Bob McGregor

U.S. Can Blame Wall Street - Who Should Everyone Else Blame?

Without freely available credit none of this could happen. So the blame has to be proportioned accordingly. The USA Federal Reserve under Greenspan turned on the tap, cheered on by USA President Clinton who harrassed Congress to lower lending standards. Then the "Insiders" who control the Federal Reserve saw a way to emasculate the rest of the world and make them beholding to the USA by spreading the toxic crap over seas. Overnight, the countries who thought they could start to disengage from the USA currency system, found their banking system had cancer as well - spread by the Wall St Investment banks. Voila! Overnight the rest of the world had to continue the con of lending to the bankrupt USA Govt. Of course these additional funds prop up the massive consumption of USA citizens and allow them to live well above their means.

This has been going on since 1971 - when the USA went off the gold standard - so the only certainty long term is a continuing decline of the real purchasing power of the USA dollar. Indeed I believe the USA dlr is in the asymtopic or terminal phase of it's decline against real value items such as gold. The current strength of the USA dollar is its final bull market within its overall massive Grand Super Cycle Bear market.

Having said that, major stocks have one more major super cycle bull market before the final demise of the USA dlr starts. This stock bull cycle will be similar to 1974/1987 and 1987/2007. Only then will we see another 1929/1932 total meltdown.