Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature currently requires accessing the site using the built-in Safari browser.
Well the facts are foreign financed debts are hard to shake without balkanization as the FSU, former Yugoslavia and former Czechoslovakia illustrate. Eurasia and the Americas have certain common problems:
Less than ZPG or growing old without growing rich as the Chinese put it. The US is one of the exceptions to this rule. Much of Eurasia's educated youth would like to flee this situation and a critical chunk of them do by going to Canada, Australia and New Zealand. But given the dependence of CANZ on raw material exports to China, Korea and Japan a Far East slowdown will be destabilizing for all three of those countries. This will transmit problems to the US because of our ties to all three countries.
Ethnic divisions due to the borders of countries bearing no resemblance to language and racial divisions. The US is doing relatively well on this one, much better than the UK and somewhat better than Canada. However some level of nationalist divisions is true in most of Eurasia already and to a lesser extent here in the Americas. That too will feed back into the US.
But the biggie is the debt level and foreign ownership of much of that debt. Given a ringside seat to see the relative performance of different solutions to the worldwide nationalist/demographic debt crisis, the US will choose relatively peaceful Balkanization as the best means out of trouble. Balkanization will permit each state or group of states to use any semi-reasonable formula to calculate their share of the national debt or about a 90% haircut for the creditors.
The US may or may not reunify but NAFTA membership will be retained by essentially all successor states.
[q
Do you have anything of substance or personal opinion about this matter you would like to elucidate or are you stuck with the same one liners most Leftists prefer due to their genetics being from the very shallow end of the gene pool?
The Economic COLLAPSE Will Be Like A Slow Motion Falling House of Cards.
The Commerce Department recently confirmed what I have been telling you for years. The economy is in a continually deteriorating state. Everybody can now see that there is no growth momentum. Be prepared for a protracted Bear Market.
Last Friday the Commerce Department reported that our GDP grew at an Dismal Annual rate of 2.4 percent in the second quarter. Remember that is a projected Annual Rate. That has fallen from 3.7 percent in the first quarter and 5 percent in the fourth quarter of 2009. Remember this is AFTER Obama injected a trillion dollars into the economy. It is obviously having a little effect for the good, but the reality is that we are collapsing inspite of all that government spending.
Why?
Take a look at state and local government spending. As these stressed-out governments try to deal with their own river of red ink, spending is decreasing at a rapid clip. The Federal Government increase in spending is being offset by State and local Gvernment decreases in spending because of decreasing tax revenue.
We are now seeing inventory buildup. Manufacturing looked good while we were restocking shelves and warehouses, but now the products are piling up. So unless consumers go on a wild spending spree, businesses won't be restocking their shelves in the foreseeable future.
Foreclosures are still continuing and in some parts of the country are increasing. Now it isn't the bamboozled minorities who can't pay their mortgates, it is the people who are out of work who can not pay. They have used up their savings and simply can not make another payment.
How can this be? We should be adding 200,000 a month to the Labor Force if our economy was solvent. Unfortunately, it isn't, and we have been dropping Millions of people off of the Labor Force. These millions are now in various stages of default on their mortgages. And now Geitner has been saying that Unemployment may even go up in the near future. Well, at least he is trying to be honest.
Can you see those slow motion cards falling one by one by one
Now for an ugly reality. GDP figures for the past three years were revised — downward in seven of the 12 quarters — because consumer spending grew slower and home building fell harder than had been estimated. This means, without doubt, that the recession is far worse than government officials are telling us. Those cards keep on falling.
What do you think are the causes of this imbalance in our economy, Neubarth?
Do you really that think the whole problem is just that our governments are spending too much?
Or, do you think that there are other fundamental problems in our economy?
And if you do think that there are other fundamental problems, what do you think those other problems are?
thanks US, love economics lessons from someone who's never seen the inside of a college. Not even a junior college.
What do you think are the causes of this imbalance in our economy, Neubarth?
Do you really that think the whole problem is just that our governments are spending too much?
Or, do you think that there are other fundamental problems in our economy?
And if you do think that there are other fundamental problems, what do you think those other problems are?
The biggest problem with our economy is that we do not have full employment. Create the jobs and all the other problems can be solved. With full employment, tax revenue goes up and governments do not have to run deficits.
Let's get started on diverting one quarter of the Mississippi River Water Flow to the arid West and start producing agricultural crops that can be used to produce fuel to run cars and food to feed China. Poof, our balance of trade deficit would be gone. Let's get it done.
William Brewer, head of the National Association of Consumer Bankruptcy Attorneys, says student loan defaults in the short term "are are not gong to have the same ripple effect through the economy that mortgage defaults did," but he told The Washington Post student loan debt poses a risk to the economy.
"This could very well be the next debt bomb for the U.S. economy," Brewer said. He said his main concern is the long-term effects of student loan default, which may make student loans too risky for lenders. "Our best and brightest won't necessarily get the education that they need to move us forward," Brewer said.
A recent study by Brewer's organization found more than 80 percent of bankruptcy lawyers have noticed a sharp increase in the number of people seeking relief from student loan debt. The amount of student loan borrowing in 2010 was $100 billion, but that shot up to $867 billion in 2011, surpassing the $704 billion in outstanding credit card debt, the Post reported.
Read more: Student loans may be 'next debt bomb' - UPI.com
Cities need to learn to live within their taxation means and quick. They will have to decide how to survive without state and federal funds and quick. That means a LOT of people are going to be hurt, and a lot of gravy trains are going to end. Many communities are going to have to decide how to prioritize and codify it into law on where cuts are made first, to protect truly essential services.Whatever you thought of Neubarth, he was correct about a s-l-o-w motion economic house of cards falling.
The list has begun......Stockton, Scranton, San Bernadino..............soon to be coming to a town near you.
Always felt since the inception of the 2008 economic crisis that this is not a 'Great Recession', but a slo-mo depression.
The chickens are coming home, and will continue to come home to roost.
We used to have some insightful economic posters here at USMB, with 'William the Wie' being another.
They deserve recognition. Only reason I dredged this ol' thread up.
