{"article":{"id":211860,"heading":"Morgan Stanley Issues Full US Recession Alert","author":"Ambrose Evans-Pritchard, The Telegraph","created":"2007-12-21 15:13:46","modified":"2013-11-11 00:50:36","last_modified":"Mon, 11 Nov 2013 07:50:36","article":"

1) ‘Global Governance' & World Federalism

(2) Politicans & Banking - What they need to know - Richard Cook

(3) Morgan Stanley Issues Full US Recession Alert

(4) On the Similarities of Germany (1930ies) and the USA (New Millennium)



(1) ‘Global Governance' & World Federalism



From: \"John Craig\"

Date: Mon, 17 Dec 2007 06:51:56 +1000



Why does using the words 'global governance' suggest support for the \"World

Federalists\" - whoever they might be? I haven't heard of such a group, and

don't know what they might stand for.



There is machinery for 'global governance' of sorts (eg the UN and its

various offshoots, and the Bretton Woods triplets) but it doesn't work very

well. This is illustrated by



(a) inability to respond adequately to humanitarian crises such as genocide

and refugees

(b) the emergence of bilateral trade regimes given the failure of

multi-lateral negotiations

(c) lack of international agreement on what to do about the risk of

terrorists using WMD

(d) responses to climate change and

(e) global financial imbalances which put future economic growth at risk.



I speculated about possible reasons for the weakness of machinery for global

governance (which could be at risk of breaking down all-together) in

http:\/\/cpds.apana.org.au\/Teams\/Articles\/globalization.htm<\/a>



Reply (Peter M.):



The term \"world government\" has acquired opprobrium, connoting rule by an

elite, with thought control (punishment for \"hate language\") and with no

escape for dissidents. So, advocates now use the term 'global governance'

instead.



(2) Politicans & Banking - What they need to know - Richard Cook



From: Blackheath Books {timestamp mislaid}



http:\/\/www.globalresearch.ca\/index.php?context=va&aid=7613<\/a>



December 17, 2007



The 2008 Presidential Election: Concepts Progressives Must Know About

Monetary Policy and History



by Richard C. Cook



Global Research, December 14, 2007



The 2008 presidential election campaign starts in earnest on January 3 with

the Iowa caucuses, followed a few days later by the New Hampshire primary.

While all of the Republican candidates except Ron Paul have totally ignored

economic issues, the Democrats are all sounding more \"populist\" than at any

time since the Great Depression. Nevertheless, with the exception of Dennis

Kucinich, they all swallow in its totality the debt-based monetary system

overseen by the Federal Reserve which is at the root of the escalating

crisis.



Progressives who are trying to figure out whom to support are handicapped by

the fact that they know little of monetary policy and history. Usually they

are in favor of some form of wealth distribution, so solutions rarely go

beyond tax increases. The Democratic candidates are responding to this

perception by pledging in some form or another to roll back the Bush tax

cuts for the wealthy that began in 2001 and ensured that the Clinton

balanced budget of 1998-2000 would once again dissolve in an ocean of red

ink as had happened in the 1980s under Republican President Ronald Reagan.



But tax increases are not an answer to a disastrously flawed system. Without

gaining control of the U.S. monetary system, any Democratic president, no

matter how reform-minded, will be outsmarted and outflanked by the Money

Power every time.



In order to help progressives who seek a benchmark to assess the economic

and monetary proposals that are likely to be forthcoming during the run-up

to the November 2008 election, the following list of concepts is presented.

The list is an adaptation of a paper the author has utilized for briefings

he has given on Capitol Hill in Washington, D.C.



* Money should be viewed by progressives as a) a medium of exchange, b)

created by law, c) to serve the needs of the individual and the nation's

physical economy. Under the progressive definition, money is the servant of

man.



* Money is viewed by conservatives as

a) a commodity,

b) having intrinsic value,

c) equivalent to \"wealth,\"

d) properly usable for anything the owner desires, including usury and

speculation.

Under the conservative definition, man is the servant of money.





* While conservatives view money as \"wealth,\" progressives should view

\"wealth\" as the present value and future potential of the physical economy

as it operates under the Constitution and laws of the United States.



* In American history, the progressive definition of money has prevailed

when the government has controlled or strongly influenced the creation of

money. The conservative definition has prevailed when private bankers have

controlled or strongly influenced the creation of money, particularly during

the century since the Federal Reserve was created in 1913.



* The principle underlying cause of the American Revolution was refusal by

the British Parliament to allow the colonies to issue their own paper money.



* The right of the federal government to issue money is contained in the

Constitution but is not clearly defined. It was more clearly defined under

the Articles of Confederation. This indicates that financiers were

influential in the drafting of the Constitution.



* Today it is taken for granted that the only two ways the government can

acquire and spend money are taxation and borrowing. Minting and issuing

coinage is often overlooked, because it is such a small part of today's

economy. But there have been times in American history when the government

has spent money directly into circulation. The best example was the

Greenbacks of the Civil War era.



* Direct spending of money into circulation by the government is derided by

financiers and conservatives as inflationary. Actually, it is no more

inflationary than bank-issued credit and may actually be less so.



* Throughout history, it has been the Democrats who have held a more

progressive view of money. It has been the Federalists\/Whigs\/Republicans who

have held the conservative view of money and have been largely pro-bank.



* All banks in the United States have operated under a governmental charter,

either federal or state. U.S. law does not recognize an inherent right for

anyone to operate a bank.



* All banking in the United States has been fractional reserve banking,

where a bank is allowed to lend more money than it holds in deposit. This is

a relic of medieval times and grants the banks a privilege which is

undeserved. Essentially the banks are the owners of the money supply.



* Until around 1873, banks were required to hold their reserves in specie;

i.e., gold or silver, until silver was demonetized by Congress, contracting

the currency. Until then, Congress had maintained by legislation the legal

ratio between gold and silver. From 1873-1933, gold was the only metallic

reserve allowed. The U.S. went off the gold standard in 1933 though the

dollar was pegged to the price of gold until 1972.



* Thousands of banks in U.S. history failed due to runs, panics,

overextended loans, etc., despite the metallic standard. This included large

numbers during the early years of the Great Depression. A gold standard

cannot prevent bank failures or guarantee the value of the currency.



* Fear of bank failures under fractional reserve banking was a major reason

banks were opposed by President Andrew Jackson and other early Democrats.



* There were no banks in colonial America. The first one was the Bank of

Philadelphia chartered during the Revolutionary War by the Continental

Congress, followed soon after by the Bank of North America. After the war,

state banks began to be chartered along with the federally-chartered First

Bank of the United States. Some state-chartered banks were also state-owned.



* The First and Second Banks of the United States were the hottest political

issue during the early years of the U.S.



* From the time of the First Bank of the United States until today, U.S.

bankers have been strongly allied with the financiers of Great Britain and

continental Europe. They are the real controllers of what has been called

the Anglo-American Empire.



* After the Civil War and until 1900, the money supply was again the hottest

political issue in the U.S., with the progressives being splintered among

several political movements. The banks supported the Republicans. The

Democrats were not able to unite until 1900 but by then had discarded

Greenback-type solutions in favor of returning to the already-outdated

bimetallic standard. Democratic candidate William Jennings Bryan gave his

famous \"cross of gold\" speech at the Democratic National Convention but lost

the 1900 presidential election to William McKinley.



* Many progressives strongly opposed the creation of the Federal Reserve

System in 1913, which centralized banking power under the Wall Street Money

Trust which was allied with British and European bankers. The main argument

in favor of the Federal Reserve was to prevent bank failures by being able

to support them through rapid movement of reserves to cover shortages. It

was supposedly a bank insurance plan but had as an underlying purpose the

creation of a massive public debt to finance wars.



* One of the strongest opponents of the Federal Reserve Act was Congressman

Charles A. Lindbergh, Sr., of South Dakota, the father of Charles Lindbergh,

Jr., the aviator. Some of the politicians who supported the Federal Reserve

Act later regretted it, including President Woodrow Wilson and his secretary

of state, William Jennings Bryan.



* Numerous Democratic congressmen opposed the Federal Reserve System during

the twentieth century, including several chairmen of the House Banking and

Currency Committee: Louis McFadden, Wright Patman, and Henry Gonzales.

McFadden drew up articles of impeachment against the leaders of the Federal

Reserve and the Treasury Department. Patman and Gonzales introduced

legislation to abolish the Federal Reserve.



* In 1933, Congress authorized President Franklin Roosevelt to reissue

Greenbacks, though he did not do so.



* Neither banks nor government are needed to have money. During the Great

Depression, over 300 communities began to print their own money until the

federal government outlawed the practice. Throughout American history there

have been many systems of private or local use of manufactured currency, or

scrip. Today's use of stock certificates as money is a kind of scrip.



* The original purpose of banks in the U.S. was to facilitate commerce, with

a modest profit for its shareholders. This was reflected in the \"real bills

doctrine,\" whereby lending supports only identifiable commercial

transactions.



* The main justification for laissez-faire economics is the unsupported

assertion found in Adam Smith's Wealth of Nations that a hidden hand-\"Hand,

the Invisible\"-will benefit the common welfare if individuals within the

economic system pursue their own individual interests. This fallacy is the

basis of so-called \"classical\" or \"liberal\" economics and is also a part of

the ideology of the conservative branch of the Republican Party and the

theology of its fundamentalist constituency. It is reflected in the view of

the \"Austrian School\" of economics and was the basis for the monetarist

policies of the 1970s and the \"Reagan Revolution\" of the 1980s. It has been

disproved countless times by progressive economists. The main problem is

that money in a complex economy is so easily manipulated by insiders.



* Opposing laissez-faire economics was what was called in the nineteenth

century the \"American System.\" This was based on Renaissance ideas of

nationalism, reflected in Europe by the German and Italian cameralists, who

said that the central government had the right and obligation to regulate

economic and financial affairs for the benefit of the nation. The most

cogent expression of these views was Emmerich Vattel's The Law of Nations,

used as a manual of government at the First Continental Congress in 1775.

The New Deal, which created the modern American physical economy until it

was wrecked by the Federal Reserve-induced recession of 1979-83 and the

\"Reagan Revolution,\" was a modern expression of the American System.



* The American System was based on actions by government to direct

investment into infrastructure development, including health and education.

This included government purchase of shares in development corporations and

direct funding of projects through tax revenues and government borrowing.



* During the early to mid-19th century, the American System was funded at

the state level of government and saw the building of canals and railroads,

improvement of waterways and harbors, turnpikes, etc. The federal government

first became involved with infrastructure through the Army Corps of

Engineers, then, during the Civil War, with the building of the

transcontinental railroad and funding of land-grant colleges. The American

System was copied in Germany, Japan, China, and Russia and elsewhere around

the world. It was viewed as completely contrary to the British imperialist

model.



* The American System as manifested through the New Deal saw the TVA, WPA,

CCC, Hoover Dam, funding of school and hospital construction, public water

and sewer systems, municipal gas and electric systems, rural

electrification, etc. More recent examples were the interstate highway

system, R&D investment, the manned space program, and creation of the

internet. Today there are no more such projects serving as economic drivers

for the U.S.



* Infrastructure constitutes approximately fifty percent of the entire

physical economy of a modern nation. The other fifty percent is the

industrial\/consumer economy which is most efficiently operated by the

private sector.



* Bank financing is suited neither to investment in the private sector nor

to the building of public infrastructure. This is because both are

relatively long-term, low-yield investments. Bank financing, originally

intended to facilitate commerce, has expanded to finance 1) consumption, due

to a lack of societal purchasing power, and 2) asset speculation through a

host of methods including mortgages, purchase of securities on margin,

derivatives, and leveraged mergers and buyouts.



* Free market economics when taken to an extreme, where the direction of

monetary capital is almost exclusively allocated by the banks, inevitably

leads to under-funding of both private sector investment and public

infrastructure.



* Major ongoing federal expenditures on the military-industrial complex also

lead to under-funding of public civilian infrastructure and are largely a

form of corporate welfare that benefits the rich.



* World War II resulted in a huge level of savings by the working population

that was financed by federal deficits. The deficits were paid down after the

war when the savings were released into the peacetime economy, leading to

economic growth and increased tax revenues. This experience disproves the

contention of bankers that an influx of money held by individual consumers

is necessarily inflationary.



* Industrial expansion can take place without bank financing through

retention and reinvestment of profits and rapid, large-scale technological

innovation. However, this removes purchasing power from the economy that the

existing system makes up for through lending to consumers by banks. It is a

self-defeating system.



* The federal government can encourage and enhance industrial expansion

through judicious use of tax and fiscal policy, including deficit spending,

but supply-side tax cuts for the upper brackets have resulted in more

spending on imported consumer products and asset bubbles rather than

domestic industrial growth. In the long run, both deficit spending and

taxation should be minimized.



* Compound interest is great for the lender but terrible for the borrower.

Over an extended period of time, interest at current rates can double the

price of assets. This is ruinous for consumers who today are trapped in a

cycle where they cannot live without extensive borrowing.



* The federal government deliberately causes inflation to reduce the cost of

the national debt and generate more tax revenues. COLAs compounded annually

produce a major devaluation of the dollar over a period of several years.



* The American Society of Civil Engineers estimated in 1998 that we have a

current infrastructure maintenance deficit of $1.8 trillion. The deficit has

grown considerably since then.



* Direct government funding, as through Greenbacks, is uniquely suited for

infrastructure investment without the need to use tax- or debt-based

funding. It is the least expensive method of public finance.



* A federal infrastructure bank could lend on a basis of manufactured

Greenback-type credit. Capitalization is not required except for purchase of

state and local low-interest bonds.



* Failure to adequately fund infrastructure leads to deterioration of the

private industrial sector, as it depends on infrastructure for its

efficiency and ability to operate and innovate. This is one reason U.S.

industry has declined and we now buy so many manufactured products from

abroad.



* The Federal Reserve System is skewed away from infrastructure investment

toward private sector speculation. It sets up a monetary system suitable for

a military empire, not an industrial democracy. Because the Federal Reserve

System has wrecked American manufacturing, the only way we can maintain our

standard of living is to be the financier for the rest of the world. But

this means lending money at high rates of interest which is essentially

unjust. So to protect our profits we must continually engage in military

conquest. This is a leading cause of \"dollar hegemony\" and the long record

of U.S. aggression since the Vietnam War.



* There have been several important movements during the nineteenth and

twentieth centuries in support of monetary reform based on direct government

issuance of money and the control of credit as a public utility.



* A program of direct government funding would prove favorable to the banks

in the long-run, since it would leave them to do what they do best; i.e.,

provide liquidity for private sector commercial purposes. But it is

difficult for the banks to see these advantages due to their prejudices. As

things now stand, the banks are parasites, and the host is dying. They do

not understand that a dead host equals dead parasites.



* Direct government funding reflects the progressive definition of money in

contrast to the conservative definition of money.



* Direct government funding of infrastructure can provide a large number of

jobs to people, stimulate domestic industry, and introduce debt-free money

into circulation. This would result in a major revitalization of the U.S.

economy.



* The U.S. could easily use direct government expenditures to provide

everyone a basic income guarantee and a National Dividend, as suggested by

British author C.H. Douglas and the Social Credit movement that has existed

for decades in British Commonwealth nations. This would stimulate the

economy, reduce debt, and eliminate poverty and homelessness. Such a system

would give the nation that adopted it the strongest economy on earth. (For

more information on Social Credit and the National Dividend, see the new

Wikipedia article on Economic Democracy).



* The Constitution of the United States creates a commonwealth of citizens

which has a right to control its own money supply like any other public

utility.



* The main policy objective of the Federal Reserve is price stability. This

protects the investments and income of the banks. The chief weapon of

producing price stability is wage and salary constraints. This is done by

maintaining a pool of unemployed or underemployed workers.



* The term \"price stability\" when used by conservatives is code for \"class

warfare.\" Prices are actually much too high because they do not credit the

economy with appreciation of the overall physical plant due to technological

innovation. This could be remedied by a comprehensive system of price

subsidies as part of a National Dividend policy.



* The policies and programs of the Federal Reserve are structurally,

operationally, and ideologically in favor of the wealthiest classes and

opposed to workers, farmers, and small businesspeople.



* It is the Federal Reserve, more than any other institution, which is

responsible for the tremendous concentration of wealth among the richest

people.



* Despite the lip service paid by the Federal Reserve to price stability,

inflation has increased steadily since 1965. Price stability has mainly

referred to stagnant wages.



* High inflation coincides with periods of war or war mobilization and the

deliberate creation of financial bubbles. This is reflected in the current

price inflation of petroleum products.



* The U.S. physical infrastructure has declined not only with the

infrastructure investment deficit, but also with the export of manufacturing

jobs under NAFTA, WTO, etc.



* The banking system, through the Federal Reserve, has an almost unlimited

ability to increase cash in circulation by producing more debt. However, at

a certain point, the debt burden will become unsustainable and the system

will crash. This is what the business cycle consists of. It is what is

leading to the coming worldwide recession.



* Escalation of loaning against assets increases the price of those assets,

so contributes to inflation. Ballooning of credit and inflation go

hand-in-hand, as with housing prices which are now crashing as the downside

of the recent bubble.



* Low interest rates that cause a ballooning of credit and inflation may

look good in the short run but are exceedingly destructive to the economy.

The problem would be reduced if banking adhered to the \"real bills\" doctrine

which bases lending on actual economic transactions, not speculation. The

problem would be eliminated with a new monetary system based on direct

government spending for infrastructure and a monetary system that included a

National Dividend.



* Ninety percent of the members of Congress know nothing about monetary

policy. With a handful of exceptions, the ten percent who do work on behalf

of the banks.



Richard C. Cook is a retired U.S. federal government analyst, whose career

included service with the U.S. Civil Service Commission, the Food and Drug

Administration, the Carter White House, and NASA, followed by twenty-one

years with the U.S. Treasury Department. His articles on economics,

politics, and space policy have appeared on numerous websites, and he is

cited in the Wikipedia article on \"Economic Democracy\" as one of the world's

leading monetary reformers. He is the author of Challenger Revealed: An

Insider's Account of How the Reagan Administration Caused the Greatest

Tragedy of the Space Age, called by one reviewer, \"the most important

spaceflight book of the last twenty years.\" His website is at

www.richardccook.com.



ANNEX



As a last word, herein follows the text of a letter to the editor by Mr.

Wallace M. Klinck of Alberta, Canada, on the application of Douglas's Social

Credit system to the current tax and utility rate crisis in that province.

The letter illustrates the potential for Social Credit in dealing with major

economic problems. Mr. Klinck is one of the world's leading spokesmen for

Social Credit ideas:



Tax increase in county defies natural law



by Wallace M. Klinck



The outrageous increase in property taxes and utility rates proposed by

Strathcona County for 2008 is largely justified because of the escalation of

price inflation. I submit that inflation is a violation of natural law and

that public officials accept it as a natural phenomenon to which society

must passively adjust is a major error leading to increasingly calamitous

consequences.



Moreover, the goal of a balanced budget under the existing system of banking

and cost accountancy is a fundamental error which makes a growing tax burden

unavoidable. Technically, it implies that the economy is static, that we

consume all of our physical capital currently and that the issuer of credit,

i.e., the banking system, owns all capital. Further, blaming price inflation

on monetary demand overlooks the faulty financial accountancy underlying the

fundamental problem which is excess financial cost accumulation which

results in a non- self-liquidating price system. Consumer prices include

allocated capital charges, additions to price which are necessary from an

accountancy standpoint but which do not distribute equivalent incomes within

the same cycle of production. That is, money is collected from consumers

prematurely, and cancelled in repayment of bank debt incurred previously by

loans issued to producers, as if to represent that our real capital is being

consumed currently, whereas it is actually consumed or depreciated over a

considerable period of time. The resultant disparity, i.e., \"gap\", growing

increasingly as capital replaces labour as a factor of production, between

final consumer prices and distributed effective consumer income, is

currently 'bridged' by ever expanding issues of credit issued, or created,

via repayable bank loans. This is the faulty approach bequeathed to us by

the late economist John Maynard Keynes.



Of course, it means that financial costs in respect of one cycle of

production are not fully liquidated within that cycle but merely passed on,

or 'carried over,' as an inflationary charge to be recovered from future

cycles of production. That is, one cannot liquidate, formally and finally,

financial charges of today by issues of bank credit (i.e. debt) which become

a further charge carried forward against future cycles of production.



Such issues of credit may allow a large measure of consumer access to final

consumer goods, at the expense of exponentially burgeoning debt with

decreasing financial liquidity and progressive price inflation, but they do

not cancel the financial costs of production as currently accounted--even

though the real, i.e., physical, costs of production have been fully met

when consumer goods take their finalized form and are ready for purchase.



The essential problem is that the consumer is charged in prices, quite

properly, with capital depreciation, but, quite wrongly, not credited with

capital appreciation, which latter historically greatly exceeds the former.

Realistically, we should have over the passage of time a falling price-level

with a growing source of income received independently of any incomes earned

through paid work by participation in commerce or industry.



The core mechanisms proposed by the late Cliffford Hugh Douglas to rectify

this revealed progressive error in national accountancy were the National

Dividend and the Compensated Price (compensation of consumer prices at point

of retail sale) financed by non- cost-creating consumer 'credits' issued,

without being recorded as repayable debt, from outside the price-system to

increase financial independence for the individual citizen and to effect a

continuously falling price-level as the true physical cost of production

falls over time.



The true cost of production is the mean ratio, measured in monetary units,

of national consumption divided by that of production--always becoming

increasingly less than a numerical value of one, as real efficiency

increases with the use of new technology. Inflation of prices thus will be

seen to be a fundamental misrepresentation of physical reality.



Money is essentially an information system. Inflation of prices is an

indication of inefficiency or economic failure and is an abstract financial

denial of the magnificent real advances which modern civilization has made

in the realm of actual physical production efficiency.



These new \"Social Credit\" consumption credits advocated by Douglas would as

always already have previous debt claims against them in retail prices and

will be cancelled, just as money issued via consumer bank loans at present

is cancelled, when businesses receive them via retail sales and use them to

repay their issuing banks in settlement of their earlier commercial loans

contracted in the usual manner for the facilitation of business operations.



Money recovered by industry via price and replaced to capital reserve has an

effect similar to its use for repayment of existing bank loans inasmuch as

it is no longer available as consumer income and can only again become so by

reissue for a new cycle of production which creates a whole new and

additionalset of financial costs.



Social Credit challenges the historic orthodox acceptance of Say's Law which

states axiomatically that for every financial cost of production incurred an

equivalent amount of financial purchasing power is issued and no overall

deficiency of income can exist.



While it may be true that \"at one time or another\" in the past an equivalent

amount of financial payments may have been issued, this is of little help or

consolation to consumers driven into increasing reliance on debt because an

increasing proportion of such income has been prematurely cancelled as

effective income and is no longer available for purchase of goods which are

currently emanating from the production system.



How long is the suffering general public going to tolerate the burden of

escalating debt, price inflation and increasing taxation without demanding a

reversal through implementation of a realistic financial policy?



Published by: The Sherwood Park - Strathcona County News Sherwood Park,

Alberta Canada Richard C. Cook is a frequent contributor to Global Research.

© Copyright Richard C. Cook, Global Research, 2007 The url address of this

article is: www.globalresearch.ca\/index.php?context=va&aid=7613



(3) Morgan Stanley Issues Full US Recession Alert



Date: Sat, 15 Dec 2007 00:20:31 -0500 (EST) From: IHR News



Morgan Stanley Issues Full US Recession Alert



By Ambrose Evans-Pritchard, International Business Editor



Last Updated: 12:53am GMT 15\/12\/2007



The Telegraph (Britain)



http:\/\/www.telegraph.co.uk\/money\/main.jhtml?xml=\/money\/2007\/12\/11\/cnusa111.x<\/a>

ml



Morgan Stanley has issued a full recession alert for the US economy, warning

of a sharp slowdown in business investment and a \"perfect storm\" for

consumers as the housing slump spreads.



In a report \"Recession Coming\" released today, the bank's US team said the

credit crunch had started to inflict serious damage on US companies.



\"Slipping sales and tightening credit are pushing companies into liquidation

mode, especially in motor vehicles,\" it said.



\"Three-month dollar Libor spreads have jumped by 60 to 80 basis points over

the last month. High yield spreads have widened even more significantly. The

absolute cost of borrowing is higher than in June.\"



\"As delinquencies and defaults soar, lenders are tightening credit for

commercial, credit card and auto lending, as well as for all mortgage

borrowers,\" said the report, written by the bank's chief US economist Dick

Berner. He said the foreclosure rate on residential mortgages had reached a

19-year high of 5.59pc in the third quarter while the glut of unsold

properties would lead to a 40pc crash in housing construction.



\"We think overall housing starts will run below one million units in each of

the next two years -- a level not seen in the history of the modern data

since 1959,\" he said.



Although the US job market has apparently held up well, an average monthly

fall of 138,000 in the number of self-employed workers over the last quarter

suggests it may now be buckling. \"Consumers face what could be a perfect

storm,\" said Mr Berner.



The partial freeze on subprime mortgage rates announced last week by US

treasury secretary Hank Paulson may help cushion the blow for some banks,

but it could equally backfire by adding a \"risk premium\" that drives even

more lenders out of the mortgage market.



Like Goldman Sachs, and Lehman Brothers, the bank no longer believes Asia

and Europe will come to the rescue as America slows.



It has slashed its 2008 growth forecast for Japan from 1.9pc to 0.9pc, and

warned that credit stress will weigh heavily on the eurozone.



Mr Berner said US demand is likely to contract by 1pc each quarter for the

first nine months of 2008, but the picture could be far worse if the Federal

Reserve fails to slash rates fast enough. It is betting on a quarter point

cut this week, with three more cuts by the middle of next year. \"We expect

the Fed to insure against the worst outcome,\" he said.





(4) On the Similarities of Germany (1930ies) and the USA (New Millennium)



-----Original Message-----

From: set [mailto:setex01@yahoo.com<\/a>]

Sent: Monday, December 17, 2007 16:52



On the Similarities of Germany (1930ies) and the USA (New Millennium)





Then - during the times of which we may not know anything other than what

Jewish \"historians\" (story-tellers) want us to \"know\", Germany found itself

in a very similar situation than the US of Amnesia are in now: Industry was

owned by Zionists, Politics was made by Zionists and (considering who

started the \"science\" of Eugenics .... at least on an basic level and

especially in the knowledge who funded it all... we may well argue, that)

also the Ideology was driven by Zionist interests.



I have just come across a book (Philosophen im Dritten Reich - Philosophers

in the Third Reich) published in 1990 in the German Democratic Republic in

1990. In it is argued, that Alfred Rosenberg (despite the name - not a Jew

- thanks AIS!) had a hard time to overcome the resistance of German

intellectuals to fascist ideology. Nobody in (West) Germany would ever

touch the subject in the first place (as this might easily be construed as

\"Wiederbetaetigung\" for the crime of which countless Germans linger in jail

or are at least ostracized...). This ideology was foisted upon a people

that had been treated with utmost contempt by Zionists after WWI. Why should

Germans forget - we are constantly reminded we cannot (EVER!) forget what

Germans \"have done\" to Jews - why is the reverse not \"on\"?



All this sent me thinking ....



The media (the Dumbing Down Machine in my book) and web reverberate with the

mentioning of the \"term\" NaZi .... it is - due to ceaseless repetition - now

universally taken to signify (members of) the NSDAP. The generation of my

parents (who should remember this) have never used the \"term\" NaZi THEN -

during the times of which we may not even THINK about ....! So why ist it,

that this \"term\" is so commonly, albeit erroneously, used? Is this another

such \"item\" as \"judeo-christian\" whatsoever? This cobbling together of the

proverbial anti-thesis is used without any conscious thought .... just like

NaZi cannot mean anything else but National Zionist! Again diametrically

opposed to what it supposedly stands for ....



NOW WE ARE GETTING TO THE POINT I AM TRYING TO MAKE ..... I have not

\"spoken\" to an American in years (why bother? Their brains are shuttered

solid with all the clap-trap put out by the Dumbing Down Machine), but I

gather from some opinion polls that find their way into the alternative

web-sites, that the popularity of the Bush II. regime is not all that high

anymore. So what will happen, when DUBYA goes for broke (how else but as a

War-Time-President can he stay in office - i.e. out of jail)? After the

first wave of \"shock and awe\" on Iran, the entirety of the American naval

\"assets\" in that region will be \"history\", Israel will join the fray (if it

not all starts the other way around in the first place) and then ISRAEL will

be \"history\". How many more times will the Ummah just look inactively at

how YET ANOTHER Islamic country gets the \"shock and awe\" treatment? Even if

that were not the case - with the Strait of Hormus being an unpassable

graveyard of ships sunk by Iranian mines or Sunburn (and similar

super-sonic) cruise missiles, many countries in the world will go mightily

thirsty for oil ..... the only way to reopen the supply line will be PEACE!



How to \"make\" PEACE? Certainly not with arms ... as they are held in the

trigger-happy hands of dumbed down Americans....



Simple ... just sell all the worthless US treasury bonds that are hoarded as

\"security\" by some of the most industrious nations on Earth. THEN, when

there is no more oil (just google around for the percentages of the world's

oil supply that pass this lane ... even the newly opened pipeline to Ceyhan

on the Mediterranean will not ease this \"drought\"), the overriding

consideration that lets the US Dollar stay afloat (somewhat) - the exports

to America (priced in Dollars) will simply not be an issue anymore. But

when these nations cannot produce anymore, they cannot sell what they COULD

produce - IF they had OIL..... when THAT realization hits home, the US

Dollar will be HISTORY! Blackwater will not fight for nice words.... and

even American soldiers want money that is worth something!!!!



At the end of all this .... when the dust has settled (and all of mankind

will suffer from what the \"Gulf-War Syndrome\" really is .... radiation

poisoning ....), THEN the USA - the Americans will become the evil incarnate

,,,, Germany and Germans do not really function anymore in that way ....

over the last half century too many Germans have been all over the world and

proven NOT to be the NaZi monsters they were portrayed as ..... so this tit

is milked dry!



Is this the reason why the elites have cut the strings from which they have

dangled Dubya all these years? The recent NIE openly call Dubya a liar or a

mental pigmy! Either way, does not matter - he will go down in histroy as

the worst US Prez ever (Jimmy Carter) and if he does not manage to start

WWIII, he will be gone! Wether it is the Mediawhore Billary or the 9-11

co-conspirator Rudolf ..... does not matter ..... they both are beating the

war drums .... the scenario of a US of Amnesia turning into a has-been will

end the American Dream (that nightmare for the Rest of the World)....

sometime soon.



It is hard to summon any optimism for 2008 .... should none of the above

come to bear (LET US ALL HOPE!), the American corporations will induce

strokes in elderly people by way of stuffing perscription (cholesterol

lowering) drugs into them, your youth will be zombified by legally enforced

drugging with Ritalin and other psychopharmica, and the whole legacy of

other aspects of Pharmageddon will come to bear. Unethical biologists will

hybridize the fields and stables from which nature supplies us with food;

there might be an \"accidental\" escape of the \"Spanish Flue\" virus that US

scientists successfully unearthed from the eternal ice in Greenland .......

Nukelar [sic] engineers will fry the brains of people with their active

denial weapons (what a nice oxymoron...), the handy-mania will boil off the

remaining atmosphere (talk of the Greenhouse effect ... come on ....pull the

other one! ) and lest we forget .... we will all get \"our\" dose of depleted

uranium floating in the atmosphere .....



.... it will be difficult to summon the spirit of Christmas .......



Dr. Siegfried E. Tischler

Visiting Professor - Ethics of Science





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The aims of a free sovereign society for all countries must be:



* Issue Sovereign Debt-Free National Currencies.

* Make Their Own Laws And Trade Agreements.

* Replace Democracy With Federalism - Swiss Model Referendum.

* Abolish Political Parties - Replace By Direct Vote Of The Sovereign.

* Finance And Banking Is A Communal Backed Public Service.

* Raise Tariffs On Imports Above Local Offerings

* Label goods stating domestic wage cost share in % - like sales tax

* Charge social costs in sales price reciprocal to domestic wage share

* Replace Professional Politicians By Unpaid Elected Citizens

* Allow Only Private Owned Foreign Shareholding And Real-Estate.

* Communally Own Public Utilities, Communication And Media Services.

* Land And Resources Under Communal Use And Ownership.

* Advertizing free Medias to slowdown exploitation of the environment.

* Medical, legal & consulting fees payable after health & success

* Economical Autarky - According To Fredrick List.

* Turn Government Servants Into Regular Accountable Employees.

* Abolish Corporates And Make Company Operators Accountable.

* Abolish Double Entry & Compulsory Bookkeeping.

* Work Is Non-Taxable - For Individuals And Companies.

* Export Only Surplus Commodities In Exchange For Needed Goods.



<\/p>\n","contact":"mbatko@lycos.com","link":"http:\/\/www.mbtranslations.com","address":"","phone":"","parent_id":0,"mime_type":"text\/plain","summary":"Morgan Stanley has issued a full recession alert for the US economy, warning of a sharp slowdown in business investments and a perfect storm for consumers as the housing slump spreads. Under the conservative definition, man is the servant of money. Long live alternative economics!","numcomment":0,"fileurl":"\/uploads\/","filesize":null,"article_url":"\/news\/2007\/12\/211860.php"},"attachments":[],"comments":[]}