Bailed out?

The Dow Jones was sinking fast. It was down by 800 points, and then, in a matter of minutes it pulled back 450 points to finish the day only a few points shy of the significant 10,000 mark at minus 350. Did the bargain hunters save the day? Not likely. Nobody believes that this thing has bottomed out. A move of that volume could only have come from some one very big, and in my opinion the big person was non other than Uncle Sam. The treasury has permission to use the 700 billion, with some oversight, any way it sees fit, and a thousand point drop in the stock market would have had brought on serious consequences to say the least! Did the U.S. Treasury step in to save the pension and 401k plans, and to save Main Street? Is the U.S. Government on the side of the people after all? Yer right.

There's a few other things going on. The main thing is that the euro is in deep trouble, and the weaker it gets the stronger the dollar seems to get. Countries are bailing out on the euro and buying the dollar. And as the crisis deepens, the dollar, amazing as it seems, is seen as a safe haven. People are taking their money out of banks all over the world, changing it to dollars, and keeping it close at hand. The makers of Safes, that is the thing that one locks ones valuables in, are reporting record sales. But why aren't they changing their money into euros? The euro has been kicking the dollars ass for years!

Maybe it's because the European Union is not as well equiped to deal with a financial crisis of this magnitude anywhere near as well as the USA. I have no doubt that when all is said and done that the USA will still be around; but will the E.U. still be around? The crisis is testing the EU to the hilt. First Ireland went its own way by insuring all bank deposits to the full, then Greece, and then Germany. Germany is taking its own measures and plotting its own course out of the mess. Surely France will do likewise. But the point is that in a crisis - the European Union is acting like it's every man for himself. The union is disintegrating And the crisis might just bring about the death of the EU, and if that happens, what does that bode for the euro?

When the crisis first began to emerge the Europeans gleefully said it was the end of Anglo/American style capitalism. We should be so lucky! But as things progress it seems that Anglo/American capitalism will survive the crisis and the European style of socialist/capitalis m will collapse. And when one thinks about it, where does America's immediate main threat to world dominance come from? It's not Russia, they are already in financial shambles. And its not China. Not yet. The main threat to world dominance is the EU.

The financial crisis originated in the USA. It has now spread world wide. Is the situation seen by some as being similar to a cancer that has to be cured by radiation? Is the cancer the EU? Is the treatment so strong that it will hurt the USA for awhile, but then the radiation will allow for a cure when it kills the EU? Is what's really going on a financial war for dominance between the USA and the European Union?

It's not as far fetched as it seems. The battle between socialism and capitalism has been raging for long time. It's very obvious in the Presidential elections in the USA. Bush and his neocon mates have wreaked havoc on the world, and as a final shot before socialist Obama gets elected, they might well have decided to play their final act. And the EU is socialist according to them.

Nothing in this financial crisis makes sense. Just minutes before the House first decided to refuse the bail out the Dow Jones was already down by over 500 points. When the bailout bill failed it dropped down to 777 points. The news media was inflamed and told us how the world would surely end if the bailout wasn't brought back to life. But the next day the stock market went up by around 400 points. Then a few days later they voted again and the bail out bill passed, and then the markets went into free fall. What the news media says is not what is actually happening. It says black is white!

I'm sure there's much more going on than meets the eye. Nike, for one, is on a hiring spree, and the restaurant where my daughter works is doing great guns. And then the stock market falls by 800 points before coming back to only lose by 350 points when people are hiding their money under their bed in mattresses, and when panic mode, or the fetal position, is the only way to go.

For a view of the way some people see the EU click on the link below.

http://www.brusselsjournal.com/node/865