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View Diary: Cory Booker Just May Have Done President Obama a Favor (138 comments)

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  •  I think Cory Booker is a tool (6+ / 0-)

    and I think the financeer's and bankster's are extracting money from America and preying on the weakest.

    Nonetheless, it's also true that most Americans benefit from these shysters. Prior to 1972, the USA was a surplus economy that recycled its surpluses overseas in order to stoke demand for our products.

    In 1972, Paul Volcker announced that it was over, the days of surpluses were gone. The USA could then either devolve slowly from its preeminent position in the world, or opt for a second strategy. And that strategy was the slow and deliberate destruction of the global economy. Wall Street worked into the latter option. Whenever the USA was threatened with its currency becoming second-tier, we had crises pop up at opportune times. From the Asia Tiger crisis to the euro meltdown. And through all the turmoil of the last 30-40 years, the world has taken its surpluses and sent them to New York City, and to a lesser degree London. We don't know why exactly all the world's investors and governments continue to do this, but they do. They get the highest returns in the American go-go stock markets. They don't get these in China or Japan or Europe. Not on the scale they do in the USA.

    One can see this as a form of tribute paid to an empire that is long past its glory days. But every American benefits from this because those Wall Street shysters skim from the surpluses flowing in and that money, for the most part, stays in the USA. Being the world's financialization leader--after we've ceased to become a net exporter--is a huge part of the American economy.

    Now, this scheme is unproductive in the long run, it encourages scamming and racketeering, it's parasitical and tends to suck up a lot of the nation's talent, but yet it contributes to the American economy inasmuch as it keeps bringing in foreign flows of credit.

    We are in a pickle. Remember what happened when Saddam Hussein started denominating oil exports into euros and not dollars? The USA invaded! Europe freaked, especially France and Germany. And then, as the euro started gaining ground as a reserve currency, the 2008 meltdown happened. The Germans in particular were dismayed by the derivatives practices. Seems as though they weren't in on the secret. Bankers laughed at the Germans and called them great engineers but obtuse when it came to the ways of money.

    The Germans and Europeans, however, are pursuing wrongheaded policies at the exact time they should be challenging the dollar in a concerted effort. Just when the USA's tribute economy deserves to be beaten for taking the world on a ride designed by Bernie Madoff, Europe's economy is melting down while the USA's s weakly growing, and our stock market is up 50% in 3 years. A huge return.

    Where would you invest your money. The USA.

    Europe also goofed by overleveraging its banks and then refusing to institute TARP. Instead, it insisted that each nation take its banking losses and nationalize them as sovereign debt.

    This is what is know as the planned destruction of the global economy. Just when you think the USA's time is over and that the flows of tribute will stop washing up on American shores, the USA pulls another rabbit out of the hat.

    There are two kinds of people in this world. The kind who divide the world into two kinds of people, and the kind who don't.

    by upstate NY on Tue May 22, 2012 at 07:19:46 AM PDT

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