What is it called when the government intervenes during a national financial crisis ?
SEN. McCAIN: Because we are in a financial crisis of monumental proportions. The role of government is to intervene when a nation is in crisis.
Historically, the U.S. government policy toward business was summed up by the French term laissez-faire — "leave it alone."
Liberals have been much more likely to favor government intervention that promotes a variety of non-economic objectives, while conservatives have been more likely to see it as an intrusion that makes businesses less competitive and less efficient.
It is called socialism, unless it is favored by a Republican who is running for president and who has labeled his opponent a socialist. In that case, it is called necessary.
Workshop on Global Financial Crisis Part 1
On March 31, 2009 and in view of the G-20 Heads of State Meeting in London on April 2, the Symi Symposium organised a Preparatory Workshop for the meeting of the SI Commission on Global Financial Issues, taking place on the same day at the UN Headquarters under the chairmanship of Joseph E. Stiglitz. The Workshop Discussions’ focused on two broad themes: (i) global economy in crisis and economic recovery and (ii) global economic governance and regulatory reform. A group of respected international academic experts and policy‐makers gathered in New York City and participated in the discussions chaired by Joseph E. Stiglitz and hosted by the President of Socialist International and Presidenf of PASOK, George A. Papandreou
Duration : 0:32:21
Economic Collapse 1
Financial crisis, New World Order, Economy, Finance, Economic Collapse, Dollar, Dollar Collapse, Monetary, Federal Reserve, Fractional Reserve Banking http://modern-economic-crisis.blogspot.com/
Duration : 0:10:1
China won’t Finance U.S. Debt; We Hate You…you are devaluing your Dollar! Hyperinflation Collapse?
Who will finance our debt? Who has confidence in the fiscal responsibility of the U.S. congress? Will our dollar collapse, and if it does, what will be the consequence of such a collapse? I don’t know the answers to these questions, but I do know one thing, and that is that I hate my government; they are corrupt, right down to the bone. The corruption is cancerous, so drastic steps must be taken; they must be replaced in their entirety.
jbranstetter04
Why do Japan and China keep on buying dollars?
The dollar has fallen about twenty percent against the Euro in the last year but China and Japan continue to accumulate large dollar surpluses. At the same time, many economists worry that they will dump their holdings, sending the dollar into a free fall.
Michael Dooley, Peter Garber, and David Folkerts-Landau suggest that this financial policy is no accident. They view the Chinese and Japanese as pursuing deliberate full employment policies. They buy and hold dollars, not as an investment, but rather to subsidize their own exports. Read this summary of the argument, or buy an NBER working paper here. Garber puts the point bluntly:
http://www.marginalrevolution.com/marginalrevolution/2004/01/why_do_japan_an.html
China is right to have doubts about who will buy all America’s debt
Chinese doubts about the value of US Treasury bonds highlight a crucial question: who will buy the estimated $2.7 trillion (£1.9 trillion) to $4.2 trillion of debt expected to be issued over the next two years?
With annual foreign purchases accounting for less than a tenth of the low end of that range, and domestic investors unable to bridge the gap, the Chinese are right to worry.
Yu Yongding, former adviser to the Peoples Bank of China, recently demanded guarantees for the value of Chinas $682bn of Treasury securities. Then Luo Ping, director of the China Banking Regulatory Commission, said that China had misgivings about the US economy, but despite this it would continue to buy Treasuries. The two statements appear designed to raise the issue non-confrontationally before new chief US diplomat Hillary Clintons visit to Beijing on February 20.
China worries about the dollars value against other currencies, particularly the yuan. With US interest rates so low, the dollars value may slide. However, President Barack Obama has repeatedly said he wants a strong dollar, and indeed its trade-weighted value rose 13.9pc between April and December 2008.
The other area of concern for China is the value of its Treasuries. Given the US borrowing requirement and its lax monetary policy, Treasury bond yields could well rise sharply, causing a corresponding price decline. If Chinas holdings match Treasuries average 48-month duration, then a 5pc rise in yields, from 1.72pc on the 5-year note to 6.72pc, would lose China 17.5pc of its holdings value, or $119bn.
Foreign buyers have absorbed a little over $200bn of Treasuries annually, a useful contribution to financing the $459bn 2008 deficit, but only a modest help towards the $1.35 trillion minimum average deficit forecast for 2009 and 2010.
Unless that changes substantially, there will be $1trillion annually to be raised by the Treasury from domestic sources, more than double the previous record from domestic and foreign sources together, plus whatever is needed to bail out the banks.
Even if the US savings rate were to rise from zero to its long-term average of 8pc of disposable personal income, that would create only an additional $830bn of savings — not enough to fund the domestic share of the deficit. Interest rates would probably have to rise substantially to pull in more foreign investors.
Yu is right to worry.
http://www.telegraph.co.uk/finance/breakingviewscom/4611408/China-is-right-to-have-doubts-about-who-will-buy-all-Americas-debt.html
Duration : 0:3:37
Inflation and the Dollar’s crash
US Bank System Collapsing
A View from the Southern Hemisphere…….
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Over 90% of America did not want to passage of HR3997. The US Congress was held at “Executive Gun Point” and told: “you either pass this bill or we will declare martial law.”
The most painful part of HR3997 is the shift in the final bill. What was the shift? Unbeknownst to the American people, however, is that since September 20th, the $700 billion bailout bill signed into law by their President yesterday was expanded from its original 3 pages to a 451 page virtual novel of new laws virtually enslaving them to the foreign holders of their debt.
In addition, there are reports circulating in the Kremlin today are stating that the first deployment of Chinas elite People’s Armed Police (PAP) under an agreement signed between the United States and China, and US Homeowners Soon To Be Evicted By Chinese Police Under New Law HR3997.
Even more disturbing, these reports continue, are that these new laws not only give Chinese and European banks control over the mortgage debt of the American people, they now include their credit card balances, and which virtually the entire US populace have indebtedness to.
To how utterly chilling this new US law for the American people, titled the Emergency Economic Stabilization Act of 2008, Russian legal experts point out in these reports that:
Section 101 (a)(1) establishes what is termed the Troubled Asset Relief Program (TARP) to which substantial portions of what the American people currently owe to their banks and financial institutions is to be turned over the US Government for redistribution to foreign banks.
Section 101(c)(3) Designates for the first time in American history these foreign banks as financial agents of Federal Government with full law enforcement authority over the citizens in the US.
Section 3 (b) allows the US Secretary of the Treasury to put any kind of debt, including credit card, home loans, personal loans, automobile loans, etc., into the TARP programme.
Section 112 allows the US Secretary of the Treasury to astoundingly extend financing to foreign banks to purchase the debt of the American people.
Section 112 (1)(a) allows the US Government to hold stocks in companies for the first time in their history and which completely destroys the capitalist economy of their Nation.
Section 119 (2)(a) gives the US Secretary of the Treasury dictatorial powers not reviewable by courts making this position the most powerful one in America.
Section 122 increases the US public debt to the incredible amount of $11,315,000,000,000 (Trillion)
Section 204 puts the United States under emergency economic rule and states, “all provisions of this Act are designated as an emergency requirement and necessary to meet emergency needs.
The clip here is from the newest addition of Zeitgeist explaining the Federal Reserve.
Money Mechanics, the document explained in this clip may be found at:
http://landru.i-link-2.net/monques/mm…
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Duration : 0:9:52
Inside Story – The US financial crisis – 21 Sep 08 – Part 1
In a special show from New York Inside Story looks at the financial turbulence that rocked the US last week.
Will the emergency measures by the US government be enough to stabalise the markets or has the fiancial system in the US been changed forever?
Duration : 0:13:46