consider that most Americans work for measly wages already and have been for years.

Why not China thousands of miles away. They took the Dollar as the dominant global currency for a long time, it was thousands of miles away, unless it was in hand.

“How can an oligarchy run a fascist dictatorship after the system of money is valueless? Who would work for a measly wage?”

People can be found willing to slit anyone’s throat to gain or maintain even the most trivial privilege and power.

That’s why I made the point the vast population of perpetual debt slaves who live in fear being thrown to the wolves and turning toxic. They’ll support measures like ZIRP/QE to make their debt cheaper, to make them feel like they’re winners, not losers.

That’s where I see the base of popular support for instituting corporatist measures to control the economy and maintain a financial oligarchy in perpetual power.

How can an oligarchy run a fascist dictatorship after the system of money is valueless? Who would work for a measly wage?

We hear about China being the new reserve currency. Are people going to accept a new currency value based on another culture hundreds of thousands miles away? (I may be off a little).

I believe the option of revolt would then ensue for even the local and federal military operations that would evidently grind to a sad halt. Who would want to enforce draconian laws for pennies?

Economic positives — The yield spread is becoming more positive; LIBOR and the TED spread are declining; the Baltic Dry Index is trending upwards; and the SPX, FTSE, CAC, DAX, NIKK, and SSEC indices are all in uptrends, albeit in currently corrective modes (ex SSEC).

Economic negatives — Aaa/Baa spreads are widening reflecting tight money conditions. The McClellan Summation Index has rounded over after a breathtaking run upwards, precursing a significant correction in the US stock markets.

Although no one of whom I’m aware possesses a crystal ball, one thing I know for sure is that some day there will be a recovery and most commentators will deny such a situation until it is well in progress. The most important, upcoming act we can perform will be assessing the extent of the the correction currently in process in the stock market. Per the Dow Theory, should there be a new low, the bear will continue and rougher times be ahead. Should the prior low hold and the recent rally high be pierced, then a baby bull will be in prospect leading the way to better times.

The best we can do is to observe and accumulate the many threads contributing to the formation of trends, and react appropriately to the trend as it unfolds.

I share your view. I’ve just removed the specifics to the US oligarchs, because the same applies to the UK and any other countries now going down the ZIRP/QE road to financial corporatism:

“The … regime has continued supporting the oligarchs who created this mess and the next few years will be a complete fiasco. The only thing the [central bankers are] trying to do is cause inflation to make the stock-market go up nominally and wipe out some debt with massive inflation. It will be an inflationary nightmare for the same people who have to bail out the oligarchs – the middle class taxpayers as well as the poor. There is simply no way around it regardless of the propaganda…”

The emerging oligarchy have been acting through these bailouts, ZIRP and QE to secure their positions and to extend the corporatist model (long seen in the military-industrial complex) to their cohorts in finance — banking, insurance, investment.

This corporatist oligarchy of public and private debt merchants, have effectively captured the state through corruption of political parties and mass media.

They’ve gamed the democratic process by exploiting the support of a vast population of perpetual debt slaves who live in fear being thrown to the wolves and turning toxic; and pandering to the dreams of debt speculators who want to join the elite who never have to work gain wealth again.

Everyone else is supposed to consider themselves lucky just to be taxed and worked to death in order to keep a corrupt bunch of mediocrities in the style they’ve become accustomed to.

1. That there are only 2 points in American history where household debt was the equivalent of total GDP: in 1929 and now.

2. Only 2 points where the top 1% of Americans earned 20% of the nation’s income: 1929 and now.

3. Only 2 points where the top 1% owned 40% of the nation’s wealth: 1929 and now.

PBS made a good documentary on the 1929 crash. In the section on “Mass Illusion,” they talk about how indicators of the health of the real economy were ignored in 1928 and in the run-up to the crash. Wall Street ignored rising unemployment, falling demand for autos and other consumer goods, and they kept pumping up the markets. Seems to me that the same sort of disconnect happened between Wall Street and the real economy this time around. To a large degree, it looks like it’s still happening.

Documentary: http://www.pbs.org/wgbh/amex/crash/program/index.html

I believe that you’re right: that the worst is yet to come.

from ZeroHedge .. just in :

http://zerohedge.blogspot.com/2009/05/exuberance-glut-or-dollar-euro-short.html