Treasury Secretary Henry Paulson’s only job right now is to keep the economy from cratering until after November 4, 2008.
Paulson was quoted at length in a July 23, 2007, article in Fortune by Rik Kirkland entitled, “The Greatest Economic Boom Ever: Enjoy It While It Lasts.” Paulson’s remarks came in the context of assessing the ability of the highly-leveraged equity, hedge, and derivative markets to withstand the shocks to come. He told Fortune in an interview:
“We haven’t had a global financial shock since 1998. I believe that these large and dramatic increases in private pools of capital and in the credit derivatives markets since then have helped manage and disperse risk and make the economy more efficient. When we do have one—and it’s when, not if; that’s not me being negative, it’s just that we’re not going to defy economic gravity—we’ll be seeing for the first time how some of these instruments perform under stress.”
The Fortune article notes that the fate of the global economy depends in large measure on the ability of the U.S. consumer to continue to buy what the rest of the world produces. But, as Fortune indicates, the economic fundamentals continue to move in the wrong direction.
Well, at least he knew it was coming. By the way, what was Bush saying last year about the economic fundamentals? Oh yes, here it is:
Friday, July 27, 2007 11:22 PDT
The Bush economy: Strong and stronger“I want the American people to take a good look at this economy of ours,” said President Bush in a “media availability” appearance Friday morning.
Bush says the economy is strong. In a 351-word statement, he said “strong” seven times, sometimes twice in the same sentence, in case we missed it the first time around. His main basis for this assertion was Friday’s news that the economy grew 3.4 percent in the second quarter of 2007, a sharp rebound upward from the first quarter’s barely perceptible growth.
I guess he and Paulson didn’t talk a lot last year, or he didn’t listen when they did. In any event, it doesn’t matter what Paulson proposes to bail out Wall Street, or whether it’s a feasible plan or even one that makes any sense, short term or long term. The only thing that matters is that it looks like he is taking action. Because, there’s really nothing he can do to stop the economy from crashing. He knows that. He said as much last year while Bush was being trotted out to repeat the mantra that the “economy is strong” every other day last summer.
What Paulson can do, the only thing he can do, is try to forestall the total collapse until after McCain has a chance to steal another election for the Republicans. And of course, lay the groundwork for placing the blame for our economic mess solely at the feet of the Democrats (even if that coward Harry Reid gives Paulson everything he asks for).
If he succeeds and McCain wins? We will have elected our first fascist President. Because, based on the precedents set by Bush, McCain will claim extraordinary unitary executive powers to deal with the crisis, and may even get a weak and frightened Democratic majority in Congress to officially grant him th right to exercise such powers. Regardless, however, you can expect McCain to start more foreign wars, likely with Iran, but also in Pakistan, where US “advisers” are already deploying, and triggering a response from radical jihadists.
(cont.)
The attack on one of the hotels in the chain of the US Marriott group was one of the worst in Pakistan’s history and involved the sophisticated use of over 600 kilograms of TNT explosive blended with RDX and phosphorous, detonated when a truck rammed into a security barricade in front of the hotel.
Among the dead were the Czech ambassador to Pakistan, two US Marines, members of the US embassy staff, Saudi nationals and other European diplomats. More than 250 people were injured and dozens of parked cars were destroyed.
There was immediate speculation the attack was prompted by the fact of many marines living in the top floor of the hotel. Prime Minister Yousaf Raza Gilani claimed the real target was his residence, where President Asif Ali Zardari, army chiefs of staff and the entire cabinet were gathered for an Iftar (Muslim breaking of the Ramadan fast) dinner. Security was so tight, the theory goes, that the driver instead went to the nearby Marriott.
But on Monday afternoon, Rehman Malik, the Pakistani prime minister’s advisor for the interior, told a group of reporters at the Islamabad airport: “An Iftar Dinner was scheduled at Marriot on September which was hosted by National Assembly Speaker Dr Fahmida Mirza and where all dignitaries including the prime minister, president, cabinet and all services chiefs were invited. However, at the eleventh hour the dinner was shifted to rime minster’s house which saved Pakistan’s entired military and political leadership.”
“Perhaps, the earlier information of the dinner was leaked to the militants and therefore they hit Marriot hotel,”Rehman added.
However, Asia Times Online’s investigations, including talks with highly placed security experts, indicate that the Marriott attack signals the opening of a major battle which is about to start in Pakistan in a new phase of the “war on terror”.
The forever war. The return of th Empire under McCain, bigger and badder than ever, with more wars in more places. The return of a military draft to provide the cannon fodder necessary to fight those wars. The likely attack against American targets both overseas and here at home (which in turn will justify the wars). The complete erosion of remaining civil liberties and civil rights. Martial law in all likelihood. And, it goes without saying, the collapse of the financial markets and the loss of trillions of dollars that ordinary Americans have invested in their pension funds and 401k plans. Millions more homeless. Maybe even food riots.
This is what I believe we have to look forward to if McCain wins the election. And if he dies in office? Better learn how to kowtow to your new Christian Dominionist Empress, Saint Sarah of Wasilla, ladies and gentlemen, and her legions of Spiritual Warrior Overlords. And either start going to the fundie Mega-Church down the street every Sunday (and keeping your head down), or finding a way to flee the country to whatever country will take you in with whatever assets you can smuggle across the border.
I don’t have a great deal of faith in Obama, but I certainly know what I’ll get with Palin/McCain in office. And that is all Henry Paulson right now is trying to accomplish. Remember that when you read about the need for a massive government financed bailout plan. The disaster capitalists are desperate, and they will do anything — anything — to retain their control of the government.
As Han Solo once said, “I have a bad feeling about this.”
