Autumn 2011 -- Very Serious Breakdown Of The Global Economic, Financial And Monetary System

[Tace]

Budget/T-Bonds/Dollar, The Three US Crises That Will Cause The Very Serious Breakdown Of The Global Economic, Financial And Monetary System

April 16, 2011 -- Public announcement GEAB N°54 (LEAP/E2020) -- The 15 September 2010, GEAB N°47 issue was titled "Spring 2011: Welcome to the United States of Austerity / Towards the very serious breakdown of the world economic and financial system." Yet at the end of summer 2010, most experts believed first, that the debate on the U.S. budget deficit would remain a mere subject of theoretical discussion within the Beltway (1) and secondly, that it was unthinkable to imagine the United States engaging in a policy of austerity because it was sufficient for the Fed to continue to print dollars. Yet, as everyone has been able to see for several weeks, Spring 2011 really did bring austerity to the United States (2), a first since the Second World War and the setting up of a global system based on the ability of the U.S. engine to always generate more wealth (real from 1950 to 1970, increasingly virtual thereafter).

At this stage, LEAP/E2020 can confirm that the next stage of the crisis will really be the "Very Serious Breakdown of the world economic, financial and monetary system" and that this historic failure will occur in autumn 2011 (3). The monetary, financial, economic and geopolitical consequences of this "Very Serious Breakdown" will be of historic proportions and will show the crisis of autumn 2008 for what it really was: a simple detonator.

The crisis in Japan (4), the Chinese decisions and the debt crisis in Europe will certainly play a role in this historic breakdown. On the other hand we consider that the issue of government debt of countries on Euroland’s periphery is no longer the dominant European risk factor here, but it is the United Kingdom which will find itself in the position of the "sick man of Europe" (5). The Eurozone has in fact established and keeps improving all the monitoring systems needed to address these problems (6). Management of the Greek, Portuguese and Irish problems will therefore take place in an organized fashion. That private investors must take a haircut (as anticipated by LEAP/E2020 before summer 2010) (7) does not belong to the category of systemic risks, displeasing the Financial Times, the Wall Street Journal and Wall Street and City experts, trying every three months to rerun the "coup" of the early 2010 Eurozone crisis (8).

In contrast, the United Kingdom has completely missed its attempt at "preventive budgetary amputation surgery” (9). In fact, under pressure from the street and particularly more than 400,000 British who roamed the streets of London on 03/26/2011 (10), David Cameron is forced to lower his target for reducing health care costs (a key point of his reforms) (11). At the same time, the Libyan military adventure has also forced him to rethink his goals for Defense Ministry budget cuts. We already mentioned in the last GEAB issue that the British government’s financing needs continue to rise, reflecting the ineffectiveness of the measures announced whose implementation is proving very disappointing in reality (12). The only result of the Cameron / Clegg (13) duo policy is currently the relapse of the British economy into recession (14) and the obvious risk of the ruling coalition imploding after the next referendum on electoral reform.

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[OHdem10]

1. We, Pesky Liberals predicted the Cameron Austerity would only

throw the UK back into Recession. They tried Austerity
and RW Policies too soon.

Our Democrats appear to be ready to go ME TOO to
the Austerity Program of the Republicans and Tea Party.

[dkf]

2. It's austerity or insolvency. Pick your poison.

[eomer]

4. That's the rightwing frame. The progressive position is to end the wars and tax the wealthy.

And a majority of the American people are in favor of that progressive position.

[Vincardog]

5. It has been shown that austerity does not work. What else you got?

[lib2DaBone]

3. Mr. Obama is only too happy to work with the Repukes to crush Social Security and Medicare..

Obama could care less about his base.. he knows what he is doing. i.e. Mr. Obama is not a victim.. and he is not playing chess.

Here is a good article from Glen Greenwald: Why Do We Assume Obama is actually Trying to Produce A Progressive Agenda?

http://www.alternet.org/news/150642/glenn_greenwald%3A_why_do_we_assume_obama%27s_actually_trying_to_enact_a_progressive_agenda/

[Demeter]

6. +15 Trillion BRAZILLIAN!

[bertman]

7. lib2DaBone, thanks for posting that. So true. So true. nt

[bvar22]

8. I disagree....President Obama IS playing Chess.

Chess.....a game where the The Pawns are sacrificed to protect The Royalty.

Obama IS playing Chess, and playing it well.
.
.
.
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It only SUCKS if you are a Working Class Pawn




"There are forces within the Democratic Party who want us to sound like kinder, gentler Republicans.
I want us to compete for that great mass of voters that want a party that will stand up for working Americans."
---Paul Wellstone