PROBABLY THE MOST IMPORTANT PART OF THE PAULSON SPEECH WAS THE SHOCKING ADMISSION THAT THE "GLOBAL IMBALANCES" DOOM THE SYSTEM ANYWAY...IRRESPECTIVE OF WHO OR WHAT IS "BAILED OUT" NOW...
BY GLOBAL IMBALANCES I ASSUME HE MEANS THE MASSIVE AND STRUCTURAL US TRADE AND BUDGET DEFICITS...
SO HERE'S THE PROBLEM:
THE TARP IS REALLY JUST A "PAIN KILLER" FOR A PATIENT THAT HAS A TERMINAL CANCER...!
THE US IS A MACROECONOMIC BASKET CASE...AMERICA SIMPLY HAS NO MANUFACTURING INDUSTRIES...AND THE CAR COMPANIES ARE ON THE WAY OUT IF WALL STREET GETS IT'S WAY...
BUT IF FORD AND GM GO...?
HOW MUCH WORSE WILL BE THE "GLOBAL IMBALANCES" ....AS AMERICANS ARE REDUCED MERELY TO CONSUMPTION ....BASED ON EVER MORE US ASSET BUBBLES...
BUT WE MAY NOT GET ANOTHER ASSET BUBBLE FOR SOME TIME GIVEN THE POOR CREDIT OF AMERICANS AND THEIR GOVERNMENT GOING FORWARD...
THE REALLY BIG QUESTION IS WHEN WILL THE GLOBAL BANKS PULL THE RUG OUT FROM UNDER WASHINGTON AND WALL STREET...JUST LIKE THEY DID WITH GERMANY IN THE 1920'S...!
BECAUSE WHEN THE MUSIC STOPS...THE COLLAPSE WILL BE SWIFT...AND TOTAL AND HORRIBLE...
NOTHING PAULSON SAID TODAY REASSURED ANYONE...IF ANYTHING IT MADE IT LESS LIKELY THAT THE BAND WILL PLAY ON...
THE AMERICAN HOLLOW SHELL ECONOMY IS SLOWLY BEING EXPOSED FOR EVERYONE TO SEE...!!
WHAT PAULSON AND THE MEDIA ARE DOING NOW, WITH THE TARP, ET AL, IS SIMPLY ARGUING ABOUT HOW TO ARRANGE THE DECK CHAIRS ON THE USS TITANIC...!!
