The Mother of All Bailouts

Can't stop 'em.

Category:

News & Politics

Tags:

• bailout
• aig
• paulson
• bernanke
• fed
• pelosi
• dollar
• fannie
• freddie

[TheCZMan]

I watched your last vids yesterday and cant remember which one I'll address these comments so sorry for mislocation if it happens.

I strongly disagree with the analysis putting the US in a weaker position than in 1929.

On the economical side, the economy is globalized which means that the US, being at the top of the food chain can shift down the burden of its actions to lesser peoples which are going to clean the mess for the US.

Good news for the US citizens.

[JiveDadson]

The US is at the top on the food chain only in the sense that since the first Breton Woods agreement, it has been our job to eat and write checks. There is mounting evidence that the "lesser nations" are intent on firing us as the designated eaters. In particular, China (which will not be a "lesser nation" much longer), is preparing to put an end to it. They have over a trillion dollars of US bonds and agency debt, so they'll be careful about how they go about it. But they are going to do it.

[PoliticalOverload]

hey...you never answered my question.  Where's the love at?

[JiveDadson]

I'm trying. Youtube seems to be either fubar or they've declared war on the word "dot" followed by the word "info."

[TheCZMan]

cant act other way than the way they have been acting so far because so far, they knew what was going on.

I think that the best the countries with actual cash reserve can expect (India, China, Russia...) is that their private sector is given an opportunity to exist on the western scene. The western banking system is dried up, it has to expect freshly printed money to keep doing their job.

[TheCZMan]

I dont know what good/bad money is.

Personally, I think the loan trend will keep going on. I find it hard to believe that other countries experts have not yet smelled a structural difficulty with the US "debt".

I think that many people around the world were aware of the situation. For example, the IMF wanted to scrutizine the US banking system a decade ago. Bush said "okay if you dont publish the reports under my term(s)"

It is not a surprise so for me, it is an evidence these countries

[fishingthewatershed]

Hello CZ, you cast an interesting light on current events. I have a question about your quote "For me, the alternative is the following: either countries holding US debts cling to it in hope the US will willingfully pay it back or they can kiss it goodbye." If these countries are afraid of not being repaid will they continue to loan us money to continue running the government (1.7 billion a day)? Do they throw good money after bad or cut their losses? What is your opinion? Thanks

[TheCZMan]

For me, the alternative is the following: either countries holding US debts cling to it in hope the US will willingfully pay it back or they can kiss it goodbye.

Time will tell.

By the way, I have a question for you: do you plan to resume your analysis on the oil price variations? Because I share your PoV that the oil price should have kept rising and it is not what is happening.

I am always ready to hear analysis on this issue.

[TheCZMan]

The pulling the plug scenario never convinced me because I dont see how they could happen.

Imo, it is being too much legalist to think that because China or Russia hold US debts in a large amount they can claim US hard assets.

The US is a position similar to kings in old times: bankers were lending money to kings and when they want it back, all they collected was a rope around the neck.

Dumping the debt onto weaker countries will only improve the king scenario for the US.

[TheCZMan]

Imo, the USD too weak to buy foreign oil hypothesis is unlikely to happen. The US has been working hard to be the middle man on the oil trade market. Most oil fields all around the world are exploited (not exclusively) by US oil firms, which warrants that the US collects a share of any oil deals around the world and keep buying oil.

If indeed the US oil companies were losing their grip over the oil fields around the world, it would be troublesome because it would destroy the derivation pipe.

[JiveDadson]

When the dollar is too weak to buy foreign oil, how well placed will the US military be to protect and pilfer resources overseas? Indeed, how well placed will it be to repel a foreign invasion?

[TheCZMan]

that a country of 300M people is exhausted when 500,000 are involved in military operations. And crude reality, a casual immigration day is enough to cover up for the human losses known by the US army over several years.

Time will tell but as I said on the other vid, the US position is strong: the US bail out debt will be absorbed by lesser countries through trade.

[TheCZMan]

The US is dependent on foreign resources (no energy independence) Not a bad news either considered the position of the US.

For example, the US can march his armies on "others"'resources while preserving its own resources. Of course, doing so, the US deprives rivals from projecting their own armies overseas in the future since they will have no more oil or stuff like that to power their vehicles etc

A good strategical move.

The US military forces are overstretched: hard to me to believe