Wednesday, 29 August 2007

Fundamental Problems Remain With World Economy. Meltdown Looms Larger than Ever.

Can the Central Banks print enough money to bail out cash strapped banks and other big financial institutions ?
Can the "Plunge Protection Team" pump enough money into the US sharemarket to keep up confidence and stop a huge crash ?

The underlying problems of unpayable debts, held by almost all players, are immense. The idea was okay so long as the markets kept going up and you had income coming in and you didn't have to pay back the money. It was easy- borrow HUGE amounts of cheap money to invest and make deals and then pay later .... uh oh ....
http://globalresearch.ca/index.php?context=va&aid=6639
Now the players are trying to keep a lid on the extent of the problem so as to arrest any full scale flight from the markets.

At present the US economy is a confidence scam.
Their inflation rate is NOT at 2.5% and their unemployment levels are NOT at 4.8%.
The real figures are in the double digits.

Things will have to get worse before they get better. The folks covering up, and holding back the current crisis have to admit the truth before they can start to rebuild the US economy on more realistic lines.

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