Wednesday, October 08, 2008

A Charlatan Peddles His Ware of Lies

for a sunny flipside of the gathering gloom. A seemingly reassuring article from a largely discredited economic charlatan who preached deregulation as far back as 1997 (article : the Joy of Deregulation) and less government meddling in the market, Samuelson has now changed tack in support of the bailout. Be that as it may, he seems to have conveniently overlooked a few things:

a) the US government is burdened with a US$ 9 trillion national debt (not so in 1929).

b) as in 1929, the prime cause of the whole saga was the absence of oversight and regulations

c) personal and commercial debts are at historic highs (not so in 1929)

d) there were no such labyrinth of 'creative' securities and mortgage equity packages back then.

e) credit default swaps stand at US$46 trillion and add to that figure a US$ 516 trillion "worthless " derivatives time bomb ticking away silently in the bacground and you will begin to understand this crisis is not a crisis but an emerging cataclysm that will rip the balls out of Western civilisation as we know it and sweep the emasculated torso into the dustbins of history.

f) as in 1929(Herbert Hoover), a bush-whacked Republican dimwit steers Pax Americana in roiling waters, gibbering about the need for calm and cool heads while offering little of substance.

If the Dow's free fall matches the 80% drop of the Nasdaq in 2000, then nest eggs everywhere in Middle and Upper America will be nothing more than a mishmash of twigs and down once Hurricane Grand Depression makes landfall and floods Main Street into oblivion.

A black hole has opened up in the heart of the American soul and is sucking out the lifeblood of confidence from every pore of the American dream. As it ravenously gobbles up the spiral galaxies, exploding supernovas, red giants and white dwarfs that dot the US economic firmaments, the gut wrenching realisation that it is lights out and party's over will become an ever more a nightmarish reality. Living on credit, once a chic lifestyle choice, is now passe as the yanks embrace the virtues of thrift and the serendipity of humility . The moment of reckoning is well high as we call time on the American dream and pull the plug on an illusion that has so mesmerised the gullible rabble the world over that trapped as they are in the mists of a self induced delusion, the Almighty was nothing more than a figment of imagination.

Revert: And here in Canland, a dauphin turned mendicant claims to have the silver bullet to pierce the heart of the approaching vampire. Only that he needs a consensus of dunces to pull off the Great Escape. What a fraudster!

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