It would seem logical to me that when the news anchor who cried wolf (claimed the imminence of recovery over and over with no result) proved to be either exaggerating, or just plain misinformed, my faith in him, his
But, what if all the news anchors on all the
To be sure, there are some indicators that imply increasing confidence, such as a rising stock market and reports of new jobs being created. However, rather than take these reports
And, if we hear a report that the number of barmen and barmaids has increased significantly, this is not a sign of renewed prosperity, but rather a sign of diminished hope. (In the Great Depression, the numbers of purveyors of alcohol increased, as well. When people are confident, they drink. When they’re worried, they drink more.)
So, are these “indicators” evidence of a decline? Well, no, but neither are they evidence of a recovery. In attempting to predict the future of America’s economy, we should not look
So, then, let’s have a look.
For decades, American wages have risen above those of most other countries, making American goods more expensive without necessarily being better. Also, more and more people have been promoted on seniority than ability, causing inventiveness to lag. At the same time, state and federal regulations have expanded dramatically, creating a web of red tape and stumbling blocks that slowed production, increased the cost of production and, in some cases eliminated production. To ice the cake, the corporate tax rate was raised to 38.9%. (The worldwide average is 22.5%. Only Puerto Rico has a higher rate than the US.)
There’s an old saying that business goes where it’s most welcome and, of course, that means that both
More to the point, these industries are unquestionably not coming back. On the American news, much is being said about “making America great again” and a significant component of that concept is intended to be the return of American business.
This is all well and good for political rhetoric, but for businesspeople, “once bitten, twice shy.” A token return may be implemented by some American companies seeking
More importantly, the American public are unquestionably not going to accept the idea that their wages need to be lowered dramatically in order for them to regain competitiveness. As it is, whatever advances they’ve enjoyed in recent decades have been swallowed up by an increased cost of living that has not kept pace with wages.
Of course, when we observe American news
To make matters worse, the US is now the foremost debtor nation the world has ever seen. The petrodollar and the dollar as the reserve currency are both on the ropes.
When one country prospers beyond the level of its competitors, it’s due to productivity. Whoever builds the better, cheaper mousetrap gets the cheese. When the reverse is true - when a country goes into a decline due to
And yet, although jobs are increasingly being lost in the US, major companies closing down their retail outlets and many industries are operating on the smallest of margins, the golden goose that was America’s exceptional long run of prosperity is still excitedly running around the farmyard. This gives the impression of a vibrant economy, but it is instead the final run of a dead goose.
At present, the US retains much of the appearance of its former glory. It still displays its military might. And the public are not yet aware that the world has begun to dump US treasuries back into the system, precipitating the necessity for a debt default by the US. But, as the dollar loses its power, as it’s presently in the throes of doing, it will no longer be possible to repay debt or to fund the military.
Just as it’s true that a bird may often run around excitedly when its head has been chopped off, an economy tends to do the same. The reason for this can be found in one word: confidence. Confidence tends to remain until the general public grasp the reality of the collapse. It’s only when they
This is not a new situation. It’s occurred countless times in world history. However, for many westerners, it’s the first time they’ll witness it first hand, on their own soil and, in their experience it will be the first time. Those who see it coming and prepare themselves will be those who fare best when it comes to pass.
- Source, Jeff Thomas