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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (26451)	1/24/2010 6:45:45 AM
From: axial	1 Recommendation Respond to of 71475

"The boat may tilt in either direction" Agree. But many view this as a historical pendulum, swinging from one extreme to the other. Reagan started the swing away from economics and policy initiated by Roosevelt. In the following decades many regulations were slowly gutted; the same old actors used the same old tricks to return themselves to an advantageous position, at the expense of the public interest. In parallel freshwater economics slowly predominated over saltwater. Will the pendulum ever quit swinging? In the United States anyway, swings seem to be a function of left/right policy change. When the US was dominant it was a global sponsor for its economic vision. Recent failures (including US inability to embrace Schumpeterian solutions urged on Japan) have discredited American theory and practice. But external (global) perceptions won't stop the internal debate or the extreme swings. Most people (even economists, except those whose theology is the self-regulating "free market") agree that both excessive and insufficient regulation are harmful. So is the uncertainty caused by change. The answer is to find a happy medium. The periodicity of swings seems to be about 30-40 years. Will the US seek (or find) equilibrium? History seems to say "No." Worse, in a coming resource-constrained future, the consequences of political and economic gyrations will be subtractive. Whatever happens to this administration or those that follow, these problems seem destined to reappear. The pendulum will swing, and gains will be lost. Jim