President Bush has declared a state of emergency for the District during the Inauguration Jan. 17-21, Press Secretary Dana Perino said. The move will allow the federal government to provide funding to District government agencies, which have been swamped with planning and paying for security and transportation needs.
It is horrifying what the Fed and Treasury injected in percentage terms. A true measure of comparison can be seen in the 3 months of 2008 when the Fed accomplished more than in the 7 years from 1929 to 1937.
This is beyond all reason, having its own new and terrible consequences well in excess of the consequences of the 1929 and 1932 breaks.
Markets have been run now for years by algorithms, manipulators and seeded interests that are like summer thunderstorms. They are loud and scary, but quite short term and in the end quite meaningless and non-productive.
The dollar cannot and will not remain strong, nor can a planetary Weimar experience now be avoided.
Germany was making reparation payments, so there was a shortage of cash for the people. So they printed more. The key is that the workers got wage hikes to offset the rate of inflation. This created a wage spiral that went out of control. Workers would have to leave work during the afternoon to buy bread (they were paid often during the week) because they couldn't afford it after work because the prices had gone up.
I don't see a wage spiral here in America. Too many people will have lost jobs.
I think it will depend on what the government does. Obama has promised to run mega deficits to fund public work projects and keep people employed. However, as the dollar gets repudiated (China is already slowly selling off its dollar reserves and not interested in financing more debt) the government and corporations will have to spend more to acquire the materials they need. This will bring the hoarded money out of hiding to chase after it. Inflation ensues.
Or, Obama could make the money available for grants to help Americans start business that actually make things, to bring up production so that the money/credit-production equation stays equalized. There would be lots of pain while Americans adapt, but we'd end up with a powerhouse economy like we used to have.
Not sure why everyone keeps forgetting that the USD is the World reserve currency. Once that is done with all those USD held in foreign vaults are coming home.
What allows a country with the World default Currency to thrive is the ability to export inflation while printing massive amounts of dollars, but once the music stops...
One can look at this anyother way, while you have the default currency your tax income is spread around the world because there are two ways to tax, taxation and inflation.
I made the same point as you on another forum elsewhere. I'm not saying we won't have hyperinflation, just that there will be different reasons for it.
Right now the currency velocity is very low; money isn't moving. Just because China sells off its dollars and it comes back here doesn't mean it's going into circulation... necessarily. Obama has a couple ways to go, as I put forth above. I think, despite everything, he could pull us out, but that would mean crossing his corporate masters, which he won't do.
So, he'll invest in all these public works programs. Problem is, as countries repudiate the dollar, the only way to finance our massive debts is monetization. Between that and chasing after scarcer and scarcer goods that other countries produce, the government and possibly corporations will be what loosens the money. That's different from Weimar, because there workers were given more and more money to go buy food. I'm not so sure that will be the case here. I think people who don't have access to money and credit (ie. unemployed or underemployed) will get the shaft. That's where I believe the massive social unrest will come from.
>> just that there will be different reasons for it.
You are of course correct; it will be Weimar like WITHOUT the increasing wages. Not only will there be a bidding war for resources but that bidding war will be brutal in the first few years of this collapse. This is due to the complete screw up of the futures market, the closing of mines, oil rigs and shipping fraud brought on by the intervention of the Rothschilds who control the Baltic dry index. The rest of the world will find ways to work around this instigated lending/shipping failure, and they will do it without the US.
Martial law can also be declared in cases of major natural disasters; however most countries use a different legal construct, such as a "state of emergency". http://en.wikipedia.org/wiki/Martial_law
As those remarked; the exit strategy out of Iraq are through Iran, we now have to say that regardless of where I look there are no exit strategies.
This leaves one option to solve the currency issue, the futures issues (leading to shortages) the war issue and bail out issue...bulldozers...
supposedly the Obama Administration doesn't take over until 12noon on inauguration day. That still leaves Bush up until that time to muck things up. We are not out of the woods yet with this guy.
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