Paulson's Meltdown Scenarios
(Conspiracy Nation, 08/14/07) – U.S. Treasury Secretary Henry Paulson carried some “meltdown scenarios” with him when he relocated from Goldman Sachs to the Treasury fiefdom. Based on these meltdown scenarios, Paulson established “protocols” -- problem-reaction-solution plans – almost immediately after he became the new Treasury Secretary last year. Among the meltdown scenarios: (1) General withdrawal from risk taking; (2) Liquidity crisis; (3) Stock-market meltdown; and (4) Oil shock. So Paulson is either (a) uncannily prepared, or (b) part of an Hegelian plot. (“Markets Crisis Tests Resolve Of Fed, Officials,” by Greg Ip, et al. Wall Street Journal, Aug. 13, 2007)
Exotic mortgage financing was sliced-and-diced into Collateralized Debt Obligations (CDOs). These securities involving U.S. mortgages were gobbled up by European banks. Among the heavy investors is IKB Deutsche Industries Bank AG. The German government, according to the Wall Street Journal (op. cit.), has had to organize a rescue of Deutsche Bank AG. Coincidentally, in a separate report from the Aug. 13th Wall Street Journal, it is learned that former “Federal” Reserve Chief Alan Greenspan has been retained by Deutsche Bank AG as a senior adviser. (“Fed Ex-Chief Greenspan To Advise Deutsche Bank,” by Greg Ip.)
Since, according to syndicated columnist Scott Burns, the financial sector of our economy accounts for about 20 percent of all market value, it is possible there will be “contagion” from the financial sector. This would bring in one of Paulson's meltdown scenarios. It is too early to tell how seriously the stock market is in trouble. Today, the Dow closed down over 200 points.
Another coincidence reverberating with the meltdown scenario is the recent crackdown on illegal immigrants. Out of the blue, the federal government has begun doing the obvious thing: double-checking names with social security numbers. Why this sudden burst of common sense from the usually lethargic feds? If there is to be a meltdown, then immigrant labor would become superfluous.
“When the economy needed boosting, so the Kremlin's Americanologists argued, the capitalists invariably turned to war.” This quote is from The Company, by Robert Littell, admittedly a work of fiction. Yet it is fiction based on fact. When some groups in America purchase extra weapons, the media ominously reports they are “stockpiling weapons.” Within the past couple weeks, a $30 billion arms sale to the Middle East was reported. Tit-for-tat, it is fair to say they too are “stockpiling weapons.”
But we are already at war, some would reason. However the current war in the Middle East might escalate further. After all, there is the ominous prelude of “stockpiling weapons.” If one or more of Henry Paulson's meltdown scenarios manifests, the economy will need boosting. In this circumstance, say some, “the capitalists invariably turn to war.”
There is also the coincidence of heightened security in New York on Friday, August 10th, due to Debka.com having reported terrorist chatter involving radiological bomb fears.
Karl Rove was informed that if he wanted to retire early from the Bush administration, he'd have to do so before August 31st. After August 31st, “all leaves are cancelled.”
These are just some coincidences appearing at this point in time. How readers connect the dots is their domain.
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