BACK IN THE USSA

Hard to focus these days on the beauty of the autumn... I'll go out into it and take a deep breath, do some physical work right in the midst of all that actual magnificence, as soon as I post this...

Never thought I'd live to see what's going down in the US of late, particularly under what was ostensibly labeled a conservative administration; but then again, since when have political labels actually meant anything... China, the last major bastion of socialism, now looks to be a model of financial wisdom and capitalist probity compared to the US. Karl Popper once said that he knew socialism would fail because its success hinged upon the innate goodness of man. It appears that the same is true of capitalism.

The US taxpayers are now, without their consent or prior notice, the collectively puzzled owners of several (and soon to be more) failed financial services (or is it the other way around), with their neonotional debt limit not a freshly printed and inflationary 700 billion dollars (the figure being bandied about by those who don't want the public to know what's going on just yet beyond the smoke and mirrors), but hundreds (thousands?) of trillions of dollars. Money borrowed by the US government taxpayer from the private banking consortium known as the Federal Reserve, the taxpayers' new hedge fund.

I've always wondered why, if the Federal Reserve is a private corporation, it gets to use the .gov domain; just a little thing that bugged me; a small point, really-- never been so small before, though...

.....

"The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money."

---Alexis deTocqueville

AMERICA BARELY MEETS A MARGIN CALL

And this is just the first of hundreds - thousands - of moneyshifts, most of which the paying public will never even hear about until their shares in the US (i.e. the dollar) are worth pennies, before the freeprinting currency reaches its intrinsic value and surviving US banks are nationalized.

There is blood in the water, as the sharks begin to eat their own...

The transaction is all the more odd in that Bear Stearns' purchaser J.P. Morgan is the world's largest holder of derivatives!

Foreign investors are withdrawing their support of the currency...

For a view of where all this may be headed, see the Weimar experience...

BTW, the current derivative nominative total is over 500 TRILLION dollars...

And The Street on Welfare...

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