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Thread: Republicans and "Free Market" Zealots Bring Disaster to America

  1. #1
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    Republicans and "Free Market" Zealots Bring Disaster to America

    By PAUL CRAIG ROBERTS

    March 12. Crude oil for April delivery hit $110 per barrel. The US dollar fell to a new low against the Euro. It now takes $1.55 to purchase one Euro.

    These new highs against the dollar are the ongoing story of the collapse of the US dollar as world reserve currency and corresponding collapse of American power.

    Each new decision from the insane Bush regime pushes the dollar a little further along to oblivion. The same Fed announcement that boosted the stock market on March 11 sent the dollar reeling and the price of oil up. The Fed’s announcement that it and other central banks are going to deal with the derivative crisis by monetizing $200 billion of the troubled instruments signaled more dollar inflation.

    Of course, something needed to be done to forestall an implosion of the financial system, but a less costly alternative was at hand. The mark-to-market rule could have been suspended in order to halt the forced sale and write down of assets and to provide time in which to sort out derivative values, which are higher than the fire sale prices.

    More pressure on the dollar resulted from the decision to award the European company, Airbus, a $40 billion contract that could reach $100 billion to build US Air Force tankers. In simple terms, that means another $40 to $100 billion added to the US trade deficit, and a loss of $40 to $100 billion in US Gross Domestic Product and associated jobs.

    Of course, the Bush regime had to award the contract to Europe as a payoff for Europe’s support of the Bush regime’s wars of aggression in the Middle East. Europe is not going to provide Bush with diplomatic cover for his wars and NATO troops for his war in Afghanistan without a payoff.

    Here is the picture: The US economy, which has been kept alive by enormous debt expansion that has over-reached its limit, is falling into recession. The traditional way out by expanding the supply of money and credit is blocked by the impaired banking system, the levels of consumer debt, the collapsing value of the US dollar, and rising inflation.

    The Bush regime is attempting to bypass the stalled credit expansion by sending Americans $600 checks, money that will mainly be used to reduce existing credit card debt and not to fund new consumption.

    The US is dependent on foreigners not only for energy but also for manufactured goods and advanced technology products. The US is dependent on foreigners to finance our consumption of $800 billion annually more than the US produces. The US is dependent on foreigners to finance its red ink wars, and the US government’s budget deficit is now expanding as tax revenues decline with the declining economy.

    The bottom line: US power is enfeebled. US power depends on the willingness of foreigners to finance our wars and on the willingness of foreigners to continue to accumulate depreciating dollar assets.
    The US cannot close its trade deficit. Oil prices are rising, and offshore production of goods and services for US markets results in a dollar-for-dollar increase in imports, while reducing the supply of domestic goods available for export.

    The US cannot close its budget deficit while it is squandering vast sums on wars that serve no US purpose, handing out $150 billion in red ink rebates, and falling into recession.

    US living standards, which have been stagnant for years, will plummet once dollar decline forces China off the dollar peg. So far prices of the Chinese-made goods on Wal-Mart shelves have not risen, because the Chinese currency, pegged to the dollar, falls in value with the dollar. In a word, tottering US living standards are being supported by China’s willingness to subsidize US consumption by keeping its currency grossly undervalued.

    The US is overextended economically and militarily, just as was Great Britain with the fall of France in the opening days of World War II. The British had the Americans to bail them out. After the chewing gum and bailing wire patch-ups are exhausted, who is going to bail us out?

    [COLOR="Red"][B]Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page and Contributing Editor of National Review. He is coauthor of The Tyranny of Good Intentions.He can be reached at: [email]PaulCraigRoberts@yahoo.com[/email] [/B][/COLOR]

    [url]http://counterpunch.org/[/url]

  2. #2
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    [QUOTE=Jetdawgg;2430346]By PAUL CRAIG ROBERTS

    March 12. Crude oil for April delivery hit $110 per barrel. The US dollar fell to a new low against the Euro. It now takes $1.55 to purchase one Euro.

    These new highs against the dollar are the ongoing story of the collapse of the US dollar as world reserve currency and corresponding collapse of American power.

    Each new decision from the insane Bush regime pushes the dollar a little further along to oblivion. The same Fed announcement that boosted the stock market on March 11 sent the dollar reeling and the price of oil up. The Fed’s announcement that it and other central banks are going to deal with the derivative crisis by monetizing $200 billion of the troubled instruments signaled more dollar inflation.

    Of course, something needed to be done to forestall an implosion of the financial system, but a less costly alternative was at hand. The mark-to-market rule could have been suspended in order to halt the forced sale and write down of assets and to provide time in which to sort out derivative values, which are higher than the fire sale prices.

    More pressure on the dollar resulted from the decision to award the European company, Airbus, a $40 billion contract that could reach $100 billion to build US Air Force tankers. In simple terms, that means another $40 to $100 billion added to the US trade deficit, and a loss of $40 to $100 billion in US Gross Domestic Product and associated jobs.

    Of course, the Bush regime had to award the contract to Europe as a payoff for Europe’s support of the Bush regime’s wars of aggression in the Middle East. Europe is not going to provide Bush with diplomatic cover for his wars and NATO troops for his war in Afghanistan without a payoff.

    Here is the picture: The US economy, which has been kept alive by enormous debt expansion that has over-reached its limit, is falling into recession. The traditional way out by expanding the supply of money and credit is blocked by the impaired banking system, the levels of consumer debt, the collapsing value of the US dollar, and rising inflation.

    The Bush regime is attempting to bypass the stalled credit expansion by sending Americans $600 checks, money that will mainly be used to reduce existing credit card debt and not to fund new consumption.

    The US is dependent on foreigners not only for energy but also for manufactured goods and advanced technology products. The US is dependent on foreigners to finance our consumption of $800 billion annually more than the US produces. The US is dependent on foreigners to finance its red ink wars, and the US government’s budget deficit is now expanding as tax revenues decline with the declining economy.

    The bottom line: US power is enfeebled. US power depends on the willingness of foreigners to finance our wars and on the willingness of foreigners to continue to accumulate depreciating dollar assets.
    The US cannot close its trade deficit. Oil prices are rising, and offshore production of goods and services for US markets results in a dollar-for-dollar increase in imports, while reducing the supply of domestic goods available for export.

    The US cannot close its budget deficit while it is squandering vast sums on wars that serve no US purpose, handing out $150 billion in red ink rebates, and falling into recession.

    US living standards, which have been stagnant for years, will plummet once dollar decline forces China off the dollar peg. So far prices of the Chinese-made goods on Wal-Mart shelves have not risen, because the Chinese currency, pegged to the dollar, falls in value with the dollar. In a word, tottering US living standards are being supported by China’s willingness to subsidize US consumption by keeping its currency grossly undervalued.

    The US is overextended economically and militarily, just as was Great Britain with the fall of France in the opening days of World War II. The British had the Americans to bail them out. After the chewing gum and bailing wire patch-ups are exhausted, who is going to bail us out?

    [COLOR="Red"][B]Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page and Contributing Editor of National Review. He is coauthor of The Tyranny of Good Intentions.He can be reached at: [email]PaulCraigRoberts@yahoo.com[/email] [/B][/COLOR]

    [url]http://counterpunch.org/[/url][/QUOTE]

    This cannot be true! Mr. Roberts hates America! :zzz::zzz:

  3. #3
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    Paul Craig Roberts is better known as the "Father of Reaganomics"

    However, it would be short-sighted to only blame this on the Republicans. We must remember that one of the root causes for this crisis was the repealing of the Glass-Steagall Act in 1999 under the Clinton Administration, which allowed banks to get intimately involved in the securities industry.

    The Republicans are merely the current culprits, but they are certainly not the ONLY culprits for our problems. The problems go beyond political parties and have to do with the broader economic system.

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    and just for the record the airbus contract also includes northrop Gruman a company that employs thousands of americans.

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    [QUOTE=JetsCrazey;2430398]

    The Republicans are merely the current culprits, but they are certainly not the ONLY culprits for our problems. The problems go beyond political parties and have to do with the broader economic system.[/QUOTE]

    Stop talking nonsense, Republicans should be blamed for everything. That's why all those Democrats were elected in 2006, and as a result Nancy Pelosi courageously went against the grain and achieved a valuable, sweeping victory for all Americans: she changed the menu in the Congress cafeteria.

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    patiently waiting for jets5ever to weigh in...

    intuitively, all of this makes sense and it reminds me of my own railing about the pending tech and housing bubbles. But I don't understand near enough about global economics to be confident of anything..

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    [QUOTE=pauliec;2430407]Stop talking nonsense, Republicans should be blamed for everything. That's why all those Democrats were elected in 2006, and as a result Nancy Pelosi courageously went against the grain and achieved a valuable, sweeping victory for all Americans: she changed the menu in the Congress cafeteria.[/QUOTE]

    Other than Mike Gravel and Dennis Kucinich, Democrats are spineless hypocrites. Kind of like Neocons.

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    Paul Craig Roberts is a 9/11 conspiracy nutjob.

    [URL="http://en.wikipedia.org/wiki/Paul_Craig_Roberts#Recent_views"]http://en.wikipedia.org/wiki/Paul_Craig_Roberts#Recent_views[/URL]


    I'm sure his article is highly unbiased, seeing as it is littered with "Bush regime".

  9. #9
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    Paul Craig Roberts even offered up a quote for one of these scumbag conspiracy books.

    The book is Debunking 9/11 Debunking, or some such crap.


    "Professor Griffin is the nemesis of the 9/11 cover-up. This new book destroys the credibility of the NIST and Popular Mechanics reports and annihilates his critics."
    -- Paul Craig Roberts, Assistant Secretary of the US Treasury during the Reagan administration

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    [QUOTE=JetsCrazey;2430398] We must remember that one of the root causes for this crisis was the repealing of the Glass-Steagall Act in 1999 under the [B]Clinton Administration[/B][/QUOTE]

    AHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHaaaa! It is always is isn't it?

  11. #11
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    [QUOTE=Jetdawgg;2430346]By PAUL CRAIG ROBERTS

    March 12. Crude oil for April delivery hit $110 per barrel. The US dollar fell to a new low against the Euro. It now takes $1.55 to purchase one Euro.

    These new highs against the dollar are the ongoing story of the collapse of the US dollar as world reserve currency and corresponding collapse of American power.

    Each new decision from the [B]insane Bush regime[/B]... [/QUOTE]

    I stopped reading right there. You lose all credibility when you show too much emotion and bias.

    It would be like me saying, "Al Gore is a complete idiot. But now let me explain to you objectively why global warming is a farce."

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    [QUOTE]Here is the picture: The US economy, which has been kept alive by enormous debt expansion that has over-reached its limit, is falling into recession. The traditional way out by expanding the supply of money and credit is blocked by the impaired banking system, the levels of consumer debt, the collapsing value of the US dollar, and rising inflation.

    The Bush regime is attempting to bypass the stalled credit expansion by sending Americans $600 checks, money that will mainly be used to reduce existing credit card debt and not to fund new consumption.

    The US is dependent on foreigners not only for energy but also for manufactured goods and advanced technology products. The US is dependent on foreigners to finance our consumption of $800 billion annually more than the US produces. The US is dependent on foreigners to finance its red ink wars, and the US government’s budget deficit is now expanding as tax revenues decline with the declining economy.

    The bottom line: US power is enfeebled. US power depends on the willingness of foreigners to finance our wars and on the willingness of foreigners to continue to accumulate depreciating dollar assets.

    The US cannot close its trade deficit. Oil prices are rising, and offshore production of goods and services for US markets results in a dollar-for-dollar increase in imports, while reducing the supply of domestic goods available for export. [/QUOTE]

    Any part of this not true?

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    [QUOTE=Jetdawgg;2430489]Any part of this not true?[/QUOTE]

    no. Paul Craig Roberts is intelligent. If he believes something, it should be taken rather seriously. Could it possibly be that the "Bush regime" is indeed an incompetent one that lies to its citizens? Answer: YES. After all, this is planet Earth, where our history is littered with leaders that lie to the people for their own selfish gain.

    Anybody who believes the Bush Administration is above lying to Americans not only needs a smack upside the head, they also need a lesson in world history.
    Last edited by JetsCrazey; 03-13-2008 at 02:51 PM.

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    This country was founded on a free market system. Socialism/Communism doesn't work ask the Russians, Chinese French where taxes are thru the roof!

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    [QUOTE=MnJetFan;2430800]This country was founded on a free market system. Socialism/Communism doesn't work ask the Russians, Chinese French where taxes are thru the roof![/QUOTE]


    Taxes are thru the roof here and you consider this 'free market'?

    All of that borrowing done by this administration is just a 'tax' waiting for release

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    [QUOTE=MnJetFan;2430800]This country was founded on a free market system. Socialism/Communism doesn't work ask the Russians, Chinese French where taxes are thru the roof![/QUOTE]

    "A central bank is 90% of communizing a nation" -Vladimir Lenin

    A socialized economy is one where centralized interests can manipulate the money supply, rate of interest, and price level. This is what the Federal Reserve does. A free market economy is one where the Government provides its people with a sound and stable currency and market forces take care of the rest.

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    Isn't Polsi the speaker and Reid the Majority leader? How is this the Republicans fault?

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    [QUOTE=Winstonbiggs;2430923]Isn't Polsi the speaker and Reid the Majority leader? How is this the Republicans fault?[/QUOTE]


    The lack of accountability clearly started with the republican congress of 02 and 04. In 06 we thru those bums out!!!!

  19. #19
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    [QUOTE=Jetdawgg;2430998]The lack of accountability clearly started with the republican congress of 02 and 04. In 06 we thru those bums out!!!![/QUOTE]

    When did the economy tank?

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    [QUOTE=Winstonbiggs;2431010]When did the economy tank?[/QUOTE]


    '03 when the borrowing started. It just shows up now. The neocons did not heed the warnings

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