The Coming Economic Collapse, Part 1
Great article! I look forward to parts 2 and 3
A good synopsis of the series of the major events and trends that were instrumental in our demise. Whatever made Americans think that their bad policies wouldn’t come home to roost?
investorzzo – thanks for bringing this great series of articles. Graham Summers gives a great overview of the irresponsible economic policies that have led us to this point.
A lot of folks have made a big deal about the US running a $1 trillion deficit this year. Well, if you included the net value of those unfunded Social Security and Medicare expenses we cleared a $1 trillion deficit in 2007, a $5 TRILLION deficit in 2008 and are on course to clear a $9 TRILLION deficit this year.
To give you an idea of how big a problem these deficits are, consider that the US government could tax its citizens 100% of their earnings and NOT have a balanced budget.
For us CC graduates, the sequence in the growing deficits look a lot like an exponential function. We know from the CC that debt must perpetually grow without interruption. It is impossible for us to ever have a balanced budget because this would collapse the debt bubble.
We hit a point some time ago whereby the private sector is neither willing nor worthy to sustain the needed expansion of debt and so the government steps in to be the borrower of last resort.
Interesting article, although i think the US outsourced more jobs to many places other than china.
Also i was under the imperssion that it really started to steamroll in china much more recently?
Sounds about right to me……."People no longer want to get an MBA to become a broker or a financial advisor."