Nobody expected that the days of K Street lobbyists writing legislation would end with Democratic control of Congress, but it's hard to know what the extent of the damage is with regard the new trade bill because the details of the bill are an inexplicable secret.
David Sirota has been doing a series of posts (I, II) about this "deal" on a package of trade agreements, and although it's difficult to read the tea leaves, they don't portend well. The press conference to announce the deal was hosted by the New Democrats (as Sirota notes, this is "the group of Democrats that have historically supported lobbyist-written trade pacts and that was instrumental in passing the credit card-industry-written bankruptcy bill. No progressive Democrats appear at the press conference.") Not exactly a sparkling pedigree.
NYT:
Despite the endorsement of Rangel and Pelosi, many Democrats say that half or more of the Democrats in Congress may vote against the deal. But the agreement is expected to pass with strong backing among Republicans, whose leaders will urge them to vote with President George W. Bush on the matter.
So a minority of regressive Democrats will join with the GOP to pass a trade bill Bush loves and the public knows little about. Why is my Spidy sense tingling and telling me that I'm just not going to like this?
AP:
[A] half-dozen House Democrats with strong labor ties, watching the news conference from the back of the room, later expressed strong dissatisfaction with the process.
"The strongest voices for workers and the environment were not included" in the negotiations and were not informed of the deal, said Rep. Marcy Kaptur, D-Ohio.
"I'm very disappointed that Speaker Pelosi held a press conference before meeting with the caucus," said Rep. Michael Michaud, D-Maine. "In a democratic process Democrats ought to
The DLC loves it. Business groups love it. Which raises the question -- how do they know the details when members of Congress like Kaptur and Michaud do not?
The AFL-CIO is "concerned that the agreement fails to adequately address issues related to the outsourcing of U.S. jobs and the ability of foreign corporations to challenge U.S. laws, among others." The Steelworkers are angry they weren't briefed and like the AFL-CIO are withholding judgment. Teamsters President Jim Hoffa is worried that the deal sells out American workers:
I am baffled as to why there is such eagerness to give this president—who is unwilling to enforce current labor and trade laws—a victory by continuing to pass more NAFTA/CAFTA-like trade models that send good-paying jobs overseas.
Stoller is concerned because the process is extremely fishy:
This is extremely problematic and dishonest of the people negotiating and announcing the details. Pelosi, Rangel, Baucus, Bush, and the New Democrats knew that they could generate a huge raft of headlines on the trade deal without actually revealing the meat of the deal, so they did so. This is pretty much how the war in Iraq was sold, how the Bankruptcy bill was sold, and how NAFTA was sold.
You can send out an email via Public Citizen to your Representative and both of your Senators saying that the aroma being given off by this plan is somewhat fetid. Democrats did not take Congress in 2006 by promising to be a new generation of K-Street beneficiaries who further enable George Bush to ransack the rights of workers, and perhaps this is one of those instances when they need to be reminded of that.
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Hi Jane!
Lolo is at the top of her game again. :)
Jane!
FAIR trade! Not free trade.
What is best for the American people?
Hi lolo. Hi spurious.
Jane, do you still have a therapod in the house?
As long as electoral funding remains as is, the international corporations will hold sway.
I dislike the DLC. And those closely associated with it. Take a look at this pix.
http://www.dlc.org/ndol_ka.cfm?kaid=137
Giving George W Bush power to conduct trade negotiations is like giving your sixteen year brother-in-law keys to the Mercedes after he wrecked the Rolls.
What is the purpose of investing this Presidency with any more power whatsoever?
And, Madame Speaker, what happened to “the most open, honest, accountable Congress in history?” Huh? Pro-worker Democratic Congresscritters have to stand in the back of the room and don’t get to read the bill? K-Street lobbyists and the Chamber of Commerce do?
That stinks.
Time for a poison pill on this bill — trade with Cuba, anyone?
This is one I don’t understand how it can really work. Outsourcing reporter jobs to India.
Say it ain’t so, Nancy
NAFTA, CAFTA, DLC, Third Way, Iraq War, Harold Ford Jr., HRC etc. Major yuk.
Vote Edwards for Democratic president.
time to maybe reconsider the reflexive 3rd party bashing that goes on around here?
it’s like Lucy always pulling the football away when Charlie Brown tries to kick it…
I do not want my tax dollars going into the coffers of any Middle Eastern country.
dakine01 @ 12
I understand completely. Can’t interview the neighbors, the small business folks, get pix, etc. Can only get the official line.
Very fishy. dakine01 @ 12
Good lord. Afraid to ask what will be next?
The best thing for the American people is to buy American (although the Marianas made goods say Made in America…;
??Ees eet time to warm up the primary machine already??
?eh?
TexBetsy @ 17
Do you think….just maybe….that this will cause the reporters left in this country to wake up and write articles that help save their jobs. Before there are none left
Public finanacing of elections just might help matters. I want all lobbying funding from domestic and foreign countries stopped. I want all monies going to U.S. lawmakers from any Middle Eastern countries or their lobbies halted.
My post at 19 went coo coo..was much longer, but I guess what showed up works ok..go figure.
[Mod: Nothing was edited. Try the long one again]
Speaker Pelosi. Do not compromise with the GOP on anything.
Hey, kitty!
Anyone else think this Iraq incident today is a little “strange”?
LS @ 23
maybe the rest is just lagging behind
LS @ 26
how so?
Our fearless politicians know which side their bread is buttered on.
How about you?
Thanks for getting this information out there Jane. These smokey back-room multi-national corporate giveaways are what is really killing this great nation and system of government. The selling off and whoring out of all that makes our economy, industry and the soul of country so great.
Pelosi, Baucus, Rangel and Tauscher… Doesn’t matter which. When they’re in the back rooms brokering deals without their base being represented, they are NO different than the pigs of Animal Farm.
Such actions make them no more morally superior than an addict parent, pimping out members of their own family just to get their next fix. Shame on them for being so weak of character and progressive spirit. Just shame on them!
TexBetsy @ 17
I’m afraid you may be correct. Which means the news org doing the hiring has even less of a clue what being a journalist is than most of the corporate owned media. Business as usual. Nothing to see here. Move along. Nothing to see.
Elliott @ 27
God, I hope not…I was rambling on about boycotting goods made by companies that advertise on the media, and organizing labor again so that people can get what they work for, and buying locally produced goods from small companies, and…and..you get my drift.
It’s mind boggling that a Democratic controlled house would compromise with this criminal regime on anything but especially on something this important.
Here’s my email to my representative in Congress:
Well, fTexBetsy @ 28
Well, first they said 5 US soldiers killed and 3 missing. Then they said 4 US soldiers killed and maybe a translator. Then they said it was a squad (9 soldiers). Then they said it was “coalition” troops. Then they said there were Iraqi troops. The numbers are confusing, the make-up of the squad is confusing. Also, when they heard they were in trouble, they sent a drone to check it out, instead of coming to their aid. The fog of war is just that. Fog. I guess it will come out, but the drone thing was strange. It was only 15 miles outside of Baghdad.
spurious @ 18
No one will be next. Everyone has already “been.” It’s just that some of them don’t know it yet.
Richard Pombo rules out rematch against McNerney.
The unions dropped the ball a long time ago when they stopped being an interantional movement and became more and more narrowly focused. Today’s unions don’t really have that much solidarity within the U.S. (beyond lip service).
Trade agreements and globalization could be an opportunity for unions, if unions and union memberships weren’t so selfishly preoccupied with getting whatever they can get for themselves.
Unions once did a lot of good for this country and for this country’s workers, and I respect the principles of organized labor. However, I have very little respect for the unions as they currently operate.
LindaR @ 36 says:
That’s ONE of the reasons why I’ve been out of work for over three years now. Too many technology companies/IT departments have decided they can send the QA and testing work to Bangalore. What d’ya mean understanding and writing coherent English is needed? [/s]
dakine01 @ 12
Now, that is one bad sign.
dakine01 @ 39
That’s ONE of the reasons why I’ve been out of work for over three years now. Too many technology companies/IT departments have decided they can send the QA and testing work to Bangalore. What d’ya mean understanding and writing coherent English is needed? [/s]
We have to stop buying stuff made by companies that outsource period.
dakine01 @ 39,
I don’t know if you would be intereseted in this, but hospitals need good IT people. They are treated like gold, because they’re invaluable now. If your computer messes up and you can’t order lab tests…Help!
This is a replay of world events circa 1789. The multinationals today are equivalent to the aristocrats and the British East India Company, et al.
My admiration for Nancy Pelosi was growing daily. This hurts. This really hurts.
We need to get Lou Dobbs on this story. He’s very good with middle class angst.
And, of course, John Edwards will address this.
Obama, Hillary, Biden…speak up…this will be remembered.
I was screaming about not buying from China 25 years ago and people laughed at me like I was some nutjob. Then, for me, it was more about human rights than America’s economic viability.
I never dreamed Congress would sell the country out so completely.
Rangel and Pelosi? This is really sickening. My eyes do not want to see this.
Ls @ 41 says:
Probably easier said than done.
Although, in some sense, there is a strong level of irony in all of this. I remember when the factories from the North came into my hometown in KY bringing “JOBS.” But what they were also doing is moving away from the heavily unionized regions of New England and the Midwest.
All the abandoned textiles factories in New England shipped their union jobs to the Carolinas predominently to escape the unions. Now those jobs have gone from the Carolinas to the Caribbean/Mexico and from there to China/Thailand/other Asian nations. The legacies of “globalization” in operation.
Just a personal story. I work for county government. Our phone service is through a large corp. (I’m sure you can guess who). We recently switched to a local provider. The reason being that we could NEVER get a response when we had a problem/question. The techies would email them (forget phone calls) and wait days for a response. Sometimes there was never a response. They finally tired of it and gave up what was probably a slightly cheaper govt. contract just to have some competent service. Things are changing for the worst in this country and we need to reverse that.
DLC:NAFTA :: RNC:CPA
Speaker. I am very displeased.
Margot @ 42
I would absolutely love a job in a hospital but have only limited experience in the medical world. Plus, one of the weaknesses in my skills is I’m not a programmer. I can read code and follow along, but the programming side is not a strength. But I do have a fairly fast learning curve and can repeat what I’m taught to do for set-up and machine configuring as necessary.
Plus I have an extreme dislike for MS and their products. :}(
dakine01 @ 47
Probably easier said than done.
Although, in some sense, there is a strong level of irony in all of this. I remember when the factories from the North came into my hometown in KY bringing “JOBS.” But what they were also doing is moving away from the heavily unionized regions of New England and the Midwest.
All the abandoned textiles factories in New England shipped their union jobs to the Carolinas predominently to escape the unions. Now those jobs have gone from the Carolinas to the Caribbean/Mexico and from there to China/Thailand/other Asian nations. The legacies of “globalization” in operation.
Bust the unions and trickle on down….just not the way some people thought it would go. America is well on its way to a third world country. People think they own their homes, but, alas, it is just the banks. The great American Illusion.
TeddySanFran @ 37
Good. What a slime.
Oklahoma kiddo @ 10
Interesting link. I saw they have an article entitled “Saving the American Dream” and my irony meter went off the scale.
Workers of America. Unite. Strike! We cannot carry all the water.
dakine01 @ 47
Probably easier said than done.
Although, in some sense, there is a strong level of irony in all of this. I remember when the factories from the North came into my hometown in KY bringing “JOBS.” But what they were also doing is moving away from the heavily unionized regions of New England and the Midwest.
All the abandoned textiles factories in New England shipped their union jobs to the Carolinas predominently to escape the unions. Now those jobs have gone from the Carolinas to the Caribbean/Mexico and from there to China/Thailand/other Asian nations. The legacies of “globalization” in operation.
I will never wear clothes again
TexBetsy @ 8
I do. The poodles have adopted him, they adore him. And he’s quite the cook.
Jane Hamsher @ 57
Wonderful! How many FDLers have met each other outside the lake?
Done.
Jane Hamsher @ 57
I’ve been trying to steal hin, to no avail. Glad to hear you’re feeling better
Wil @ 56
And good luck with THAT. Not too many places in the country you can get away with it even if the weather conditions allowed. LOL!
TeddySanFran @ 37
i guess the blogs won’t have him to kick around any more ……
I like Wil’s solution to the clothing dilemma.
dakine01 @ 61
I work at a gay bar, should be fine. I’ve done some test marketing
LS @ 35
it may be that the drone would get there quicker than a land vehicle could’ve ……
Wil @ 56
That plus alcohol on the breath and not shaving should excite the extinct.
TeddySanFran @ 63
If I threatened to do that, I might get offers to buy the clothes for me. Hmmm…
Denver, meet Seattle
Jane, thanks for spotlighting the newest Great Trade Robbery.
Convention center sieges go better with steelworkers.
The party outside DNC ‘08 just got burlier.
Won’t you please come up to Denver?
We’ll be waiting for you there.
[ps - Love the graphic, Jane. I’m blowing it up and looking for friends…]
greenwarrior @ 66
naughty, naughty. How did you know I had an eye on the extinct?
The Democratic Party, in general, does not seem to be interested in a full range settlement as to a solution of the core problems between the U.S. and the Middle East. Particularly concerning a fair and just resolution of the critical Palestinian-Israeli situation.
Wil @ 69
naughty, naughty. How did you know I had an eye on the extinct?
Last night’s late night thread, my dear Watts.
EvilDrPuma @ 67
I think I resemble you in that regard EDP. Being bald, 5′8″, 160lb with a slight paunch and hair sprouting everywhere means I’m not getting many offers to pose for any pictures other than maybe some “before” shots. :})
greenwarrior @ 71
Or any other night’s for that matter.
greenwarrior @ 71
I really suck at subtle
What I want is a forced, if necessary, enforcement of U.N. Security Council Resolution 242.
fahrender 65,
But there was nobody in the drone. Nobody there to help.
TexBetsy @ 73
That hurts me, we just barely started flirting
Wil (#69): is that anything like the undead?
On trade and bussiness and all matter of matters macro economic the Democrats can be counted on to be Republicans. Only serious people are listened to on economic matters and that means those obsessed with one thing and one thing only, the endless inflation of asset values, particularly financial assets
The economy is determined by finance. That is how it always has been. All the ideology associated with hard work, innovation, creative destruction etc. etc. etc. is just the facade on the building and it’s foundation, which is the creation of money and credit, ie. liquidity.
The last 35 years has seen the machinery of credit and money creation flow from the banking system to Wall Street. Apparently they have created a perpetual motion machine. wherein credit begets more credit and the every more arcane financial insturments they invent has a quality of moneyness upon which further issues are based.
Such alt. views of the financial world of course are not understandable to many because it is the pride of liberals to ignore money and finance. Thus control is endlessly ceded to the high priests of money. A vicious circle.
Only the disaster of the Depression ended the monopoly on deep policy by financial interests. Only another disaster will open the gates to new realignments, maybe. For the right missed it’s chance with the depression when Roosevelt arose. European facisms rise was totally enmeshed in the economic failures of the market economies of the depression. The Germans and Italians grabbed the chance. The right in the US missed it. They don’t plan to miss next time. (to the extent that deep right thinkers envision an economic/financial crisis. Some do, many don’t) It is all to easy to envision the right taking conrol next time economic crisis comes, if it does.
fahrender @ 78
I hope not
LS @ 76
the drone might be able to spot where things/people are or follow them while land pursuit was getting to the location…..
If one claims to be a progressive and or a liberal, then how can one discount the DLC as being a perversion of true Democratic ideals?
fahrender @ 81
Could be. I heard that they got a call for help, saw an explosion, and sent the drone, then they sent help. You could be right that they might easier be able to track someone while help was on the way. That makes sense.
kirk murphy @ 68
kirk — i’m worried about the plague-infested Denver squirrels. Another Rovian plot, this one to disrupt the convention next year?
dear jane,
we remain in gratitude and admiration for all that you do. glad TR is providing good support and nurture.
________________
time for fahr to go beddy bye, everyone.
bis morgen ……
OT - I just heard John McKay say (on a C-SPAN repeat) that Tom Wales may be the only US attorney killed in the line of duty.
In addition to Tom Wales, Jonathan Luna, Thelma Colbert and Shannon Ross, all assistant United States attorneys have died in the line of duty.
Jonathan disappeared from his office and was found murdered the night before a plea bargain he felt was illegal.
And this from TomFlocco.com:
“The news blackout and lack of a public investigation regarding two dead senior assistant U.S. attorneys leads me to believe that foul play was involved—these two women were working on the same case. Two attorneys just don’t turn up dead and three more in the same unit either resign or get fired all at once,” Lipari told us, adding, “less than two months before Ms. Ross’ death, Head of the Civil Enforcement Unit of the Fort Worth U.S. Attorney’s office Thelma Quince Colbert also turned up dead in her swimming pool on July 20, 2004 after investigating Medicare fraud and money laundering cases involving Novation and others for one and a half years, resulting in subpoenas leading to prosecution.”
[Mod Note; see commenter update at comment # 143]
LS - I agree about the reports on those missing soldiers being odd, Al Aswat reports it as 5 US soldiers dead, 3 missing and no word on the Iraqi translator … the news photos over on Yahoo (where you often can gather info just from reading the captions) include a batch of what look like highly staged pics of Iraqi soldiers cooperating in the search for the missing - see page two of the photos today (note that the pics change, at times by the hours …the ones I’m mentioning are AP photos … nothing on Al Jazeera yet … I’ll let you know if something that makes more sense pops up.
1,515 DAYZ AND THE KILLIN’ GOEZ ON AND ON AND..
Citizen Hamsher and the Firepup Patriots:
HUSTON WE HAVE A PROBLEM!! The “Blogads” and “Categories” scrolls are growin’ into the text from the right margin…I can’t read the God damned text!!. Can someone help me out out here? I’ve warm and cold booted my cpu and the damned thing is jest laughin’ at me!
KEEP THE FAITH AND PASS THE INSTRUCTION MANUAL!!
[Mod: How wide is your screen? When there are too many requotes in a zig it can push the margins over. Happens faster in the narrower screens. ]
Merrill Lynch filed its first quarter 10Q this week. We now know that Total Assets expanded $140.5bn, or 67% annualized, to $982bn during the quarter. Assets were up $250bn, or 34%, y-o-y. This puts combined Big Five (Morgan Stanley, Merrill Lynch, Goldman Sachs, Lehman, and Bear Stearns) first quarter asset growth at an incredible $379bn (41% growth rate) to $4.033 TN. Big Five Assets inflated $843bn over the past year, or 26%. For comparison, Bank Credit is up about $580bn y-o-y.
Noland’s latest.
http://www.prudentbear.com/articles/show/2013
Jane - thanks for this post. The secrecy part is the most worrisome … they work for us so we at least have a right to see what sort of agreements they’re making in our name.
And Kirk, I’m thinking Denver may be an essential trip … (squirrels or no, Teddy! even though I just watched that dreadful Tudors episode on the Plague …ugh)
TexBetsy @ 58
Wonderful! How many FDLers have met each other outside the lake?
I’ve had the pleasure of meeting the lovely LindaR and I even know Bob S from Hawaii. Met him before he ever found the lake though.
NorskeFlamethrower @ 88
Norske can you take a screen shot and send it to me? A couple of people have complained about the same thing and Jamie can’t fix it because he can’t duplicate it. He’s asked for a screenshot.
Are we beginning to think there is not much light sometimes shining between the two parties?
The economic literature from the thirties, forties and fifties is replete with invaluable insight into such matters. The experience of the financial crash and Depression left deep emotional and analytical scares with respect to the damage inflicted by the unscrupulous “money changers” and reckless speculators. Glass-Steagall and the Banking Act of 1933 were to ensure that power over the U.S. financial system and economy were never again concentrated in the hands of “Wall Street.” But by the sixties, memories had begun to fade; Milton Friedman emerged with alluring historical revisionism; and the adoption of a statistical and quantitative “hard science” approach radically changed the nature of monetary analysis. Let’s return briefly to the pre-Friedman/“quant” days of Henry Simon’s classic 1936 article, “Rules Versus Authorities in Monetary Policy”, and then to the concluding paragraph of Alan Sproul’s 1955 paper, “Changing Concepts in Central Banking.”
Henry C. Simons, The Journal of Political Economy, 1936
“We must avoid a situation where every business venture becomes largely a speculation on the future of monetary policy. In the past, governments have grossly neglected their positive responsibilities of controlling the currency; private initiative has been allowed too much freedom in determining the character of our financial structure and in directing changes in the quantity of money and money-substitutes. On this point there is now little disagreement. In our search for solutions of this problem, however, we seem largely to have lost sight of the essential point, namely, that definite, stable legislative rules of the game as to money are of paramount importance to the survival of a system based on freedom of enterprise.”
“In a free-enterprise system we obviously need highly definite and stable rules of the game, especially when it comes to money. The monetary rules must be compatible with the reasonably smooth working of the system. Once established, however, they should work mechanically, with the chips falling where they may.”
“What matters is the character of the financial structure which banking creates – and the fact that, in the very nature of the system, banks will flood the economy with money-substitutes during booms and precipitate futile efforts at liquidation afterward.”
http://www.prudentbear.com/articles/show/2013
fahrender @ 85
g’night fahrender
Boston1775 @ 86
As I said a few days ago:
If any one of these deaths had occurred during the Clinton administration,
the Republicans would have been foaming at the mouth on the floor of the House for a special prosecutor.
I would guess a good $10 million of the $75 million of the taxpayers’ money that
Ken Starr wasted was used to investigate Vince Foster’s suicide.
1,515 DAYZ AND THE KILLIN’ GOEZ ON AND ON AND..
Citizen Hamsher:
I don’t know how ta shoot ya a “screen shot”…maybe when my math teacher daughter gets home tomorrow she ken help. In the meantime if jaime gets it fixed fer one a the other folks maybe ya ken give me a heads-up.
Thanx for respondin’…I think looseheadprop had a problem too.
KEEP THE FAITH AND I’LL FAKE IT TO THE KEY CHANGE!!
[Mod: Thanks for the heads up. Ya done good Norske.]
Siun and TeddySanFran, we’ll be able to detect the Rovian squirrels…
they’ll have his cheeks, right?
If that fails, perhaps Food Not Bombs will spot us a few handcarts.
bring out your dems!
____________________
Emma (below)
ding!
Oklahoma kiddo @ 93
Not so much in trade. Much in integrity of the DOJ, Supreme Court nominations, environmental protection. Would 9/11 have happened with Gore in office? And, if so, would he have invaded Iraq? FEMA would still prolly be intact and NOLA actually helped during and after Katrina. You can probably fill in more yourself.
rapier,
As the price and scarcity of oil increases, I think there may be opportunities arising from necessity: the cost of transporting goods from far away will begin to offset the cheaper cost of labor in 3rd world countries. I’m encouraging companies who are still operating here to start moving to alternative energy sources, which will reduce their utility costs and help them to stay profitable and keep jobs here. (They will also be ahead of the game if the govt ever gets really serious about reducing CO2 emissions.) Eventually, as oil prices get really high, we may stop buying more than we need because what we need will cost more, likely manufactured within 100 miles of where we live. And our food will be healthier if we buy locally as well. And, like choosing the local phone provider someone posted about above, there is much more accountability for the quality of products if the producers and customers live in the same area. Maybe I’m an optimist, but eventually we may value quality produce and products over lots of cheap stuff. Could be the ultimate ‘binge-purge’, and we’ll get back to using less and perhaps even appreciating it more.
Getting back OT:
Even academic supporters of free trade like Paul Krugman and Alan Blinder are realizing
there is a definite downside to free trade, and this is an experiment that can only be run once.
Would 9/11 have happened with Gore in office?
of course it would have..It was in planning for years..
I promise you Iraq would have never happened under Gore..Hell..Bin Laden would be dead by now and the WOT winding down….
Thank you Florida..now go back to your bingo..
Emma - in my day job, I work with multinationals on sustainability issues and the cost, but also the carbon impact, of long distance of immensely long supply chains is a very serious issue they are taking hard looks at.
OT ~ And now for The 700 Club’s Accu-Wrath Weather Forecast at C&L.
napaValleyguy @ 102
Maybe Gore would have paid attention to the reports outlining the dangers of airplanes being used, given that one attack had already been made on the WTC.
“’ll conclude this query into the issue of unchecked finance and the concentration of financial power with a few closing thoughts. In practice, the “Infinite Multiplier Effect” is restrained by the natural limitations in the demand for borrowed funds. In the case of traditional lending, finance will expand at a rate to satisfy the demand for funds for real economic endeavors (i.e. business capital investment). And despite some rather outrageous lending excesses, even the expansion of mortgage finance was limited to a degree by the capacity of households to borrow.
Today is different. The prevailing demand for borrowing emanates from securities markets activities – specifically for M&A and leveraged securities speculation. In both cases, “the sky’s the limit.” As such, we’re in a period of extraordinary capacity for finance to mount a powerful burst of expansion - which it has been doing. The Credit infrastructure has developed incredible capabilities over the past few years; Wall Street and the global leveraged speculating community have become enormously big and powerful; foreign central bank “recycling” of dollar liquidity has evolved into one of history’s most remarkable (and dangerous) Monetary Processes; and Wall Street has begun to position for the next easing cycle with tens of trillions of securities available for such an endeavor.
The monetary backdrop has clearly become extremely unstable – I’ll refer to it as an “Unchecked Liquidity Dislocation.” The question then becomes, can monetary affairs settle down to a less unwieldy posture? Or are we instead now firmly locked in a Minsky Ponzi “deviation amplifying system” - that at some unpredictable time and in some unpredictable fash