US Economic Paradigm Shift with Catastrophic Consequences.

Discussion in 'Economics' started by SouthAmerica, Jan 28, 2008.

  1. .
    January 30, 2008

    SouthAmerica: Reply to Libertad

    Libertad: “The real question here is how does a country change?”

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    SouthAmerica: Countries are changing all the time just look at Brazil, China, UAE, Qatar, Saudi Arabia, Angola, India, Russia, and many others.

    There are countries also that are returning to the stone-age such as Zimbabwe, Congo, Somalia, and many others.

    ***

    Libertad: “How can people stop work when they have to have income to live
    and try to form what is necessary for change?

    What is the process?”

    ***

    SouthAmerica: Never before people had the tools for change as they have today, and today these tools are available to almost anyone: the internet and Wiki technology.

    Combine that with some creativity and imagination and the sky is the limit.

    ***

    Libertad: “In every country that I have lived in,”

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    SouthAmerica: Which countries are you talking about?

    Since describing that these countries had extreme corruption you are describing the majority of countries from around the world, including the United States.

    ***

    Libertad: “Thus the question remains, just how does any country effect change?.....”

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    SouthAmerica: People make things happen from native Indians in Peru selling their wares thru the internet, to innovative ways in India and in Brazil that open the doors of the internet to the poorest members of society.

    ***

    Libertad: “It is quite obvious already that the only thing changing in the US is the name of the President...and nothing else...”

    ***

    SouthAmerica: The United States is a giant that is become obsolete very fast, and its leaders and the American population for that matter have not grasped that the United States is in implosion mode.

    The rest of the world will catch up to the reality of what is happening in the United States, and eventually the rest of the world will stop feeding billions and billions of dollars year after year to keep this dying giant afloat.

    Americans are in complete denial about what is happening around the world, and as creative destruction takes care of this massive global transformation, Americans are living more and more based on the glory days of the past and it becomes clear that the foundations of the country it has been built in quicksand.

    The quicksand is the promises made in the past about benefits including health care benefits, pension and so on. Basically, American corporations can’t keep the promises made in the past and they are not honoring these promises to retired people.

    It is not only the companies that are getting in trouble here that are cutting drastically all these benefits now that they are coming due. The private equity firms, hedge funds, and many more suspects found a new way of making a quick buck by raiding companies and steal their pots of gold that these companies had created to met their future obligations. It is open season against any company who has set money aside to meet their future obligations regarding these promised benefits.

    Basically the American system is being milked to the bone by a small number of people who are making more money than anyone could ever imagine.

    Americans are becoming poorer by the day as they lose the benefits that they thought they had eraned over the years, and as the value of real estate implodes, and stock market values decline.

    Besides the United States has been making a massive investment on its future to the tune of $ 4 trillion dollars for the 8 years of the Bush administration – investment in defense spending which will generate great returns in the future such as hyperinflation, and trillions more of extra expenses as a result of these various wars such as in Iraq, Afghanistan, and according to John McCain if he is elected president the US has many more wars to start in the coming years.

    In the meantime, the other major countries of the world have been investing in infrastructure, education, and the technologies of the future.

    Never mind that the United States will have 2 million more people per year on top of the cumulative number of people to pay for government entitlements such as Social Security, Medicare, and Medicaid. And in the coming years the government goes from having to pay all these entitlements from the current 40 million people over 65 years old to 56 to 60 million people by the end of the next president 8-year term.

    The US dollar had a great ride since the end of WW II, but the free lunch is about to end as the US dollar lose its place as the major reserve currency around the world and in the process creating the biggest international monetary crisis the world ever saw.

    To show how Americans are in complete denial at this major turning point in American history look at the major candidates who have the possibility of winning the presidential election in November 2008.

    Americans at this important turning point and with a perfect storm just ahead they decide to make an experiment by electing the first woman, or the first black man as president, and the other major party has a Dinosaur as its candidate in McCain, a man with the mindset of the 1950’s.

    I rest my case!




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    #11     Jan 30, 2008
  2. Some look back fondly on the 1950's.
     
    #12     Jan 30, 2008
  3. SouthAmerica: Reply to infolode

    I did not mean to insult the old folks.

    What I am trying to say is that John McCain thinks that we are in the 1950's and the Boogiemen are coming to get you.

    Yesterday, he said that if he is elected president there are more wars for the United States fight around the world.

    But he did not say who is going to finance his new adventures.

    .
     
    #13     Jan 30, 2008
  4. Understood. I'm 1960's born so I (some what) understand how the mind set is. I think many are uncertain and afraid to venture forward into the unknown with a candidate who is unproven and would rather risk status quo with the "tried but true."

    Two different schools of thought here and both have serious flaws.
    Speaking for myself only, I think our choices are poor and can only do what I always do and that is to make change/improvements in my community. Sitting on my hands and bitching is unacceptable to me.
     
    #14     Jan 30, 2008
  5. gnome

    gnome

    While TV surfing last night, happened to catch a round table discussion by Minnesota politicos. (Minnesota is known as a "high taxes, high services" state.) One common theme was the questioning of whether government "added value".

    On the federal level, the Gummint keeps getting bigger, the private sector is shrinking. The "bill" for Gummint is ever increasing because of its size AND they deficit spend like there is no consequence.

    Perhaps America needs to question "value added" at the federal level.
     
    #15     Jan 30, 2008
  6. You will never get this country to change the path it's on. There are too few of us who see the light and too many with the wool over their eyes. They won't see it until it's too late.

    The best you can do is look out for you and your own and prepare to exit the country at first opportunity. I am.

    I'm going to leave and wish everyone here the best, but I'm finished with this place. Unless of course by some miracle there's a turn around in the time it takes me to plan my leave.
     
    #16     Jan 30, 2008
  7. gnome

    gnome

    Spot on. In addition, federal politicos have both a power and greed incentive to keep things as they are.... so reform will not be initiated from the top. There is little regard for "what's good for America and its people", but rather Washington's focus is only "what's good for the Gummint".

    We had the American Revolution to rid our country of the onerous impositions of the British crown. We NEED another one (would have to be a grass roots revolt) to rid ourselves of our own greedy Gummint. But for reasons you point out, won't happen... at least not in time.

    America won't die. It will just be owned by somebody else.
     
    #17     Jan 30, 2008
  8. Excellent Commentary....As Usual...
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    Change...What I mean by change is just how is it that one can cause change particularly when it is needed the most....

    Of course the primary tool for change is simple communication.

    Even through today, politicians are elected by adds and sound bytes...whoever has the largest advertising budget wins...

    And of course..the internet is the solution because of its low cost and broad access...which allows a better chance for money not to be 95% of the choice...
    ...............................................................................................

    Another form of change is how a government is structured ...
    A democratic structure allows the population to form groups to collect money, buy advertising, and thus put their officials in place. Once officials are in place they cause legal sway as to how tax revenues are shared....

    Again , the internet provides visibility as to how funds are shared and spent as to category..

    This is where the points that you are bringing about could be made very clear...ie...$400 billion will be available this year...would you like to allocate 75% to the military and 25% for everything else...etc...
    In short...the internet would provide budget direction by the voters who pay the taxes...
    ................................................................................................

    Another form of change...is the change in how tax revenue is collected....The structure itself would dictate how much of the globalization pie will be garnered...After looking at tax structure for each developed country...and developing country...it would be a rather simple matter to construct the most attractive means by which to increase the country´s business and large company domiciles...

    Let there be no mistake...a consumption tax is the only logical form of tax for any country...Every other form of taxation is obsolete...

    Any large international company is going to gravitate to where efficiency is best because of necessity.

    Stock exchanges are becoming sets of computer banks and can be located anywhere....and companies will locate their domiciles where there is the most legal ease and profit efficiency...
    ..............................................................................................

    Another form of change...is the sharing of wealth through capitalism...Any individual that gives a good portion of their lives to a company....deserves to own a piece of it...and ownership creates better quality and innovation....Capitalism creates the highest valuations possible...and the internet based electronic exchanges create the dirt cheap means of name transfers....and capitalism creates much higher value to be passed around...than anything socialism forms..

    This is where the current form of socialism and capitalism become extinct...perhaps the most important change of all...This will more equally share earned wealth...

    ................................................................................................
    Another form of change is energy usage....
    ie Fossil fuel usage by cars in cities should be made illegal....Electric cars only....

    One day people will look back in history at how one person spent $220k for a Bentley and $2500 for a Tata ...and will scatch their heads as to why...
    .............................................................................................

    Thus what I meant by change has to do with some of the above ideas...
    .................................................................................................
    Right now...it looks like the US is going to have a black lawyer with a gift of gab for President...and possibly a white woman lawyer as a VP....This is definitely a change .....

    However by change, I see the second generation internet, worldwide electronic stock exchange(s), government and government tax structures, and energy fuel moving to electricity....as the most needed and desirable changes...
     
    #18     Jan 30, 2008
  9. Can you expand on this? How can it be achieved? Any authors that have developed on this idea?
     
    #19     Jan 30, 2008
  10. gnome

    gnome

    THAT change will be about as valuable as jumping from the pot into the fire. What America NEEDS is a new Andrew Jackson*. (Ron Paul would be a start.)

    * Unfortunately, not 1 in 100 voting Americans know anything about him except (1) he was President a long time ago, and (2) his likeness is on US currency.
     
    #20     Jan 30, 2008