The democratic system is failing big time in USA. The
MSM will not talk about it. Janet Yellen will keep harping on the
strength of the USA economy. The MSM will keep gloating on the daily
record highs set by USA stock market. The USA Government will keep
fabricating the rosy jobs market despite all the business closures and
tech layoffs.
Banks in USA are in deep trouble. There is a
massive mountain of losses hidden in their books after years of
investing in USA bonds as stipulated by the USA Government, with the
banking watchdog closing both eyes to the problem. All the frenzied
money printing ended up in USA banks with investing in bonds necessary
to fund the USA deficit spending. This cannot go on forever, as the
banks are carrying the losses unknown to the public. Depositors are in
for a rough ride as losses cannot be covered anymore. Either way, even
if the FDI were to cover the losses, such coverage will come from public
funds, from the taxes levied on USA citizens. It is just robbing Peter
to pay Paul.
To get a good idea of the USA's economic problems,
which have been avoided being discussed by the MSM, I recommend readers
to go to the Youtube site of Ric Bender, a treasure trove of USA
economic news with well explained dissection of the economic problems in
the USA.
Do not get carried away either by the rosy picture
painted of the economy, about retails sales being better. It is all a
mirage. The uptick in retail sales figures are all about price increases
of everyday products and nothing about improve sales numbers. As
inflation hits, things will get more expensive, but people just buy
less. Still the values will go up, right.
As for the rosy job
statistics, that is all a mirage conjured from thin air. If the USA job
statistics can be caught out by hundreds of millions in subsequent
adjustments, can we ever believe in them?
There is another
tsunami arising from property crashes and foreclosures resulting from
all the business failures and store closures. This has never been
discussed much in the MSM as well.
In the USA, everything today is interpreted as great, resilient and rosy. Did anyone say purple as well?
Anonymous
Those who still held their Trash Surely Bombs oops Bonds and Currency are doomed to be bankrupted
ReplyDeleteWorse than Jepun Bananas Currency.
MOT Kaput
There is no way that the USA can ever repay its debts. And with that realization, are countries going to continue buying USA debts? The USA may think so, but China and Japan are wising up. Only the Anglo-Saxons, like the UK, are plunging in to help.
ReplyDeleteThe UK has to do it, like it or not. The USA is just an extension of the former British Empire trying to control the whole world. The failure of the USA will be the failure of the Brit's attempt to upkeep the Anglo-Saxon hegemony, the supremacy of the Whites over the non-Whites.
As the USA finds difficulty in selling its unpayable debts, this is just like the 'Sword of Damocles' hanging over the heads of those who bought USA debts knowing that a USA default is going to make those countries lose their underpants. The only way to attract investors is by raising interest rates, which runs counter to what it is doing to revive the economy, which is clearly in ICU.
Not only is a default by the USA catastrophic for countries holding it debts, but those debts held by USA entities like banks, hedge funds, retirement funds and citizens will suffer equally catastrophic outcome, and they will also lose their underpants as well. They will be wiped out and flattened.
The USA cannot keep increasing its debts as the element of interest is already unsustainable. About US$1 trillion in interest payments is already a difficult burden to bear. Accumulating more debts, which it is trying to do, will add more interest payments to its burden.
Japan is trying to raise interest rates too but has also stumbled on to the same problem of servicing its huge debt, the biggest of any country in the world. Therefore, Japan is caught in a death spiral that it created by keeping rock bottom interest rates for decades which is now coming back to haunt it. How Japan is going to handle its economy with a new Government is unsure. Untying the Gordian Knot is not that simple as just changing the Government.
Well said Anon 9.56
DeleteCheers
Trump's battle cry is still 'Make America Great Again'. Four years of his Presidency followed by four years of Biden's Presidency: the USA does not look any greater than the empty rhetoric that was supposed to rally the country. What is even worse is needing trade wars and tariffs to prevent other countries from becoming greater, so that USA can have a semblance of being great again. Who is fooling whom?
DeleteThe economy is in ICU. Money printing is so hot it is burning up the printing presses/machines and the only sign of its effect is the daily record-breaking run on Wall Street. It does not trickle down to real job creation, does not help to prevent businesses biting the dust, does not prevent retail sectors shuttering and inflation again rearing its ugly head. Inflation does something unique though. It inflated the sales figures, but not the underlying sales volume.