RedRiver

Washington's Dilemma: This Isn't a Recession, It's a Collapse

Great response, thanks.

This is all new, by our hands of course. At the time of the Great Depression we did not have a "global economy". And it is precisely this that will strip away the benefits that our middle class assumes is a birth right and depress them to standards they are ill prepared to deal with. In order for us to compete through our middle class "engine" we need to produce goods and services cheaper and superior to those produced by India/China etc. If India is making chip sets @ $6/hour then we will need to make them at $5 and of equal or greater quality in order to regain that market share. The same goes for all industries, which we of course gave away in exchange for our new industry of fraudulent monetary "vehicles". The liability portion of our product has yet to be played out.

We also were not constrained by our current suicidal bundle of Rules, Regulations and Stupidity that seems to me to be Washington's greatest creations. Every over built item that occupies our country is just a symbol of our abject waste and self mutilation. One of the greatest housing stories yet untold is the City/Municipality responsibility for increasing the cost of an average home by $6,000-$8,000 with ginger bread add ons, porches and socialistic style land use regulations. A much greater % than any commodity explosion ever caused. There are many other stories I know.

And finally for me there is the simple and yet overwhelming fact that we wage earners do not earn enough (because we now produce so much less) to pay for all the non-productive people. Most of these people are and will be found on the government payrolls. People need to realize that no government employee creates any productive revenue. They are not a contribution to our society they are the virus that will eat us from the inside out. When Calvin Collidge left office in 1928 the government was 3% of GDP I believe. Now its going to 40%! There is not a viable economic system that can withstand that much insane pressure. It has been and will always be one of the greatest society killers of all time.

Regrettably it now seems its our societies time, its our turn. We the people, we got lazy and didn't watch or care what was going on as long as we were "happy". Print and Plummet. Good luck to all.


On Jul 14 05:57 AM User 353732 wrote:

> 1. The Govt can and is making things worse; it has no affirmative
> capacity in July 2009 to make things better . Intellectual fraud,
> moral bankruptcy, the criminal misallocation and waste of national
> resources, the deliberate expansion of the parasitic class and serial
> deceits by the political bosses are not the basis for increasing
> consumer and business confidence. Without an increase in confidence
> , no economy, anywhere, esp. not one as complex and large as the
> US can possibly revive.
> 2. When fantasy money, worthless credit and extravangantly false
> promises intersect they create a vapor economy that starts to dissipate
> and blow away as soon as a sufficently large number of investors,
> households and businesses perceive and painfully experience the chasm
> between " our policies are working; we know what we are doing; things
> are getting better" and their daily reality of falling income, compressing
> profits, increasing tax and regulatory oppression and evaporating
> net worth.
> Savings are rising , not because people and businesses are becoming
> more prosperous but because they are becoming more frightened by
> the day. The only way for savings to rise when income is declining
> is for consumption and long term risk investment in wealth creating
> activities to fall sharply. Consequently production falls and jobs
> disappear.
> 3.In July 2009, America finds itself with a shrinking and pessimistic
> new world middle class, a callous and self obsessed old world upper
> class and a third world Govt in Wash DC and in California, New York,
> New Jersey, Michigan, Illinois among other states.
> The old world and the third world have coalesced among our elites
> to assault the new world. Under these circumstances it is inevitable
> that we get a steadily worsening economy and a steadily compressing
> middle class. It is not the States that are collapsing but the Middle
> Class.
> 4. It is a deep error to think that the State Govts are the units
> and motors of economic activity and wealth creation in the US: they
> are engines of destruction. It is the Middle Class that is the source
> of innovation, job creation and wealth expansion. It is now the manifest
> policy of our Govt at the Federal and State(eg California, Michigan,
> New York) level to fanatically fuel the engines of destruction
> while sabotaging the engines of creation.