occdude

The Scariest Chart Ever

If we make so much stuff then why do we have to borrow upwards of 2 billion a day to finance the trade deficit? Dont confuse where you buy stuff ie wallmart with where you make stuff ie.China.


After four years of war induced deprivation there was pent up demand for consumer goods which had been rationed during the war. Couple that with the high savings levels that resulted from the rationing, the fact that we were the only nation not in tatters after the war, a good work and moral ethic in general, a hyper industrial manufactoring capacity and you have the unique American experience of world supremecy post ww2.

Now this may bother you but heres the nasty. Not only are things going to get worse due to deleveraging with high unemployment etc. but we have to establish a high savings rate again to fuel the recovery. Now when your in a severe recession anyway and have to add on top of that a decrease in your current consumption level even more to get some savings, you can see the immense gravity of the situation.

Debt is not an option so dont even THINK ABOUT IT! Debt is our current problem and deleveraging is correcting it as fast as the government will let it, not that it will be an option anyway, because the rest of the world is "gonna get religion" about issuing debt to a people who cant pay it back.
On Jan 20 09:13 PM Crocodilian wrote:

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