Exporting Manufactured Bubbles around the Globe

Exporting Manufactured Bubbles around the Globe

President Obama nomination for the Nobel Peace Prize within eleven days of his presidency represents the most recent US bubble exported around the world. The bubble is based on confidence in a peaceful global future orchestrated by a world wide popular American president.

Winning the prize has given President Obama the opportunity to both redeploy the U S military out of Afghanistan and allow the so call moderate Taliban governance over that country. Another possibility is global support for a preempted strike on Iran. Iran is currently accepting euro payment for its oil and amassing huge quantities of gold instead of American dollars.

A bubble creates an illusion of reality. Bubble manufactures mask their intention to manipulate the economy and deceive common folk. By the time this popular presidential bubble breaks the Obama regime along with its handlers should have accomplished their goals.

What happens when the last bastion of hope dissipates because of an implosion of the mother of all bubbles? Do not be surprised to find within the dark pool of unregulated derivatives a massive fraud of U S government treasuries.

A global exodus from the dollar as the carry trade currency will also undermine the safe haven of U S treasuries. Taxpayers may have reached a point of no return concerning deficit spending by congress. What will happen the day congress can no longer spend money that it does not take in through taxes, fees and fines? Will the Feds raise interest rates?

How high would income taxes rise to pay the interest on the national debt? The administration, congress and the judicial will pretend they had no idea, were surprised and could not have seen what is coming.

History has documented the fallacy of a fiat currency. As in 1775 when a fiat bubble broke around a U S colonial currency and within a year American patriots were at war promoting the concept of independence.

The question is whether the power that is poses the ability and tenacity to inflate another bubble, siphon of commissions, transaction fees, sell their positions and transfer all losses to taxpayers. Deficit spending is a threat to all children.