Wary of Public Outcry, Revised $800B Wall St. Bailout Stuffed with Earmarks to Sway Election-Year Incumbents

(DemocracyNow.org) - On Capitol Hill, the House is preparing to vote again on the revised $800 billion Wall Street bailout plan after rejecting a similar bill on Monday. All 432 seats in the House are up for election next month, and many “no” votes on Monday reflected lawmakers’ fears of a voter backlash for the unpopular bill. An array of “pork barrel” projects have been inserted into the legislation to win support from nervous incumbents.

READ MORE HERE [ Source: DemocracyNow.org, Oct. 3, 2008 ]

Foreign Invasion Sends Markets Reeling

(dissidentvoice.org) - The realization of how foreign central banks contributed to our current financial maelstrom has been lost in the debate over resuscitating the US economy and saving failing financial institutions. For over two decades foreign central banks, particularly Japan’s and China’s, have been pumping money into America, de facto loaning us money, so that we could buy their goods, thereby stimulating their economies. This deliberate policy choice, to build their economies on the backs of US consumers not only led to a deterioration of our country’s balance sheet but contributed to the excesses we are know suffering from.

Push Versus Pull

Whether foreign capital is “pushed” or “pulled” into a country has important implications. Money that is pulled into a country does so because its investments are attractive. Money that is pushed into a country does so for a variety of factors extraneous to the host country. In this case the host country, the US, is getting money not because of the investment opportunities it provides but rather because foreign countries want to stimulate Americans to buy their goods. History shows that money pushed into a country can lead to financial bubbles and borrowing binges in the host country as it must readjust to the inflow. Think of it like giving your college age child large sums of money each week.

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