Get Ready for Financial Hurricane Katrina

WEDNESDAY, DECEMBER 28, 2005

By Fintan Dunne
"In November, 2005, the Fed mysteriously announced with little comment and no palatable justification that they will hide the main staple of money supply measurement(M-3), effective March 2006. So what's been happening to M-3 since then? For the raw figures, fasten your seat belt. M-3 was increased $58.7 billion last week, a 30% annual rate of growth. Over the past 6 weeks it is up $192.9 billion, a 16.7 percent Banana Republic hyperinflationary pace. This is nuts, folks - unless there is an incredible risk out there we are not being told about."
So writes Robert McHugh in a recent financial article (in full below). And it's an article that has been getting some traffic on the CIA Fakes.

One of the key factors McHugh cites for the M-3 madness is the forthcoming Euro-denominated trading of oil on the new Iranian bourse in March, 2006. And there has been much nudge-nudge comment among the self-same CIA Fakes about the U.S. hostility to Iran (not to mention Iraq) having been based on their desire to prevent this disastrous outcome for the U.S.

Bulls**t. The US/EU elite long ago decided this new Dollar-Euro policy between them. It's a planned development as part of the financial elite's rebalancing of global dependance on the dollar. And the U.S. elite is totally at one with their European counterparts on this shift.

It's a desperately needed shift.

The inflationary Clinton legacy was always going to be but a short-term panacea for U.S. economic woes. The Clinton stock bubble shifted to the Bush housing bubble. And all this vapor-prosperity took place despite no significant gains in productivity; increasing foreign competition; inflation; wages stagnation; and the diversion of productive capital into both federal white elephants and, of course, the military budget/oughtright theft.

It's a no-brainer that this eventually leads to financial collapse.

Which is why, in anticipation of such an eventual outcome, the military got a bonanza payoff from 9/11, and why the economic policy of destroy/rebuild allowed a similar bonanza accrue to Haliburton et al, in Iraq and in New Orleans. It's called looking after your pals in tough times.

The United States is being reinvented as a low-wage economy with a high-tech military-industrial-technological froth atop --sustained by a Homeland Security repression apparatus to keep the stunned peasants in check.

So, given that momentum, there is no alternative to dollar deflation in the longer term. The dollar is going down. And the Euro is there to take up the slack.

The Fed's unrevealed M-3 fund will be used as it has in the past --to hand over the freshly-printed dollars which allow key banks to speculate in the markets and thwart the true market forces from exerting their corrective effect.

It will cause stagflation. A stagnant economy with escalating inflation in all areas except wages.

The M-3 fund will be used to massage the economy until after the 2006 elections. Bush is already being lined up to take the political heat for the later colllapse. The Iranians and their oil trading bourse will also be blamed. As will Bush's costly foreign war. In truth, the economic problems of the U.S. are much more directly the result of international capital's globalization project.

And the spew of resignations among the members of the Feb Board over the last few years is not because, as McHugh speculates, they don't want to oversee bad economic planning.

It's because they don't want to be around when the dollar hits the fan; the housing bubble pops; and the economy tanks. And with Alan Greenspan gone from the Fed, the new appointment of Ben Bernanke is akin to the appointment of Michael D. Brown to head FEMA.

The Fed's 'Mr. Fall Guy' has been wheeled into place.

Get ready for Financial Hurricane Katrina.

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