Why The U.S. Economy Will Collapse

[No DUplicitous DUpe]

posted with permission from: http://sane-ramblings.blogspot.com/2010/02/why-us-economy-will-collapse.html
(note: these problems were set in motion long before President Obama took the oath of office)

1) A nation can't borrow and print its way out of a debt crisis. It destroys confidence in its currency and makes matters worse, regardless of how charismatic its president.

2) A nation's consumers can't shop their way to prosperity by buying goods they can't afford. It only compounds their debts.

3) A nation can't sell its government to the highest bidders. When that happens, not only is the treasury pillaged, so is the freedom of the people. The latter just takes a little longer.

4) A nation can't drain its resources on weapons and wars. It's the fastest way to the poor house, morally and financially, for beating people into submission doesn't work and extracts a heavy price on the souls of those who try it.

The financial collapse has already begun, but there is good news as well. The collapse will force the people to get involved with their government, rather than just casting a ballot and assuming the politician they voted for will fix the problems.

It is also a chance for the people to learn from their mistakes and build a better, more humble and compassionate nation, one that uses its resources to uplift itself and the rest of the world. For that is how one truly finds peace and prosperity.

[HBravo]

1. In regards to #2

It doesn't help that the money spent on these goods goes out of the country (most to China.) If it stayed here there would be more hope.

[No DUplicitous DUpe]

3. If we made more stuff here, it would help, too.

Thank you for your comment!

[invictus]

2. K&R

[TheWatcher]

4. Great Post.

I can almost hear the thunderous, unison cry of "It Doesn't Exist!" from the usual suspects, but The Truth is not something Americans can deal with, and in the end, that will probably contribute to the Downfall of this country more than anything else.

[Warpy]

5. I'd add #5

A country can't ship all its manufacturing to cheaper labor markets and expect to do anything but fail as its people are jobless, its revenue stream decreased, and political unrest by people who have nothing to lose increases. Such a country can delay the inevitable by offering a never ending supply of cheap debt but eventually a debt ceiling will be reached and the whole business will come crashing down, usually quickly.

That's what's really at work right now, together with your #4.

We'll have to abandon Empire in favor of getting our industry back in operation if we're ever seriously concerned with national security. Shipping key industries offshore has left us incredibly vulnerable to even a small trade embargo and trust me, it's coming.

[No DUplicitous DUpe]

6. Thank you!

An excellent addition to the list of problems we face.

[my2sense]

7. k & R

[EmeraldCityGrl]

8. The best case scenario would be for us to build

a nation that you suggested would be better, more humble and compassionate.
The worst case would be turning into a nation that resembles 1930's Germany.
A nation to bitter and disillusioned to save itself from itself.

[quaker bill]

9. Some of this is true, but the question is when

and the answer is not now.

Inflation is the answer to the debt crisis, and always has been. Inflation has been held abnormally low through tight monetary policy designed to depress wages for decades. It has been effective, productivity is up, wages are stagnant, profits for the investor class have soared, and the concentration of wealth is at historic levels. This was the precise intent.

A larger but still moderate rate of inflation in the 4 to 6 percent range causes wages to rise and the relative value of debt to shrink. As wages rise and the relative value of debt shrinks, consumption expands.

The nation is not selling its government.

You are correct on the military. The problem with deficit spending to build the military is that you get little for it. The best outcome is that all the crap you buy with the money rusts in storage. The same dollars spent on schools, research, and public infrastructure, first creates vastly more jobs, and second, creates public infrastructure that we can all benefit from using. Guns, tanks, and bombs require massive expense in blood and treasure to use. A better electrical grid, schools, and public libraries can be used for far lower cost.

We will unravel our military empire voluntarily, or at some point, others will unravel it for us.

[Ghost Dog]

20. Let that be so. n/t

[TexasObserver]

10. The nation CAN borrow its way out of a debt crisis. It's done it before several times.

The devalued dollar makes debt repayment easier.

[tex-wyo-dem]

11. I agree with the last two paragraphs of the OP...

The downside is that in the short- to mid-term, many people will suffer in the transition (mainly the little guy like most of us). But in the end, if we do truly become a more compassionate, humble nation, the pain willl be worth it.

Other positive examples to consider are that many former empires, particularly in the last 200 years, have successfully unraveled their empires and become better nations...the English, French, Dutch, Spanish and Portugese are a few that come to mind. If the U.S. decides (or is economically forced) to take these as examples of what needs to ultimately happen, we will all be better off.

[troubledamerican]

12. When collapse arrives (1) NSDAP Queen Palin becomes serious WH contender, and

(2) your plan to head for the hills will be too late, because travel will be prohibitively expensive.

[No DUplicitous DUpe]

13. I don't think Palin wants the White House...

...She just wants the money and fame. She won't run.

[troubledamerican]

18. April 4, 2015

[No DUplicitous DUpe]

19. What happens on that date?

Sorry, I don't understand.

[OneGrassRoot]

14. K&R :) n/t

[DCBob]

15. I doubt there will be any "good news" from a collapse.

Those with money, land and guns will rule.... even more than they do now.

[Odin2005]

16. K&R

[Echo In Light]

17. Precisely what the "anti-terror" legislation has in mind: scores of Americans in the streets

Then you're not a systematically fucked over dupe, no...you're a terrorist since you oppose the aims of elites.