A shattering moment in America's fall from power (?)
I rarely fisk Leftist ignorance but I will do so now because the article below is typical of the frantic self-congratulation that Leftists are trying to extract from the banking crisis. It relies heavily of course on a belief that empty assertion can replace the facts. A great combination of supreme self-confidence and supreme ignorance is excerpted below
OUR gaze might be on the markets melting down, but the upheaval we are experiencing is more than a financial crisis, however large. Here is a historic geopolitical shift, in which the balance of power in the world is being altered irrevocably. The era of American global leadership, reaching back to the Second World War, is over. [Yet it was America that the world looked to to solve the global banking crisis]
You can see it in the way America's dominion has slipped away in its own backyard, with Venezuelan President Hugo Chavez taunting and ridiculing the superpower with impunity. [Why should America be worried by a Chihuahua?]
The setback of America's standing at the global level is even more striking. With the nationalisation of crucial parts of the financial system [All that is happening in the main is that some banks are taking over others. The big bank nationalization spree has been in Left-run Britain, where they have a history of that sort of thing], the American free-market creed has self-destructed while countries that retained overall control of markets have been vindicated. [So why are European banks in meltdown?]
In a change as far-reaching in its implications as the fall of the Soviet Union, an entire model of government and the economy has collapsed. Ever since the end of the Cold War, successive American administrations have lectured other countries on the necessity of sound finance. Indonesia, Thailand, Argentina and several African states endured severe cuts in spending and deep recessions as the price of aid from the International Monetary Fund, which enforced the American orthodoxy.
China, in particular, was hectored relentlessly on the weakness of its banking system. But China's success has been based on its consistent contempt for Western advice and it is not Chinese banks that are going bust. [The Chinese banks are VERY shaky and have long been propped up by the Chinese government]
Despite incessantly urging other countries to adopt its way of doing business, America has always had one economic policy for itself and another for the rest of the world. Throughout the years in which the US was punishing countries that departed from fiscal prudence, it was borrowing on a colossal scale to finance tax cuts and fund its overstretched military commitments. Now, with federal finances critically dependent on continuing large inflows of foreign capital, it will be the countries that spurned the American model of capitalism that will shape America's economic future. [Like how?]
The dire condition of America's financial markets is the result of American banks operating in a free-for-all environment A typically Leftist reversal of the truth. It is Congressional regulation preventing normal market operations that led to the problems] that these same American legislators who have been debating a bail-out created. It is America's political class that, by embracing the dangerously simplistic ideology of deregulation, has responsibility for the mess.
In current circumstances, an unprecedented expansion of government [All that has happened is that the Feds have bought a huge gob of undervalued paper which they will in due course sell back to the market at a profit] is the only means of averting a market catastrophe. The consequence, however, will be that America will be even more starkly dependent on the world's new rising powers. The federal government is racking up even larger borrowings, which its creditors may rightly fear will never be repaid. It may well be tempted to inflate these debts away in a surge of inflation that would leave foreign investors with hefty losses....
There has been a good deal of talk in recent weeks about imminent economic armageddon. In fact, this is far from being the end of capitalism. The frantic scrambling in Washington marks the passing of only one type of capitalism - the peculiar and highly unstable variety that has existed in America over the past 20 years. This experiment in financial laissez-faire [Heavy and stupid regulation = laissez faire?] has imploded. While the impact of the collapse will be felt everywhere, the market economies that resisted American-style deregulation will best weather the storm..... Yadda, yadda, yadda
George Bush has been in office for 7 1/2 years. The first six the economy was fine. A little over a year and a half ago:
1) Consumer confidence stood at a 2-1/2 year high;
2) Regular gasoline sold for $2.19 a gallon;
3) The unemployment rate was 4.5%.
4) The DOW JONES hit a record high -- 14,000+
5) American's were buying new cars, taking cruises and vacations overseas, living large!
But American's wanted 'CHANGE'! So, in 2006 they voted in a Democratic Congress & yep -- we got 'CHANGE' all right!
1) Consumer confidence has plummeted;
2) Gasoline is now over $3.75 a gallon & climbing;
3) Unemployment is up to 5% (a 10% increase);
4) Americans have seen their home equity drop by $12 trillion dollars & prices are still dropping;
5) 1% of American homes are in foreclosure.
6) THE DOW is probing another low ~11,300 -- $2.5 TRILLION DOLLARS HAS EVAPORATED FROM THEIR STOCKS, BONDS & MUTUAL FUNDS INVESTMENT PORTFOLIOS!
YES, IN 2006 AMERICA VOTED FOR CHANGE...AND WE SURE GOT IT! ....
REMEMBER THE PRESIDENT HAS NO CONTROL OVER ANY OF THESE ISSUES, ONLY CONGRESS. AND WHAT HAS CONGRESS DONE IN THE LAST TWO YEARS, ABSOLUTELY NOTHING.
NOW THE DEMOCRATIC CANDIDATE FOR PRESIDENT CLAIMS HE IS GOING TO REALLY GIVE US CHANGE ALONG WITH A DEMOCRATIC CONGRESS!!!! JUST HOW MUCH MORE 'CHANGE' DO YOU THINK YOU CAN STAND???
European glee faded fast: "The only thing more predictable than European glee at American economic trouble is how quickly it fades amid Europe's own problems. So no sooner did Der Spiegel publish its latest eulogy for American power last week ("The Price of Hubris") than European banks had to be rescued one after another. The euro's recent fall of about 5% against the dollar is further proof that the credit mania was a global phenomenon and its aftermath requires global responses. In contrast to the U.S., Europe has no lender of last resort. The European Central Bank was created to manage the supply of euros, not to rescue failing institutions. It can provide short-term liquidity against collateral -- which it has done admirably so far. But it can't ease a solvency crisis. ECB President Jean-Claude Trichet can provide intellectual leadership, but in Europe there are 27 separate national purses and no central treasury."
Dry-Cleaning Economics in One Lesson: "Another day, another news story about economic wackiness. Gas prices rise, the dollar sinks, and stores are limiting rice sales. What could be next? Clothes hangers. Yes, clothes hangers. Marie Sledge, co-owner of Rome (Georgia) Cleaners, states, "Hangers last year at this time were $28 a box, where now they are $56." News reports indicate that cleaners in Springfield, Missouri; Birmingham, Alabama; and Harlem are also encountering doubling hanger prices. In response, many cleaners are posting signs in their shops encouraging customers to return used hangers. Hangers can't, even if combined with government subsidies, be converted into biofuels. So what is causing the rapid increase in hanger prices? Government, of course, though in this case it's the trade bureaucrats at the Department of Commerce rather than the folks behind other debacles in the news these days".
For more postings from me, see OBAMA WATCH (2), TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here or here or here
The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)