John Kemp at the Guardian asks whether the U.S. and UK can recover from increasing debt levels. Mish offers commentary on Kemp’s analysis. Despite the rhetoric you hear from politicians and pundits, the Fed policies and Treasury initiatives are not sufficient to cope with the massive debt load. For one thing, the debt is in too high a ratio to GDP to be inflated away. Creating government jobs (and watch how much it costs to create a job) is a meaningless gesture in this economy. Tax cuts won’t work because, as the government debt level rises, more taxes will be needed to pay the interest on government debt. The only answer is to raise GDP significantly, and this would mean stopping sending U.S. jobs to India and China. No politician has suggested this. We have. Why won’t politicians propose saving and increasing American jobs in the private sector? Because the socialists want to continue building up Communist China and increasing immigration from Mexico to create a multicultural mass society under their control. They already have their plans in place, and they are not going to deviate from the Communist New World Order to save the U.S. economy.
Ambrose Evans-Pritchard reports on Spain’s economic crisis at the Telegraph. It should be clear by now that the European Union is a “prison of nations” that prevents nations from setting their own trade policies, tax policies, and interest rates. When times turn tough, these countries do not have control over the full complement of economic variables to fine-tune their economic policies. Spain appears caught in a deflation trap it cannot control. Today labor is marching in protest against the Socialist party. In the U.S., labor continues to vote socialist. NWOU concludes that European workers are smarter than American workers at recognizing they have been sold out by their socialist leaders. Unfortunately, the protests don’t begin until it’s too late.
Let’s begin our tour with a nice, long statistical analysis of recent economic indicators by David Chapman at SafeHaven. Chapman notes the frequent occurrence of the word “Depression” in recent writing about the global economy. Chapman believes it is not a Global Depression but might become one. At the moment, whether the world enters a Depression seems to hinge on the possible collapse of the Chinese economy and the question of whether the U.S. and European nationalization of banks will succeed in preventing widespread bank collapse. Chapman implies that overbuilding in infrastructure (housing) cannot be solved by building more infrastructure, hence the Obama policies are destined to fail. (more…)
Another reason to boycott large multinational corporations: the vast majority of them set up tax havens in foreign countries to avoid paying U.S. taxes. Carol Leonnig has the story at the Washington Post. Several of these firms have received TARP bailout funds. We are not going to get an honest functioning economy until we break up multinational corporations and reform corporate by-laws to prevent looting of the corporations themselves by clever criminal New World Order insiders.
Marygwen Dungan is on to Robert Rubin and summarizes the last month’s developments at SafeHaven. If Rubin’s story ever comes out, it will blow the whole lid off the criminal enterprise known as Wall Street and the government insiders who profited from Rubin’s schemes.
