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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (19922)	12/26/2003 7:13:39 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81164

Raymond > Thanks for the compliment, but the extrapolation from Roman times just seemed to fall in place so it wasn't really so clever. In fact, I am sure many others have made it. I thought that the article by Nicholas Berry was excellent. In fact, it made me think a great deal and put many pieces in the puzzle in place for me. I feel what he didn't mention, however, is that the "bleeding" for the US actually started with Vietnam and Star Wars. That's when the debt began and it has just continued exponentially since then. However, in those days the "bleeding" and the debt were considered to be beneficial because they "stimulated" the economy ie industrial production. Today, however, "stimulation" cannot bring about industrial production because not only industries but also jobs have gone overseas, to countries with a far lower cost structure than the US. In fact, the present devaluation of the USD will not bring either the industries or the jobs back but what it will do is cause inflation and a fall in the buying power of the US consumer. To combat the inflation and prevent a run on the USD, the Fed will have to raise interest rates and that will be very destructive to both the property and (incipient) stock market bubbles. Thus the average American is going to be hit with a double whammy --- a fall in both his purchasing power and the value of his assets. And, there is no doubt that its military adventures in Asia will add significantly to the US' financial burden. In fact, it will eventually be seen that America's close friendship, or whatever, with Israel is one of the most significant factors accelerating its economic decline. Berry's article gives hope for optimism that things will improve for the US when W & Co are removed: >>>Eventually, either Bush changes or he and his policies will be repudiated at the polls. Bushism, like Bonapartism, is not forever. The United States will eventually return to normal diplomacy, military moderation, multilateral operations, and to support for international law and organizations. <<< I'm not so sure, however, that the solution he proposes will be as simple or even effective. Today, Europe and Asia are significant economic forces which were no so in the years subsequent to WWII and it is thus my opinion that what we are now witnessing is a significant change in world balance of economic power --- in fact, a dynamic process and one which is inexorable. This will continue whether W is there or he isn't. What will be influenced, however, is whether the relative economic decline of the US will be very painful or less painful. That one hopes the American people will be able to decide for themselves --- if they are, in fact, allowed to.