Posted by
rycK on Thursday, May 14, 2009 10:57:42 AM
The Demise of the
Dollar and US Society as we know it.
The
problem:
“Sooner than we think, the dollar may be challenged by other
currencies, most likely the Chinese renminbi. This would have serious costs for
America, as our ability to finance our budget and trade deficits cheaply
would disappear.”-- The
Almighty Renminbi?
By Nouriel Roubini Op-Ed Contributor Published: May 13,
2009 [Emphasis is mine in all quotes.]
Our
dollar is being debased by wild printing of money by the fed. We are spending
on social programs and trying to rescue Zombie Banks
and Zombie auto companies
to ‘save jobs.’ We are on some kind of anti-capitalist crusade reminiscent of
Saladin
or Mao.
Of
course, this is Dr. Doom speaking and the Spectre of Doom does not make parallel too well
with the so-called ‘recovery’ or stimulus plans of the Obama administration.
Their wild spending depends on the excuse or favorable outcome of growth in t
he US economy and that hope is fading fast. The Good Doctor has been right so
far.
Others have guessed wrongly.
Some History: Bernanke guessed wrong when he
said that:
“…I believe that
the chance of significant deflation in the United States in the foreseeable
future is extremely small, for two principal
reasons…[ignore the rest—he guessed wrong]”--
Deflation: Making Sure "It" Doesn't Happen Here. Remarks by Governor Ben S. Bernanke Before the National
Economists Club, Washington, D.C. November
21, 2002
Bernanke also
guessed wrong when he told Congress that we needed to rescue the mortgage market, another Zombie that is dead and rotting
in the grave. This is a political disease as the government slobbers and jives
when markets rise but rush to ‘be fair’ and ‘help the poor’ if markets take a
down turn. Thus, this is a futile attempt at forcing ‘equality’
upon the citizens by punishing the successful. This is wealth lost.
The dollar or what?
“But
what could replace it?[the dollar, ed.]
The British pound, the Japanese yen and the Swiss franc remain minor
reserve currencies, as those countries are not major powers. Gold is still a barbaric relic whose value rises only when inflation is high. The euro is hobbled
by concerns about the long-term viability of the European Monetary Union. That leaves the
renminbi.”--
Nouriel Roubini
We may get a chance to test the
worth of this form of barbarism.
“Now
that the dollar’s position is no longer so secure, we need to shift our
priorities. This will entail investing in our
crumbling infrastructure, alternative and renewable resources and productive
human capital — rather than in unnecessary housing and toxic financial
innovation. This will be the only way to slow down the decline of
the dollar, and sustain our influence in global affairs.”-- Nouriel Roubini
This sentence just about rips it
for our version of capitalism.
We need
to look into the future with our crystal ball and, as always, watch California
‘progress’ in leading the nation into
the realm of new possibilities. With 10% of the US population [not counting illegal
aliens], California now has almost the worst educational system in the
northern hemisphere and a recent soaring state bud deficit of 40%. The next budget is already 20 bln in the
hole. California is morally and intellectually insolvent and
socially and financially bankrupt. Their grand plan it to just keep
on spending and spending and hope that Obama will rescue
them with printed money.
California has imported poverty, drugs and
disease and used these leftist political assets to swamp the ballot boxes so
they could decriminalize sloth, sodomy and drug addiction. They have raised
political correctness to a level not envisioned by the Nazis
or even the Moscow Show Trials.
The new and novel idea for some more tax revenue is to legalize and highly tax
marijuana.
They have what appears to be a fully degenerative society as lofty tax rates
purify their state by driving out the capitalists and other non believers in
their psychotic brand of governance. They are moral lepers.
They believe that EcoNazism
will rescue their economy. In satire, but stressing what I think they offer, I
believe they proffer this [see ref in footnotes]:
Not to be
too stuffy about my former state, I must be fair and shuffle in some
observations about other wonderful and progressive states and cities like New York , New Jersey and Massachusetts. I must mention Baltimore, New York, Philly, Atlanta, New Haven, Detroit, Cleveland, New Orleans, Oakland, San Francisco and some other concrete jungles
that I have spent too much time in. Not to be outdone in taxation
and murder
these places, or the inner cities of most, have rivaled California in the esurience for belligerent unawareness
and drug-induced mental illness.
California is sinking in a dozen selected
metrics.
They grovel before the unions, ignore education, commemorate illegal aliens,
have embraced EcoNazism
and numerous other follies.
Another point of view:
“California needs someone to say:
[1] "Hey voters, screw you and your stupid
ballot measures."
[2] "Hey public employees, we're laying some of
you off and cutting pay for the rest of you."
[3] "Hey rich folks who live on the coast,
we're raising your property taxes. Suckas!"-- California Is A Crisis For Democracy by Joe Wiesenthal May.
13, 2009
Translated,
this [probably] means: [1] raise property taxes and dump term limits, [2]
downsize the unions and [3] raise taxes even higher. This is a mixed solution
to a mass of problems—hence unworkable and foolish blather--, but Wsiesnthall
does have an interesting prediction:
“In the meantime, it looks like California's democracy are [sic] set to spread.
When the state finally threatens to default, and Barney Frank manages to push a
guarantee of the entire muni market, the de-federalization of America will be complete".
The bond market is already a financial cesspool and having the fed guarantee California’s municipal bonds is a license for
them to ignore any notion of debt or responsibility. The taxpayers of the other
49 can subsidize their lunacy. This is race to the bottom and it is relevant to
suggest that we need for California to hastily showcase its soiled
lingerie to the world and go bankrupt before the contagion
spreads beyond New York and the other aforementioned
‘states.’
It all hangs on Congress at
this moment. If they authorize the wasting of more previous capital then we are
finished.
rycK
Comments:
ryckki@gmail.com
““People
who have been totally blinded and wrong accusing me of getting the timing
wrong, it’s just a joke,” he said. “It’s a bit pathetic, frankly. I was not
making generic statements. I have made very specific predictions and I have
been right all along.” Quote From Nouriel Roubini in The Sunday Times Sunday October 26, 2008
Deflation: Making Sure
"It" Doesn't Happen Here. Remarks by Governor Ben S. Bernanke Before
the National Economists Club, Washington, D.C.November 21, 2002
The Futile Attempt of Forcing
Equality Among the Masses.
Krugman Explains EcoNazism in the
Warmest Terms. Tax Tax Tax
“Our current government is on a wild spending spree and
fantasizing about green products, electric cars and other fanciful dreams that
are derived from smoking crack or other leftist pastimes. California [or what I call the California Disease]
is the test case as
they will probably get to the very limit of ‘equality’ as soon as they go
bankrupt and unemployment soars in the Golden State. The Gold will surely turn to rust. New York State and New Jersey, all controlled by left liberals will soon follow. Ever notice
that the top 10 cities famous for high murder rates are run by 9 Democrats and
1 liberal Republican? The leftists sure know how to run major cities equitably
as the propensity to get murdered is similar in these cities”
The
Futile Attempt of Forcing Equality Among the Masses.