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mick silver
1st November 2008, 20:24
From too much of a good thing. From the 1980s and 1990s excesses. From the longest ever US bull market. Heavily manipulated to keep it levitating. From August 1982 to January 2000. An illusory reprieve from October 2002 to October 2007. Fluctuations aside, all lost in the past 12 months. The wages of sin are now due, and payment is being painfully extracted. From all nations globally. Affecting ordinary people the most who had nothing to do with creating booms and busts. They got little on the upside but are paying dearly for the down.

Even "free-market" champions are unnerved. Arthur Laffer for one in his October 27 Wall Street Journal op-ed headlined: "The Age of Prosperity Is Over." He states that "This administration and Congress will be remembered like Herbert Hoover," but not for the right reasons. He continued: "what this administration and Congress have done will be viewed in much the same light as what Herbert Hoover did in the years 1929 through 1932. Whenever people make decisions when they are panicked, the consequences are rarely pretty. We are now witnessing the end of prosperity."

Readers will remember Laffer from the Reagan era. The "supply side trickle down" guru. More popularly called "Reaganomics." GHW Bush's "voodoo economics." The faux theory that tax cuts for the rich grow the economy and benefit everyone. By encouraging well-off recipients to earn more money. For more tax revenue. For the greater good of everyone.

What Reagan's budget director, David Stockman, called a "Trojan Horse." To con Congress into accepting "Republican orthodoxy (and pave the way for) the greed level, the level of opportunism, (to get) out of control." From tax cuts for the rich. Loopholes for special interests. Tax increases on low and middle-income households. Taking from the many for the few. What Laffer and others championed and still do. Along with believing markets work best so let them. Government is the problem, not the solution.

The results weren't encouraging. Macroeconomic growth for sure until it ended. The rich got much richer. The top 1%. Another 9% to some extent. Not the rest, however. Their well-being either stagnated or declined and now are in free-fall. Their savings and futures erased by rampant deleveraging. Market manipulation. Massive fraud. Leaving millions of households in trouble. With the worst likely yet to come. All Laffer can do is resurrect Hoover. The real villains are present and among us. Some active. Others not. Their venom corrosive and harmful. Hurting economies and people everywherehttp://www.globalresearch.ca/index.php?context=va&aid=10771

mick silver
1st November 2008, 20:24
http://www.globalresearch.ca/index.php?context=va&aid=10771