clark Dark here, to introduce one of our favorite guest writers, Dr. C. von Blum, who offers his opinion on the economy. Dr. von Blum:
One day earlier this month the Dow Jones Industrial Average took a 150 point bath. A 150 point loss in one day!Is this the first bic flic of the long anticipated melt down of the global economy?
I’d say yes. There is currently more global debt than currency. The Chinese credit card that the administration has been madly swiping to the tune of $12 trillion has turned dollars into toilet paper. It is at an all time low against the Euro.
The hedge-fund fantasy took it’s first of many hits last week when S&P took the first crack at the phony sub-prime mortgage ruse. Defaults are at a historic high, and hedge-funds based on these instruments are wildly over-valued. The global banking industry has been avidly propping up the dollar to forestall the reality of the deep global depression which is well underway. As soon as some financial entity takes any action that affixes the value of dollars in a real world sense by devaluing derivatives to reflect something approaching their value with regard to the market value of the underlying assets, sub-prime real estate mortgages.
We are at the onset of a global depression that will make the thirties appear like a romp in the park. When the real costs of goods and services are rising at an unsustainable rate and the government cooks the books by omitting food and fuel from the calculation of the gross domestic product, so they can report inflation of 3 percent rather tan the double digit reality.
One should remember that the Wars in the mideast, are also off budget, and handled by special authorizations. That’s a Half Trillion Dollars so far that we ignore as a cost of doing business. The tactic is to simply have the fed print and circulate more worthless scrip. That’s why they stopped publishing the money supply data M-12, or whatever. Not being an economist, I, do, however shop, daily and expertise in economics is not essential when the reality is so obvious.
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One day earlier this month the Dow Jones Industrial Average took a 150 point bath. A 150 point loss in one day!Is this the first bic flic of the long anticipated melt down of the global economy?
I’d say yes. There is currently more global debt than currency. The Chinese credit card that the administration has been madly swiping to the tune of $12 trillion has turned dollars into toilet paper. It is at an all time low against the Euro.
The hedge-fund fantasy took it’s first of many hits last week when S&P took the first crack at the phony sub-prime mortgage ruse. Defaults are at a historic high, and hedge-funds based on these instruments are wildly over-valued. The global banking industry has been avidly propping up the dollar to forestall the reality of the deep global depression which is well underway. As soon as some financial entity takes any action that affixes the value of dollars in a real world sense by devaluing derivatives to reflect something approaching their value with regard to the market value of the underlying assets, sub-prime real estate mortgages.
We are at the onset of a global depression that will make the thirties appear like a romp in the park. When the real costs of goods and services are rising at an unsustainable rate and the government cooks the books by omitting food and fuel from the calculation of the gross domestic product, so they can report inflation of 3 percent rather tan the double digit reality.
One should remember that the Wars in the mideast, are also off budget, and handled by special authorizations. That’s a Half Trillion Dollars so far that we ignore as a cost of doing business. The tactic is to simply have the fed print and circulate more worthless scrip. That’s why they stopped publishing the money supply data M-12, or whatever. Not being an economist, I, do, however shop, daily and expertise in economics is not essential when the reality is so obvious.
Visit Our Forum: Tell Us What You Think!
posted by You Think at 1:47 PM
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