Category Archives: Economics

The defaults will continue, because the economy is sinking into recession. Homeowners are losing their jobs, and homeowners are being hit with rising mortgage payments resulting from adjustable rate mortgages and escalator interest rate clauses in their mortgages that make homeowners unable to service their debt.

Shifting the troubled assets from the financial sectors’ books to the taxpayers’ books absolves the people who caused the problem from responsibility. As the economy declines and mortgage default rates rise, the US Treasury and the American taxpayers could end up with a $700 billion loss.
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Several categories of individuals and institutions stand accused for the current financial crisis in the US. We examine the blame game and how it all got this bad.

What is happening in the financial sector of the United States?

The investment bank Bear Stearns was bailed out by the Federal Reserve (the central banking system) for $29 billion, and the US Government has since taken over the home mortgage titans Fannie Mae and Freddie Mac, at a potential total cost to the taxpayers of $200 billion. Yet, the turmoil in the financial markets continues.

Updated 30 Sep.08

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Muslim countries possess three quarters of the World’s oil reserves. In contrast, the United States of America has barely 2 percent of total oil reserves. Continue reading →

Economic crime has occurred on an epic scale, including currency manipulations, privatization of public resources, the aforesaid financial bubbles, involvement of governments in the illicit drug trade, attacks by financiers on national economies, the creation of offshore tax havens, money laundering, destruction of entire industries to benefit global capitalism, human trafficking, cornering of markets on food and other vital commodities, speculative hedge funds whose managers earn a billion dollars a year, and looting of private companies and pension funds by highly-paid CEOs and executives.. Continue reading →

China’s devastating earthquake gave the people of Sichuan an early taste of a world that is running out of fuel.

Thousands of families slept in their cars outside petrol stations because the province’s oil infrastructure had been disrupted and its remaining fuel supplies diverted to the rescue effort. Truck drivers loitered patiently for local officials to raise their diesel rations beyond a paltry 100 yuan ($14), while taxi drivers refused to take reporters from Mianyang city to the earthquake disaster zone because they could not get enough petrol for the ride.
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