Global Financial Tsunami

By P Chong     Mon. 15 August 2011

Not since 1917 has the United States of America been faced with the downgrading of its Credit Rating until this fateful Friday on 5 August 2011 from its AAA standing to AA+. Standard & Poor’s well justified its action evidently by US’ ceaseless mounting national debt & its inability to pay.

David Walker, former US Comptroller General, says he’s not surprised that Standard and Poor’s downgraded the U.S. credit rating for the first time in history.

There’s no doubt that these are tough times.

Europe and the US are both wrestling with the reverberations of the GFC as the various governments on either side of the Atlantic confront the reality that throughout 2008 and 2009 they were obliged to bail out the privately run financial miscreants with massive injections of taxpayer moneys, just to prevent a complete meltdown of the global financial system. It has been a close-run thing, and the latest aftershocks are an indicator that we have further to go. (National Times AU).

Setting aside all political rhetoric, just through simple common sense of the “Man in the Street” as against the “Men in Wall Street” – great financial wizards or more correctly manipulators & crooks, the game of living it up beyond the economic limit cannot go on & on. The world at large cannot be held at bondage to keep on supporting the glamour & luxuries that’s been put on show.

  • Robbing Peter to pay Paul

  • Cutting the cloth according to your fit

  • Simple economic rule of supply & demand

  • Over-subscription hits on pride & plight

are all familiar to the layman, but completely thrown out of the window by the game that politicians play!

Take a close look at the above map of “National Debt by Country”. The key to take note is the debt percentage to the GDP (Gross Domestic Product). With the exception of Russia, most of the great rich countries, show a dismal performance in this economic aspect.

They say that the “Gate of Hell” has three main entrances: anger, lust & greed. In this case, GREED is the biggest culprit. The Romans had their fall. Similarly, such fate awaits the mighty & tall. For far too long, US has been pulling the economic wool over the eyes of the world – its currency has no tangible value as backed by gold . . . only the world’s confidence support it as the reserve currency. It’s really “toilet” paper money which US Treasury resorts to printing in plentiful amount in short term measures for long term benefits.

I remember the days during the Japanese Occupation in Malaysia, my father was landed with bags & bags of Japanese notes that were worthless as toilet paper! These days in Zimbabwe, people are going around with bundles of paper money for just daily shopping needs. Want to own a Zimbabwe billion dollar note?

There’s no such thing as being “Too big to fail!”

Without order, chaos will prevail!

Watch out! This financial virus is fast catching on globally!!!

Obama’s Body Language Zooms that Gloom & Doom for US Economy

By Paul Chong

Photos: Googles

A Lame Duck President

 It’s been a long time coming – the way that the American have been spending “as though there’s no tomorrow”. The writing has been on the wall but just being ignored. You don’t have to be an economist to understand simple mathematical equation of economic balance. Going on to the negative end for far too long will only lead to deep & deeper waters.

The “gloom & doom” has finally been announced by Standard & Poor’s when they downgraded US Credit Rating by one notch to AA+ on late Friday afternoon opf 5 August 2011. It’s not since 1917 that this has happened! But what will all this means to US economy, the impact & aftershocks on the global scale? There’s that warning of a one in three chances of further downgrading if US does not come up with a more permanent fix for its fiscal woe. It’s “largely because of the failure of bitterly divided US leaders to reach a consensus on containing the country’s spiralling debt “

Been having it too good?

Now the end is near & here!

Let Obama‘s body language & gesture tell the story:

 

What happened to all his charisma? His dynamism & verbal eloquence?                                                                                     

Body language can often say much than spoken words.

Whatever happened to the “CHANGE” We Can Believe In?

Now he’s leaning on to others!

Listening to others?

Still that arrogance with all the might & power?             

Leaning on to China's Wen Jiabao

 

US maybe contemplating WW3 to resuscitate its economy

& to redeem its power before losing it all to China!

Further Reading Recommended: US Stripped of AAA Credit Rating . . . BY China