Sunday, October 5, 2008

USA - Superpower on the ropes



So if we digest the tripe that the US government is dispensing about the current financial crisis we would think all is well...Not so fast Charlie.
I'm not an economist by any means, but I do understand one simple principal - if you are spending more then you are making - you will go broke. End of story - simple really. Let's look at a few factors that are effecting the US Economy.

WAR - yes being at war tends to make lots of money for the companies producing armaments and high powered laser guided bombs, but does the government make any money from war? Take a look at the Cost of War page that outlines the amount of monies being spent, and how that monies could be applied to areas of national interest. The wars in Iraq and Afghanistan are draining Uncle Sam's coffers with no end in sight.

The American ideal is that anyone can have anything they desire. Sounds reasonable enough. But how does the "average American" pay for everything they desire when their company just moved to Mexico, and their bank just went under from giving out too many bad loans? Where before the almighty credit card was the answer - throw it on my plastic - now that too is not a viable solution. Minimum payments have to be made on credit cards - and how do you pay the minimum when your company just moved to Mexico and their bank just went under from giving out too many bad loans? Do you see a pattern here?

I'm in Canada so I'm looking at this from a different perspective then Americans . But we as Canadians have our lips latched tightly onto Uncle Sam's teat for us not to be effected by this current economic "downturn". If we look at history there has never been a country or civilization that has been able to stay a Superpower forever. Look at what happened to the Romans - seems in modern society we feel that we are immune to the pitfalls that happened previously in history. We're too smart for that to happen to us. Well look out your front window because it is happening right now. The changing of the guard.
When a superpower starts to fail so to, does the consumers confidence. Maybe we need to start another war to distract the sheeple? Hmm Iran is on the agenda maybe we'll just move it up a notch or two.....

The Emperor has no clothes.....