The Age of America is Over — So Says the IMF
(The American Conservative) -- by Paul Craig Roberts --
Today the Swiss franc made yet another new high against the super dollar, as it has been doing for 120 days. What you are reading in the graphs is less and less of the foreign currency that one dollar can buy. Of course, gold and silver also consistently hit new highs...
As did the Australian dollar:
European euro (despite the “sovereign debt crisis,” a product of naive European trust in Americans and the criminality of Goldman Sachs and all of Wall Street)...
Ben Bernanke says QE will end in June, but he is either delusional or lying. If the Fed stops monetizing Treasury debt, how will the $1.5-trillion-dollar annual operating deficit of the US government be financed? Are Americans, who are broke, suffering 22% unemployment, foreclosures on their homes and running out of money before the end of the month, as Wal-Mart’s CEO recently stated, going to finance a 1.5-trillion annual government deficit? If you think so, I have a bridge to sell in Brooklyn.
The combined trade surpluses of China, OPEC, Japan and Russia are insufficient to finance more than one-third of the US budget deficit, assuming these countries are willing, in the face of the evidence, to continue to acquire US debt.
That means, even under the most optimistic scenario, that the Federal Reserve will have to purchase annually $1-trillion in Treasury debt.
In other words, the US, the great Super Power over-filled with hubris, has outdone the fiscal irresponsibility of third-world banana republics. Superpower America is financing itself by printing money.
Washington, by conducting open-ended wars of aggression against non-puppet states, by giving its approval to the off-shoring of US jobs and thereby US GDP, and by saddling bankrupt taxpayers with $1-trillion in non-recourse loans to mega-rich people in order that the richest and most favored could borrow from the Fed at nearly zero rates of interest hundreds of millions of dollars to buy under-valued student loans, credit card debt, mortgages, whatever, and have any profits from the purchase of under-valued assets put in their bank account and any losses put on the Federal Reserve’s books. Obviously, the US economy is a scheme run by the rich for the rich.
In this scheme to impoverish Americans for the benefit of the mega-rich, the Federal reserve actually gave hundreds of millions of dollars to the wives of New York investment bank CEOs in non-resource loans. The already rich wives bought up under-valued debt and made a killing. The wives had no risk whatsoever, because if their investments failed, it went onto the Federal Reserve’s books, not on the wives’ entity. See Matt Taibbi’s The Real Housewives of Wall Street in Rolling Stone magazine...MORE...LINK
Chris Moore comments:
There is an obvious flaw in the state capitalist system: the most selfish, greedy, ruthless and sociopathic rise to the top, and gobble up everything within reach regardless of cost to the country’s economic solvency nor its very future; indeed, they deliberately plunder the country’s future because it’s in this type’s greedy and insatiable nature to destroy in order to serve themselves.
The rise of the war-profiteering complex, the government unions complex, the Israel lobby and the thieving Wall Street class, all of which have used the state to grease the skids on all of this, is merely symptomatic of this ilk’s rise to the top.
But this is also a social and political judgment on the incredibly narcissistic Cheney-Bush-Clinton generations, who’s utter incompetence, selfishness, egoism, stupidity and warmongering got us into this mess in record time.
From the Marketwatch article on America’s fall from respectability:
“Just 10 years ago, the U.S. economy was three times the size of China’s.”
Despite all of this, I see no evidence of the Political Class either taking responsibility for this mess or reforming its evil ways. It’s clear that they intend to plunder until the country falls to pieces and the people are jobless, homeless, and starving in the streets.
This is truly “The Worst Generation.”