Quote:
Originally Posted by pocketkangaroo
I don't know what you are trying to say. Do you really think we'll all be broke in a year begging for handouts? We have full employment, a booming stock market, and a fairly high median income. There are very few countries in the world that can say that.
|
Ah.. OK... No not saying that. Tho... if you look at the current scenario, what you call handouts (Fed Reserve IOU's and bullion movements) are what is sustaining the US economy currently. China may be the leading lender on a level of.. call is $3 billion daily, but that still only represents 25% (ish) of daily borrowings - so the real level is going to be around $12 billion.
Items like full employment are fine and good internally, but the net result of that full employment is not reflected in manufacturing or "cash building" ability when it represents only 10% of total economic activity. Can't say, but obviously much of this full employment is related to service industries and domestic consumption which does help the overall, but does not earn a profit for USA Inc.
There were a couple of items mentioned in the State of the Union address which are major economic factors (tho hell knows if these will be more than politician-speak). One was cutting down the reliance on oil. Although not possible to eliminate, this makes massive cuts in purchasing needs and can only be positive. Prime example of this in real life is Brazil where alternative energy has been used in vehicles for some time now. The US does have plenty material on farmland which can be adapted to energy needs - and just a matter of developing that.