Tottering on the edge of a “disastrous economic collapse.”

Well, I don’t know if I can agree with the whole statement made by President Obama today but at least we have a major world leader acknowledging that the world has been/is tottering on the edge of a “disastrous economic collapse.”

AP reports, “Lasting worldwide recovery ‘is still a ways off,’ President Barack Obama declared Friday, but he also said at the conclusion of a global summit that a disastrous economic collapse apparently has been averted.”

"’Reckless actions by a few have fueled a recession that spans the globe,’ Obama said of the meltdown that began in the United States with a tumble in housing prices and drastic slowing of business lending. The downturn now threatens superpowers and emerging nations alike.”

India joins Russia and China questioning U.S. Dollar dominance

Now India has joined Russia and China in questioning U.S. dollar dominance. Suresh Tendulkar, an economic adviser to Indian Prime Minister Manmohan Singh, said he is urging the government to diversify its $264.6 billion foreign-exchange reserves and hold fewer dollars.

"The major part of Indian reserves is in dollars--that is something that's a problem for us," Tendulkar, chairman of the Prime Minister's Economic Advisory Council, said in an interview as he prepared to join leaders from the Group of Eight (G-8) industrialized nations at meetings to tackle the global economy.

Tendulkar said that big dollar holders face a "prisoner's dilemma" in terms of managing their holdings.

The fourth branch of the U.S. Government

Most people assume we have three branches of government: The Judicial: the Supreme Court - The Executive: the President - The Legislative: Congress.

Almost unnoticed by most Americans, the US Federal Government introduced a fourth branch to its political structure in 2006.

Who is entirely devoted to dealing with the US’s fiscal house? Some make the argument that a bunch of greedy crooks were appointed, intent on stealing as much of the public’s money as possible with no consequences whatsoever. And Goldman Sachs provided most of the lead characters: Hank Paulson (former Treasury Secretary), John Thain, (former CEO of Merrill Lynch), Robert Rubin (the Chairman of Citigroup), Robert Steel (the head of Wachovia), Ed Liddy (who Paulson put in charge of the nationalized AIG), Mark Patterson (the current Treasury Chief of Staff), Neel Kashkari, (the guy in charge of allocating TARP funds) and let’s not forget Treasury Secretary Tim Geithner.

For details on this fourth element of government, see Rolling Stone article “The Great American Bubble Machine” by Matt Taibbi.