America's Financial Crisis

[Azad]

Re: America's Financial Crisis

"As a rising number of Americans sign up for unemployment benefits, many of the state-funded trusts that pay them are on the decline.
At least 12 of them are on the brink of insolvency. In 20 other states, the funds have lost value, even before the big job losses of the past two months.
While unemployed workers will get their benefits – federal law requires it – the trust fund woes are putting states into a peculiar squeeze. They're loath to raise taxes or cut services in a recession, so many are racking up new loans. That debt burden will affect residents for years to come."

http://news.yahoo.com/s/csm/20081211/ts_csm/asafetynet

[Azad]

Re: America's Financial Crisis

Talking of corruption and robbing Tax payers. At all levels.

"WASHINGTON (AP) -- If the $14 billion bailout plan for U.S. automakers passes, it will help more than just Ford, Chrysler and General Motors. Federal judges would get a pay raise, as well.

The raise -- labeled a cost of living adjustment -- would bring U.S. District court judges up to par with members of Congress, who will receive an almost $5,000 boost on Jan. 1. District judges and lawmakers now earn $169,300 a year but are expected to be awarded a 2.8 percent raise next year, said xxxx Carelli, a spokesman for the Administrative Office of the United States Courts."

http://finance.yahoo.com/news/Pay-raise-for-judges-tucked-apf-13798044.html

[Armenian]

Re: America's Financial Crisis

This is what I have been looking for; the close relative of the Euro and the father of the Amero, Herb Grubel. This German born Canadian politician turned professor spells it out in quite clear terms why the North American Amero makes more sense than the Dollar of the United States. Is the current economic crisis in the US engineered by the financial elite in preparation of drastic changes that await this nation? How bad does it have to get before "we the people" willingly go along with their plans? Please watch the posted video links of Herb Grubel's interview.

Armenian

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The Case for the Amero: Executive Summary

The Amero: Herbert Grubel (part 1/8): http://www.youtube.com/watch?v=LO7637kNoRg
The Amero: Herbert Grubel (part 2/8): http://www.youtube.com/watch?v=HKUsu...eature=related
The Amero: Herbert Grubel (part 3/8): http://www.youtube.com/watch?v=IAIc9...eature=related
The Amero: Herbert Grubel (part 4/8): http://www.youtube.com/watch?v=dU8Bz...eature=related
The Amero: Herbert Grubel (part 5/8): http://www.youtube.com/watch?v=NbS3N...eature=related
The Amero: Herbert Grubel (part 6/8): http://www.youtube.com/watch?v=jVtfV...eature=related
The Amero: Herbert Grubel (part 7/8): http://www.youtube.com/watch?v=0Laih...eature=related
The Amero: Herbert Grubel (part 8/8): http://www.youtube.com/watch?v=KjKiZ...eature=related

By Herb Grubel

This study was stimulated by the recent successful launch of the euro, the prospect of official "dollarization" in Argentina and Mexico, the relatively poor performance of the Canadian economy, and the depreciation of the Canadian dollar during the last 25 years--and especially in 1998. Canada's flexible exchange rates have contributed to poor economic performance. On the one hand, they have cushioned the producers of commodities from the effect of lower world prices. On the other hand, they have caused a reduction in labour-market flexibility and delayed adjustment to the long-term decline in the world prices of natural resources. They also brought high currency-exchange costs and a significant risk premium on Canadian interest rates.

The plan for a North American Monetary Union presented in this study is designed to include Canada, the United States, and Mexico. Under the proposed plan, bank notes and coins of the currency (tentatively called the "amero" ) will have "amero" symbols on one side and national emblems on the other to preserve important symbols of national identity. The conversion of existing currencies into the amero will take place at rates that leave unchanged each country's real income, wealth, and international competitiveness at the time of conversion.

The North American Central Bank, like the European Central Bank, will have a constitution making it responsible only for the maintenance of price stability and not for full employment. The three countries in the union will have representatives on the Bank's board in numbers reflecting their relative size in terms of some weighted average of population and national income, with the weights to be determined through negotiations. Every country will receive the profits from the issuance of ameros used domestically. Trade among the members of the monetary union will be stimulated by the elimination of the costs of currency trading and risk. There will be greater price stability and, importantly, interest rates in Canada will fall by about one percentage point.

Against these gains in economic efficiency must be weighed possible losses in macroeconomic performance. These losses will be small or non-existent. Flexible exchange rates have not brought Canada the macroeconomic benefits promised by advocates of such a policy. Unemployment has remained high and economic growth has been slow. Changes in economic thinking and the experience of many countries have shown that the economic fine-tuning possible under flexible exchange rates has been a failure. Labour-market flexibility, essential for dealing with economic shocks, was lowered by the very existence of flexible exchange rates. The temporary protection offered producers and workers by exchange-rate deprecation has generated inefficiencies much like temporary protection through tariffs is known to have done in the past.

Canada's cultural sovereignty and political independence are not affected by monetary union. Just as in the case of free trade, there is nothing in any treaty for monetary union that interferes with Canada's ability to pursue taxation, spending, social, regulatory, or foreign policies different from those of the United States. A small political movement for monetary union already exists. It will gain strength if the Canadian economy continues its recent record of poor performance. Even if the world prices of commodities and the exchange rate should recover, history shows that the exchange rate will not return to its old level. All Canadians will be permanently poorer. At the same time, the rise in the exchange rate taking place will cause unemployment and government deficits. Business and the general public will increasingly look to monetary union as a solution to these problems, especially if the euro succeeds.

The United States has less to gain from a monetary union than Canada and Mexico but there will be some benefits. Monetary union will reduce the threat to the power of the US dollar resulting from the greater use of the euro in place of the dollar in the rest of the world. Further, the United States will benefit from having more stable and prosperous countries as neighbours. When the United States joined other international organizations like the IMF, the World Bank, the World Trade Organization, and the North American Free Trade Agreement, the expected economic and political gains appeared to offset the surrender of some national sovereignty. In this tradition, the United States may well find it worthwhile to join the proposed monetary union.

[...]

Source: http://oldfraser.lexi.net/publicatio...ection_02.html

[Armanen]

Re: America's Financial Crisis

Yeah you're correct and I should have put in 'federal' government which is what I was referring to.

[Azad]

Re: America's Financial Crisis

And government. In fact I expect that to continue to grow, even more so now.

It is questionable on the state level (see CA). Very soon all other states tax revenues will dwindle. The federal government could employ us all to a certain extend if we are willing to go the "red" route ... which is happening with the banking industry, car industry .... who knows next.

[Armanen]

Re: America's Financial Crisis

The only sector that I can think of that is not effected yet is the health care industry. Won't be long now.

And government. In fact I expect that to continue to grow, even more so now.

[Azad]

Re: America's Financial Crisis

The only sector that I can think of that is not effected yet is the health care industry. Won't be long now.

[Azad]

Re: America's Financial Crisis

Looks like corporate America's golfing leisure is coming to an end.
The trickle down economics didn't even start yet.

"Dow Chemical Co., based in Midland, Mich., said it will slash 5,000 jobs and shutter 20 plants to rein in costs, Maplewood, Minn.-based 3M Co. is cutting 1,800 jobs in the fourth quarter and ordering some workers to take vacation or unpaid time off for the last two weeks of the year, while Anheuser-Busch InBev said it would cut about 1,400 U.S. jobs to help save the world's largest brewer at least $1.5 billion a year.

InBev SA, a Belgian-Brazilian hybrid, wrapped up its takeover of Anheuser-Busch Cos. Inc. last month and said three-quarters of the jobs will disappear from Anheuser's North American headquarters in St. Louis.

Also Monday, Tribune Co. filed for bankruptcy as expected. The privately held owner of the Los Angeles Times and Chicago Tribune, other newspapers and the Chicago Cubs and Wrigley Field, is struggling with $13 billion in debt."

[Azad]

Re: America's Financial Crisis

Great Depression Unemployment Didn't Hit 25 Percent Overnight

A few months ago, when you dared raise the specter of a second Great Depression, most people responded that the current mess is completely different from the Depression because in those days we had 25% unemployment. Here are the problems with that argument.

First, unemployment stats are calculated differently now. If we calculated unemployment the same way we did in the Depression, our unemployment rate would be much higher.

Second, unemployment during the Depression didn't get to 25% overnight. It got there over three years, during which most people never dreamed it would get anywhere near that high. When unemployment started its run to 25% then, it was lower than it was last year.

In 1929, unemployment was below 5%. By the end of 1930, as the New York Times reveals, it had risen to just below 10%. The following year it hit 16%. In 1932, it was 24%. And in 1933, it peaked at 25%. It then took 19 years to get back to the pre-crash low.

As today's depressing jobs report showed, unemployment is now rising rapidly. Not as rapidly as in 1930, but rapidly. With luck (and good policy), this time it will peak below 10%, hopefully well below. But it's too early to be certain.

If you're looking for reasons why the current crisis won't end up being anything like the Great Depression, however, today's 6.7% unemployment rate shouldn't come as much comfort.

http://finance.yahoo.com/tech-ticker/article/140365/Great-Depression-Unemployment-Didn't-Hit-25-Percent-Overnight?tickers=%5Edji,%5Eixic,%5Egspc,spy,dia,qqqq,tlt

[Armenian]

Re: America's Financial Crisis

It seems as if Alex Jones and Ron Paul are becoming quite popular with Russia Today... Needless to say, I see why. Alex Jones and Ron Paul are two of the increasingly rare (and endangered) voices of sanity, decency and true patriotism in America today. Listen closely to the message of these men and then pay attention to the conveyor belt bullshit that is spewed upon us all by mainstream political pundits and elected politicians... A world of difference. I wish more Americans had the decency, the common sense and the concern for this nation to listen to men like this talk about the serious ills plaguing America.

Armenian

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Alex Jones on Russia Today

Our leaders have hijacked our nations: Alex Jones - http://www.youtube.com/watch?v=kbT_3cI_pwk

Alex Jones - "What Have We Become"

Part-1: http://www.youtube.com/watch?v=GhapA...eature=related

Part-2: http://www.youtube.com/watch?v=xOH6Z...eature=related

Part-3: http://www.youtube.com/watch?v=-7dpu...eature=related

Part-4: http://www.youtube.com/watch?v=-ULFr...eature=related

Part-5: http://www.youtube.com/watch?v=lSIW7...eature=related

Part-6: http://www.youtube.com/watch?v=TgJi0...eature=related

Part-7: http://www.youtube.com/watch?v=b54YH...eature=related

Part-8: http://www.youtube.com/watch?v=CupZn...eature=related

Alex Jones' website Infowars.com: http://www.infowars.com/

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Ron Paul on Russia Today

World Central Bank is on its way: http://www.youtube.com/watch?v=QnsfZwwswZE