Originally posted by In nothing we trust
As you can see from the graph, three waves of foreclosures were engineered using the central bank.
You think it might be more reasonable to say that the existence of the Federal Reserve itself perhaps facilitated these cycles? That they engineered
economic overheating to produce bubbles and busts, and ultimately foreclosures, through the use of its inflationary powers is kind of inconsistent
thinking. I believe your graph is correct, however you mistake the perpetrators. While you believe this corporate institution is to be blamed, it's
more likely that these problems stem from bad government policy and financial irresponsibility on the part of consumers, and ultimately a deficiency
in the Federal Reserve to follow all the actions of these erratic players, and apply policy both timely and appropriately. They can't do everything.
They have to balance domestic interest rates against foreign exchange rates.
I would like to add that the only way America can continue on financially the way it is now is if there is some kind of expectation by foreign
entities of an American resurgence in the future. Foreign governments and corporations were still buying U.S. treasuries when they were teetering on
negative. In fact, they bought MORE than ever before! However, all recessions must be short term. Historically, we could rebound from recessions
because we were the supreme military power on the planet, and we had vast control of oil. But with our sphere of political influence waning, and our
economic power being matched by a bunch of new and emerging economies, notably China and India, we can't dig ourselves out like we did after the
Great Depression and after the 80's.
Anyway, a devaluation of the U.S. dollar isn't going to spell poverty and destruction, or even break up the Constitution of the country. We'll just
place more emphasis on the capital we are all currently ignoring. I mean, we are home to Microsoft after all. If only something just as innovative
would be realized once again.
As soon as the world gets tired of all these inevitable recessions that come with dependency on the U.S. economy, and as soon as they realize the U.S.
is overextended financially and militarily, there should be no problem finding a new global currency standard. While such a change would be
devastating for the current consumer-based economy that we all a part of, and even the producer-based economies of foreign countries, which feed us,
it will only put more emphasis on creative capital than ever before. We should be confident in having the best scientists, weapons technologists, and
manufacturing specialists on the planet.
War isn't an option because we're extremely overextended both financially and in our political presence. Creativity is the next best bet. Something
real cool should emerge, the least of obvious being alternative energy production. This century is going to be very interesting considering that oil
will be a fantasy, only read about in books, before most of us die. Just think of something in the scope of Microsoft but dealing with new technology,
such as flying cars, or a source of unexpendable wirelessly transmitted electricity.
[edit on 12-1-2009 by cognoscente]