Paul Craig Roberts fingers the zionists
Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration.
I thought this was good enough to share at WUFYS.
___________________________________________________
New Hampshire voters have chosen warmongers for their party's presidential candidates.
The only candidates not in Israel's pocket are Kucinich, Paul, and Gravel, who have no chance for their party's nomination.
On the eve of the New Hampshire primary, Obama said he would invade Pakistan in order to protect America.
America's hatred of Muslims may increase as the 2008 recession hits. Since a fearful population welcomes a savior, Hillary might become a full dictator when she takes office.
The Greenspan Fed created money and low interest rates to hide the effect of job loss from offshoring. Low prices from Asian slave labor masked the inflationary impact of the Fed's monetary policy.
The low interest rates created artificial increases in home prices by reducing the carrying costs of mortgages. As with cars and other high-prices items, most people buy a house based on their monthly payments, not on the price of the house.
Many homeowners refinanced to capture and spend the rise in home equity produced by the housing bubble. This caused a construction boom, which the government said was poof of a strong economy.
When the U.S. government says the economy is doing great, the government counts American-owned factories overseas. These goods are sold to the USA. Therefore the factories are part of the Asian GDP, not the USA’s.
Performance-driven executives at financial institutions were suckered into purchasing subprime derivatives that have crashed, leaving the financial system with serious problems. Countrywide, the nation's largest mortgage lender, is in so much trouble that the entire company will now be sold to Bank of America.
Bailouts require more and more liquidity (i.e. debt). This – plus US budget and trade deficits – have weakened the U.S. dollar. Creating more dollars makes holding existing dollar assets even less attractive to the foreigners who finance US deficits.
Inside the USA, access to more credit does not help people who are maxed out and cannot pay their bills, especially when they are losing their jobs.
The dollar has retained its reserve currency role despite its loss of value, because there is not (yet) a clear alternative. The euro is a currency without a country, and might be adversely affected by differential interest rates arising within the EU membership. The British economy is small, and faces similar problems to the US. The rising Asian economies are not ready to assume the role of having the world’s reserve currency.
Job growth in the US is confined to domestic nontradeable services, such as making tacos and cleaning restrooms.
The presidential candidates talk about reducing America's depenence on oil, but the US is now far more dependent on imported goods than it is on imported energy. Offshoring makes it impossible for the US to ever balance its trade.
Offshoring has wiped out most American manufacturing, and is now taking high-end service jobs. Princeton University economist Alan Blinder, a former vice chairman of the Federal Reserve, estimates that 30 million more US service jobs will soon be sent overseas.
Studies by economists with the Economics Policy Institute report that as of 2006 the typical American family's income remained $1,000 below its peak in 2000. The combination of massive indebtedness, job loss, and recession will continue to erode US living standards.
In December 2007 the Congressional Budget Office released its report on household incomes. It said 80 percent of Americans have experienced a falling share of US income. Among the remainder, 19 percent held steady, while the top 1 percent got richer than ever.
An economy that concentrates its wealth at the very top, while wiping out jobs by sending them abroad, thus dismantling the ladders of upward mobility, is an economy headed for serious troubles -- even without subprime derivative and currency problems.
___________________________________________________
This article appeared in Counterpunch.
