When will the Economy Collapse? You’re Looking at It!

The following article originally appeared on OpEdNews.com.

Bill Clinton was elected to office as a “New Democrat” the moniker of “New Democrat” meant a business friendly Democrat. During eight years of Clinton the economy prospered due in large part to the rise of the Internet and the home computers and technology. As industrial jobs were disappearing Americans were told, “You don’t want those jobs anyway we’ve got new high tech jobs coming!”

In 1992 Ross Perot made his famous comment that if NAFTA was passed that Americans would hear, “a giant sucking sound of jobs going to Mexico.” NAFTA was passed and within ten years the giant sucking was heard in Mexico as well. In 1999 the Clinton Administration signed permanent normal trade relations with China as a precursor to full WTO membership. Since that time 65 percent of NAFTA related jobs in Mexico have moved offshore to China.

So called free trade has left collateral damage all over the globe but the owners and manufacturers are the same people. The alleged drug war in Mexico is a war for criminal market share in a declining market. Manufactures held out the lure of jobs and higher wages causing a population shift in Mexico and then pulled the rug out from under them once less expensive peasants were found in Asia.

Volumes have been written about the exploits of Bush and Cheney and volumes more will be written so there is no reason to expound on them here. Obama was elected as Hope and Change and yet there has been little noticeable change. More war, a larger pentagon budget while a commission considers cuts to Social Security and Medicare. Obama is a called a Socialist and a Communist by Republicans when his actions are demonstrably the opposite of Socialism and are better defined as corporate fascism.

Thirty years of unadulterated idiocy and not one voice in Washington or in the media will say, “Stop! We can’t do this anymore! We can’t keep exporting our labor to benefit the top one- percent; we can’t keep giving the banks free range to pillage the public. We can’t allow the largest transfer of privately owned homes in history to pass into the hands of the investor class. Class war? It’s class genocide! Yet no one says anything, nobody moves.

China is now the third largest economy in the world and its growth has been fueled primarily from the United States, as China isn’t even a factor in the European Union. American manufacturers outsourcing production overseas so that America supplies primarily raw materials. General Motors, Ford and Toyota take $5,000 dollars worth of raw materials and turn it into a $30,000 automobile. That is wealth creation in a nutshell. Supplying raw materials will never build a strong economy and will never create more than a few jobs.

America can no longer afford the super mega fighters planes it once built nor can we afford space exploration. By the end of this year the United States will no longer be able to launch men into space for the first time since 1961. It was the space program and the technology it inspired that gave the United States its technological lead for the past fifty years.

We are running enormous trade and budget deficits but unlike the Republicans I don’t see the problem as being in the dollars amounts. You run large budget deficits during economic hard times and pay it back when times are better. The problem is who we are borrowing the money from. It’s one thing to borrow money from your uncle or parents but its another thing to borrow money from Lenny the loan shark down on the corner.

Our economy is now wholly dependant on cash from foreign powers and nobody talks about fixing that. Our economy is melting away with long term unemployment expected to last for years and nobody has a plan to fix that.The Gini coeffienct used to gauge income distribution by the United Nations has the United States at 40.8 measuring the overall fairness of an economy. For instance Denmark famous for its equitable society has a 24.7. France is at 32.7 and Germany a 28.3, Japan 24.9. The US economy is closer to nations such as Jordan 38.8 and Morocco 39.5, Mexico is at 46.1 and the Peoples Republic of China is at 46.9

When people forecast the imminent collapse of the American economy I say, “look around! This is it!”

Economists of all stripes have all commented on China’s property bubble as hedge fund manager James Chanos said on the Charlie Rose show the other day, that China is “on a treadmill to hell,” the same sentiments are offered by Paul Krugman and Ben Bernanke. As in Mexico, free trade has created false hopes and rampant speculation. The Chinese government has two choices: let the good times roll unhindered and hope for the best until the crash or try to throttle the economy and hope that it doesn’t cause a crash. The first way a crash is certain to happen but no one can say when the second way a crash is almost certain to happen, only sooner.

When it does come it will create an economic vortex like a black hole and will swallow the whole economic universe. The fate of the United States of America is in the hands of a Chinese dictatorship. There is no divining it, there is no logic to it, only greed and power and idiocy and no one has the courage to say, Stop it.Our economy is now wholly dependant on cash from foreign powers and nobody talks about fixing that. Our economy is melting away with long term unemployment expected to last for years and nobody has a plan to fix that.The Gini coeffienct used to gauge income distribution by the United Nations has the United States at 40.8 measuring the overall fairness of an economy. For instance Denmark famous for its equitable society has a 24.7. France is at 32.7 and Germany a 28.3, Japan 24.9. The US economy is closer to nations such as Jordan 38.8 and Morocco 39.5, Mexico is at 46.1 and the Peoples Republic of China is at 46.9

When people forecast the imminent collapse of the American economy I say, “look around! This is it!”

Economists of all stripes have all commented on China’s property bubble as hedge fund manager James Chanos said on the Charlie Rose show the other day, that China is “on a treadmill to hell,” the same sentiments are offered by Paul Krugman and Ben Bernanke. As in Mexico, free trade has created false hopes and rampant speculation. The Chinese government has two choices: let the good times roll unhindered and hope for the best until the crash or try to throttle the economy and hope that it doesn’t cause a crash. The first way a crash is certain to happen but no one can say when the second way a crash is almost certain to happen, only sooner.

When it does come it will create an economic vortex like a black hole and will swallow the whole economic universe. The fate of the United States of America is in the hands of a Chinese dictatorship. There is no divining it, there is no logic to it, only greed and power and idiocy and no one has the courage to say, Stop it. How could this happen?

It happens when government no longer answers to the people and only to the people with money.

It happens when government no longer answers to the people and only to the people with money.

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