Sep 08
23
The American Train Wreck That We Are All Riding On
The last week has truly been remarkable.
But let's look at it through a different lens.
What would happen in an oligarchy that calls itself a democracy when the numbers men look at the data and conclude that for either candidate for the presidency to get elected, they have to come out swinging against the incumbent administration and its policies.
And in doing that, the likelihood is that the criticisms that the king has no clothes will be the things that bring down consumer confidence to such a point that the economy really does implode.
Or take it from a different point of view.
The people who are in the process of losing the most money from the nationalization of Fannie Mae and Freddie Mack are the Chinese government/banks. (See my earlier blog about this here and a more recent one about AIG here).
So I was interested to see that Bush had a conversation with President Hu about the topic. You had better believe he would! After all, who is going to write the check to loan the trillion or so dollars that the US needs to enable the printing of all that money?
And then there is the news about Section 8 of the proposed legislation to enable the bail out…
It says: “Decisions by the Secretary pursuant to the authority of this Act are
non-reviewable and committed to agency discretion, and may not be
reviewed by any court of law or any administrative agency.”
It looks to me very much like what we have here is a hi-jacking of the greatest democracy in the world by the banking industry using the guy who ran Goldman Sachs as the proxy. Hank Paulson is about to be the real go to guy in the US, the guy who is actually running things. No more Cheney and Bush…. Either the US will have nationalized the banking industry or the banks are the owners of the country….
Just remember how magicians are able to pull off their tricks. They get you to look at one hand while the real business is going on with the other. And right now all eyes are on the election….