Post by blueneck on Apr 1, 2008 17:53:48 GMT -6
excerpt from Alec Baldwin post on Huffington
Max Keiser, who reports for both BBC and Al Jazeera on global financial issues, has a valuable take on what a Clinton versus Obama economic plan might look like. Keiser e-mailed me this brief anaysis:
Looking at it purely from economic angle;
Obama has Paul Volcker as economic adviser -- he mopped up the stagflation of the '70s with 'tough love' of higher interest rates.
Hillary has Robert Rubin -- who demolished the last vestiges of Glass-Steagel which opened up the flood gates of securitizing loans and the current subprime (and now prime) credit crisis.
The current plan by Rubin's Goldman Sachs buddies Hank Paulson, (and Ben Bernanke), and their UK counterparts -- is to simply repackage all this bad debt and resell it again.. (making banks another fee); and hope that the problem will go away...
I do not believe this plan will work -- because in order for it to work -- long term interest rates have to go down -- which they are not likely to do now that China and India are no longer a source of cheap labor they once were... (the productivity miracle Alan Greenspan was always talking about amounted to outsourcing labor to China and now that game is up as wages in China go up and so-called productivity gains have faded).
The absolute necessity now is to stop bailing out banks, stop flooding the economy with more cheap money (money supply in US is running at an historic high of 16%), and stop raising the debt ceiling.
The buck (as in US dollar) has to stop being devalued by Paulson, Bernanke, etc. and their money printing banking friends or prices for food and gas will just continue zooming higher....
A hard, and probably a brutally hard recession has to be allowed to happen right now and the US needs to take its medicine for Greenspan's sins..
Putting off the day of reckoning with more re-packaging of debts as is the current 'master plan' of Paulson and Co. is only going to jeopardize the US dollar and possibly kill the US dollar off completely. (massive devaluation).
In other words: if Obama will force America to swallow a Paul Volcker anti-inflation economic pill than there really is no choice.
Voting for Hillary is voting for certain US dollar death.
(unless you own gold, and you are rooting for a dollar death, then vote for Hillary).
www.huffingtonpost.com/alec-baldwin/a-vote-for-hillary-is-a-v_b_94498.html
Max Keiser, who reports for both BBC and Al Jazeera on global financial issues, has a valuable take on what a Clinton versus Obama economic plan might look like. Keiser e-mailed me this brief anaysis:
Looking at it purely from economic angle;
Obama has Paul Volcker as economic adviser -- he mopped up the stagflation of the '70s with 'tough love' of higher interest rates.
Hillary has Robert Rubin -- who demolished the last vestiges of Glass-Steagel which opened up the flood gates of securitizing loans and the current subprime (and now prime) credit crisis.
The current plan by Rubin's Goldman Sachs buddies Hank Paulson, (and Ben Bernanke), and their UK counterparts -- is to simply repackage all this bad debt and resell it again.. (making banks another fee); and hope that the problem will go away...
I do not believe this plan will work -- because in order for it to work -- long term interest rates have to go down -- which they are not likely to do now that China and India are no longer a source of cheap labor they once were... (the productivity miracle Alan Greenspan was always talking about amounted to outsourcing labor to China and now that game is up as wages in China go up and so-called productivity gains have faded).
The absolute necessity now is to stop bailing out banks, stop flooding the economy with more cheap money (money supply in US is running at an historic high of 16%), and stop raising the debt ceiling.
The buck (as in US dollar) has to stop being devalued by Paulson, Bernanke, etc. and their money printing banking friends or prices for food and gas will just continue zooming higher....
A hard, and probably a brutally hard recession has to be allowed to happen right now and the US needs to take its medicine for Greenspan's sins..
Putting off the day of reckoning with more re-packaging of debts as is the current 'master plan' of Paulson and Co. is only going to jeopardize the US dollar and possibly kill the US dollar off completely. (massive devaluation).
In other words: if Obama will force America to swallow a Paul Volcker anti-inflation economic pill than there really is no choice.
Voting for Hillary is voting for certain US dollar death.
(unless you own gold, and you are rooting for a dollar death, then vote for Hillary).
www.huffingtonpost.com/alec-baldwin/a-vote-for-hillary-is-a-v_b_94498.html