I believe we will go off the cliff.. We have very few friends of the working man in DC. Maybe a dozen or so congressmen have our interests at heart and the only way they can save us is to use their options to block a bill from coming to the floor.. The problems are big and the available solutions are few and neither side actually likes the real fixes to this problem...
The world seems bent on going the Austerity route. The EU is proving once again that austerity measures will not pull anybody out of depression, it justs makes things worse.. The drums from DC are signaling we are going to go down the same rabbit hole.
Their are a few logical fixes but first you have to admit how we got here and what the true state of us consumers really is.. and then bite the bullet and do the things it takes to fix us..
Paul Craig Roberts lays out in this piece how we got to this fix and then lays out how it can be fixed, while showing what we are doing is not going to fix the problem... He ends the piece with "WE ARE GOING TO CRASH" and also believe we will go into a depression worse than the Great Depression...
Let's hope we are both wrong..
Excellent article! If you don't have time to read it, here is a clip:
ReplyDelete"The US economy has two serious diseases, and neither one is too much welfare spending.
One disease is the offshoring of US middle class jobs, both manufacturing jobs and professional service jobs such as engineering, research, design, and information technology, jobs that formerly were filled by US university graduates, but which today are sent abroad or are filled by foreigners brought in on H-1B work visas at two-thirds of the salary.
The other disease is the deregulation, especially the financial deregulation, that caused the ongoing financial crisis and created banks too big to fail, which has prevented capitalism from working and closing down insolvent corporations."
The Author offers a real solution but admits our government will not implement it. So hang on tight it's going to be a bumpy ride.
~Heidi
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A devalued dollar is not necessarily a bad thing. It will make US exports cheaper and US imports more expensive. I don't see the end of the dollar being the world's currency being such a bad thing.
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