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Vampire Squid Watch: 4 Scary Economic Trends for 2012
http://www.alternet.org/story/153604/vampire_squid_watch%3A_4_scary_economic_trends_for_2012/Having been seen to twitch ever so slightly in 2011 as global protests erupted, the vampire squid is stirring in its evil lair. Reports of sucking noises and new tentacles sprouting in every direction tell us that the global financial monster is poised to steal yet more wealth and resources from the public in the coming year. Top economic thinkers have shared their forecasts with AlterNet, and the focus is clear: 2012 will be a year of continued and escalating predation by financiers. Their influence over political, financial, and economic activity will grow along with potential for harm.
1. Back-door Bailout of the Eurozone
Would you like more of your hard-earned money to flow to fatcats? Wish granted! Attorney Walker Todd, who spent two decades in the legal departments of the Federal Reserve Banks of New York and Cleveland, names the back-door bailout of the eurozone banking system by our very own Federal Reserve as the top economic story of the upcoming year or, at least one of the most outrageous. In a nutshell, the Fed is helping European banks by opening up the short-term emergency lending pipeline, which means that U.S. taxpayers are indirectly bailing out private European capitalists. This is being done through a bit of financial hocus pocus called swaps essentially the trading of dollars for euros. Such a maneuver allows the Fed to prop up European banks while claiming that is not 'technically' directly lending. In other words, swaps are an attempt to hide the truth from the public.
As Gerald ODriscoll put it in the Wall Street Journal: This Byzantine financial arrangement could hardly be better designed to confuse observers, and it has largely succeeded on this side of the Atlantic, where press coverage has been light. O'Driscoll observes that the Fed has no authority to bail out European banks and warns of what economists call moral hazard the nasty habit of banks to engage in even riskier behavior when they get bailed out.
Why is this happening? Well, because the squid is strangling morality, democracy, and the rule of law. We pay, they play. This is an attempt by our own governing elites to maintain a false vision of how the world works, or how we think it should work, Todd told AlterNet. This comes at the expense of many people who never will go to Europe, who know no European bankers, and who have no European bank accounts.
You may not know a European banker, but you can be sure that one is just now raising a glass of bubbly in your honor. After all, you paid for it.
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Vampire Squid Watch: 4 Scary Economic Trends for 2012 (Original Post)
xchrom
Jan 2012
OP
secondwind
(16,903 posts)1. We may need to do this.
At this point in our country's miserable existence, I will accept anything, ANYTHING, that will keep the GOP out of the White House, and appointing 2 Supreme Court Justices, etc.
If Europe goes down, Obama and the Democrats will go down with it. No fault of the President's, it is just a reality.
Mr_Jefferson_24
(8,559 posts)2. I'm afraid the misery index is...
... almost certain to continue its upward trend through 2012 and beyond.
If there's an upside, I would say this trend is sure to provide more fuel for the Occupy movement.
PETRUS
(3,678 posts)3. "Many dollars. Very little sense."
"Ultimately, hoarding everything at the top is not sustainable, and bankers like Dimon will end up destroying the very society that makes their enormous wealth possible. If we let them."
K&R
DirkGently
(12,151 posts)4. Wow.
Ghost Dog
(16,881 posts)5. "The squid is strangling morality, democracy, and the rule of law."
Never truer words spoken.
+1