Well, let's look at these points Searle,
"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."
The whole purpose of backing a currency with metal is to control the urge to print. Of course, if uncle Sam is honest and you loan him some money, even without colateral one might be confident that the debt will be repaid and this is the very circumstance that has aided the US so far. But we both know that history is replete with printings that have gone awry (Germany 1920's, Mexico 1980's, etc). Even metal can inflate with new discoveries, but paper is renewable.
"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."
In many cases WE service the debt! US taxpayers service the US debt. IMF services the 3rd world debt. US banks forgive foreign debt gradually. Shareholder pays there. And so on.
"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."
I agree that there must be a "value" added by any particular class of worker for that worker to be a net asset to an economy. I think it is underestimating the US to think that it has been painted in a corner vis-a-vis having sent all production abroad because no matter where you drive in the US you see industrial park after industrial park and the buildings aren't just full of accountants totaling hanging chads on an abacus.
"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."
Amen brother Searle. This whole thing is scary. I remember reading some alarmist stuff back in 1999 telling us that the markets would give out and there would not be a recovery until nearly every stock was paying a dividend again. In '99 that was heresy. Sounds like the only thing now that would exude trust.
"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."
This one is relative since the media will only tell you about the scumbags. Nobody mentions all the charities being helped out by countless people. However, if an accountant firm can't be trusted, how can the SEDAR and EDGAR info be taken at face value. Indeed, what good is DD?
"(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."
Sadly I agree with this assessment. Hard times seem to usually be necessary to bring about rising character. Now why is that?
"(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."
I do believe a lot of environmental/pollution problems are gradually improving! No lead in the gas. Mercury taken out of batteries. Just last week it was announced that experimental fuel cells were providing energy to a couple of homes in the US. I see an improving environment.
On trade the US has been accused of many things, but it is socialist Europe who I believe to be the main goofs here. |
