In 2008-09 this meltdown began with the huge unaffordable government bailouts and stimulus, which were done to avoid a global economic crash and supposedly to reestablish global prosperity. They succeeded in avoiding that crash by bailing out the giant banks and corporations and their investors, but there was no bailout for the public, which was left to flounder in joblessness, home foreclosures, mortgage and credit card debt, medical bills, layoffs of teachers, police and firefighters and a huge tax burden for all of the bailouts and stimulus. And governments did not solve the underlying problems of unregulated corporate greed and massive fraud that caused the near crash, nor have they reestablished prosperity for anyone but the giant banks and corporations and the wealthiest people. Now as the cost of the bailouts, stimulus and unsolved bank problems are overwhelming those governments, they are creating Band-Aids to postpone the inevitable economic crash to come, for a few more years if possible.
So what actions are they taking? Picture it this way: A long fleet of Rolls Royce limousines take exquisitely dressed politicians from the U.S., Britain, Portugal, Ireland, Italy, Spain and Greece to a Ritz Carlton where they are staying. Waiting to meet with them are China, South Korea, Germany, Switzerland and OPEC. After the limos arrive, everyone sits down together.
"We're here to borrow vast sums of money," says the U.S. "For how else could we continue to enjoy our high standard of living?" "Do you have collateral," asks China. "We have something better than collateral," boasts the U.S. "We have IOUs." "We already have a Mt. Everest sized bundle of IOUs from you all," China angrily replies. "And you are all already struggling to make the interest payments on those IOU's. What else can you offer?" "Something you are going to love," answers the U.S. "We and the European nations will guarantee each others debts." At that point Germany momentarily chokes and then composes itself.
"If you are already struggling to make the interest payments now on your current debts," Germany asks, "How will you make even bigger payments on new loans?" At that point, all the debtor nations look at each other quizzically, unable to answer. Then the U.S. spoke up. "I'm America," it said, barely able to control its aggression. "I have long had the highest standard of living in the world and I will continue to have it!" "It's a shame," whispered Switzerland to the other surplus nations. "They used to be by far the richest nation in the world. Now like a giant con man they are trying to pass and print bad paper to maintain their lifestyle."
This is the stage we are now in and as has happened many times in history, we will have an economic crash. Out of the ashes will hopefully rise a better financial system but in any case, it will be up to us as brethren to help one another through this difficult time.
Dick
So what actions are they taking? Picture it this way: A long fleet of Rolls Royce limousines take exquisitely dressed politicians from the U.S., Britain, Portugal, Ireland, Italy, Spain and Greece to a Ritz Carlton where they are staying. Waiting to meet with them are China, South Korea, Germany, Switzerland and OPEC. After the limos arrive, everyone sits down together.
"We're here to borrow vast sums of money," says the U.S. "For how else could we continue to enjoy our high standard of living?" "Do you have collateral," asks China. "We have something better than collateral," boasts the U.S. "We have IOUs." "We already have a Mt. Everest sized bundle of IOUs from you all," China angrily replies. "And you are all already struggling to make the interest payments on those IOU's. What else can you offer?" "Something you are going to love," answers the U.S. "We and the European nations will guarantee each others debts." At that point Germany momentarily chokes and then composes itself.
"If you are already struggling to make the interest payments now on your current debts," Germany asks, "How will you make even bigger payments on new loans?" At that point, all the debtor nations look at each other quizzically, unable to answer. Then the U.S. spoke up. "I'm America," it said, barely able to control its aggression. "I have long had the highest standard of living in the world and I will continue to have it!" "It's a shame," whispered Switzerland to the other surplus nations. "They used to be by far the richest nation in the world. Now like a giant con man they are trying to pass and print bad paper to maintain their lifestyle."
This is the stage we are now in and as has happened many times in history, we will have an economic crash. Out of the ashes will hopefully rise a better financial system but in any case, it will be up to us as brethren to help one another through this difficult time.
Dick
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