Diegetics

this article mirrors my sense of things, the only gotcha (which Im too ignorant to fully line up) is just how the savings countries actually keep their savings in this globalised world, with much of the debt held in american dollars.

If savings are kept in the local currency they will risk losing little of their value, if they are used for investment. If the idea is to hoard value, then gold is still the best answer.

.

Solving American economic problem and road to prosperity is simple and well known ..

All taxes should be abolished . . and . . replaced by "consumer tax" . .

As long as you do not consume, buy things, no tax no matter how much money one makes . .

Meaning saving rate will explode . . consume will collapse . . export will explode . . import will collapse . .


Yes, lots of pain . . but no pain no gain . .








.

.

WSJ has not a good track record of predicting these kind of things . . specially U$ interest rates . .

U$ interest rates are going to stay low for long long time . . therefore no such thing as U$ Bond Bubble . .


America is broke . . America must rebuilt American industrial base . . low interest rate is needed for this . .

Yes, capital is scarce . . but this does not bother FED . . printing money until FED runs out of paper . .

Result will be collapse of U$ . .

Is it good for America ? ?

For American industry is good . . for imports is bad . .

Imports will become more expensive . . exports become more competitive . . unemployed will fall . . consume will shrink . .


U$ %-rates will stay low for foreseeable future . . things are in very bad shape . .


.

And what's going to happen when the pension accounts are empty?

Haha, yeah, it sounds like it's gonna get pretty messy.

Reminds me of a saying popular back when I lived in the US: money talks, bullsh*t walks.

.

Doesn't matter how you cut it, America is deep


As long as Americans do not realize that and keep being fooled by charlatan politicians with quick fixes, borrow from Chinese & writing checks to Wall Street crooks, things headed to toilet . .

There is many issues with American economy . . but all boils to this : . . foreigners were paying for American life style, Europeans, Chinese and Japanese (Arabs too, but their money no real money, just Zeros on paper, basically they deserve it )

Only solution is . . tighten belt . . cut consume . . produce for export . .

How to pay back the Chinese what America owes (deficit) ? ? Dramatic consumption tax . .





.

Endovelico The Tea Party movement is the most milquetoast fascist movement in history.