60 minutes had an interview with Paulson today, (click to watch) and the one thing that strikes me more than anything is how Paulson is sticking to the mantra "he didn't see this coming".
Clinton administration officials, economists, and bloggers like Mish, saw this coming in May 2006. Me and a friend saw this in August 2006. Paulson didn't see it as recently as Q2 of 2008.
If he wasn't smart enough to see this event, how can he be smart enough to help the world? I for one believe he knew fully the issues, since he was part of Goldman Sachs, one of the Financial institutions that created this issue. And he took office with the long term plan of helping Wall Street over main street. This is pure conjecture, but he has a single track record, helping financial institutions by removing their liabilities with government intervention.
I'll make a prediction now, if the US government continues to print cash, the US debt will start having issues as interest rates rise, and the dollar collapses, yielding havoc on USA main street. The world may turn against the US and walk away from it, like a junkie friend that stole one too many times. Canada of all countries, is joining the world condemning the USA's irresponsible actions. These other countries will unfortunately join the USA in it's death spiral, mainly from them following the USA lead and not being responsible for their own affairs.
I'll blog back to this entry if the government goes down this path, and you'll have to wonder, why didn't Bernanke, Paulson, or congress see this coming? The answer, they do, but "big money" greed outweighs the public good. And if the public doesn't rally against the bill, vote out the people who support it, then, democracy is working as it should, and the USA will reap what it sowed.
Please keep in mind and read my "printing Money" blog to be prepared to take some of your savings (10-35%) and put into resources or other country's assets (such as stocks in corporations in other countries) to preserve wealth. An EXCELLENT blogger for resources is Gary Savage, of The Smart Money Tracker. Throw him 100 bucks and you will get detailed daily information on resource trends.
For more information on this topic, see fedupusa.org, Roubini, Mish, NJ residents click here or watch the video below.
(image at top taken from here)