Jubilee Prosperity

Credit to Mike Whitney, Global Research, April 6, 2009

We have a grave Constitutional and Economic Crisis in the land, if not the world.

The US Presidential Economic Adviser, Fed Chair and Treasury Secretary embarked on the most radical and ruinous financial rescue plans in history. One result may be recall of the President in the guise of citizenship issues.

According to Bloomberg News, the Fed and Treasury lent or committed $12.8 trillion trying to stabilize the financial system after the bursting Wall Street derivative speculative mega-bubble mania.

Now Government financial wizards want to dig an even deeper hole, creating programs to provide up to $2 trillion of credit to financial institutions that purchase toxic assets from banks or securities backed by consumer loans.

Generous terms are expected by master of the universe designers, if not we the little people, to generate a flurry of speculation to help strengthen the banking system while leaving the taxpayer to bear the losses.

It is impossible to know exactly what the long-term effects of even more excessive deficit spending will be, but the plan has the potential to trigger more defaults, depression, generational theft, hyperinflation, spark a run on the dollar or all big five.

Artificial zero-percent interest rates, multi-trillion dollar lending facilities and bank bailouts do not appear to fit within the Fed’s narrow mandate of price stability and full employment or the Treasury’s Article 1 Section 9 Constitutional authority:

No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.

With unemployment soaring to 8.5 percent U-3 official and 20% U-6 actual, increasing at a rate of 650,000 people per month (with 15 percent part-time under-employed) it is a wonder appointed financial leaders have not been fired already like the CEO of GM, but not the UAW President, nor any bank CEO, bypassing Corporate Board and Shareholder legal authority.

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This entry was posted on Thursday, April 9th, 2009 at 7:35 am and is filed under Market Psychology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.