US: The Bill Just Came Due
Reading 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.”
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…
As 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.
This entry was posted on January 24, 2008 at 7:15 am and is filed under America, Lying Bastards. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site.