Missing is the lack of integrity of the US Government…..
Jeff Cox, 12 May 2011, CNBC
LAS VEGAS—The era of US economic dominance is rapidly coming to an end as an “American Gothic” age sets in and China becomes the new global leader, economic historian Niall Ferguson said.
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01 The “mother of all Keynsian fiscal binges” in which the government spent nearly $1 trillion on stimulus from which there will be a “hangover” with only the timing at question.
02 A “massive monetary binge” in which the Federal Reserve ultimately will print money to the tune of nearly $3 trillion.
03 An ensuing spike in commodity prices, a process that has gone on virtually unabated since the beginning of Fed intervention and for which there has been a recent pullback.
04 China “is not the Soviet Union,” meaning the nation doesn’t have the same destabilizing economic conditions that brought down the former Communist republic.
Phi Beta Iota: Mr. Ferguson is correct on his four factors, but leaves out much more. The loss of integrity across not just the US Government but across every major “tribe” comprising the US nation-state (see our “Paradigms of Failure” and also “Legitimate Grievances“) is the root problem Within that is the collapse of education, the ruthless export of jobs that could have been kept in the USA if infrastructure had been developed properly, the looming private debt collapse (defaults of credit cards and everything else), and the deep social challenge of dealing with several hundred thousand returning veterans who are mentally and physically ill, facing unemployment, and rapidly discovering that their pain and suffering was for nothing.