Mikael

Anyone seen this documentary film? Is it worth watching? I saw the trailer and got interested.


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Hypersonic

The scare mongers have finally caught on to the crisis that the USA's economy has been heading toward for years.

However, it is not only the United States that should be worried.

Gullwing

For the past few years thousands of people have been moving to Las Vegas, buying a house out of their price range and while they are at that they also go out and buy new cars, something reasonable like an H2. Once the housing market started to correct and drop a little people can't afford their house payment let alone their car payments or even gas.
So now hundreds of homes are in foreclosure and the former owners want the government to bail them out because they were idiots.

November will be interesting, it could be good, it could be very bad.
Plus depending what happens energy wise the government will spend billions to help developing new sources.

Harry Plopper

The problem of US economy is completely uncompetitive economy in general. (Yes, there are some branches which are in the world's top, but many are far from that.) Therefore export is lousy, and the economy depends completely on domestic aggregate consumption. So, the state is promoting domestic consumption / demand - in the extent beyond any reasonable limits. Leases, loans, financing without clear limits, discipline & healthy foundation. Fanny Mae & Freddy Mac are the oblivious results of that. Not mentioning the state is spending money as well to contribute into aggregate consumption.

But since neither state nor citizens do not have enough their own money to spend - in a satisfactory extent that would be sufficient for healthy economy growth - they (citizens & state) are forced to get loans & other ways of financing. But that can't last forever.

The only true solution is to cure US economy: by making it competitive again. And that can be done with new tech revolution: being that green clean energy tech, bio-genetic tech, nano-tech etc.
The state has to make something to bring the investments back - not only the foreign ones, but also the domestic ones: the ones now focused on China & India.
But that will be hard ... money has no citizenship, and it's usually not romantic & emotional. So, some serious deals will have to be offered to bring the investments back. A deep economic reform. But ... that could rock the entire world economy & mix the cards completely. No to mention that can cause some serious escalations.

So ... IMO since the world is still dependent on stable US, the farce will go on. US will be keeping it's economy alive with unreasonable domestic demand ... until something dark happens: like a bigger military conflict in the world, or some natural disaster of world proportions. Then IMO the bubble will burst. And when the US economy collapses ... the WWIII will come. No kidding.

There is an alternative: to redirect consumption of citizens to eg. energy-efficient tech investments. Eg. into better house isolation, solar panels, geo-thermal heating systems, less energy-consuming cars & domestic appliances, etc. At least there will be some positve results / aftermath of the consumption.

Hypersonic

Scary thoughts Harry.

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