Brown Tinged Discharge

Economy and Finance USA. 2008: the year in which the system is part of Venezuela

2008 will be unforgettable. It will be the year that THINGS to snap. It will be a fateful year inevitably deadly for U.S. economy and especially for the banking sector. Nothing fixed it.

offer some solutions in the last paragraph of this note. I find all valid propositions in the real world. But we do not live in the real world, but rather in a world of fairy tale. A fairy tale world where the U.S. hegemonic obsession Wall Street and smother the whole system is a policy social.Inflacionar not return until complete collapse occurs.

Treason is rampant, plump abounds everywhere, but they call it "Game Over". All solutions tried so far trying to shore up the existing system, not change it, to enable Wall Street sold to morons contaminated many titles can be damaged assets, and to prevent any possible international trials against Wall Street firms.

In 2008, an alarming sequence is assured of enormous damage that will put a serious situation to the whole economic system and financial U.S. The powers survived the end of 2007, with an intense use of strips, rubber bands and paper clips, but reality continues to provide an endless sequence of insoluble problems, tragic, intractable. The pressure points are big banks suffering from insolvency, second-mortgage packages for massive losses, consumers without funds would have to rob to keep spending, a worsening housing market for stocks that are saturated, and problems to delve into the lending industry frozen by the insolvency and distrust. And with this we must add a global resentment fraud and strong-arm tactics of the U.S., especially during the last two decades.

What a prospect! Almost all of Wall Street firms are bankrupt, but are lucky to still control the major financial newspapers. Citigroup is completely with water to the neck, and inevitably will have to restructure, but do not want to admit the bankruptcy or file a formal request for bankruptcy.

heck, even Goldman Sachs might be bankrupt, if someday we could see a balance honest. The aim of the swaggering arrogance of Wall Street, who are clearly guilty of the biggest robbery ever seen since Rubin opened the door to rent [lease] of gold in the U.S. Treasury, is to pluck as much as possible their companies elite, in their personal benefit, before its insolvency, widely suspected, is recognized as an obvious bankruptcy. Suffocated in their own feces toxic mortgage securities and derivatives resulted leverage against him. The hidden factor is new Basel rules on accounting, from my point of view seems as if a bankruptcy judge ordered a Discovery Phase of bank assets during a bankruptcy proceeding. As expected, Wall Street firms continue to operate in disregard of the rules, to create a new balance sheet item lunatic third category (Tier-3). The greatest feat to date is that Wall Street urged Congress to adopt a freeze on subprime mortgage, dubbed 'The Teaser Freezer' [the freezer teaser] in clever tones. An inner voice tells me that Basel might push for prosecution of the criminals of Wall Street bankers. While

keep my predictions for 2008 for Hat Trick Letter, I can be taking part this advance. First, the Royal Comedy us delight that has become U.S. presidential politics Many images, promises empty slogans attractive to the campaign coffers full, all accompanied by a procession of useless charlatans all promising real hope. Despite all the promises they have done nothing not a single thing other than the country from its disastrous path, about the war, economy, taxes, budget, etc.. Do not expect anything at all, in terms of a change, none of the presidential candidates posibilidades.Todos very small, very dwarf, not height. If one revolutionary candidate in particular was raised by voters, will probably end his life early, "accidentally" of course. The hidden secret that seems to come the surface is that the neoconservatives are neither Republicans nor Democrats.

The current Bush is a known Neocon, a bizarre label, incidentally. From my point of view, Clinton was also a neoconservative, a different thing than most traditional Democrats. His central policy was to create the foundations for a Fascist Business Model, which ended the financial sector merged with the state. Two candidates, one from each party, one after the neoconservative regime otrorepresentan uninterrupted and inexorable march toward a militarized state, but my pen is not political. Somehow, the name does not sound so appealing neo-fascist American voters as the mysterious Neocon. Call a spade a spade and spade! Many executive orders justify the meaning of the label. A pathetic fact is that in my travels and conversations with countless American adults, I conducted an experiment extremely disturbing. After 40 questions asking "What is Fascism?" To my countrymen, not a single correct answer given. After all, a nation has the government it deserves. U.S. is in a sad but unstoppable march to Third World status, complete with a totalitarian regime. Nothing can stop this way. One hundred years ago, called the government HLMencken U.S. From the best government that money can buy, and deemed the American landscape was so attractive like any circus. Nothing has changed, only the depth and severity.

+ / - THE SYSTEM FAILS, BREAKS, FREEZES ...

2008 began with a resumption of the murmur of collapse disorder, a resumption of the rise in gold, and new chapters in the throes of bankruptcies of large banks, and possibly an almost total loss of respect in U.S. Federal Reserve But the word "bankrupt" modestly will not be used until a big bank actually files an application of bankruptcy. The collateral damage included the collapse of most bond insurers, which are maintained in an absolutely corrupt, scoring triple'AAA. " The collateral damage included the collapse of most homebuilders. However, the center of the misfortunes of 2008 will be the BANKRUPTCY OF FIRST MORTGAGE (OR LOW RISK), which will feel like the stage collapsed through the floor of the Victoria Theatre

Falling values housing will continue for another 5% and 10% in the new year, destroying portfolios of low-risk mortgages and their bonds. The whole debacle will carry U.S. banking system, and is now reeling drunk, like a stunned boxer after suffering ten laps of pure beating, bloodied, wobbly, dizzy, blurred vision. The mortgage debacle will extend to the territory of the commercial properties, to an extent that can not be estimated.

People were deceived for almost a year on the mortgage debacle that was intended to circumscribe such a phenomenon restricted to subprime mortgages (second-, or high risk). The tip of the iceberg is what is visible, that is the problem of a total mortgage debacle. In 2008, an avalanche will occur in the species defaulted mortgages rates variable interest, of which California is the epicenter and the most famous ruin. U.S. lending institutions used to pride themselves on their "innovation" in mortgage products, like fully borrowed down payments, like paying less interest than accumulates, like the borrower having no income and no job. Nonsense. Make universal ridicule. In the seventies, suffered stagflation. It was an unpleasant. In 2008, we will suffer much more serious attack of stagflation, with continued recession USeconómica (in its third consecutive year for those based on the true reality), inflation increases prices (which is now above 10%) that is sure to attack even the doctored Consumer Price Inflation (CPI). In fact, 2008 may see some progress with the adoption by the CPI component of housing prices and the postponement of the owner's equivalent rent, a conspicuous progress.

The resulting reflection of the central damage will affect the USeconomía, both by an exhausted consumer and a lending climate reluctant to provide credits needed urgently. It is clear that the dependence of the entire economy of movement of the consumer is risky. Family groups will not pay for car purchase loans and cards Credit as an echo to mortgages, resulting particularly in a severe loss of independence and freedom. You can live free in a house, but not driving a car or using credit cards for a long time without pay. To complicate the problem of credit supply, Wall Street burned our allies thoroughly deceiving. We must expect a reaction in 2008, including international ugly lawsuits and unexpected rupture of crystals on Wall Street like a Kristallnacht [the night of broken glass in Nazi Germany, N.del T.] delayed for seven years . The entire banking system go bankrupt this year in the U.S., in a highly visible, while the world watches horrified. The nation with the duty of care of the world's reserve currency, the dollar, the U.S., will suffer a failed banking and bond markets, which undoubtedly will result in a grotesque USeconómica recession. Just come a little late. The parade of disasters will be overwhelming, and offer little respite. Even the Plunge Protection Team (PPT), armed with 150 billion dollars of money into black bags, stolen much of Fannie Mae, you can not stop the tsunami of sell orders on the stock market. Could focus on the biggest and worst corporations, but the collapse of the bank stock index reveals how the PPT only able to sustain the S & P500 index, but not their buddies in big banks. SADLY, 2008 IS THE YEAR THE SYSTEM JUST TO BE PART.

What will happen? ...

People will run for cover. People react to a rising fury. Be fraught with anger and frustration, even cause riots isolated by rising food prices, by rising gasoline prices by an irregular supply, lost jobs from rising costs and outsourcing houses losses predatory lending followed by foreclosures. The suffering people will realize that their finances are not safe in banks, bank runs when they see fear in some cases and some stock accounts are frozen and are unavailable in the midst of bankruptcy of financial services conglomerates. The Glass Steagall Act, tested over time, made impossible the merger of banks, brokerages and insurance firms. It was a good law. Now, to go bankrupt banks, insurance agencies and stock will be in peligro.2008 IS THE YEAR IN WHICH THE SYSTEM JUST froze.

+ / - THE RULE OF CONFUSION ...

The year 2008 will bring a level of confusion never seen before in the history of the nation. We will see economists befuddled, puzzling, lightheadedness, and without solutions. Politicians will be confused, looking for something to advocate, unsure of what is potentially effective. The entire argument of 'inflation against deflation' will become an insane debate, in which all sorts of ignorant nonsense ejected without knowing what is inflation, as is caused, and in which the devices no longer work when they move the levers. When inflation is misunderstood the concept becomes the accumulation of a huge cloud in order to confuse the masses. When the banking system is paralyzed, as is happening, the mechanisms that throw money into the system stop working. When banks distrust each other more than individuals in terms of their alleged collateral, the system stops working to distribute money, even at lower interest rates. Issuing loans for individuals will drop to a low priority.

In 2006 came a huge event, which was the fatal jump in the apartment to an asset deflation. In 2007 there was another huge event, and was the somersault of mortgage packages to an asset deflation. With the continued disintegration of the entire price risk model, the powerful teeth of assets impairment, held by banks, the banks themselves become agents of all powerless to inflation (even if they wanted). Ironically, in reality, they are sold as credit derivatives, the U.S. dollar could benefit. Many writers speak of the president of the U.S. Reserve, Bernanke, may soon be presented with the task of throwing money from helicopters. Wow! Could it be that they are swallowing some stupid pills?! Events in the last four months have taught everyone who has a lucid brain, eyes concerned and an active pulse (which eliminates the majority of investors) that the U.S. Federal Reserve has become something just a little more than IRRELEVANT. The country's banking system is so broken that the LIBOR [the interbank interest rate is applied to the London capital market] has come to extreme stress.

The hapless, clueless and reactionary U.S. Federal Reserve fails to recognize that it is an insolvency problem that afflicts the banking system, and can not deal with lower interest rates. Why will not reduce interest rates, since Goldman Sachs, acting as leader of the pack of sled dogs trained on Wall Street, is what has been ordered to do. But if lower rates do not solve the bank problem, why give us lower rates? Just because it says the stock market into a dangerous collapse. The system can not allow stock assets become devalued asset.

the confusion in 2008 will focus on the challenge to actively produce price inflation, while support in bankrupt banks. Confusion will reign from requests to Bernanke to 'do their business of the helicopters' while the winds of deflation will be so intense that cash releases will spread into the vortex of deflation. The desperate calls for Bernanke forget the lessons of the past four months. His primary perceived plan is to rescue Wall Street banks, probably with far more redemptions, monetization, and refunds delivered in basements and hidden pieces that will never be known to the public. It is the nature of the Fascist Business Model: worry about the big corporations whose interests are merged with the U.S. government, bribery for members. The irony of massive infusions of money, either by injection of U.S. Federal Reserve or infusions of foreign capital is highly concentrated in the rescue of distressed banks by insolvency. Add money to an insolvent box, cuéntese as equity, and nothing is accomplished in terms of insolvency. The new partners only have a major part in the bankruptcy, best described as a vampire, a living dead. The system is not activated, no jobs are created, no new loans are granted.

The confusion in 2008 lead to an increase of the measures, freezes, adoptions, government initiatives, and a great plan .. Each plan will be recognized as insufficient and limited, thus motivating a new measure to the desperate. The "Great Trust Corporation in the resolution" will receive extensive powers and governed for a decade, with a possible creation of a cabinet appointment. Other unpleasant irony is festering. Neither the government nor Congress is prepared to act to initiate ANY broad rescue yet, as the pigs in the first row would be thieves, thugs and crooks on Wall Street, whose fingerprints are all over the mortgage bond debacle laced with criminal fraud. So the entire banking system will continue sliding into the quicksand. Once politicians are involved, the problem gets worse, exception.

+ / - Gold will rise ...

Gold will rise from gradual recognition that the banking system has been destroyed. Gold will rise from the perceived need to generate price inflation, whether they are successful these efforts, a concept of expectation. Gold will rise from the wars to be competitive currency, printing more money urgently nations to seek to postpone the recession and grotesque asset deflation. The slowdown will also affect China, where they have begun to raise prices, perhaps charged of overcapacity. Gold will rise primarily because the global circulation of money is increasing at an astronomical rate, think Weimar, think globally. Gold will rise because the living will realize that the disunited States might want another war as a distraction from the people, in the midst of serious crisis. Gold will rise in response to the failures of most policy initiatives, which will be perceived as symptoms of a systemic breakdown. Gold will rise to continue the global revolt against the U.S. dollar, is today the focal point in the Persian Gulf nations, who must fend off the ravages of inflation. The entire argument of price inflation is somehow the straw man fallacy, in a broad sense. The decline of U.S. dollar has led to increased costs, not wages, and the result is projected economic shocks on the American landscape. This stimulates the monetary inflation. If there were China (n. of. T. whose productivity gains is the subject matter "deflation", ie the opposite of inflation), it could quickly generate a price inflation. However, the system can not produce inflation without destroying the whole system of U.S. Treasury Bonds, and that higher inflation will push up interest rates long term, which would crush the Bonds as a savings option and put upside down the pyramid of credit derivatives. Further evidence that the U.S. Federal Reserve is the most irrelevant player in the game. Gold will rise when the balloon finally realizes that the Federal Reserve, traditionally the most powerful among the central banks, is impotent, toothless and irrelevant.

The chaos in the financial sector will be completed by the growing chaos in the beehive of the USeconomía, business complexes, neighborhood communities. We must expect an increase in illegal conduct, as chaos envelops the system. You have to expect a growth of disobedience civil, when people see that no one faces the serious problem of the serious crimes of Wall Street bankers and leaders of the U.S. government In 2008, the subtitles will discuss 1) BANKRUPTCY 2) CHAOS, 3) futility of INSTRUMENTS, 4) ABSENCE OF OPTIONS, 5) CONFUSION. Gold will rise in price when the subtitles appear in the press and media, planted with these messages. The system will break in 2008. The denials are laughable.

+ / - GOODBYE TO MANY ...

The year 2007 will say goodbye a whole long list of celebrities. The music world lost Dan Fogelberg, Porter Wagoner, Ike Turner (beat me), and Tommy Newsome, plus opera stars Luciano Pavarotti and Beverly Sills. Hollywood and the entertainment world lost Joey Bishop, Joel Siegel, Charles Nelson Reilly, Jack Valenti, Tom Poston, Ingmar Bergman, Merv Griffin, Robert Goulet, Yvonne DeCarlo, Tom Snyder, Jane Wyman, and Marcel Marceau. The political arena lost LadyBird Johnson, Art Buchwald, Tom Eagleton, Henry Hyde. The literary world lost Sydney Sheldon, Norman Mailer, Kurt Vonnegut, and historian Arthur Schlesinger. The sports world lost Phil Rizzuto (the scooter) and recently Sean Taylor (Washington Redskins). Also disappeared restaurateur Bob Evans, televangelist Jerry Falwell, and astronaut Wally Schirra. The bizarre corner lost Tammy Faye (Baker) Messner, Leona Helmsley, Anna Nicole Smith, and Evil Knievel. Closer to me, my family lost my mother Maureen, who coined the name Jackass [dunce] to me, on my way outgoing persistent, stubborn and mischievous. He called me with affection "My adorable rascal." The cast deeply missed, we feel its effect.

+ / - FOLLOW SOLUTIONS THESE ...

Greed is powerful, especially when it has been subjected to those who have been in charge of the world's reserve currency for decades. The suspension of the Bretton Woods institutions, for which the U.S. dollar was backed in gold, unleashed Pandora's Box of financial woes. The misuse of the issue (Monetary inflation) as a remedy for excessive debts is perhaps the most pernicious destructive phenomenon of the last century. Evil in disguise, monetary inflation kills entire industries, fleeces savers completely, transforms asset managers into casino players, and causes a sharp cost inflation, all of which impoverishes a nation. Tragically, all nations who hitched their monetary carriage of the "disunited states" risk tremendous damage because they are, or will be, importing U.S. inflation. See what happens in Saudi Arabia, across the Gulf countries, including Hong Kong. The competing currency wars make them all victims. The latest deaths occur in nations whose currencies rise, since they enjoy a rush of investment and enjoy reduced costs, but their export trade is strongly affected.

The family dinner tables in the birth, in fact, Hat Trick Letter my father, me asked repeatedly, what solutions might exist. Professor of literature, not versed in financial matters, tired of my incessant talk about the incorrigible nature of the current system. My pragmatism is liable for constructive mood. My constant reply was that the system would resist any changes because they cause severe pain to the system and its leaders, the Ruling Elite. My answer, which seemed insolent article was that a solution would be a futile exercise. My proposal then was ten solutions, until he realized were totally impractical in those days. Now, four years later, my list should look like comic and totally outside the realm of the possible. But from a sense of humor and honesty, here goes: HOW TO FIX

ECONOMY AND U.S. FINANCIAL SYSTEM

dismantle the U.S. Federal Reserve

support the U.S. dollar gold, silver, charcoal or fresh water from the Great Lakes or something.

balance the U.S. government budget

end the practice of monetizing all deficits, all losses, or anything that goes wrong, as a solution to all problems.

Strengthen all necessary regulations against excesses in futures contracts

eliminate all the lobbyists who hover continuously over the

Congress to dismantle the network of contractors / lobbyists for military defense.

end all fractional banking practices (that make it possible to pay $ 10 for every dollar received in deposits)

do much more strict all the accounts, chasing

crimes severely severely limit the creation of credit derivatives contracts.

prosecute the perpetrators of the theft of $ 1.500.millones Fannie Mae (1988 to 2000)

Goldman Sachs to separate the management of the Department of Treasury, due to risks of abuse of confidential information.

JP Morgan separate from the U.S. Federal Reserve, on the risks of insider trading and collusion against the public interest.

prosecute JP Morgan for instigating fraudulent practices in the Enron case (bankruptcy fraud)

end all conversations and dealings among regulators and Wall Street
regulated
not give any more home mortgage loans by 100 % of property value, ie which do not involve an outlay of at least 30% of the loan recipient.

end all private deals between Chinese leaders and Wall Street regarding the actions that come to IPO [(Initial Public Offering) First IPO of a company in the stock market]

dismantle at least 75% of all U.S. military bases, leading the soldiers back home

dismantle any involvement of agencies U.S. security in smuggling activities.

dismantle the Bank of Baghdad as a clearinghouse for such traffic.

dismantle all intimate relations between the U.S. armed forces with the oil company Halliburton (n. of t: "intimate" of Dick Cheney, U.S. Vice President)

reinstall a broad U.S. manufacturing base.

establish frameworks for syndication foreign bankruptcy for the structure and politics of U.S. capital

give China, Japan, Saudi Arabia and the Gulf Cooperation Council Persian seats in the U.S. President's Cabinet

give China, Japan, Saudi Arabia and CCGP veto power on U.S. federal budget

create a cabinet-level post for a special prosecutor for relations with the international tribunals

create a special place at the cabinet level to implement the Resolution Trust Corp for the entire housing and mortgage problem

promote numerous annual referendums on different topics, that would not depend on Congress in a few large matters of public interest.

reduce the influence of Israel in dominating the policy on security and armed forces

prohibit a U.S. citizen worked as director of the World Bank or International Monetary Fund

end all tax incentives for companies to move abroad (which destroys jobs in the U.S.)

complete end to the burden of the Alternative Minimum Tax

rescind the Medicare payment system and its entire program reinstalled

credible economic statistics for GDP, CPI [consumer price index], employment, and other items

install settings appropriate Cost of Living on Social Security and pensions from the U.S. government

introduce tax incentives for savings income outside pension schemes 401k and IRA.

dismantle all concentration camps (there are 230) on U.S. soil, recently completed.

Commission reopen a 11-S to really investigate, to produce a report that is verifiable, not a report of m. ... a cover-up.

end all chemical experiments in the outer atmosphere that intend to acquire the capacity to control the weather

free cures for cancer of the Medical Association U.S. that exist in Latin America (which are blocked).

start a massive infrastructure repair in the U.S., a reconstruction initiative with foreign funding.

admit to the world that the U.S. has become a Third World nation.

OK, tell me: Is there the slightest chance of MAKING ONE ITEM? Happy New Year. Be sure to find shelter for truly deadly year ahead. Could it be that it is impossible to re-recognize the country when we open the page in 2009.

Jim Willie CB, editor of "HAT TRICK LETTER"


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