What is to be Done? A Possible Solution to the Economic Crisis

By PAUL CRAIG ROBERTS

Readers have been pressing for a solution to the financial crisis. But first it is necessary to understand the problem. Here is the problem as I see it. If my diagnosis is correct, the solution below might be appropriate.

Let’s begin with the fact that the financial crisis is more or less worldwide. The mechanism that spread the American-made financial crisis abroad was the massive US trade deficit. Every year the countries with which the US has trade deficits end up in the aggregate with hundreds of billions of dollars.

Countries don’t put these dollars in a mattress. They invest them. They buy up US companies, real estate, and toll roads. They also purchase US financial assets. They finance the US government budget deficit by purchasing Treasury bonds and bills. They help to finance the US mortgage market by purchasing Fannie Mae and Freddie Mac bonds. They buy financial instruments, such as mortgage-backed securities and other derivatives, from US investment banks, and that is how the US financial crisis was spread abroad. If the US current account was close to balance, the contagion would have lacked a mechanism by which to spread.

Read moreWhat is to be Done? A Possible Solution to the Economic Crisis

Who Wants To Be CEO of a Red, White and Blue Kakistocracy*?

*Kakistocracy is government by the very worst, least principled, and most incompetent people. You will be forgiven for thinking that the word, kakistocracy, perhaps derives from the word, “caca”, itself derived from the Latin, “cacare”. In fact, kakistocracy derives from the Greek, kakos, meaning “bad”.)

Read moreWho Wants To Be CEO of a Red, White and Blue Kakistocracy*?

Are You Ready For Nuclear War?

By Paul Craig Roberts

Pervez Musharraf, the puppet installed by the US to rule Pakistan in the interest of US hegemony, resigned August 18 to avoid impeachment. Karl Rove and the Diebold electronic voting machines were unable to control the result of the last election in Pakistan, the result of which gave Pakistanis a bigger voice in their government than America’s.

It was obvious to anyone with any sense–which excludes the entire Bush Regime and almost all of the “foreign policy community”–that the illegal and gratuitous US invasions of Afghanistan and Iraq, and Israel’s 2006 bombing of Lebanon civilians with US blessing, would result in the overthrow of America’s Pakistani puppet.

Read moreAre You Ready For Nuclear War?

Paul Craig Roberts on the Alex Jones Show: Shut Up Bush!

Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University. He was awarded the Legion of Honor by French President Francois Mitterrand.

1of2

Source: YouTube

2of2

Source: YouTube
Related article: Pravda: Mr. Bush, Enough! You are an idiot!

The False Pretext for World War 4

The war mongers are looking for an excuse to go after Iran.

When they can’t find one that the American public will accept, they consider how to cook up a phony event of their own at the expense of American lives.

Audio is taken from the Alex Jones Show, August 1st, 2008.

Note: The use of the word World War 4 is with respect to the idea that the Neo-Cons refer to the Cold War as World War 3.


Added:

Source: YouTube

Marching Off Into Tyranny

By Paul Craig Roberts

Paul Craig Roberts [email him] was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University. He was awarded the Legion of Honor by French President Francois Mitterrand.
___________________________________________________________________________________

In last weekend’s edition of CounterPunch, Alexander Cockburn updates the ongoing persecution of Sami Al-Arian by federal prosecutors. Al-Arian was a Florida university professor of computer science who was ensnared by the Bush Regime’s need to produce “terrorists” in order to keep Americans fearful and, thereby, amenable to the Bush Regime’s assault on US civil liberties.

Read moreMarching Off Into Tyranny

War Abroad, Poverty at Home

The US Senate has voted $165 billion to fund Bush’s wars of aggression against Afghanistan and Iraq through next spring.

As the US is broke and deep in debt, every one of the $165 billion dollars will have to be borrowed. American consumers are also broke and deep in debt. Their zero saving rate means every one of the $165 billion dollars will have to be borrowed from foreigners.

The “world’s only superpower” is so broke it can’t even finance its own wars.

Each additional dollar that the irresponsible Bush Regime has to solicit from foreigners puts more downward pressure on the dollar’s value. During the eight wasted and extravagant years of the Bush Regime, the once mighty US dollar has lost about 60% of its value against the euro.

The dollar has lost even more of its value against gold and oil.

Before Bush began his wars of aggression, oil was $25 a barrel. Today it is $130 a barrel. Some of this rise may result from run-away speculation in the futures market. However, the main cause is the eroding value of the dollar. Oil is real, and unlike paper dollars is limited in supply. With US massive trade and budget deficits, the outpouring of dollar obligations mounts, thus driving down the value of the dollar.

Each time the dollar price of oil rises, the US trade deficit rises, requiring more foreign financing of US energy use. Bush has managed to drive the US oil import bill up from $106 billion in 2006 to approximately $500 billion 18 months later–every dollar of which has to be financed by foreigners.

Read moreWar Abroad, Poverty at Home

Police State 2008

Paul Craig Roberts, a Republican who worked in the Reagan administration, is predicting a 9-11 type of attack before the 2008 elections. If that occurs, Bush can declare martial law and begin arresting those who disagree with his foreign policy (based on Executive Orders recently issued by the Bush Administration that grant the president these powers and more.) Wild Stuff.

The original 28 minute audio clip was found at http://www.archive.org/details/71907T… under the heading “Open Source Audio”.

(This also confirms what I have written about in the “World Situation”. – The Infinite Unknown)

Empire on the Brink: Republicans and “Free Market” Zealots Bring Disaster to America

March 13, 2008
By PAUL CRAIG ROBERTS

March 12. Crude oil for April delivery hit $110 per barrel. The US dollar fell to a new low against the Euro. It now takes $1.55 to purchase one Euro.

These new highs against the dollar are the ongoing story of the collapse of the US dollar as world reserve currency and corresponding collapse of American power.

Each new decision from the insane Bush regime pushes the dollar a little further along to oblivion. The same Fed announcement that boosted the stock market on March 11 sent the dollar reeling and the price of oil up. The Fed’s announcement that it and other central banks are going to deal with the derivative crisis by monetizing $200 billion of the troubled instruments signaled more dollar inflation.

Read moreEmpire on the Brink: Republicans and “Free Market” Zealots Bring Disaster to America

Watching the Dollar Die

By Paul Craig Roberts

13/03/08 “ICH ” — – I’ve been watching the dollar die all my life. I sometimes think I will outlast it.

When I was a young man, gold was $35 an ounce. Today one ounce gold bullion coins, such as the Canadian Maple Leaf, cost more than $1,000.

Our coinage was silver. Our dimes, quarters, and half dollars had purchasing power. Even the nickel could purchase a candy bar, ice cream cone or soft drink, and a penny could purchase bubble gum or hard candy. If a kid could collect 5 discarded soft drink bottles from a construction site, the 2 cents deposit on the returnable bottles was enough for the Saturday afternoon movie. Gasoline was 32 cents a gallon. A dollar’s worth was enough for a Saturday night date.

Read moreWatching the Dollar Die