Comments on: Up in Smoke: The Abridged History of US Investment Banking http://dissidentvoice.org/2008/10/up-in-smoke-the-abridged-history-of-us-investment-banking/ a radical newsletter in the struggle for peace and social justice Sun, 22 Nov 2009 13:03:40 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: David A. Smith http://dissidentvoice.org/2008/10/up-in-smoke-the-abridged-history-of-us-investment-banking/#comment-30095 David A. Smith Tue, 21 Oct 2008 14:54:30 +0000 http://www.dissidentvoice.org/?p=4098#comment-30095 Consider the possibility that "the bailout" (actually, many bailouts as the 700 billion frequently cited doesn't include the 115 billion to AIG, the 30 billion to Chase when they "bought" Bear Stearns, the 3 Trillion promised by various European governments and the many smaller "infusions" coming from other governments) may have not "solved" anything - including the "unfreezing" of credit. Yes, the interbank credit tightness seems to have relaxed some, but this is only one credit market. Yes, this will mean we will likely see a small improvement in other credit markets like housing, automobile and consumer credit. But are we forgetting the world's largest credit market? The one for government issued debt? Afterall, that "bailout" money is coming from somewhere and that somewhere is government created debt issues. But just how much debt can this global economy handle? We've already seen one government fail financially (Iceland). Will that be the only one? Not likely. The next few will almost certainly be smaller countries that have made recent plays to be bigger players (Eastern European? Latin American?) And what if Pakistan succumbs? Indonesia? Mexico? And can we really discount the possibility that the sudden addition of more than a a trillion dollars to the US debt (and is more coming with the next "stimulus" package?) will start to impact the ability of the U.S. government to issue debt? What happens if U.S. debt gets down graded? Is no longer the last safe haven for investment dollars. Goes Iceland? Consider the possibility that “the bailout” (actually, many bailouts as the 700 billion frequently cited doesn’t include the 115 billion to AIG, the 30 billion to Chase when they “bought” Bear Stearns, the 3 Trillion promised by various European governments and the many smaller “infusions” coming from other governments) may have not “solved” anything – including the “unfreezing” of credit.

Yes, the interbank credit tightness seems to have relaxed some, but this is only one credit market. Yes, this will mean we will likely see a small improvement in other credit markets like housing, automobile and consumer credit. But are we forgetting the world’s largest credit market? The one for government issued debt?

Afterall, that “bailout” money is coming from somewhere and that somewhere is government created debt issues. But just how much debt can this global economy handle? We’ve already seen one government fail financially (Iceland). Will that be the only one? Not likely. The next few will almost certainly be smaller countries that have made recent plays to be bigger players (Eastern European? Latin American?) And what if Pakistan succumbs? Indonesia? Mexico? And can we really discount the possibility that the sudden addition of more than a a trillion dollars to the US debt (and is more coming with the next “stimulus” package?) will start to impact the ability of the U.S. government to issue debt? What happens if U.S. debt gets down graded? Is no longer the last safe haven for investment dollars. Goes Iceland?

]]> By: Michael Kenny http://dissidentvoice.org/2008/10/up-in-smoke-the-abridged-history-of-us-investment-banking/#comment-30046 Michael Kenny Mon, 20 Oct 2008 19:39:15 +0000 http://www.dissidentvoice.org/?p=4098#comment-30046 I think William Engdahl is probably right but I don’t think it has anything to do with money, or exceptionalism or hubris or even America. The name of the game is Israel. The Israel Lobby’s strategy has been to get a stranglehold on US public life and then focus US economic and military power exclusively on propping up Israel. The subjugation of Europe is an important part, maybe even the lynchpin, of that strategy and anything that permits Europe to escape from under the American jackboot, such as the EU or the Euro, has to be crushed at all costs. The purpose of Europe in that strategy is, at best, to provide cannon fodder, hence the frantic attempts of the Lobby to foment hatred of Muslims in Europe, and, at worst, to provide a forward base for US forces and military supplies near to Israel, hence the attempts to prop up the now totally counter-productive NATO as a legal pretext for the US presence, the desire to expand bases with access to international airspace over the Mediterranean (Vicenza!) and the Polish missile sited designed to protect those bases (yes, at missile speeds, it takes distances like that to get a missile to its target!). Hence also, of course, the attempt to fabricate a new cold war, via, for example, General Hirsch’s most recent fiasco in Georgia: make Europe feel the need for American “defence” and, as a bonus, divide the EU between those states which fear Russia and those which don’t. So far, it hasn’t worked. Quite the contrary! The EU has come out on top in every battle so far, essentially, I think, because there are many Europeans who would fight for America but precious few who would fight for Israel. And practically none under the age of 70 who want to fight Russia! I was interested to hear that the breakup of the EU is being widely considered in the state of Washington. Let me assure Mr Whitney that no one here in Europe is even dreaming of such a prospect. I think William Engdahl is probably right but I don’t think it has anything to do with money, or exceptionalism or hubris or even America. The name of the game is Israel. The Israel Lobby’s strategy has been to get a stranglehold on US public life and then focus US economic and military power exclusively on propping up Israel. The subjugation of Europe is an important part, maybe even the lynchpin, of that strategy and anything that permits Europe to escape from under the American jackboot, such as the EU or the Euro, has to be crushed at all costs. The purpose of Europe in that strategy is, at best, to provide cannon fodder, hence the frantic attempts of the Lobby to foment hatred of Muslims in Europe, and, at worst, to provide a forward base for US forces and military supplies near to Israel, hence the attempts to prop up the now totally counter-productive NATO as a legal pretext for the US presence, the desire to expand bases with access to international airspace over the Mediterranean (Vicenza!) and the Polish missile sited designed to protect those bases (yes, at missile speeds, it takes distances like that to get a missile to its target!). Hence also, of course, the attempt to fabricate a new cold war, via, for example, General Hirsch’s most recent fiasco in Georgia: make Europe feel the need for American “defence” and, as a bonus, divide the EU between those states which fear Russia and those which don’t.

So far, it hasn’t worked. Quite the contrary! The EU has come out on top in every battle so far, essentially, I think, because there are many Europeans who would fight for America but precious few who would fight for Israel. And practically none under the age of 70 who want to fight Russia!

I was interested to hear that the breakup of the EU is being widely considered in the state of Washington. Let me assure Mr Whitney that no one here in Europe is even dreaming of such a prospect.

]]> By: Jim Cronin http://dissidentvoice.org/2008/10/up-in-smoke-the-abridged-history-of-us-investment-banking/#comment-30033 Jim Cronin Mon, 20 Oct 2008 16:18:42 +0000 http://www.dissidentvoice.org/?p=4098#comment-30033 Some voiced the opinion that the US attempt to control Iraqi petroleum via the 2003 invasion was also an indirect attack on the EU and Russia, as it was the French and Russians who were going to restore and develop Iraqi oil fields and infrastructure under Saddam. If it is also true that the investment banks will use their power to attempt to dominate the EU economies, won't that drive the EU into closer relationships with the energy-rich Russians? Witness the gas pipeline from Russia to Germany already being promoted by Germany's ex-chancellor Schroeder. And then won't NATO break up, and the containment strategy against Russia fail without European support? Putin must be creaming his jeans over US strategic clumsiness. Don't underestimate a country where chess is a national sport. Some voiced the opinion that the US attempt to control Iraqi petroleum via the 2003 invasion was also an indirect attack on the EU and Russia, as it was the French and Russians who were going to restore and develop Iraqi oil fields and infrastructure under Saddam. If it is also true that the investment banks will use their power to attempt to dominate the EU economies, won’t that drive the EU into closer relationships with the energy-rich Russians? Witness the gas pipeline from Russia to Germany already being promoted by Germany’s ex-chancellor Schroeder. And then won’t NATO break up, and the containment strategy against Russia fail without European support? Putin must be creaming his jeans over US strategic clumsiness. Don’t underestimate a country where chess is a national sport.

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