Post by unplugged on Jun 30, 2015 21:47:46 GMT -5
I read your latest update with interest. Like you, I love America. Unlike you I see more to be concerned about in the American economy than the Chinese. In fact, I did a slight edit of your post and it seems to perfectly articulate the financial position in which America finds herself.
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Now, for the present situation.
America has just entered a stock market crisis where the large amount of leverage in their markets have created a ‘bubble’ where the highly inflated values will lead inevitably to a crash. That is not wishful thinking on my part. America has had an artificial economy where in the political leaders have granted large sums of liquidity to Too Big To Fail banks. The political cronyism has led to a depressed economy where the GDP may be entering negative territory. All these highly leveraged assets, stocks and housing will fall in value because there is not enough liquidity to maintain the artificial values created by the inveterate American big bank speculators [in derivatives].
Unlike the EU, America has its own currency. However that currency, once lauded as the world's Reserve Currency, is basically a worthless piece of paper based on the bad faith of the political system.
What do I mean?
America for too long has based its economy on political cronyism and not the principles of economic entrepreneurial growth. As a result, the present leader, Barack Obama has no other option than showing that he is in charge of a failing economy by elevating many of his former comrades who had helped this princeling to attain his position of leadership.
In addition, Barack Obama has created an elaborate strategy of reviving the concept of Cold War between Russia and the United States.
At best that narrative is a distraction from the more serious issue of unemployment for millions of highly trained university students; as well as, inculcating some hope in a desperate America which can barely provide water for over 320 Million of its inhabitants in the western part of the country.
=====================================
Now, for the present situation.
America has just entered a stock market crisis where the large amount of leverage in their markets have created a ‘bubble’ where the highly inflated values will lead inevitably to a crash. That is not wishful thinking on my part. America has had an artificial economy where in the political leaders have granted large sums of liquidity to Too Big To Fail banks. The political cronyism has led to a depressed economy where the GDP may be entering negative territory. All these highly leveraged assets, stocks and housing will fall in value because there is not enough liquidity to maintain the artificial values created by the inveterate American big bank speculators [in derivatives].
Unlike the EU, America has its own currency. However that currency, once lauded as the world's Reserve Currency, is basically a worthless piece of paper based on the bad faith of the political system.
What do I mean?
America for too long has based its economy on political cronyism and not the principles of economic entrepreneurial growth. As a result, the present leader, Barack Obama has no other option than showing that he is in charge of a failing economy by elevating many of his former comrades who had helped this princeling to attain his position of leadership.
In addition, Barack Obama has created an elaborate strategy of reviving the concept of Cold War between Russia and the United States.
At best that narrative is a distraction from the more serious issue of unemployment for millions of highly trained university students; as well as, inculcating some hope in a desperate America which can barely provide water for over 320 Million of its inhabitants in the western part of the country.
