U.S. U3 Unemployment Going To 13%, Link To Summers And The Russian Mafia?
Economics / Recession 2008 - 2010 Nov 08, 2009 - 05:37 AM GMTBy: Andrew_Butter
There is a theory that Government Stimulus can create jobs. There have been a lot of theories banded around recently; the more they are proven to be totally wrong, the faster they come.
When President Obama announced his stimulus plan it was going to save or create 3.0 million to 3.5 Million jobs depending on what you were smoking. This is the chart from the study put out by the Council of Economic Advisors and the Office of The Vice-President Elect on 9th January 2009.
http://otrans.3cdn.net/ee40602f9a7d8172b8_ozm6bt5oi.pdf
Some Plan! (Actual and my projection are overlaid in red; the logic of how you get to 13% is explained here (http://www.marketoracle.co.uk/Article13452.html )
The people behind the plan are of course the Apprentice Wizards who worked with their mentors Alan Greenspan and Dan Rubin to create the credit crunch, none other than President Obama’s Golden Boys, Timothy Geithner and Larry Summers.
Alan Greenspan we all remember as the “Man with a Theory”, this is what he had to say about his great theory when he was questioned by Congress recently:
Republican Henry Waxman asked a question:
“You have been a staunch advocate for letting markets regulate themselves, and my question for you is simple; were you wrong?”
Greenspan: “Yes, I found a flaw and…but I’ve been very distressed by that fact”.
Waxman: “You found a flaw in the reality…”
Greenspan: “A flaw in the market that I perceived was the critical function and structure that defines how the world works, so to speak”.
(By the way, is that “English” wot he’s talking?).
Waxman: “In other words you found your view of the world, your ideology was not right”.
(That’s English)
Greenspan: “Precisely! That’s precisely the reason that I was shocked because I’d been going for forty years or more with very considerable evidence that it was working exceptionally well”.
Precisely! After eighteen years aggressively shaping the structure of the US economy and indeed the world economy, Alan Greenspan came to the realization that actually he didn’t know what he was doing. A bit like a chimpanzee in a nuclear power plant who accidentally pushes the wrong button…Oops!
And guess who’s “theory” is being tested out again? Well it’s none other than the great Greenspan theory that if you hand out tons of cash to the banks so they can speculate that’s what Martha Stewart calls a “Good Thing”!
If you want to see a great video of that go to: http://www.marketoracle.co.uk/financial_markets_analysis_videos.htm
And the Men in Black this time around:
Timothy Geither we all know is the one who cheated on his taxes and was instrumental in getting Goldman Sachs 100 cents on the dollar on the exposure they had to AIG. Talk about diamonds on the soles of his shoes, and all a US taxpayer can say about that is “Thanks a lot Tim”!
Misogynist Larry Summers worked enthusiastically on the “team” to shut up and shut down Brooksley Born when she had the temerity to suggest that the new derivatives being cooked up by Wall Street should be subject to the same sort of regulation as had been keeping derivatives in agricultural futures honest for years. Presumably the fact she was a woman had something to do with that?
With the result that the OTC derivatives exposure (nominal) of banks worldwide is Err…well no one really knows but it’s certainly more than $500 trillion.
Larry the Lad is a real expert on derivatives, he managed to lose Harvard University $1 billion with his expertise in that field.
Summers was of course a big supporter of the Gramm-Leach-Bliley Act in 1999, which lifted more than six decades of restrictions against banks offering commercial banking, insurance, and investment services (by repealing key provisions in the 1933 Glass-Steagall Act), which paved the road that allowed the shadow banking system to milk America dry.
It’s called “Letting market participants regulate …Err “help”…themselves”.
And that’s the same Larry the Lad who supported his “good friend” Andrei Shleifer who was convicted under the False Claims Act, after he bought Russian stocks while designing that country's privatisation. In 2004, a federal judge ruled that Shleifer and his associate were liable for treble damages.
Err….wasn’t it the Russian Mafia that controlled that scam? I mean I’ve done business in Russia (not that sort of business), one thing I know (everyone knows) is that you just don’t do those sorts of scams unless you got “protection”.
Of course everyone knows that governments don’t create employment, they create waste, and the net result of that is more unemployment.
But perhaps there is a hidden agenda here?
Perhaps the “good friends” of Larry’s “good friend” Andrei Shleifer are lining up themselves and their “protectors” up to “do it to me one more time…baby”?
I got the feeling, Mr. & Mrs. US taxpayer, that you ain’t seen nothing yet!
Hey boys there is money to be made; lots of money, the streets of America are paved with gold, (if you got protection).
By Andrew Butter
Twenty years doing market analysis and valuations for investors in the Middle East, USA, and Europe; currently writing a book about BubbleOmics. Andrew Butter is managing partner of ABMC, an investment advisory firm, based in Dubai ( hbutter@eim.ae ), that he setup in 1999, and is has been involved advising on large scale real estate investments, mainly in Dubai.
© 2009 Copyright Andrew Butter- All Rights Reserved
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