Tuesday, January 22, 2008

THE US ECONOMY NEEDS RESTRUCTURING


1914 - 1929, the Dow 30 climbed.
1929 - 1949, it fell.
1949 - 1966, it climbed.
1966 - 1982, it fell.
1982 - 2000, it climbed.

BBC NEWS Business Bear markets: Wall Street's worst
1929-32 Fall in the Dow: 89%
Losses recovered by: November 1954

1973-74 Fall in the Dow: 45%
Losses recovered by: December 1982


"This is a structural crisis that's been spawned by decades of shifting our economy from making things to buying things, from production to consumption.

"We need white-collar predators in jail. We need restructuring, not repossessions. We need mechanisms for the redistribution of wealth from the greedy to the needy."

According to an article entitled The Coming Economic Depression:

Some or most of the following will occur if the US cannot obtain foreign capital to finance its debt and budget:

1. The dollar will tumble to at least 40% of its present value.

2. Massive (20-50%) spending cuts in federal outlays will ensue.

3. America's march towards war will be in jeopardy.

4. Gold's price in dollars will rise sharply and permanently.

5. Interest rates will have to rise in order to attract foreign investment.

6. Oil will soar in price to (guesstimate) 40-60 dollars a barrel

7. Social and economic disruptions will occur in the US as (real) unemployment rises above 30%

8. Banking Holidays may become commonplace and the new US currency may entail exchanging old dollars for new (devalued) ones.



The economic policies of the US presidential candidates...

What is wrong with the US economy?

1. Too much money is spent on the military.

And it is supected that the military help to rig elections.

The USA has borrowed large sums of money in order to fund the military.

The military failed to win the Korean War and the Vietnam War, and is now failing to win in Iraq and Afghanistan.

And it is suspected that the military carries out acts of false flag acts terrorism in order to boost its funds.

2. The average American has had money taken away from him in order to help the super-rich get even richer.

The average American is no longer able to spend lots of money in shopping malls.

3. Big American corporations have moved some factories out of the USA and into areas with cheap 'slave' labour.

The USA now has a huge balance of payments deficit.

4. There has been a neglect of basic infrastructure; and education standards are often low.

Hillary Clinton appears to have no plans to curb the power of the military. She appears to have no answer to the debt problem. Her health-care plan would require all Americans to get health insurance.

Barack Obama appears little different from Clinton, although he did oppose the Iraq War and seems to have more sympathy for the poor.

John Edwards is not much different from Obama, although he appears to be critical of big corporations.

Dennis Kucinich favours a program of federal job-creation, like the New Deal. He has been praised by some academics for his understanding of America's problems.

Mike Huckabee favours a 30 % sales tax to replace most other taxes. Sales taxes take a larger proportion of income from the poor and middle class than from the wealthy.

Rudolph Giuliani appears to favour the usual Republican economic policies. He has called for a 20 % reduction in the federal civilian work force in the next decade. He is not planning to reduce the size of the military.

John McCain appears to favour the usual Republican economic policies.

Mitt Romney appears little different from McCain and Giuliani.

Ron Paul wants to abolish the Federal Reserve because it is an inflation-causing tool of the rich elite.

Ron Paul wants to cut the size and power of government, including the military.

This raises the question of how quickly people can be moved out of government jobs and into private sector jobs.

Ron Paul wants to abolish the federal income tax

This raises the problem of how to pay for Social Security and Medicare.

Ron Paul should note that when the Soviet Empire came to an end, and Libertarianism came to the Eastern Bloc, there was massive and extreme poverty. Many areas such as Belarus and Georgia have still not recovered.

Ron Paul needs to reassure people that his economic policies will work.

The economy will probably be the key issue (unless you count vote rigging as the key issue)

UPDATE: Ron Paul 2008 › Comprehensive Economic Revitalization Plan

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