Does anyone remember the classic scene from the original (and best) Die Hard, where Hans promises a miracle to break the magnetic lock on the huge vault in the Nakitomi building? When the FEDs came charging in to save the day, they recklessly cut the power to the building, subsequently disengaging the magnetic lock.
Hans: "You asked for a miracle...I give you the F B I."
In another classic dialogue from that movie:
McClane: "Powell? What's going on?"
Powell: "Ask the FBI. They've got the terrorist playbook and they're running it, step by step."
Who would have known how appropriate that script would be for the crisis we are in now.
Paulson: "You ask for a miracle...I give you the F E D"
Tax Payers: "What's going on?"
Ron Paul: "Ask the FED. They've got the deflation playbook and they're running it, step by step."
It's amazing how similar the moves are when you compare similar deflationary crisis from today to Japan's to the Great Depression. There's one similarity between them all. They all failed to accomplish what they set out to do.
The US is not nearly in the fiscal postion to take on all of the current crap liabilities, not even considering the significant upcoming failures across banks, commercial real estate, corporate defaults, local and state governments. Not to mention individual industries like the airlines and auto. Toss in a crumbling infrastructure and you have an over-leveraged country that has just taken two steps into the abyss of insolvency. If you were worried about a meltdown on wall street...just wait until our foreign loan sharks begin to put the squeeze on our borrowing. We can't borrow, print or tax our way out of this mess. The path the government has taken is one to bail out the banks and lock this country in economic jail. To bad nary a tax payer has any idea what is happening.
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