America's Financial Crisis

[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

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

[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

[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

[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

Looks like tomorrow the stock market will go to hell .... again.

$14B auto bailout dies in Senate

AP – Senate Majority Whip xxxx Durbin, D-Ill., is pursued by members of the press, Thursday, Dec. 11, 2008, …
WASHINGTON – A $14 billion emergency bailout for U.S. automakers collapsed in the Senate Thursday night after the United Auto Workers refused to accede to Republican demands for swift wage cuts.
The collapse came after bipartisan talks on the auto rescue broke down over GOP demands that the United Auto Workers union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers.

[yerazhishda]

Re: America's Financial Crisis

Looks like tomorrow the stock market will go to hell .... again.

Don't be surprised if you see another -700, -800 or even (God forbid) -900 point drop tomorrow.

[Azad]

Re: America's Financial Crisis

"The Detroit Three employ 239,000 workers in the U.S. Counting other businesses that depend on the automakers, economists estimate that 2.5 million jobs would be lost if all three companies went out of business."

That will put the country at around 20% unemployment. Not to mention all other businesses that are feeding from the Auto industry. Chances are they will do some temporary patching .... if not ... watch out, it will be a hell.

[Azad]

Re: America's Financial Crisis

Looks like the whole "Western" Capitalism is shaking from its roots.
Won't surprise me if more "Madoofs" will soon be exposed. The honesty of the financial sector is as rotten as our economy. It is no longer that one sector where the bubble is bursting it is the whole American economy that is bursting.

[Azad]

Re: America's Financial Crisis

zionism cannibalism rhyme

Alleged Madoff fraud has worldwide exposure
Victims who sunk cash into veteran Wall Street money manager Bernard Madoff's

real estate magnate Mortimer Zuckerman
foundation of Nobel laureate Elie Wiesel
charity of movie director Steven Spielberg
Boston-based Robert I. Lappin Charitable Foundation
New Jersey Sen. Frank Lautenberg charitable foundation
Philadelphia Eagles owner Norman Braman
New York Mets owner Fred Wilpon
Ezra Merkin, the chairman of GMAC Financial Services
Mortimer Zuckerman, the chairman of real estate firm Boston Properties
Carl Shapiro, founder of women's apparel company Kay Windsor Inc
Bed Bath & Beyond Inc. co-founder Leonard Feinstein
Yeshiva University
EIM Group; UBS AG; Fairfield Greenwich Advisors; Tremont Capital Management; Maxam Capital Management and Ascot Partners.

and the list goes