Quote from PaulRon:
Production and innovation is the backbone of any healthy economy, not consumerism. The reason we are able to maintain a 70% consumer economy is because the rest of the world is still accepting US dollars in return for their goods. Great things are in our future only if our currency holds up, and as it sits now it's at an all time low. Who's going to want to hold depreciating dollars?
On the supply chain argument - an analogy I like is this:
A new economy springs up on a deserted island with 6 people. One person hunts, another cooks, another builds the fire, another cleans the dishes, another builds shelter, and one person (the American) is allowed to eat and live without lifting a finger. Will the other 5 people be worse off if they kick the American off the island? Of course not, they will all get a little bit more relaxation and time to enjoy the fruits of their labor.
Believing that our banking system is so robust and high tech that we're able to create wealth is a complete fallacy. Wealth is created through production and hard work. How long do you think the American will be able to sit on top of the food chain? When will the rest of the world stop funding our consumption?
