The unfortunate Benjamin Bernanke, the historian and scholar of the great depression, has found to his chagrin, and our undoing, that he is to banking what Ehud Olmert is to Israeli war fighting. He has, with his bail out of Bear Sterns, unleashed a title wave of inflation that is likely to wash away the world financial structures as we know them. Bernanke acted to save banking and destroyed everything else ultimately including banking. I heard that Goldman Saks thinks we could have $200 oil yet this summer. Five bucks a gallon is cheap compared to $7.50 a gallon for Christmas. This insane inflation wave is about to bring spending around the world to a standstill and what banks are still standing are going to be very reluctant to lend anyone a dime. My conclusion is that the financial meltdown started in the mortgage loan crisis, gave rise to the financial crisis resulting in Bernanke’s folly, the complete undermining of the dollar and complete destabilization of the oil market resulting in what is likely to be the next Great Depression.
There is no stopping oil going right through the roof and I would not be surprised to see $8.00 a gallon at the pump by New Years. As bad as the continuing rise in prices in gas is the unbelievable speed with which its occurring. It’s the speed that’s going to tank, and I mean TANK, the stock markets around the world. It’s the speed of the rising prices that means consumers and businesses have hit the breaks, big time, on any discretionary spending until we know what’s on the other side. Unemployment is going to show a huge spike as people react to the massive oil increases being passed on to consumers in every sector of commerce. Already there is reporting on companies closing stores and the tightening of belts. No one says anything like “It’s as sound as a dollar” anymore: If they have a functioning brain they seem to be saying, “It’s as sound as a barrel of crude oil”. In the new normal that the unfortunate Mr. Bernanke has unleashed on us the value of oil has become the lifeboat of choice: forsaking and relegating the US Dollar to the dustbin of history. Oil has no end in sight and we are simply a day late and about 9.5 trillion dollars short.
Politically speaking this could not have happened at a worse time. The Republicans and the distinctly unpopular George W. Bush are about to get the blame for real terror in American families that is due to hit just before the presidential election. The result may well be the election of Obama, our first socialist president since we all know that Bill Clinton was the first Black President, and an overwhelming democrat majority in congress. Imagine all those socialist democrats in office when an economic crisis of this magnitude unfolds: they will have the government controlling everything. By this time three years from now you’re going to have high unemployment and it won’t be possible to tell the difference between America and Europe. The one lasting gift of the unfortunate Mr. Bernanke, to posterity, will be the end of America’s leadership of the world and the return of Europe to planetary leadership. Yes, our “sophisticated” friends, the Europeans, will return to the leading role having hopefully learned from two world wars and soviet communism, to chart a less bloodthirsty role for itself. The political landscape in America is about to be permanently changed because the Federal Reserve once again made a fatal miscalculation.
The Bible makes it clear that the Europeans are in a leadership role in the end times. The United States is not referred to in any clearly identifiable way. I suspect that Pax-Americana is going to be the object of no small amount of nostalgia in the brave new world we are entering. All things come to an end and history is repeat with mighty empires that were destroyed or as in the case of Ancient Rome and the USA, collapsed from their own complacency. I’m afraid there are just three constants in human history to date: Death, Taxes, and people like the Unfortunate Mr. Bernanke.
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