Al >Actually I do hope things stabilize here so those who judiciously saved for so many years aren't wiped out further.
Of course, and I agree with your sentiments.
And, indeed, I think you know what the fundamental reasons are why things became so unstable that they did get "wiped out" to the extent they already have been.
As an outsider and armchair critic, I would identify the following aspects which I think are involved and which still seem to be extant:
1. The artificial creation of wealth by allowing certain people (eg banks, Fed) the "right to print money" through the creation of debt instruments, as if out of nowhere, and at a pace never before seen in history.
2. The overwhelming use of such debt instruments to finance every activity of the economy and every economic relationship both within the country and between the country and its trading partners. The servicing of this debt, as with that in "developing" countries, has become burdensome in the extreme.
3. The overwhelming dependence in the economy on "soft jobs" ie financial services, IT, tourism, law, media, buying and selling goods etc and state employment Indeed, in most of these forms of employment it is hard to define the "value" that is actually being added by the worker, especially executives, and therefore his "real" worth. Meanwhile, there is increasing dependence on cheap foreign production for most manufactured items. The stability of much of this depends on the strength of the USD which, as we know, is not cast in stone.
4. The use of derivative instruments in capital markets to the extent that the value of such instruments far exceeds the value of all known assets. As result of this, no-one knows what anything, any company or anyone is actually worth. This, together with the debt, has created the distortions and "bubbles" in various markets --- indeed, throughout the economy.
5. The increasing attitude of "dog-eats-dog".
(a) Those who have been entrusted with the care of other people's savings and investments --- even the care of the people, themselves --- see that as an opportunity for plunder.
(b) If you don't mind me, as a foreigner, saying it, a progressive alienation of the American people from each other and from the laudable ideals of the nation.
(c) Progressive alienation of the US from the rest of the world as seen particularly in its pro-Israeli/anti-Muslim foreign policy and in its response to global environmental and trade problems. |
