when I talk to extremely bright business friends, I ask:
how can high foreign-held debt levels be reversed?
to be made healthy?
every example in modern history of such a trend has resulted in sudden foreign capital flight upon recession, then utter decimation
THE DEBT PROBLEM IS TOO LARGE TO RECTIFY !!!
how is this to be corrected?
eager to hear any ideas?
not only is debt at deadly levels for households, but deadly for corporations, and deadly for USGovt
how can this be corrected?
micro solutions implemented so far only make it worse
we extend debt to stimulate a recovery, federally
we extend debt to continue the mindless consumption, households
we extend debt to stay in operations, corporate
we are attempting to defy Mother Nature
the usual response is a recession, which politically our citizens forbid and therefore urge to fight
the laws of Economic nature are powerful, just as powerful as the weather
in fact, I regard (as do some experts) that nature cannot be reversed or interfered with for long periods without a horrendous natural response
this one particular friend has many answers at micro level, to help the individual firm
but he is clueless on macro issues
I suggested a 30-40% USDollar decline to assist US firms in their ability to compete
he liked it, but suspected that would cause havoc in stock and bond markets
I replied "no correction to the 1990's abuse comes without a price"
I am reminded of Kurt Richebacher's words, when he said that American economist have absolutely no clue what is going on with macro-theory
neither do its citizens
while chasing solutions at the firm level, we destroy the aggregate
/ jim |
