Catastrophic Economic Crunch Will Be Oil Mastitis: Set to Hit USA Just Like 2008
By: Andrew Butter
Aug 31, 2011
Everyone was waiting with baited breath for the news about QE-3. But perhaps the number to watch was Q-3 nominal GDP, coming soon!!
The important message Ben Bernanke had in Jackson Hole was that the Federal Reserve cannot, on its own, create economic growth in America (or jobs), simply by making it more or less attractive for banks to lend; and thus for Americans and foreigners to borrow. Or by printing money to buy over-priced toxic assets so the ATM’s still work, or to help the Treasury improve the structure of their debt, by buying long bonds real cheap from Bill Gross…Hey Bill, that was a patriotic thing to do!
But Mr. Helicopter wasn’t very specific about who’s job that was, although one would have thought that in a free-market democracy that would be the job of either the “free-market”, or the elected representatives, or a combination of both?
Either way, both of those have been conspicuously MIA (Missing-in-Action) for quite some time, like since the time Gerald Ford was in charge; Allan Greenspan correctly characterized him as the only “decent and sane” American President he had any dealings with; “the man who vetoed everything stupid that Congress put out” (I paraphrase).
Then after a few partially-sane ones, they got the “blow-job” chap, and then the chap who according to Pravda took a special delight inserting explosives into the anuses of toads when he was a teenager and grew up to recreate the Crusades for fun. And now there is the poet who seems to do not much except talk on-and-on about “consensus”. The lunacy is sounding more and more like the fiddling of Roman Emperors.
Meanwhile America mutates into a quasi-fascist state where the population must serve at the pleasures of a small minority of super-rich. Who enjoy the luxuries of the protection of their wealth that is provided by the Law (particularly the one about three-strikes-and you are out), plus the huge investment in military power. Make no mistake; America spends half of what the whole world spends on defense to keep the wealth of 1% of the population “safe”, not to keep ordinary Americans, the ones who serve the rich…”safe” (guess who’s side I’m on).
Meanwhile in Belgium there was a conference to discuss whether or not the gyrations in the price of oil over the past few years, were due to (a) speculation or (b) something else.