The LTCM debacle and facilitation of the so-called "war on terror" made possible by the Fed's abuse of the "World's reserve currency", has ended that run. You are living in the past. Now US is flat broke on it's back repeating the mistakes of history (Rome).
There are many economies that have functioned well despite the fact that their debt has gone over 100% value of their GDP. Like the case of the US. GDP around $11-12T and Debt at $14T. This does not mean US is flat broke. Till the time there is smooth cash flow in the economy and some growth then the engine can keep on running. Just like in the businesses they say 'do not choke up on cash' as that will stop the operations and soon like in few weeks average 30% of the customer base will walk out to the competition, killing the whole business in process. Before you know it, the debtors have called in their debt bonds and then it is all over. Do not know exactly if that analogy can be applied 100% to a country's case. Problem that I see is that in US case, there is very feeble attempt to cut the spending and wastage and remove other ills in the economy. This can lead to chronic levels of issues that can really hurt the economic engine and thus the society. Ego manics in Washington are still playing merry and acting careless.
Well, according to this article North Dakota is doing a better job: ...the Bank of North Dakota (BND), currently the nationâs only state-owned bank. While other states are teetering on the edge of bankruptcy, the state of North Dakota continues to report surpluses. On April 20, the BND reported profits for 2010 of $62 million, setting a record for the seventh straight year. The BNDâs profits belong to the citizens and are produced without taxation. The BND partners with local banks in providing much-needed credit for local businesses and homeowners. It also helps with state and local government funding. When North Dakota went over-budget a few years ago, according to the bankâs president Eric Hardmeyer, the BND acted as a rainy day fund for the state. And when a North Dakota town suffered a massive flood, the BND provided emergency credit lines to the city. Having a cheap and readily available credit line with the stateâs own bank reduces the need for massive rainy-day funds (which are largely invested in out-of-state banks at very modest interest). http://www.yesmagazine.org/new-economy/what-a-public-bank-could-mean-for-california
I respect your opinion, but don't agree with this. Russia's health is entirely dependent on oil exports - it is a basket case everywhere else - and it's cost of production is rising. It is only a matter of time before Russia gets squeezed, hard.
What a wonderful run it was - no other system anywhere in the world allowed such a flourishing of the middle class. How can that possibly be if the Fed is as all-powerful, all-greedy and all-corrupt as claimed?
You bring up an interesting point Random. Has the success America has enjoy over the past 80 years been a case of the free enterprise system or because of the existance of the Fed? If you do a bit of research on Empires and Central Banks that have printed money the way the Fed has in recent years you may share my concern about how the story is going to end. Research the history of Rome and Central Banking as one example. What most folks don't realize, however, is Rome collapsed over a period of about 300 years so you and I will most certainly be long gone before the American Empire tumbles to the ground. Tumble it will; all Empires do. Until the day or reckoning arrives....party on my fellow man.
I know you don't want to hear this but I think its success was largely as a result of the industrial movements in the turn of the last century that was spearheaded by J P Morgan.
LOL you are still debating, you actually still think there is a debate on money printing as correct or not LOL citizens don't object to money printing LOOOOLLLL OMG LOL you think western system of banking is all about fractional reserve lending, you somehow fail to mention private ownership of central banks and lending currency to government as a major difference between Russian Chinese type banking and western you clown You are so full of shit, not worth my time debating. You are a know it all that knows Nothing of how the real world works. Good luck when the time comes for you to stand in the kitchen line when dollar collapses, I sure hope you will have conversation company to explain how you knew this would happen and how regular people are at fault. You are a joke, if you were on my research team, I would recognize you for what you are and politely ask you to pack your shit
So without JP Morgan the Industrial Revolution never would have happened? Is that your opinion or does your research support your position?