Alan Greenspan - The Bubble Man

Alan Greenspan inflated the US economy, and president Bush sent everyone “Shopping” in the aftermath of the dotcom bust and the 911 attacks. And these stupid decisions are coming back to haunt them. Its the end of an era, the end of US dollar. The economy was built on hot air, on a bubble, and is now coming down crashing.

Fractional Reserve system is inherently flawed. That is the main cause of wars around teh world. And this system will bring the global economy down…

James Howard Kunstler has written in his latest blog entry…

Will millions stop receiving paychecks due to the turmoil in banking? It’s certainly possible, starting with the poor drones in Mr. Schwarzenegger’s motor vehicle bureau and eventually ranging to every payroll office in the land. Will Sarah Palin’s fellow Six-packers line up around the parking lagoons of the suburban banks trying desperately to withdraw the last seventy bucks in their checking accounts? (And will their thoughts in the event be: this economy is fundamentally sound….) Will the supermarket shelves of chipoltle-flavored crunchy snacks and power drinks go empty as truckers refuse to deliver their loads without up-front payment? And how long does it take a hungry public to turn mean?

We could see a parallel problem in the motor fuel supply sector. So far, gasoline shortages have only appeared in parts of the Southeast USA, due to interruptions caused by two hurricanes. If the oil tankers quit offloading now for lack of credible payment, then the whole nation will get an interesting lesson in the shortcomings of the suburban development pattern.

The situation is poised to get worse. Stock markets around the world are crashing as if stocks are going out of fashion. Lets wait and watch what happens…