Oil just went over US$102 a barrel. Even Alan Greenspan (of all people) is encouraging Middle East oil countries to drop their US-dollar pegging!
US Federal Reserve chairman Ben Bernanke says: "The outlook for the economy has worsened in recent months and the downside risks to growth have increased." Presumably that means the "upside" risks to recession (or worse) have increased.
Bernanke is set to cut rates again, even as he admits this will increase inflationary pressures. Even the Wall Street Journal says "Inflation May Be Worse Than We Think".
Is it time to panic yet?
The same question has been asked throughout history: "How could it have been that, with all the evidence staring them in the face, people couldn't see disaster coming?"The good news for Australia is that we seem (at the moment anyway) to be seen as a safe haven for anyone wanting to move their money out of the path of the coming tsunami. But it's a global financial market these days, as horror stories like Centro and ABC Learning's (well deserved) crash demonstrate. To think that the US economy will crash and burn without seriously affecting us is just wishful thinking.
History is again repeating itself. Despite the mountains of evidence and baskets of statistics pointing to "Panic," the media, the man on the street and the politicians avoid the facts and deny the ugly truth ... or defend their beliefs with a vengeance ... attacking those who beg to differ...
America's on the rocks and sinking fast and there's no one there to save it. Not the Federal Reserve, the President of the United States, nor the presidential wannabes in waiting. There are no quick fixes or human geniuses that can make the debt-bloated pig fly, yet a desperate public prays that its pathetic politicians will lead them to economic salvation.
