The USA economy strives on wars. The USA produces
nothing for the world or that the world wants and needed, only weapons
of destruction and toxic US$ that it now uses as a weapon as well.
The
USA had the intention to outsource production of consumer products
together with pollution to other countries, especially China to take
advantage of the cheap labor, and only needs to print toilet papers to
enjoy such consumer products cheaply and easily. But it backfired,
because the jobs either went with the off shoring or just disappeared
for good. In time the USA blamed China for stealing its jobs and using
slave labor to make such products.
Weapon production was the
monopoly of the USA after WW2. Not today. Russia and China and a host of
other countries are encroaching on the USA weapons production turf,
even North Korea and Iran are weapon producers of repute. That eats into
the USA war economy, and with a shrinking pie to be shared, the USA is
now thinking of insourcing the very consumer-based industries that it
destroyed or got rid of earlier. The infrastructures are not there
anymore and need to be rebuilt. The raw materials are now under control
by others and subject to their dictates. The skilled labor is not there
in numbers to support the manufacturing with shoring. The education
system has to be relooked in order to produce engineers and STEM
graduates instead of just lawyers, doctors and academics. It will take
time.
Anonymous
2 comments:
When the Terrorist in Chief is producing all the weapons to kill innocents, it still had the audacity and morality to claim that what it does is not terrorism.
It sells weapons for Africans to kill each other. It sells weapons to Israel to commit genocide, assassinate other leaders it cannot agree with. It sells weapons to allies and provoked them to become its proxy for war. In the past it sells weapons to the Saudis to kill innocent Yemenis, until China brokered the peace deal between Iran and the Saudis, which puts a stop to such sales which the Saudis no longer needed with Iran withholding weapons to the Houthis in Yemen. However, having said that, Iran is still supporting the Houthis against the Axis of Evil, the USA, UK and Israel.
The USA is undoubtedly the 'Mother of All Terrorist State'.
Besides weapons, the USA is the biggest proliferator of propaganda, the biggest cause of inflation with its unlimited printing of toilet papers which it exported to the rest of the world together with its inflation.
Now the world is wising up. USA Treasuries are no longer the preferred choice of investment with the cutting of rates. That is why the US$ is weakening against most other currencies. Over the last two or three years they had to increase rate of returns to attract investors into treasuries. That is bottoming out with the rate cuts to save the economy.
The actions taken against Russia by seizing its assets is the final nail in the coffin. China is selling Treasuries like hot cakes. Even Japan, probably arm twisted to buy over the years, is also dumping Treasuries. The only support comes from the Anglo-Saxons, not all actually, with UK taking up the lion's share. They have to help to preserve the US$ hegemony to prevent its collapse.
But this cannot go on forever with spiraling debts. Most of the US$35 trillion debt are said to be held by USA entities and citizens. The collapse of the system will be catastrophic for US citizens itself. Pension funds that invested huge sums of their bounty in Treasuries and USA debts will collapse, leaving the pensioners to eat grass. Banks will collapse, big or small, as they also have huge investments in Treasuries and USA debts in their books. And what will this mean for US citizens as well.
It is therefore unthinkable for the USA to default on its debts. But default it will. It is only a question of time when the jugglers, the Fed and Treasury, cannot find an answer to prevent the default any longer. They have kicked the can down the road far enough. To save the USA economy, they are cutting rates hoping to energize the system. If Wall Street is reported to be doing so well and the stock market rising to records every day, indicating a booming economy, why is there a need to cut rates. Something is not right.
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