Post Bretton Woods Solutions won’t please the US.

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Policy initiatives focused solely on bailing out banks and neglecting final demand have followed their inevitable course resulting in the contraction of consumer spending, massive job losses, and credit impairment rendering piecemeal, trickle-down policies now ineffective if not absurd–a domino effect of less and less demand fueling greater and greater contraction. The pain is becoming so widespread that non-bank […]

Economic Solutions before D-Day?

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There is widespread agreement among US economists that America needs another massive fiscal stimulus plan. No final conclusions have been reached on whether it will be multi-staged or one giant prolonged spending infusion until growth takes hold again.  Democrats, pre-election, had already decided that a significant infrastructure campaign would yield the most benefit because it would both create jobs […]

Will the US Government now become a victim of Greenmail?

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With the bailouts of Fannie Mae and Freddie Mac, the shotgun marriage of Bear Stearns to Chase, the Highway Trust Fund re-capitalization, and the ensuing takeover of investment bank Lehman, we have realized the consequences of “moral hazard” and it does not bode well for the future. Sources report that the Fed and Treasury are making contacts for Lehman to get […]

Outlook for Oil is still good!

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One day after the Sina-US Economic Dialogue China announced it was raising prices on electricity, gasoline, diesel oil and aviation kerosene to reduce demand and help its domestic refiners. US investors were surprised by the news announced late in the day and oil fell almost $5.00 a barrel. This weekend Saudia Arabia will host a Oil […]

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