U.S. intelligence says this financial crisis, not al-Qaida, is the greatest threat to national secur

[leftchick]

http://smirkingchimp.com/thread/21135

Published on The Smirking Chimp (http://smirkingchimp.com)
Wall St. ticks off the world: Financial crisis, not armed terrorists, greatest threat to U.S. security
By Eric Margolis
Created Apr 6 2009 - 10:18am

The current international financial disaster brought on by Wall Street has created 25 million unemployed around the globe. People everywhere are mad as hell at both their leaders and America.

U.S. intelligence says this financial crisis, not al-Qaida, is the greatest threat to national security.

Politicians from leading industrial nations sought safety in numbers at the G20 summit in London this week attempting to show they are resolving the worst economic crisis since 1930.

President Barack Obama was a huge hit. He urged Europe and Asia to join the U.S. in spending more billions to stimulate their battered economies.

The U.S. government and Federal Reserve have already spent, guaranteed, or lent $12.8 trillion, an amount equal to 90% of total U.S. 2008 economic output.

To aid the financial industry, the Fed slashed interest rates to nothing, savaging savers and retirees. Unable to further lower rates, the government is now flooding the economy with billions of dollars created from thin air that will inevitably generate future asset bubbles, stoke inflation, and eventually drive down the U.S. dollar.

By contrast, Europe, Russia and Japan resisted more stimulus deficit spending, rightly fearing inflation. They have declining populations and cannot, like the U.S., saddle the next generation with monster deficits.

France's President Nicholas Sarkozy and Germany's Chancellor Angela Merkel properly demanded more regulation of the international financial industry. Europe and Asia blame America's and Britain's financial gamblers and fraudsters for the Panic of '08. Reckless borrowing caused this world crisis; more massive debt hardly seems the correct remedy.

However, the G20 summit finally compromised on $1 trillion US in more spending and some more regulation.

But this financial crisis won't be resolved until the rotten U.S. financial sector is restored to health, transparency, and integrity. Many major U.S. financial institutions are insolvent: their liabilities exceed assets. Neither they nor the Obama administration will admit it, or take necessary action.

That's because the U.S. financial industry has grown far too powerful. Today, finance is America's leading industry at about 24% of GDP. Manufacturing has shrunk to 12%. Wall Street's "Masters of the Universe" grew so rich they were able to buy or manipulate most politicians and government regulators.

Investment banks such as Bear Stearns, Lehman, and Goldman Sachs routinely lent $35-$50 US per dollar of assets. Banks borrowed money at 1% and invested in billions worth of fraudulent subprime mortgages at 4%, netting 3%. Money was made from money, not productivity. Hedge fund managers paid only 15% income tax.

[seemslikeadream]

1. surprised?

NOT


MISSION ACCOMPLISED, georgie was not lying

[BeFree]

2. Bankers beware

I hear there are a lot of people stocking up on guns and ammo.

[seemslikeadream]

3. The road is paved in serf

[jwirr]

7. Read Kunstler's latest blog. We are heading, assisted by rw hate

mongers, toward some real violence toward the rich CEOs and bankers. We can already see some of this all around the globe.

[BeFree]

8. Well, of course

Obama did warn them. He said it was pitchforks but he was only half right.

The question is... who's gonna protect the bankers? The military? Doubtful.

The bankers can repent or they can go to hell. Their choice.

[leftchick]

10. shit

the ones doing that will go after the wrong people.

[L. Coyote]

4. It's official then, the Bush Junta was the greatest threat ever!!

At the end of the day, Bush overthrowing the Executive
and stealing Florida will go down in history as
the greatest threat ever to American democracy.

[DCKit]

11. It's still nice to be vindicated...

alas, would that have happened way back when we still stood a chance of avoiding the worst of it.

I have yet to meet anyone with a convincing argument why */Cheney weren't disastrous to our national security on any front - foreign, domestic, fiscal, military, tax, environment, energy, food and drug policies. Name it, and they had a hand in trashing it.

Ah well, with their leaving the WH, at least several towns and cities now have their village idiots back.

[MindPilot]

5. Any DUer could have told you that eight years ago. n/t

[Name removed]

6. Deleted message

Message removed by moderator. Click here to review the message board rules.

[leftstreet]

9. K&R

[Fire1]

12. This summer will tell the tale. But I seriously doubt any kind of

activism toward bankers let alone violence.