THIS WEEKS FED MEETING COULD BE THE MOST IMPORTANT IN YEARS...
THE FED MUST DECIDE IF IT'S GOING TO KOW-TOW TO THE SPECULATING CLASS...OR SUPPORT A STRONG DOLLAR... AND PROTECT THE GENERAL ECONOMY FROM INFLATION...WHICH IS ACTUALLY IT'S MANDATE.
THE PROBLEM BEING THAT YEARS OF CREDIBILITY BUILT UP SINCE BRETTON WOODS...AND THE 1971 DEBACLE IN THE DOLLAR.... ARE NOW LOST...
GREENSPAN USED UP THE "VOLKER GOODWILL" ON THE DOLLAR WITH SEVERAL HUGE ASSET BUBBLES IN A ROW...
IN SHORT BERNANKE THINKS HE'S ANOTHER GREENSPAN...BUT HE WILL SO DISCOVER THAT HE IS THE NEXT VOLKER!! AND THAT COULD BE A SHOCKER!
IT'S BACK TO THE FUTURE FOR THE DOLLAR...
WITH THE ADDED DISADVANTAGE OF A US ECONOMY THAT IS NEAR TOTALLY DEINDUSTRIALIZED...AND MASSIVELY IN DEBT TO CHINA FOR OUR MANUFACTURED GOODS...
SOCIALLY AND ECONOMICALLY THE AMERICAN ECONOMY RESEMBLES THE LATE 1920'S....BUT IT IS ACTUALLY MUCH MUCH WORSE NOW!
THE WAY OUT IS A HUGE FEDERAL BAILOUT OF THE ECONOMY....NEW DEAL STYLE....WITH THE ADDED "MEDICINE" OF A VOLKER APPROACH TO THE DOLLAR...
IN OTHER WORDS...IT'S GOING TO BE NEW DEAL SOCIAL AND FISCAL POLICY AND VOLKER-ESQUE MONETARY POLICY...
THIS IS THE WORSE OF ALL WORLDS!!
BUT IT'S THE ONLY WAY OUT NOW....OUR ECONOMIC DISEASE IS IN THE VERY BONES OF THE ECONOMY...THE PROBLEMS ARE NOT FISCAL OR MONETARY ALONE...THE PROBLEMS ARE STRUCTURAL!
ARE AMERICANS UP TO WHAT COMES NEXT?
BECAUSE ANY LIGHT AT THE END OF THE TUNNEL MAY PROVE TO BE A FALSE DAWN EVEN YET.
BUT AT LEAST...WE WILL BE DOING SOMETHING ABOUT THE PROBLEMS AT LAST...
AND OUR LONG NIGHT OF REPUBLICANISM WILL BE OVER...!!
