Wednesday, July 16, 2008
Merrill Lynch warns the U.S. will suffer a global funding crisis within months as the full consequences of the Fannie Mae and Freddie Mac mortgage calamity spread through the world.
The U.S. depends on my role models to finance it's $700 billion trade deficit. China and Russia shoulder most of the load of the U.S.'s financing and could easily terminate us if they decided to pull the plug.
“The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers.”
- Congressman Louis T. McFadden (speaking in the Senate)
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beligum and china either
MERCOSUR could do it alone. And watch the UBS case. If Congress puts the screws to UBS, and Switzerland feels that the US had moles in their banking system and that of Liechtenstein, Switzerland alone will have no choice but to flood the market with dollars and big as China and the Saudis are, if the EU, MERCOSUR, Russia, rest of FSU, Oceania, and the non-affiliated Western countries together overwhelm China and Saudi Arabia and can turn a US recession into a US economic holocaust.
I read this story as well. It is pretty scary. Glad that you posted it for fellow bloggers.