The Peace of God to all that belong to the light,
I have had during this last weekend a so clear and strong premonition concerning the performance of the American Economy.
From which I am perceiving, if Mitt Romney become elected tomorrow as President, and he accomplish the economy plans he is promising to the electors,
he might push the USA into a second Great Depression.
His economic programs are based on gradual de-regularization of the forces of the Market, to let them flow freely subject only to the free offer and
demand, and that might include all the markets, Wall street and the financial one too.
The other important element of his policies is to believe that we need to reduce the State to almost nothing, in other words to eliminate its role of
regulator of the economy and put in the streets millions of public employees since there is no funding to have them working for the government.
The social security system of the USA is extremely inconvenient to make the country really attractive for investors according with his own ideas of
how to motivate growing. This might signify that he is not willing to continue giving unemployment insurance to millions of people.
His recipe of how to reactivate recovery is to eliminate taxes, reduce the size of the State and reduce labor benefits, almost the same strategy
followed by Ronald Reagan in 1980's, the one that push the economy in to growing, but after more than two long years of complete mess, during his
The difference in between that era and the current is that we have at present Globalization, a very important element that Reagan never dealed with.
On a Global economy these kind of measurements are not going to activate the economy, since anyway the investors always have economic "paradises" like
China or India, that thanks to their giant populations and very poor average standard of life, can always improve any price of anything, they can
work always for less than any American can do it.
In 1991 when George Bush, father, signed the Nafta, he could move gradually the economy during another grave recession, created as a side effect of
the excessive de-regularization after Reagan phenomenon, and the war he himself declared in the Persian Gulf, primarily because millions of
American products invaded the markets of Mexico and Canada, that extra consumption plus the relative cheap Mexican hand work created two giant flows
of income into the American economy.
By one side the exportations to the Mexican Market , as well as the Canadia, moved the economy a lot, created a stable flow of money into the USA,
and by other side the production of American industries in Mexico sent cheaper items to a depressed market that could consume them, more rapidly than
when everything was produced in the USA, recovering the demand.
The difference with respect to the present moment is that the countries that are sucking almost all the profit in this market, leaded by China, are
consuming so few from the States, practically nothing in comparison with what they are exporting to here, and if that is not enough, we own to them
hundreds of thousands of millions of dollars in debt, so it is an absolute deficit equation. Pay attention to this hugh difference, since we never
owned money to Mexico or Canada, as it is with China now.
The only way to reduce the debt with China, recovering the value of the dollar and at the same reduce such a risky dependency is by taxing the great
capitals in the way Obama is proposing. With more public resources also the government can move the economy through civil works, something now is
very difficult. So it is not true that the government might be richer with more taxes, but it will have more capacity to move the economy forward,
something that the private sector is not doing at present.
In times or Reagan the wall street was regulated, possibly not as much than now, but certainly many times more than what Romney wants, that is
another key factor to understand that the recipe he is used worked perhaps in the 1980's but now is going to push us into a great Depression.
Everybody accepts now that the lack of regularization in the George W. Bush era was responsible of the crash of 2008.
Check the European case, the current economic schemes that are ruling the countries on crisis, that are suffering now the first stages of a
depression, are all inspired in the same models of reduction of the state and liberalization of the markets promoted by Germany.
The Best way to understand that the Romney’s economic plan might be a fiasco, if it is implemented ,is to compare the countries in crisis in the
other side of the Atlantic: Spain, Greece, Portugal, Ireland, Belgium, all with great private sectors and extremely reduced public ones, with
respect to the ones are in healthy economy, like Sweden, Norway, Denmark, Nederlands, Switzerland, in which the role of the state is as a firm
regulator of the economy with solid social security systems and well established proportional taxation to the capital, and moreover strict regulation
of the financial markets.
Sorry for my readers that are falsely expecting a miracle from Romney, he might be nicknamed the Madoff of the politics, in the future if he becomes
President and perform what he is at present proposing.
Pls check this: hyperreport.org...
Remember that the Madoff scandal exploded precisely around a former Nasdaq Chairman being G.W. Bush President and Romney governor of Massachusetts.
Here some curious articles showing supposed links of Romney with the Madoff scandal:
The most interesting thing is that many of these sources of information are not really Democratic, but linked with the Libertarian party, moreover
with supporters of the Republican Pre-Candidate Ron Paul !!.
The Angel of Lightness
edit on 11/5/2012 by The angel of light because: (no reason given)