Sunday, March 19, 2006
free markets, democracy and other rhetorical devices
The juxtaposition of Goldman Sachs reporting record-breaking profits on the same day that the U.S. Commerce Dept. reported record-breaking current account deficits is a good indication of who benefits most from the current global speculative finance system.
Eventually, corporate America, strongly influenced, via the CEO stock option linkage, by the short-term preferences of its speculative capital markets, chose to outsource, and U.S. economic policy emphasized seeking free global capital markets for its financial giants being spoon-fed liquidity steroids by Greenspan's Fed and later also the Bank of Japan.
After the collapse of the TMT equity bubble in 2000-02, the long-term stagnation of real wages and mediocre employment growth in the early phases of the recovery may have started to become more politically difficult. But Greenspan managed to keep the economy reflated barely skipping a beat with his negative real interest rate policy supporting a global real estate/consumer spending boom (aided by the Bank of Japan's zero interest rate "quantitative easing"), while public attention was re-focused from corporate "bad apples" to foreign enemies in a permanent war setting...
The juxtaposition of Goldman Sachs reporting record-breaking profits on the same day that the U.S. Commerce Dept. reported record-breaking current account deficits is a good indication of who benefits most from the current global speculative finance system.
Eventually, corporate America, strongly influenced, via the CEO stock option linkage, by the short-term preferences of its speculative capital markets, chose to outsource, and U.S. economic policy emphasized seeking free global capital markets for its financial giants being spoon-fed liquidity steroids by Greenspan's Fed and later also the Bank of Japan.
After the collapse of the TMT equity bubble in 2000-02, the long-term stagnation of real wages and mediocre employment growth in the early phases of the recovery may have started to become more politically difficult. But Greenspan managed to keep the economy reflated barely skipping a beat with his negative real interest rate policy supporting a global real estate/consumer spending boom (aided by the Bank of Japan's zero interest rate "quantitative easing"), while public attention was re-focused from corporate "bad apples" to foreign enemies in a permanent war setting...
themassesareasses© on blogger Sunday, March 19, 2006 
