Posted on 09/20/2007 4:55:46 PM PDT by NYer
"According to some US experts, some US$ 20 trillion in worthless securities exist, putting US and European banks are at risk. Asia should avoid the worse. A new North American currency, the Amero, is making news.">
According to US financial analyst Mike Whitney[1], a mountain of unfunded, unregulated paper worth more than US$ 20 trillion might be out there [2]. Apparently, no one, neither the general public nor professionals on Wall Street, has yet to realise the extent of the hole, a hole of 20 trillion dollars with no market, nor value.
Even if the Federal Reserve were to ease bank reserve and capital requirements, the existing financial system would still be moving towards its worst crisis in 80 years because the problem is not liquidity, but solvency. The situation is such that banks are even scared to lend to one another uncertain about each other’s solvency. Even the London interbank market is not going beyond day to day lending.
Greenspan and speculative financing
The problem arose in the United States where, starting in 1987, the bank lobby—by means of US$ 300 million in contributions—got Congress to do away with the Glass-Steagall Act (officially the Banking Act of 1933) that had been adopted in the wake of the 1929 Wall Street Crisis. President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act.
The original law had been introduced to avoid conflicts of interests between banks and companies that sell stocks and bonds.
Former Federal Reserve Chairman Alan Greenspan was the main proponent of financial liberalisation. Before his appointment to the post, he had served as a corporate director for J.P. Morgan, the first bank to take advantage of liberalisation.
Under his 18-year chairmanship he oversaw the greatest expansion of speculative financing in world history. But now the chicken are coming home to roost like a would-be train wreck that no one can stop, not even the Fed.
If Mike Whitney’s numbers are right, we are on the verge of a meltdown like that of 1929-1930, perhaps worse because of the world’s greater economic interconnectedness.
Lately, the big US financial and banking groups have tried to protect themselves by selling their junk bonds in Europe and Asia.
In Asia equity in most banking and financial institutions is in US securities and US dollar denominations. Most banks are ranked AA or even AAA by so-called independent agencies like Standard & Poors, Moody’s and Fitch. Securities with such ratings are, or perhaps we should say, were considered virtually risk-free.
Theoretically, US pension funds, insurance companies and big foundations are exposed to the uncontrolled offer of atypical securities of the past decades; so should the US financial and banking institutions which created them.
Yet we should not be surprised if those who hold the keys to the corporate are not, nor will ever be, held accountable for their wrongdoing.
Central banks, especially the Federal Reserve, are at the root of the problem because they have known about the overall situation for quite some time. But whomever is in charge of the Fed knows that a solution cannot be had from within.
Amero, North America’s new currency
With a bank crisis looming on the horizon, an odd piece of information is becoming news. As unlikely as it may seem, the United States along with Canada and Mexico, appears to be getting ready to launch a new single currency: the Amero.
With the monetary bubble on the verge of bursting, one solution would be getting rid of the dollar, replaced by a currency, the Amero, to serve a would-be North American Union.
In addition to the United States, Mexico should join such a union and in principle might be even in favour of it. Canada, too, might join, setting aside its aversion to losing its monetary sovereignty, out of concern that its equity in US dollars might simply lose its value.
When US President George W. Bush met then Mexican President Vicente Fox and then Canadian Prime Minister Paul Martin in Waco, Texas, in March 2005, they discussed a North American union.
The idea resurfaced the same year in a report released by the powerful US Council on Foreign Relations, a group that has influenced most US presidents, both Democrat and Republican, and a tri-national task force involving ministerial-level officials.
Wikipedia already sports a page dedicated to the Amero with the photos of prototypes.
A news report on the Amero broadcast on CNBC is also available on Youtube [3].
Similarly, 20 Amero coins can be seen on the Hal Turner Show webpage, with a small D visible, D as in ‘minted in Denver.’ Curiously, the Denver Mint is currently closed to the public, ostensibly for restoration work, till September 28 [4].
Whilst AsiaNews is unable to determine whether there is any basis to such claims, it does seem certain that a plan for a North American union is being developed [5].
Such an entity would have a population almost the size of the European Union, and could adequately respond to the current bank crisis that is bound to end up in a monetary crisis.
However, far from being a simple monetary union, the operation is likely to mean a de facto US annexation of the rest of North America.
For Asia the real point of interest would be economic rather than political since the Americas have been the United States’ backyard for a long time.
Firstly, the Amero would be definitely weaker than the US dollar because it would include the Mexican pesos, which was insolvent not so long ago.
A weaker North American common currency would quickly push the value of the currencies of China and the whole of Asia, which have hitherto been reluctant to do so.
Secondly, converting dollars used outside the United States would raise problems since in Asia as well as in many countries around the world payments in dollars are more common than one might think. In this case the impact of a North American union would also be very significant.
Why would you want to enable such vileness by attacking a man who is showing incredible fortitude in the face of a hideous implacable enemy within our own country?
This is the laugh of the century. Who is the enemy?
Do you have any clue how many people are being murdered in our country daily by illegal aliens? Those illegal aliens and their sympathizers are Bush's friends.
No rant, just the facts.
There’s a disconnect in your brain such as it is.
Oh dear, if you are going to bring up “vomit”, I think I need to go to bed.
http://www.freerepublic.com/focus/f-news/1899836/posts?page=188#188
>>>but I keep wondering who all these people are who keep holding and buying US stocks. <<<
The legacy system would work here too.
Nope, I just don’t fall prostrate before anyone or thing, save for God.
You according to your definition?
I guess you are the standard to measure others of what a true loyal conservative patriotic American must be?
I’d just have to say you are an arrogant *ss.
LOL
You really are cracking me up. THanks for the laugh.
I am going to bed to contemplate where the lunatic fringe comes from.
It's best if you figure it out.
It actually looks more like you ping one another to come and reinforce what each is posting. And to give the appearance of support.
We were border bots before border bots were cool. :)
Protecting our borders and keeping our sovereignty is a fight that brought us together.
Of course, you’re right.
Uh, wrong. I was pinged to this thread by Kimberly GG at post #25. I then pinged numerous of my friends, as is customary about this kind of information (as is a customary practice by a great many in FR, I might add), in post #41.
>>>I wonder if it will be more difficult to cross the boarder back into Mexico than it was to get into the US.
No. They got dual citizenship under Zedillo.
http://justwhatithink.com/blog/zedilloandclinton.html
“1997 - Mexican President Zedillo and EX President Clinton Celebrate New Amendment For Mexican Dual Citizenship”
http://d.hatena.ne.jp/hourou-33/20070824/1188267826
Some people back there in the states would still continue to be ostriches. How unfortunately.
I’m out folks. I’m going to go watch My Name is Earl and the Office, and then hit the rack to get ready for a long day of smuggling illegals into the country and printing Ameros in the basement of an undisclosed location in Fallon, Nevada. Hopefully I can put the screws to the middle class while I’m at it, but that may require some overtime. As we all can attest, overtime when you’re on salary sucks!
Oh dear me. You don't post on many un threads do you?
September 27th ring a bell to you?
a 10 cent drop which = 2.8%...relatively small drop but in light of the past 5 years-—makes you wonder, is this the start of a trend ?
Wow, very interesting!
I would suggest:
"PRESIDENT JORGE"
Deal?
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