re: I am as surprised as anyone that what started out as blog more or less about "globalization" has transformed itself into a chronicle of a world-historic economic catastrophe.

At its heart, the push for globalization has always been driven by the desire on the part of the oligarchs to exploit cheap labor. Slavery was outlawed, much to their disappointment, so now instead of importing slave labor to do the work, they simply shipped the factories and the jobs off to countries that paid slave wages. They dressed up this pig and called it "globalization", while Svengali-like convincing the masses that, yes, losing our manufacturing base and all of the good paying jobs it created was indeed a good thing. Since they own the mass media and most every politician, it wasn't that difficult to implement. Orwell's 1984 wasn't a work of fiction. "War is Peace; Freedom is Slavery; Ignorance is Strength." Add to that: "Losing good-paying jobs and our manufacturing base and destroying unions is good for you." Perhaps not as pithy as the Party's slogan, but the underlying sentiment is the same.

Now we reach the end of the road, and too late realize that the bridge is out. It really was the only point that could be reached, by either pure communism or pure capitalism, because both "isms" are devised by men. Human nature being what it is, when handed the reigns of power and the perks associated with it, it will always succumb to the root of all evil.

Howard: Aah, gold's a devilish sort of thing, anyway. You start out, you tell yourself you'll be satisfied with 25,000 handsome smackers worth of it. So help me, Lord, and cross my heart. Fine resolution. After months of sweatin' yourself dizzy, and growin' short on provisions, and findin' nothin', you finally come down to 15,000, then ten. Finally, you say, "Lord, let me just find $5,000 worth and I'll never ask for anythin' more the rest of my life."

Flophouse Bum: $5,000 is a lot of money.

Howard: Yeah, here in this joint it seems like a lot. But I tell you, if you was to make a real strike, you couldn't be dragged away. Not even the threat of miserable death would keep you from trying to add 10,000 more. Ten, you'd want to get twenty-five; twenty-five you'd want to get fifty; fifty, a hundred. Like roulette. One more turn, you know. Always one more.

Fred C. Dobbs: I think I'll go to sleep and dream about piles of gold getting bigger and bigger and bigger...

-The Treasure of the Sierra Madre (1948)

As we approach the end of 2008, I'd like to post a few of my own predictions about where we will be one year hence:

1. The official unemployment figure will be at least 3x what it is today. (Of course, this number has been so manipulated by government for years that it's virtually meaningless. Real unemployment is already >16%)

2. "Bank holidays" will have been declared, in order to prevent a run on the system. Depositors will either be forced to keep their money on deposit for many years, or withdraw it at a substantial loss.

3. Housing will continue to collapse, quite simply because people without jobs cannot pay a mortgage -- any mortgage.

4. The auto industry -- domestic and foreign -- is headed for the scrapheap of history. People without jobs or money can't buy food, much less $50k personal vehicles.

5. Credit card defaults will soar, for the same reason in #3 & #4. This will further weaken banks and reduce lending.

5. Hyperinflation will kick in, as the borrowing needs of the U.S. outstrip the ability of any nation to prop us up. Other countries will be unable to lend even if they wanted to, due to their own internal problems.

6. Hyperinflation alone will destroy Americans' ability to function economically.

7. As bad as the situation will become in the U.S., other countries -- some with nukes -- will be in a lot worse shape. Starvation and civil unrest + nuclear weapons is a very bad combination. This could lead to another kind of Armageddon altogether.

8. FEMA trailer cities will spring up across America, as record numbers of people become homeless.

9. Civil unrest will force instances of martial law.

10. America will become even more religious, as desperate, frightened people turn to God for salvation. (Personally, I'm praying that all my predictions are dead wrong.)

Now, why should anyone pay any attention to my ravings? Let's just say that my track record is at least as good as any economist out there, and definitely better than most.

And I'm not even an economist -- which alone should be reason enough to scare the bejesus out of everyone.

A little light reading for you:

AP IMPACT: They warned us, but US eased loan rules

The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents.

http://tinyurl.com/6mxcp6

They Warned Us About the Mortgage Crisis

State whistleblowers tried to curtail greedy lending—and were thwarted by the Bush Administration and the financial industry

State enforcers and legislators tried to contain the greed and foolishness. They were thwarted in many cases by Washington officials hostile to regulation and a financial industry adept at exploiting this ideology. The Bush Administration and many banks clung to what is known as "preemption." It is a legal doctrine that can be invoked in court and at the rulemaking table to assert that, when federal and state authority over business conflict, the feds prevail—even if it means little or no regulation.

http://tinyurl.com/422gtg

Have a nice day.