US: The Bill Just Came Due

unsustainableeconomy.jpgReading through all the reports on the economic crisis it’s pretty clear that the US is in far worse trouble than they would like to believe. Lowering the interest rate, even by 3/4 of a point, and throwing $150 billion at the problem is not going to make the larger issues go away. Neither of these quick fixes addresses the mammoth causes of the problem. The trade deficit, FTA’s, job outsourcing and the sale of American property and market shares to foreign countries will haunt the US forever.

In a nice Op-Ed piece called “Our leaders have squandered our wealth”, Lou Dobbs said,

An emergency Fed rate cut and an economic stimulus plan are short-term responses to our complex economic problems, nothing more than bandages for a hemorrhaging economy…All Americans will soon have to face a bitter and now obvious truth: Our national, political and economic leaders have squandered this nation’s wealth, and the price of this profligacy is enormous, and the bill has just come due for all of us.

He quotes Bernanke, who, in speaking about the rate cut and the stimulus package, made this ridiculous statement.

 “You’d hope that [consumers] would spend it on things that are domestically produced so that the spending power doesn’t go elsewhere.”

Well, that would be great if the US actually produced anything at home that people wanted to buy.  But we can’t live on Florida oranges and Idaho potatoes.

Dobbs sums that up when, in response to the bearded economic guru he says,

 Just what would you have us spend it on? The truth is that consumers spend most of their money on foreign imports, and any stimulus package probably would be stimulating foreign economies rather than our own. Imports, for example, account for 92 percent of our non-athletic footwear, 92 percent of audio video equipment, 89 percent of our luggage and 73 percent of power tools. In fact, between 1997 and 2006, only five of the 114 industries examined in a U.S. Business and Industry Council report gained market share against import competition.

At the end Dobbs gives us the money shot and he’s right on target here.

This stimulus will not prevent a recession. It may ease the pain for millions of Americans, but a recession we will have. The question is how deep, how prolonged and how painful will it be…we’re about to find out how committed and capable our national leaders are…

weakdollar.jpgAs long as most of our wealth goes overseas, and what does remain at home goes in the pockets of the richest 1%, the US will continue to sink into economic chaos. Since it’s the same 1% who control the markets and make all of the economic decisions, I don’t see solutions any time soon. Good luck America.

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Explore posts in the same categories: America, Lying Bastards

4 Comments on “US: The Bill Just Came Due”

  1. Buffalo Says:

    Surprised? I doubt it. No one, including a country, can kite checks and borrow from everyone and actually be surprised when it all collapses. This crap has been a long time coming.

  2. expatbrian Says:

    Not surprised at all. It’s been building up to this for decades. The Bush war is breaking the back of the country now and he certainly isn’t going to do anything about this crunch on his watch. I’m worried about my social security, but other than that, I half hope that a full economic collapse occurs in the states. I think it is the only thing that will wake people up to the feudal system under which they struggle.

  3. Kathy Says:

    What is surprising is how quickly things turned bad once Bush took office. If you had told me all of this could happen 8 years ago, I would never have believed it.

  4. expatbrian Says:

    Sure, but with an organized and concerted effort to staff the entire government with individuals who shared Bush’s agenda, and with the typical apathy and gullibility of the American populace, it’s really no surprise. Hell, we all know what he has done and we STILL are letting him get away with it.


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