Okay, one of my more moderate siblings has said it. Sam has said it. There are some general feelings about it among those are awake up in Springfield. I have felt it sense the beginning of this year. Something big will go on. As to what sector and geographic location of the world is a good question. A lot of people have been feeling like some form of violent domestic terrorism will go down some time this summer. I feel something different.
I feel like there will some form of economic terrorism that will occur some time this summer. We have highlighted the great crash of May 2010, and its equally great and swift upswing. What I’m feeling is something of that magnitude, with no upswing. Who are the terrorists? Government, reaffirmed by this article from MarketWatch; from which this quote comes from:
The move “symbolizes how credit risk has been transformed from corporate to sovereign risk, as the solution to the financial and economic crisis was government intervention,” Hans Mikkelsen, credit strategist at Bank of America Merrill Lynch, wrote in a note to investors at the time.
You see that guys? Putting tax money into the corporate structure transfers corporate financial risk into financial sovereign risk. What can we learn from this? The American government will make us purchase health insurance to be an official citizen; the first government to make its citizens purchase something from the private economy to be a public citizen. But wait, you have to purchase something from the private sector; so how is this going from corporate risk to sovereign risk? Well, those who don’t report enough income must opt for a subsidized insurance plan. This is subsidized by new taxes. So, tax money is going in to the health care industry. That can be equated to an act of financial terrorism, as the risk that would have only been eaten by corporate is now being transfered to the citizens of the country. Privatized gains and socialized losses, with a socialized source of income. Of course, pouring money into entitlement programs does not help either; and expanding these programs to unreasonable sizes can also be seen as an act of financial terrorism, as doing this necessitates more money than taxes and other income sources can generate, collapsing the entire setup; kind of like bombing a skyscraper’s foundation and having it collapse to the ground. It is well-noted in that article that the cost of insuring against sovereign risk default in Europe has peaked over the amount in America for the first time since measurement
In other words, the Euro is on shaky grounds, and trillion dollar bailout packages to Greece won’t make things any better. Again, as I said in a recent rant, whatever goes down in Europe affects us, and the exact same thing can happen to us as well, only on a state>federal relationship instead of a country>regulatory commission (UN) relationship. So say the Euro tanks. Our stock market will probably shred a conservative estimate of 20% of itself simply due to the fact that the value of business lost in Europe would be pretty significant. We would be able to stay afloat, but a rather large hit would be dealt to our crew. Besides, who says the stock market equals what’s going on in our economy anyway. I mean, we show periods of gain even as faith in the job market sours. If we default on what we owe to Asia or the IMF, say sayonara. The value of the dollar would plunge into nonexistence and we would be slaves to the majority holder of our debt, which looks to be the Chinese, in more ways than one.