Something To THINK More About:
Good Morning
I’m leaving this post from yesterday up for most of the day. I believe that this is the most important issue that the U.S. faces. We are one of the highest cost producers of goods in the world due to our lifestyle. We use far more than our per-capita share of resources. At some point there will conflict with those mentioned in this article. We need to plan for that occurrence now, not when it is taking place. Give me your thoughts.
An interested reader and cohort in the dismal science of economics asked me what happenings my research had suggested would occur due to our increasing debt and our reliance on foreign investment. Let’s look at that with the help of my patented “Mikeronomics.”
This situation is further compounded by our Federal Reserve lowing interest and flooding the markets with funny money in an effort to bail out the banks. I might say that not doing so would see the country freefall into recession.
So then are the Federal Reserves actions the proper thing to do? To fully comment on that subject would require a 20 page answer. So the short answer is that it really doesn’t matter what the FED does, recession is coming to a neighborhood near you.
The danger in putting off the inevitable decline by artificial means strengthens the possibility of hyper-inflation to a near certainty. But then, that’s the good news.
The bad news, simply stated, is this: The Chinese, Koreans, East Indian’s and others depend on our import economy along with some of our technology and manufacturing principles for a period of time necessary to establish the infrastructure in their home lands to effectively practice domestic expansion.
That’s a mouth full, but it boils down to the fact that they will soon no longer need the U.S. to further their best interests; at least not Middle America. Ouch!
These aforementioned countries collectively loaning us some $3 Billion per day is simply the price of laying the foundation necessary for the stated purpose of becoming independent of the
Theirs is of course the same model that the
Cheap labor from African slaves and imported Chinese (who were denied citizenship) were used to get the show on the road (Yes, a lot like China). We then simply expanded within our own borders until such time that domestic expansion no longer floated the proverbial boat. Think NAFTA and the WTO.
Americas Middle Class was necessarily a higher cost replacement for the slaves, Chinese, and a host of other second class citizens, whose exploitation as a persecuted class became increasingly unacceptable after the Civil War. Just a reminder, the top 1% of Americans control more money than the bottom 90%.
The Chinese, Koreans, Japanese, East Indians and host of other emerging countries, can today, easily consume all of the natural resources on earth in an effort to continue to fuel their own domestic growth. We schooled them well.
The
The new economic game will be similar to the “odd man out” scenario. Transportation, fuel and other natural logistics will favor the Asian nations (along with
Where do you see
Wake up
Subscribe to this blog
What do you think about the term limit in government? On one hand if a guy can stay in office forever then that person is likely to become complacent. On the other hand is 4-8 years long enought to help the situation?
I liken our Presidency to people at their high school reunions. With three months to go they want to “look good” so they starve themselves and use quick fix wight loss methods. They show up to the reunion looking fit as a fiddle while completely compromising their long-term health.
The guy who was working out and eating healthy may not look as good at the reunion, but will be healthy in the long run. But nobody sees that. On a somewhat related topic the average tenure for CEO is around 4-6 years as well……..THAT is scary. So, those who run our government and big business all plan to bail in 4-8 years?
Your blog today is really good; however, there’s only one problem. I’m not sure anyone, anymore has a concentration span long enough to stay connected and heaven forbid, then understand.
When a large percent of the biggest percentage of our population have trouble finding the Pacific ocean or Nebraska on the map of the good ol’ US of A how can they possibly understand what you’re saying.
It’s like President Bush suggested…forget all this trouble and just go shopping. Lots of the entitlement babies are mostly only worried about one thing - their cell phone batteries dying…certainly not an implosion of the US of A. I appreciate your efforts and please keep up the good work.
Jeremy,
Term limits are essential to combat human nature. If Government were a normal place where it was skill and performance based, it may be different, but it isn’t.
Also, if government were reduced to a size suggested by Congressman Paul, it would not be so burdensome. Guidelines would be established as they are in business and simply adhered to. Little would have to be decided by those in office. Our leaders lack economic skills and there has been no long term planning as a result of this over site.
CEOs are somewhat different than politicians in that they get caught in natural business cycles. Home Depot for instance, doesn’t do well in a downturn cycle of building. The CEO never was responsible for their success, he simply took credit. When housing turned down, he was helpless in bringing up revenues and they showed him the door with a $200 million check in his hand. His successor has done no better.
You are correct though, that no long term planning was never considered. Get mine, get out. We are now reaping the harvest of that mindset.
We are in for a blow this time around. Thanks for commenting.
Mick,
Complacency is a serious problem. It’s as if this Disney lifestyle is self sustaining. It simply isn’t.
We see the financial and job losses daily. National foreclosure’s were reported this morning as up 68% over last year and last year we set records!
Auto repo’s are skyrocketing, payday loans are up some 1000% and savings are in the tank. Credit is maxing and we LIVE on credit.
As you say, the answer is then, get out there and shop!
Thanks so much for your comment. It has to soak in eventually.
As they say in the oil patch, “Please let there be one more boom; I promise not to pi– it away this time”.
This is similar to the thinking of a large percentage of our population. If we can just get someone in office one more time that will expand the present give away system things will be just fine.
Well, most all of the people running for office are sure promising all these things, and for the life of me, I do not know who they are going to tap this go around to support this dead end policy. Millions of jobs are being lost. Housing is in the sewer. Few people have any savings anymore. Inflaton is perched on our window ledge with an evil glare.
Even with the realities looking right at us we are still denying that our elected officials could have ever done something so foolish and stupid as they have. Nope, it is just a burp in the system, old Rudy or Old Hillary will have it back to normal in no time.
I reckon the selfish “Give me” mentality is going to have to take a hard ride down a steep arroyo and hope it survives when the ride is over at the bottom. There seems to be very little awakening in our middle class population to date.
Even if Ron Paul was elected to office, it would take years of really tough times to dig out from under the irresponsible action of the greedy political system we have had for so long now.
If one of the front runners (you pick the party) is elected, the problem will compound for a short while, then create extreme pain for all but the ultra wealthy for a longer time yet. Go figure. -bb
You got it Mark, short term solutions to long term problems. All it does is increase the momentum of the inevitable crash and results in more casualties.
I had a guy on another site that I write for say that Social Security was NOT going broke. All we have to do is the raise taxes and the upper limits of paying in to the that system.
That is like saying, “I’m not behind on my car payment if you will give me $500 that I don’t have to pay back.”
There is a limit to resources, money included.
When the Chinese reach a point that they need all available global resources, surely they will share with their good buddies in the U.S. won’t they?
I hate to rain on your on Ron Paul parade but I suugest you look a bit more clearly and dig a bit more deeply at what he really would do. If you really want a Balkanized and dis-united amalgamation of independent entities as our nation was before the Civil War, then he is your man. Local schools with local support sounds good , on the surface, but education would depend on the soundness of your local economy. The destruction of Social Seciruty would bring your aging parents who could no longer work to your house to live if you don’t want them begging on your street corner. Further, wars between states could well be the coming thing, perhaps one between Kansas and Colorado over the water of the Arkansas River. I prefer to continue the struggle for restoration of the democracy we enjoyed before the Reagan years when the Neo-Cons began their deconstruction tactics against all the principles on which our nation was founded. We can only do this by hounding the Neo-Cons and the de-constructionists and the negativists into the “unfortunate examples” page of history.
Mary,
I hope we can agree to disagree on this matter.
Our current path has come to an end. It mathematically came to an end around 1975, not with Ronald Reagan.
Reagan was elected by the largest majority ever and after 8 years left office with the highest approval rating in U.S. history.
The enemy wasn’t Reagan it was simple math. Reagan did in fact prop up social security by increasing the taxes and extending the age for receiving full benefits. He had also pointed out the obvious problems with S.S. in the 60s, when he was involved with Barry Goldwater, but no action was taken.
America is broke, the schools have failed, the infrastructure is crumbling, we borrow $3 Billion per day from foreigners and the time for change is upon us; if not already too late.
I’ve seen all of the negative sites regarding Paul. If I were to build a site for the negatives of the entrenched main stream politicians, it would resemble a library. But I don’t need to, their actions and results speak volumes.
Paul has NEVER said that he would discontinue Social Security for those who need it.
We have a Congress that is meant to temper judgments and we must depend on them doing so.
Ron Paul could only do what Congress allowed him to do, with the exception of our military which would be brought home from foreign lands.
The burden of our current government is crushing us. Sometimes you just have quit digging and make a fresh start.
I do agree to disagree on this. Ron Paul was a flaming Libertarian until he decided to run for office as a Republican. He says a lot of nice things but I, for one, don’t trust him. He says he will bring the soldiers home, but so will Dennis Kucinich. In addition, with Dennis Kucinich we can take the $300 billion per year that the insurance companies take as profit and invest it in the establishment of Medicare For All without the necessity for raising taxes. The cost of the atrocious war can be diverted to an education system that can help compensate for the lack of parental supervision in poverty-stricken families, giving those children a real chance to learn to be productive citizens. NAFTA will go as will all the other “free trade” ideas and we can concentrate on the health of our own nation, as we should be. However, since Hillary and Obama have the glamor factor in their corner, I can live very happily with John Edwards as President.
Mary,
The financial end of all this is the deal killer. The U.S. owes some $50 Trillion in funded and unfunded debt. We owe much of this to foreign nations. Ending the Clinton passed programs of NAFTA and the WTO in the mid 90s would see those debts “called” and the chickens would come home to roost.
It’s far too late to put the cat back in the bag.
We import between 65% and 75% of our oil and are hostage to those who produce it. Becoming oil independent is a pipe dream at this point.
We are dependent on the rest of the world for our basic commodities. Even food is not a net import.
Ron Paul took a year off in 1988 and ran as a Libertarian, otherwise he has been handily re-elected as a true conservative Republican 10 times.
Dennis Kuchinich, while taking an honorable position has little to no support. His fund raising efforts have proven fruitless and his cross-over popularity is nowhere to be seen.
I can’t possibly go into the numbers here, but his economic plan played out over time is absolutely disastrous and displays his lack of macro-economic knowledge.
Sometimes we want something so bad that we simply gloss over the reality of the facts in order to reach our intended goal.
The economics of the situation are difficult to comprehend Mary. It took me two years of constant study to realize that these guys are leading us down a dead end road.
David Walker, the Chief Comptroller General of he U.S. paints a far more glum picture than myself.