no USEconomy recovery in HISTORY during US$ decline
why this simple factoid in the history books is overlooked can only be answered by one simple conclusion
AMERICANS DO NOT READ HISTORY
heck, US Congress is featuring a repeat of the Smoot-Hawley Bill to impose trade sanctions, just like in 1930, which caused the most painful segment of the Great Depression
THIS IS A NATION OF ECONOMIC IDIOTS, AT ALL LEVELS
why is this phenomenon so true?
because it means commodities, materials, supplies, energy... they all rise in cost... which means rising production costs and rising cost of living for households
because it means working capital leaving the economy, both for the corporations (expansion) and financial markets (investments)
THIS IS SO UTTERLY BASIC, YET MISSED BY ECONOMISTS
some like Roach are on top of their game
I just posted several recent essays of his on this thread
Subject 54268
Roach and a few other enlightened economists point to the horrendous headwinds facing the economy and various monster imbalances
trade gap, federal deficit, household debts, exodus of jobs, no corporate pricing power, high labor costs
we have not created any foundation whatsoever for a recovery
if anything, we have extended every single imbalance, and flooded the plains with funny money
it will not work for more than a couple quarters
and then we must repeat the same flooding, or else face a quick nasty recession which will gather huge momentum FAST
/ jim |
