Sunday, March 30, 2008

Collapse of the USA

Living overseas I earn dollars and convert them into baht. My concern for the US dollar started several years back. CP Snow, Secretary of the Treasury, had been devaluing the currency to create the illusion of a booming stock market.
Foreign investors flooded Wall Street with their off-shore dollars. Stocks skyrocketed to new heights, however the world financial managers have woken up with a serious hangover thanks to sub-prime rate crisis and now Bear Sterns, one of the top investment banks, is on the verge of joining the UK's Northern Rock as a casualty of over-eager capitalism. ie it will go broke in 28 days, unless someone lends it money.
Most banks are not answering Bear Sterns' phone calls.
And certainly not GW Bush who still thinks that the economy is 'fundamentally sound'.
His coolness is worrisome, if you know the old adage.
"If you keep your head, while everyone around you is losing their, then you you don't understand the seriousness of the situation."
Sounds fundamentally like the USA is in trouble and even prayers can't help it with this president behind the wheel.
"Help, Mr. Wizard."

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