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Old 01-24-2008, 05:02 PM
SeC SeC is offline
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Wink Plunge Protection Team Rescues Market on 1/23

Plunge Protection Team Rescues Market on 1/23

Reposted from writer unknown

During the last half of í07 the Plunge Protection team http://en.wikipedia.org/wiki/Plunge_Protection_Team bolstered the stock market numerous times in order to fortify the illusion that the U.S. economy was thriving. This happened at strategic points when the stock market was headed for a 200+ point drop after experiencing recent losses in order to prevent a deep slide.

Sooner than later, however, it became apparent that the subprime and credit markets were in deep trouble. And the PPT has stepped in several times in the past few weeks to prevent the appearance of catastrophe. But time is running out.

The most recent, conspicuous rescue happened at approximately 1:32 on 1/23/í08 as the market started to make a miraculous turnaround, about 10 minutes before W appeared on the air and proclaimed that the American economy is sound. If you doubt the assertion, check the ticker for yesterday and watch the markets climb for no clearly rational reason. Especially because global markets were down significantly.

On the one hand the Fed is stepping in to prevent serious damage, which protects investors, and may even make the Fed a penny or two in profits, though, on average, thatís not likely. Yet, by interfering with natural market forces, the Fed is maintaining a safety blanket - wittingly or unwittingly - for firms who would otherwise have to revitalize on their own, if possible.
Worse, however, is that the Fed is printing money beyond the growth indicators that permit reasonable funding. In other words, the Fed is seriously inflating the currency and devaluing the dollar.

Sadly, these efforts, although in a more controlled manner, couldíve helped home owners on the verge of foreclosure, firms on the verge of recession, and finacial institutions on the verge of collapse if they were performed no later than 4Q í06 and continued through í07. Itís now a day late and billions of dollars short.

Aside from economic exigencies, these conditions exist because of the woeful "War on Terror" since the Neocons are being forced to prop up the illusion of U.S. supremacy while the empire is in decline. Itís tough to face down your enemy when they know there wonít be many more "smart bombs" on the way. The markets have been a key indicator - far more meaningful than the Surge - of Americaís might.

Had the Administration, Wall Street, and the media - particularly outlets like CNBC - explored and truthfully presented the severe problems with Americaís broken economy, rather than cheerfully and deceitfully insisting everythingís dandy, these problems may have been resolved with a much greater degree of proficiency. But America is now drowning in a sea of lies and canít fathom whatís happening on an overall basis. Too many people in too many arenas pitching bull to the masses canít now go back and retract their tales. The damage has been done.

At this point, deceit is the greatest threat to Americaís democracy. Overall trust in officials and authority is rapidly declining, as is all too apparent on sites such as this one. Politicians such as Bill Clinton ruthlessly fabricate stories and foment conflict in order to further their interests. Heís not alone for sure.

This is not a testamonial for Ron Paul, whose stock has also gone down after it was revelaed his newsletter exhibited racial bias for years. Nonetheless, Paul has been the only candidate who has accurately outlined the scope of the overall problems as well as prescribed the appropriate solutions to solve them, beginnning with an immediate withdrawal from Iraq.

None of the other Republicans come close. Romneyís at best a distant second. On the other side of the aisle, Clinton has no clue, especially since it was Billís pro-NAFTA and big business stance that in part produced much of the grief now being felt from one coast to the other. To a great extent, the country needs an antidote to the globalization promoted by the Clintons, which has radically reduced incomes and job opportunities.

Obama may have the agility to sit and listen to all the powers and reach a successful middle ground, but it wonít be easy. And Edwards, who is a noble soul plagued by the homeless and helpless, is, unfortunately, pitching two Americas. One that by now wonít listen to him for very long and the other, the Federal government, which is already overextended. Howís it going to help a deeply troubled economy?

In the not too distant future the PPT is going to run out of tricks simply because a large infusion of capital to bolster the markets is going to trigger an exit from the dollar. Thatís a turning point that will have grave repercussions for decades, if not centuries to come.
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