No charges, no convictions, 3 trillion here, a trillion there, pretty soon it starts adding up ...
"Fed is price-fixing on a global scale".
Bad News, dollar loses reserve currency status. Good News, we may get some jobs thrown in.
"Public confidence in US markets has steadily eroded as one scandal follows the other and the people involved are never held accountable.
"So far, not one CEO or CFO of a major investment bank or financial institution has been charged, arrested, prosecuted, or convicted in what amounts to the largest incident of securities fraud in history: the sale, cover up and eventual forced repurchase over three trillion dollars of toxic assets to European banks.
"In the much-smaller Savings and Loan investigation, more than 1,000 people were charged and convicted. As former Fed Chairman Paul Volcker points out, the system is broken and the old rules no longer apply: "...we no longer have "a successful governing model" that the rest of the world admires..."
THIS PUTS OUR CREDIBILITY TO THE ULTIMATE TEST
"US will be battling for the same export market as everyone else, which will inevitably shrink global demand for (our) goods and services.
"This is a major change in the Fed's policy and there's a good chance it will backfire.
"Here's the deal: If US markets no longer provide sufficient demand for foreign exports, then there will be less incentive to trade in dollars. Thus, QE poses a real threat to the dollar's position as the world's reserve currency...the foundation from which the price of virtually every asset in the world is calculated" based solely on trust in the dollar.
BOTTOM LINE
Bad news (for the rich and government - so why do it?) the dollar will not be able to support its reserve position and will have to find its own, real, value - keeping in mind that we shamelessly unloaded trillions of dollars worth of 'toxic sub prime assets' onto unsuspecting European banks, covered it up and eventually had to buy them back.
(Why do it? Nothing left to steal?)
Good news (for We, The People), is that the dollar will neither "be able to sustain The US's broken financial markets, underperformance of our economy (particularly now outsourced manufacturing sectors -ed) and a fractious political climate".
Why 'fractious'? The 'Big Guys' have plucked the goose clean and the little guys are getting seriously fractious over what are now only memories of goldman eggs.
The good news means we might get some jobs back, but could be working in provincial and state economies i.e. states trading with each other until we get back to an ability to export anything other than an imperial army on a global basis.
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