There is no economy left to recover. The US manufacturing economy was lost to offshoring and free trade ideology. It was replaced by a mythical "New Economy."
The "New Economy" was based on services. Its artificial life was fed by the Federal Reserve's artificially low interest rates, which produced a real estate bubble, and by "free market" financial deregulation, which unleashed financial gangsters to new heights of debt leverage and fraudulent financial products.
The real economy was traded away for a make-believe economy. When the make-believe economy collapsed, Americans' wealth in their real estate, pensions, and savings collapsed dramatically while their jobs disappeared.
The debt economy caused Americans to leverage their assets. They refinanced their homes and spent the equity. They maxed out numerous credit cards. They worked as many jobs as they could find. Debt expansion and multiple family incomes kept the economy going.
And now suddenly Americans can't borrow in order to spend. They are over their heads in debt. Jobs are disappearing. America's consumer economy, approximately 70% of GDP, is dead. Those Americans who still have jobs are saving against the prospect of job loss. Millions are homeless. Some have moved in with family and friends; others are living in tent cities.
Meanwhile the US government's budget deficit has jumped from $455 billion in 2008 to $2,000 billion this year, with another $2,000 billion on the books for 2010. And President Obama has intensified America's expensive war of aggression in Afghanistan and initiated a new war in Pakistan.
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Can anyone argue against this statement??
ReplyDeleteI can't
Probably the best, most clearly written and concise dissection of what has happened and is going to happen. This is all you really need to know.
ReplyDeleteSuperb.
DM
I also agree. A simple, but clearly correct explanation of what has happened and what is to come soon.
ReplyDeleteThe link at the bottom does not work.
ReplyDeleteI like this blog because it has good information about of economy. This is definitely so informative blog. Thanks for all this.Watch a free video on Gold IRA.
ReplyDeletethis is the best up-to-date , truthful informative site on the net , it brings all articles from every corner of the globe onto one site , BRAVO creator !!
ReplyDeleteI've been here for hmm i guess 1.5 years now i suppose , or whenever it has opened , and im trying to get my neighbours and community to try and wake up to the reality that our Economy(North America ) is about to collapse , they all think i'm fucking nuts and should be in a nut house !! well all i say is dont come begging to me for bread & beans is all !! I have a few silver coins
Paul Craig Roberts knows what he is taling about, he is considered "the Father of Reganomics", rather one agrees or disagrees with his fiscal policies of the 1980's, the guy knows what he is talking about.
ReplyDeleteNo one wants to know the truth, and when the crash comes, the sheeple will say "what time do the Cowboys play".
Where are the tent cities? I would like to see more on this. Is this the 'typical' homeless camps you find among rivers or something more 'grand' made up of previous middle to lower class folks?
ReplyDeleteYou can start by googling the tent cities in Sacremento
ReplyDeleteThere are homeless people living in Umstead Park, Raleigh, North Carolina, two miles up the road from where I live. Unemployment in North Carolina is 11%, almost the same as California. There is at least one other group of homeless people living in central Raleigh. One person from Umstead Park sits and begs at the McDonalds traffic island.
ReplyDeleteBig Tent city in Vancouver Canada under the bridge at Pacific Ave. Residents are fuming as these people are pigs, drug addicts and drunks. They can't even be a normal homeless tent city person in this city. Probably a few hundred people
ReplyDeleteMy generous nature will be the death of me. All the asshats that call me a nut now will be coming for food and supplies.
ReplyDeleteWhat will I do, like a true idiot? - I'll share until whatever I have is gone then I'll be in the same boat.
I need to be more like Daffy Duck.
There is no America only global corporations
ReplyDeleteThey close GM plants in the U.S. and open new ones in China. Then will hide these imported cars back in the U.S. The only way out of this debt is to BUY AMERICAN NOT SELLING OUR DEBT TO CHINA!! Selling our debt? are we a third world country? Obama better TAX the HECK out of those offshore corporation to pay down the debt. Banks will start to raise intrest rates. Here we THE TAX PAYER lends our money to the banks for free ( No interest ) and the banks using our money to hike up interest rates. Buy Physical Gold and Silver. It's coming there is already a secret society making currency backed by physical Gold and silver...Yes, you can't produce money with a computer out of thin air. It is backed by PHYSICAL GOL SILVER Yes we have to invest, mine it, work hard to get it out of the ground. It takes a lot of effort to produce an oz of gold. Not a key strock from a computer into a bank.
Also, when we die God will be asking us why we flew jets and bombed inocent women and children? Iraq.... Wel God. I had to fill up my gas tank dose not that justify murder of families who do live the good live like we do.