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Elaine, explain to me how raising interest rates will help the economy?


And as far as "sub-prime" mortgages go, isnt some of this(or most)laundered drug money? Like the telecom bubble?






I think there was a recent article whereby the Humvee was pitted against Ford T in climbing up a hill to prove 4WD performance.

Ford T beat the Humvee by more than a minute climbing up the hill.

So much for all that money invested to get 'better' performance.


Budget deficit widens to record $175.6 billion

For the entire year, the White House expects a budget deficit of $410 billion. The CBO expects a deficit of $396 billion.


ok so suppose inflation gets out of control.
It hurts small business, raises unemployments, thus increasing gov. non discretionary spending while reducing tax income.

so they need to print even more treasury bills. This while the big banks need to digest 'sub-prime lost'

On top of that due to inflation, energy and commodity price will go up also.

...so everything will spiral out of control.

My question: when will asian and Middle east central banks abandon dollar? sooner or later the entire system can't hold it anymore, even for them right? They have to absorb ever increasing liquidity while dubya is busy bailing out his buddy.

Anybody knows about that asian bellagio group? Are they doing anything?


High interest rates.

1)induce savings and capital investment

2)reduce consumer consumption and imports

3)appreciate the currency

The Antipodes have set high interest rates. However they are being thwarted daily by the convertibility of their currency into the American dollar. If Iceland eliminates the convertibility of the dollar, the hedge fund depredations cease. This may not be as remote as you imagine. Alternatively, resource nationalization can be imposed to thwart the convertibility of Ben and Al's monopoly paper. The rest of the world is not as eager to sell off their resources on the cheap, simply because the Fed knows how to print. Loonie Harper of the North may be the exception, actually giving away Prime West for Helicopter IOU's last year. What an ultramaroon. Not so sure we should seek union with the pink shirted MBA cowboy, Elaine. We already have one of those ourselves.


OC, speaking of Ford, did you see that they sold Land Rover and Jag to an Indian company, losing billions in the process?


Warren Buffett has been the real 'straight talker' on all things derivative and sub-prime.

Alan Greenspan has been the 'Judas Goat"

Wiki: A Judas goat is a trained goat used at a slaughterhouse and in general animal herding. The Judas goat is trained to associate with sheep or cattle, leading them to a specific destination. In stockyards, a Judas goat will lead sheep to slaughter, while its own life is spared.

Elaine Meinel Supkis

Alas, most medicines for diseases make you temporarily sicker. For example, cancer treatments are terrible to undergo. Very painful.

Yet they work! So it is with the economy: the fixed don't make one richer instantly. Indeed, this is why fixes are ignored until it is totally out of control and the cancer has eaten away huge hunks of the economy.

But it is the only path out! That, or WAR. But if a war is causing the crash, then ending the war, accepting defeat, is the cure. The refusal to accept the pain of defeat is a problem. This psychological inability to accept reality is a very serious problem.

I lived through and then prospered thanks to Volker's higher interest rates, by the way. This is why I know we can accept the pain SO LONG AS THERE IS A SOCIAL SAFETY NET!!!

Paul S

I believe the underlying objective now is the same as it was during the S&L scandal: keep as much 'mud' off the Presidents hands as possible. The Bushies priority #1 is to keep the problem under wraps UNTIL 'Dubaya' is out of office. (What happens after that? Who gives a rats A! That's our dedicated public servants for you.) You see, deep down inside, the Bushies know how bad the mess is. And one more thing, almost as important as the first: THIS IS AN ELECTION YEAR PEOPLE! Do NOT expect any bad news or numbers about how much this scandal will cost the taxpayer. Wait until--like with the S&L scandal--off election years. Mark my words, this is the tactic our wonderful public servants will use. Question of the day. Who in your opinion was/is a worse Treasury Secretary, James Baker III or the current Treasury Secretary, Henry Paulson? If you could,please rate them in two categories: incompetence and corruption.

Elaine Meinel Supkis

I hate Baker. Personal reasons the Bushes know perfectly well.

He has LOTS of blood on his hands including everyone who died on 9/11.


Elaine, a few weeks back, we gave Airbus the huge contract for the refueling planes for our Air Force instead of Boeing and money flows in from Europe with the dollar stabilizing against the Euro. Now we give Toshiba a huge contract to build 4 nuclear plants here and Japanese money flows into the US with the yen going down around 3% pre-announcement against the dollar. Any coincidence? Jobs for money? I guess our leaders prefer lower interest rates and higher stock and bond prices instead of jobs for our people. Do you think that the elites will ultimately peel away the US military industrial complex for their own purposes in the New World Order?


I lived through and then prospered thanks to Volker's higher interest rates, by the way. This is why I know we can accept the pain SO LONG AS THERE IS A SOCIAL SAFETY NET!!!

But we didnt have the global economy then as opposed to now. Dont get me wrong, I agree with you. But lots of money seems to help the developing nations vis a vie free trade. Run by a monopoly.


Teddy: "Do you think that the elites will ultimately peel away the US military industrial complex for their own purposes in the New World Order?"

I want to follow that with another question, Elaine. Will they do it for themselves or as agents for the Arabs, the Russkies and the Chinese? (I think as agents, for IMO they'll be ruined like everyone else!)

Elaine Supkis

Yes, the contracts to Europe and Japan are payments to keep them aboard. So the red ink will flow even faster. I will be writing about all this. Called 'The Big, Old Stump In The Road.'

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