The Other Shoe

The sub prime crisis.

Add to that the enormous debt, our weakness in manufacturing and export, and the upshot is the rest of the world economies are recoiling from our failures. They are rethinking the US as a place of ultimate economic security. When the bulwark of the global economy quakes and quivers, the rest of the world loses money.

George Bush and Co. could care less about the millions of Americans about to lose their homes, they, after all, are the little people. Their misery, little more than another opportunity to buy cheap real estate. (*see Republican money feast called Katrina).

http://money.cnn.com/2007/12/06/real_estate/Bush_plan_is_limited/index.htm?cnn=yes

What the Bush administration is reacting to and why he is 'stepping up' with this (largely useless) announced 'plan' today is to address the reality that if the rest of the world which buys our debt gets skittish, we could be in for a long term crisis. Bush has been warned that he cannot just ignore this and hope it goes away.

Rappers declaring they only want to be paid in euros, Saudis joking about switching to euros for valuation of oil, while not likely to happen anytime soon, just underscores the severity of the economic crisis. The crisis "is" the rest of the world has decided
that the US is too much in debt and 'a credit risk'. This never would have happened on it's own, but the fact is they are losing money, big money by being invested in the US debt markets.


Driving these forces are the enormous debt that the Bush administration has racked up, combined with unprecedented anti-US sentiment. There are a lot of people who would love to see our economic dominance diminished.

These two realities, enormous debt, enormous anti-US sentiment are driving this change in global economic power. With China, Europe and Russia emerging as the main beneficiaries, and China who holds most of our debt will wind up with more influence and political favor for holding on to their dollars. In the end China alone will not save us, and these forces will realign the global economic power structures.

An empire in descent?

The other shoe,
Next year, record foreclosures will drive record bankruptcies, further depressing the credit markets as billions of dollars in credit card debt becomes subject to the uncertainties of bankruptcy court. Even with the recent changes in the bankruptcy laws that favor the large credit card companies they still stand to lose big.

MTMIND
Me published Dec 6

MSNBC publish Dec 23
I hate being right all the time
http://www.msnbc.msn.com/id/22379989/

But of course I am not some talented prognosticator, it just was easy to see on Dec 6, and earlier, but somehow Americans are just zombies watching reality TV and Jerry Springer. Somewhere along the line Americans got left behind. That is because public education sucks in this country and the media is owned by a small group of corporations who have no stake or incentive whatsoever to tell you the truth. The talking heads and political pundits are told what to say everyday. They have a script, and they too have no intention or incentive for telling you the truth.
I, on the other hand, don't know what else to tell you, I have no agenda. When you are a scientists, the truth is all you have, all you want, and all you need.