I see articles everywhere that the FED is printing money out of thin air and US power declining, industries declining, falling behind in education, etc. I can already see inflation and my purchasing power declining .Is that true or is it one of those fear and go things like how we thought the Soviets would take over the world in the 70's and 80's.
In the 1970s America had a deep and broad reservoir of human capital created by the American public schools. The public schools thereafter ceased to function effectively, and the reservoir of human capital was used up. Today, the reservoir is close to empty.
Broadcast Media and other sales devices of Wall Street do not tell the real story. They omit and muster up facts and conditions. To understand just how things are in the USA, you need to evaluate many facts from different sources, and try to figure out what is propaganda and what is not. Look at behavior of the condition, not what people are saying about it. Because this is a global interconnected economy, you also need to take into account, what is going on in the world, and what their conditions are, and what their outlook and goals are. I know this is a lot of stuff, and answers do not come fast. Hence, you must keep up with what is happening, and over time you will see patterens, and will be able to draw intelligent conclusions and speculations on the conditions and events of the world. Follow the money too, it will always lead you to who is making the laws, and the deals. I will leave it up to you to evaluate the USA's condition. I will just say this: the economic condition and outlook of the USA is not a Crisis anymore, it is an Emergency, and the prognosis is guarded.
I have been doing quite a bit of reading lately trying to understand the why's and where's of the US economy. What is frightening, is the rise in the US debt in particularly the last few years. I get the impression that senior figures in the US goverment and the rich elite who control them, either do not know how to control the debt, or even have no intent to lower it. Surely the US can't keep raising the debt level, it sounds insane, this is not the way to do business. Do the true honest hard working Americans really believe the puppet Obama is going to reverse the situation in the States, for the good of the American people......and the rest of the Western world, come to think of it?
Sounds about right. To add, the public schools now have grown to epic proporation in each of the US States, it consumes massive amounts of tax money to survive. Like a huge leach on an armless man. The School Unions are so huge and powerfull, that the Government and taxpayers can't escape the rath of the public schools influence on politics and fraud. The USA still has human capital, but the USA is tapped out and oversaturated with capitalization, and no room to grow. With public schools failing to produce (on all that money), the USA has defective/ineffective human capital, that is now a huge debt burden on the USA.
The real danger in the USA is the rapid demographic change; in only a few generations the country's population will be majority hispanic. This is mostly due to their much higher fertility rates, and earlier age of having children. 25 year old women with 5 children are not uncommon. We can expect the future population of America to have lower incomes, much higher rates of poverty, and to be less educated. These are not good trends. Already most of the babies born in the USA are non-white. http://www.huffingtonpost.com/2011/06/23/census-whites-now-make-up-minority-of-babies_n_883082.html
Not to fear. The US Census, helps the States divide up the congresional districts every 10 years. In most cases, they clump all theblacks, and latinos in one or two distric, that's why the State Congresional map looks like a jigsaw puzzle. In any event, the districts will be divided up so that the landscape is majority white, or of no color. You can stuff 3 million latinos in one district, and you will only get one latino representative. If you divide up 1million whites in 8 districts, you will get 8 white representatives. Same for blacks. stuff them in 1 district and they will only have one black rep. See, no need to fear, you can still be the minority and still control politics in your state. Furthermore, this is good for the USA as a whole. As long as we keep in the downward direction, it will create great investment opportunity to profit off States governments and their failing schools and highways. Because the more debt the States create, the highter interest rates the investment corporations can charge them. Hence, more debt on the States, more money for me. Great system the USA has here. I call it privatizing government.
Until those billionaires have some security in the economy that is will keep growing the government will need to step in with public works building bridges, upgrading highways etc. Otherwise in the risky economy, no billionaire would risk investing their money is there wasn't a guaranteed capital return. tax cuts for the rich will do nothing to help the economy grow if no one will buy what those billionaires are selling http://infrequentrant.blogspot.com/2011/09/is-obama-crazy.html
The debt is just one thing. A significat thing. But the major issue we need to evaluate is the Growth potential for USA and countries like it. What this means is countries like the USA that have capilatism that owns the country, government and it's people, will show, that there are not opportunity for growth, no possible opportunity for further capitalization, and a investment bank system that is out of control. When you add in the factor of the financial inter-connection between the USA and countries like it, you will see that these countries have petered out on job creation, growth, and capilatist opportunities. The results are a steady decline brought on by continual sucking off the taxpayer direct, by investment bank industrys. Ask youself, who benifits financially in all this, and you will know, who is behind it. Once government allows financial industries to monopolize the government, the country will fail. The USA is the blueprint for failure. Other countries that have governments that still run the country will succeed, until capitalism takes over.
I think the USA needs to focus more on small businesses, and less on large corporations, banks, and financial institutions. The financial bailout in the USA will cost taxpayers 700 billion dollars, well no doubt more since this money had to be borrowed and compounding interest will have to be paid on the additional debt. This is actually about TWICE what the government spends on welfare in a year! The middle class is being taxed to give to the wealthy investors.
They know how to control it. They don't want to. Why? Because they believe that spending is the basis of their power and power is what consumes them. If you want to reduce the debt, you need to help vote them all out of office every election. Start with a whole new group. As a non partisan, I'm very comfortable voting against every incumbent. I wish everyone were.
U.S. will not fail, just for the Americans will be very hard to wean itself from the old life. Looks like for us Russians had a hard time in the 90s of last century.
The problem is that politicians believe their power base is in spending. They feel they need to spend in order to get re-elected. That's why they do it. The fact that it is really bad for the country is only a secondary issue to them. It's our fault of course. If we would throw out the spenders and reward those with fiscal restraint with re-election, it would stop. So we need to look in the mirror as a society, I'm afraid.
The FED printing money is a GOOD thing. This is how the US discharges public and induvidual debth. It is only the resulting inflation that can fix the negative equity of your house. But this is the last time in history when the US can do this. In about 5 years, China and India will have finished building out their own domestic consumptions, so the dollar will not be the international reference currency any more. After that, any subsequent financial trickery in Washington/WallStreet will leave you indentured for the rest of your life, like the citizens of those small countries are, such as the Greeks, Hungarians, Protugese, etc..
In one hand.The government of usa should double or triple the taxes, reduce welfare, ensure that all the "unemployed" job. For example let them build social housing. If they think that China would weaken its Yuan, then are mistaken. On the other hand, given the amount of firearms in the United States if the U.S. government reduces welfare, then let's stocking popcorn to watch.
It has been and is and will be a degenerate political system until those stand up for American truth and integrity. http://www.youtube.com/watch?v=weSzkIB8184&feature=player_embedded#! Corrupted for a long long time and institutionalised corruption, protected by despicable behaviour of American officials! Regards Highlander
I don't think the country is running out of money. It is now 2015 and the President and the U.S. Treasury must know something that the public doesn't.
