Its not about you. Its not about Main Street. Its not even about Wall Street.
No, its about Shanghai, London, Berlin and Sydney.
The cover was blown this evening on Kudlow. If you don't get this video into the hands of the entire American Population within the next 24 hours, you are going to be paying taxes to cover the bad debt on a failed office building - or a hundred of them - in China.
5 comments:
Sounds about par for the course!
One word for Paulson, the Senate and the rest of the gang responsible for this bailout:
DESPICABLE
Interesting post from a contributor on Karl's forum.
Link
Hi,
My 2 cents...China is not given to making too much noises. It's leaders convey decisions rather discreetly. The news about China asking its banks to go slow on lending to American banks is probably an unexpected leak.
A question begs to be asked...why did so many foreign banks get into MBS papers?
The answer is, they only invested the surplus dollars they made...on AAA rated papers! Rated as such by US Financial, read Wall Street, Companies.
A failed "bailout" means that foreigners' interests are hurt in 2 ways...their existing investments in MBS lose severely in value and, with Americans spending less money, their export based economies suffer miserably.
Its obvious that Foreign Banks are now arm twisting the B**h Admin istration into passing this "bailout" package so that they are not left holding the bag of this "toxic waste". As Karl says...threats have definitely been made!
And what exactly these? I would imagine that China/Germany/Saudi basically have threatened to use the one weapon which could absolutely devastate US as a sovereign nation...you guessed it...dumping of the US Treasuries.
There's a second weapon in their arsenal which will bury us, just in case we survive the first onslaught...we are totally and completely dependent on China for cheap goods, and on Saudi for Oil.
They could halt the supplies from reaching US shores...with China able to defend itself and the middle east shielded by a now aggressive Russia, the US would NOT be able to bully ANY country in the middle east out of its oil reserves.
In case this "bailout" fails, the contagion will spread from the credit markets to the bond markets and, like MBS, the treasuries will seize up...No one can even begin to imagine what will happen if treasuries collapse and interest rates soar to the sky.
Can't believe the above could happen? Especially since everybody seems to be rushing to 3 mo T-bills as safety? All I think is...who has the cash to buy these treasuries should someone decided to dump them en masse?
China has been unhappy with the US Saudi deal since 1974 for the exchange of cheap oil for cheap gold...in its aspiration to be the next super power, it wants both! It will readily start to do business with middle east countries for their oil...while americans could struggle through a decade long depression.
Watching the BDI, it seems that the Chinese disappearing from the world's import/export scene, could be part of some kind of threat as well. Our export economy (commodities) are getting killed as the BRIC countries reduce their needs, especially China. I did however wish that the video had more substance on this bail-out threat made by foreign countries.
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