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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (72401)	3/27/2011 4:43:39 AM
From: elmatador	Respond to of 217749

This is not the evidence. Consider housing and transportation. Food as major % of income is not the case of the US.

To: Snowshoe who wrote (72401)	3/27/2011 5:03:47 AM
From: elmatador	3 Recommendations Read Replies (1) \| Respond to of 217749

Look at it as hollowing out. The case is there. From the outside looks like before. But if you peer inside it is hollow. Once other countries start taking your share of manufacturing, that is when the guts of the country starts to be removed and an empty space is left. The more and more is removed, (outsourced as country priced itself out of the market) what is left is not much: What the government can control is kept in place. What cannot be exported stays on: like hair cuts, oil chnage, bars where they serve beer, tourism (such as Alaska), construction. But the old system and its costs are still there. Universities are still producing students, who spend a lot of money without no chance to recover their investment since there is no economy to support that. Construction is a big sector. So that's why it was boosted artificially 2001 to 2007. Education is scared cow. No one would raise his voice to say, this is a waste of money as the students debt go unpaid. States and municipalities still keep their structures but there are no tax revenues to pay for them. As governments try to prop up the economy, loosing money supply banks have no takers or the takers are not worth the risk. The bright students went to work for finance where they prop artificially the finance sector. As you can see as an economy hollows, the malaise spreads and no one wants to look to the real causes. As money supply is further loose and government props the economy up people are taking more from government than paying in taxes. And this is the most important. why? Because if you are just taking and not paying in, you are not going to defend cuts. At this stage the hollowed country is zombie country. Only two chances: Default. If the country is honest. Or monetize (inflated) its debt.