by mmasters » Mon 23 Apr 2012, 20:00:49
$this->bbcode_second_pass_quote('Sixstrings', ' ')to sum up:
1. As I've said before, we'll continue this descent downward as long as we're hooked into globalist free trade. Obama was in Colombia to make yet another free trade deal. There's no hope on this, Republicans and Democrats are both global free traders.
2. The US will continue to print cash to make up for the trade and jobs deficit. Government will do more. More people will depend on free money from the printing press. It all goes sour if the day comes that the world moves away from the dollar as reserve in favor of a basket of currencies which may or may not include the US dollar but still we're screwed if we can't print cash and count on the world to trade their currency for ours.
America only works at all because we have a de-facto tax on these other countries, they have all the trade and jobs advantage but the deal is they buy our dollars they we keep printing. If that stops, we have a big problem.
3. It's only central banking and global finance that keeps the US afloat, you could say the same for Europe too other than Germany. And so Republican budget cutters are WRONG. Way things are now, we can't ever have a small government, we can't ever have a balanced budget -- it's left to government to fill the holes left by the "giant sucking sound" of free trade.
For the Libertarian types out there who want sound money, balanced budgets, and a private-sector centric economy then we have to back out of globalist free trade before that can happen. It's impossible to have sound money with a trade deficit. Without central banking monetary games, a trade deficit naturally to collapse -- it's jut math.
Bottom line.. it's not like it used to be, if you have kids in college do whatever you can to persuade them to get a degree that will lead to employment. That means engineering, energy fields, hard sciences, or if not that then medical.
Yup. Being the world's central bank means being at the top of the food chain. But more importantly I think it's worth saying that fractional reserve banking stimulates production and consumption in which using large amounts of oil has been a cataylst for us to overpopulate. Global free trade is just allocating global resources efficiently. Shutting off global trade would be as useful as a country conserving oil at this point. It's just gone too far.
Given human nature the only thing that's going to stop this thing is dieoff.
The US is being weened off reserve status, the global central bankers are admitting this is how they will steer it over the next 25 years. So as the US slowly moves away from reserve status the economy will slowly implode. Medical wages and jobs will get cut significantly as heath care is not an essential service, also engineering and hard sciences careers are already overpopulated. Unless you know somebody energy is probably the only field worth going into debt to persue at this point.