Image by bobster1985 via FlickrI've been fairly silent in the past month, because I was waiting for the last shoe to drop. I thought that politicians would start speaking the language of the average person, but it seems that they are still enveloped in their fantasy world.
They are playing politics as the economy burns to the ground and believe me it is a 20 alarm fire. Congress seems to be caught in the 0's culture of drugs that can allow people to hallucinate that reality depends on perspective. It seems that they are hallucinating that the bottomline keeps falling lower and lower in respect to the how soon they will be solvent again.
Every day people are looking at their retirement and their bank accounts and praying that they are caught in a bad dream. Sorry people, this is not a bad dream it is what happens when a country stops making things and all the money has been sent to asia. You see what the politicians and economists call a global economy is a fantasy that a fool dreamed up. You can not have jobs in a country this size if people are not buying goods made in the country. The bottomline is that buying american was not just a slogan, it was an economic necessity. But, companies in the U.S. were greedy and the American people wereg greedy. The companies sent all the products that were made in america out to be made overseas and the American people blindly invested in those companies. Well, the chickens have come home to roost. Empty factories that could have pumped money into the economy and kept the wheels greased are crumbling and the mask of prosperity has fallen off. People can see that the money they thought was here was never here and now the government has to print it and hand it out, so that this country will have money in it's economy.
What people and economist failed to understand was that the economy of a country is a fish tank. Monet goes around and around in a circle over and over again and it gets more added to it as it is needed, like the water in a fish tank.
So what happens when you start pumping water out of the fish tank. It runs out and the fish die. Well America pumped dollars out of the country and the economy died.
Make no mistake the economy is dead. The question is can it be revived. The answer is no. This economy is dead forever. The days of borrowing insanely are over. The days of spending with impunity have ended. A new economy must rise from the ashes of the old economy. People in the U.S. have to make things again. They need to buy what is made. This country got to be the greatest economic power in the world, because we made it better, smarter,and in large enough quantities so that products were affordable and reasonable. Now things are disposable. Nothing last like it should. People have gone back and bought the ssame things ovr so many times that they are in debt up to their armpits. They depended on raises to stay ahead of their debt and most of them did. But, and this is the big but, the things they bught were inflaated in price. They were spending money to buy things that lost half their value when it left the store. That was the begining of the end people. When you can't sell your things for more than you bought them for, when your house has no one to buy it, because the price is out of everyones purchasing power, it all comes crashing down. The U.S. economy became a giant pyramid scheme and the music stopped playing and millions of people were left without chairs. They had no savings. Their houses were overvalued and there were no buyers. Result: An economic crisis that rivals the great depression.
Of course the banks didn't help, because they handed out money like mints in a hotel and relied on borrowing more until they were repayed. But suddenly, millions of people were not repaying the money. The banks couldn't borrow more than what they could repay and they couldn't repay anything. So, the banks began to fail.We threw money at them to save them, but n one asked if they were in debt so deep that they were lost.
Obama has asked the 1 trillion dollar question. How much do they owe? This is something that Wallstreet doesn't want to know. Commpanies don't want to know either. Really no one wants to know, because if they have too much debt, no amount of money will save them. Think of all the money you won't have if they default. Nothing will be worth a plug nickle, because everyone will be broke. There will be no buying, no selling, nothing. What you have right now is what you'll have 5 or ten years from now. This is the skeleton in the closet and Obama's about to open the door.