Wednesday, October 8, 2008

Financial Meltdown Qualifies as National Emergency

The White House produced a National Continuity Policy in May 2007. One of the key essential functions is "Protecting and stabilizing the Nation's economy and ensuring public confidence in its financial systems."

The meltdown has been years in the making, but mid September produced a crisis point. The big money boys quit trusting each other to make good on their deals. The ghost of credit past visited Wall Street, making them pay for their sins of Vegas style credit bets, leverage, and off balance sheet items. But, big money boys don't cotton to "pay day loan" rates to move their debt.

Wall Street cried out for Hank Paulson and the Treasury to make the ghost go away. The President's financial team called key members of Congress. They talked about markets falling thousands of points, credit freezing, and the need to institute martial law to maintain order. Therefore, the government needed to set aside $700 billion to buy bad financial instruments produced or held by Wall Street.

The Bush administration continues sampling the menu of financial interventions on our tab. With the announced purchase of corporate commercial paper, the total is $3 trillion. Yet, nothing is enough for Wall Street. Even the requested interest rate cut, which came in at .5%, didn't please the markets. Dow futures went from green to red in a matter of hours. It opened down 200 points.

The financial system remains at risk. What tools does the Bush administration have at its disposal? On October 1, two new domestic security tools began. One, an Army combat unit is now at the President's disposal. The 2,500 to 4,000 troops can't intimidate the whole country. But it can impact regional unrest, voters in critical areas, and our elected leaders in Congress.

The second tool is satellite surveillance. While legal restrictions exist as to its application, such details haven't stopped the Bush administration in the past.

America has a deeply infected financial system. The abscess spread to integrated global markets. This alone is reason for George W. Bush to institute NATIONAL SECURITY PRESIDENTIAL DIRECTIVE/NSPD 51. Will he do so? If yes, will it be publicly or in secret? He has a domestic army with the best intelligence tools at their disposal.

It sounds like King George Bush, shortened to KGB. Stay tuned.