Is US economy a big Ponzi scheme?
- Thread starter freewilly
- Start date
We pretty much have a monopoly on selling computers, airplanes, and telecommunications equipment... all the stuff that every country needs to not be in the stone age and you think we dont produce anything?
Not to mention we are the worlds leader in creating medicines.
And did i forget that the world loves our hollywood movies? In almost every country in the world, you can see a hollywood movie somewhere dubbed in the language of that country. When was the last time you went to the movie theater and saw a film from another country dubbed in english? Probably never.
Its like you think if we dont have any automakers, thats it for the USA. Its not...it really isnt.
Not to mention we are the worlds leader in creating medicines.
And did i forget that the world loves our hollywood movies? In almost every country in the world, you can see a hollywood movie somewhere dubbed in the language of that country. When was the last time you went to the movie theater and saw a film from another country dubbed in english? Probably never.
Its like you think if we dont have any automakers, thats it for the USA. Its not...it really isnt.
If you consider the $2.5 Trillion Bail-out then FED just keep printing money and distributes it.
USA government clearly knows that there is "no sales future" because of "global meltdown". But USA government has invested $2.5 trillion dollars with "worthless giant companies and Banks" without any "business brains". These giant companies have been declared Bankrupt if it wasn't for Fed's help.
Bankrupt companies do not survive for long and they shut down after sometime.
USA government clearly knows that there is "no sales future" because of "global meltdown". But USA government has invested $2.5 trillion dollars with "worthless giant companies and Banks" without any "business brains". These giant companies have been declared Bankrupt if it wasn't for Fed's help.
Bankrupt companies do not survive for long and they shut down after sometime.
7 Trillion over-and-above what was needed.
Yea, thats Ponzi.
As for the Fundamental Sound"ness" of the US economy.
Its quasi ponzi. America does innovate and control the manufacture of many high-tech, industry leading products.
But the haymaker is its reserve status. Without that, I doubt the US Gov could float 1/3rd its current debt level without rates going through the roof.
Yea, thats Ponzi.
As for the Fundamental Sound"ness" of the US economy.
Its quasi ponzi. America does innovate and control the manufacture of many high-tech, industry leading products.
But the haymaker is its reserve status. Without that, I doubt the US Gov could float 1/3rd its current debt level without rates going through the roof.
And therein lies the MAJOR problem.....
Yea, time will tell.
Its gonna happen. The question is: how soon?
Rogers, Faber and Schiff think it's right around the corner. In years, not decades.
Banana Republic, here we come.
Its gonna happen. The question is: how soon?
Rogers, Faber and Schiff think it's right around the corner. In years, not decades.
Banana Republic, here we come.
Currently, the Gummint takes in about $2.6 Trillion in income taxes, but routinely spends about $3.1 Trillion. This is not something new... has been going on at a signfiicant rate since FDR's time. In fact, deficit spending was a big part of putting Americans to work after the depression.
Since FDR's time, there have been deficits virtually every year... both parties equally guillty overall.
Deficits took a big jump under Reagan with defense spending.
Deficits widened with Congress glomming onto the idea that "Reagan proved deficits don't matter". Of course, deficits DO matter.
If the US is to avoid becomeing a 3rd world economy, the Gummint must cut back and stop deficit spending. But our Gummint rarely cuts back at all on anything. Gummint and deficits just keep growing and growing.
Were the $USD not the world reserve currency, the free market would have chucked us into the trash a long time ago..
THE GUMMINT IS DESTROYING AMERICA WITH THEIR GREED!!