The Fall of American Consumption = The End of America

America will not survive in this global economy because of big government and people's demand for jobs, jobs, jobs. It's not about jobs it's about consumption. This is because in a global economy with cheap labor your manufacturing base will be hit. This means consumption needs to increase and Government spending needs to decrease.

The cost of labor in America is high and a blind man could see this coming. Other countries will hold our debt as long as we consume their goods. So the American people can borrow and consume as far as the eye can see. The problem occurs when government borrows, waste's and spends as far as the eye can see.

This is why 2 trillion dollars in private money is sitting on the sidelines. They know that money given to Americans will not go to Consumption but to support massive government and massive debt and to pay bills.

Sadly, the economy will crash and this is why the recent tax deal was bad. All of the tax cuts should have been made permanent and all of the spending should have been cut off.

All of this spending is just the Government trying to do what the private sector isn't doing because Government is getting in the way. Sadly Obama wants us to go back to production based economy and this will take time. We have to wait until other countries began to up their labor standards and we can't make them do it. So we have to play the position as the worlds consumer and you will get jobs, jobs, jobs because a consumer based society will produce more entrepreneurs and people switching to the service sector. This will stimulate the economy, not government.

Here's an article about the fall of the American Consumer which will mean the crash of the American economy. We can't have a 14 trillion dollar GDP and close to 14 trillion dollars in debt. That's just insane in a global economy with cheap labor.

U.S. consumption used to account for about 20 percent of the world's economy, but that's dropped to nearly half since the financial crisis. President Obama says we need to export more now, but will countries like China or Germany agree to help?

In a nutshell, the Obama administration wants everybody else to export less, so we can export more and so let our economy grow that way.

marketplace.publicradio.org...

This is insane!!

Obama is worried about production and being a big government, big union backed economy. This is not 1960. We can't expect other countries to give up their advantage because we want to export more. We have to reduce and slash government spending.

I agree, we can start by eliminating a huge portion of the waste in our defense budget. I know the argument, cut defense, lose jobs. Unless we try we will never know. We will never know because of the military industrial complex will create the problem, then we will have to spend to fix it. I hope that i am not rambling too much, but I think it is too late.

reply to post by Matrix Rising


Hmm.. as the largest consumer in the world, I'd doubt America will fall alone.

Originally posted by Nephalim
reply to post by Matrix Rising

 

Hmm.. as the largest consumer in the world, I'd doubt America will fall alone.

Agreed and most fail to realize this simple but predictable outcome and the obvious outcome that will follow and i am not referring to an economic war but an open season on weaker nations with intense natural resources that will simply be unable to defend their physical borders.

Originally posted by Nephalim
reply to post by Matrix Rising

 

Hmm.. as the largest consumer in the world, I'd doubt America will fall alone.

This is true up to a point. If Asia and turns some of it's people into consumers it could mitigate the fall of the American Economy. Actually, China is trying to turn more of it's people into consumers. This is where we thrive but Obama and others love big government and they actually see American consumption as a bad thing.

This is why we should make all the tax cuts permanent and reduce the Corporate tax to zero and cut the capital gains tax in half. Money and credit will flood into America. This is one of the reasons this money is sitting on the sidelines. Companies make money overseas and it's taxed and in order to bring it back to America it will be taxed again. So these companies just keep the money overseas instead of investing in America.

In 1960 it was different. An American company made most of it's money in America so this money went back into the American economy. With a Global economy, many companies make a lot of their money overseas and they keep it there because the greedy government wants to tax them to invest that money in America.

Originally posted by tristar

Originally posted by Nephalim
reply to post by Matrix Rising

 

Hmm.. as the largest consumer in the world, I'd doubt America will fall alone.

Agreed and most fail to realize this simple but predictable outcome and the obvious outcome that will follow and i am not referring to an economic war but an open season on weaker nations with intense natural resources that will simply be unable to defend their physical borders.

It will not take an economic fall to bring this about. It has already happened. Many business enterprises under the guise of being "benevolent organizations" have already purchased large tracts of pristine lands in various countries. Something has already been set into place and into motion. Preparations for the new infrastructure are ready. TPTB would not allow this collapse if they had not already been prepared for the fallout. I think everything happening right now is directed towards achieving that end. It will come down to judgments and selection.

Originally posted by Alethea

Originally posted by tristar

Originally posted by Nephalim
reply to post by Matrix Rising

 

Hmm.. as the largest consumer in the world, I'd doubt America will fall alone.

Agreed and most fail to realize this simple but predictable outcome and the obvious outcome that will follow and i am not referring to an economic war but an open season on weaker nations with intense natural resources that will simply be unable to defend their physical borders.

It will not take an economic fall to bring this about. It has already happened. Many business enterprises under the guise of being "benevolent organizations" have already purchased large tracts of pristine lands in various countries. Something has already been set into place and into motion. Preparations for the new infrastructure are ready. TPTB would not allow this collapse if they had not already been prepared for the fallout. I think everything happening right now is directed towards achieving that end. It will come down to judgments and selection.

In my opinion the so called TPTB is a infant wanting to play in a sandbox, it the shift power currently underway in the energy sector that indicates what is about to happen. we are indeed living in very unstable times and fail or are simply oblivious to the outcome.