While we’re all consumed with the dynamics of the global economy this week the US micro economy is going down the toilet.\u00a0 When we all wake up from this $700 billion dollar discussion next week we’re going to realize that we’ve lost more jobs last quarter than any other period since 1999.\u00a0 The GDP is set to deflate to a record low and wages aren’t just stagnant anymore, they’re going down with the value of the dollar.<\/p>\n
So is $700 billion gonna help?\u00a0 The short answer depends on who you think it will help.\u00a0 Will it help international foreign investors?\u00a0 Yes.\u00a0 Will it help Wall Street tycoons?\u00a0 Yes.\u00a0 Will it help banks?\u00a0 Absolutely.\u00a0 Will it help the majority of Americans who don’t care about accumulating anymore debt and just want their paycheck to cover their current bills?\u00a0 Not just no, hell no.<\/p>\n
The coming agreement between Congress and Sec. Paulson has pretty much been stripped of anything that will help the middle class.\u00a0 I mean hell thier trying desperately to come up with some way to illustrate how this package does anything at all for working Americans.\u00a0 It’s hard for them to do because their argument is that we need lending to keep the economy going.\u00a0 In their words: banks need to be making money on interest or they will fail.<\/p>\n
Well aside from my mortgage I’m glad I can say that I’m a banks worst nightmare.\u00a0 I hate loans and the use of credit and I avoid it like the plague.\u00a0 If all American’s and businesses adopted this policy America would go bankrupt according the administration.\u00a0 Is this true?\u00a0 Are we truely an interest revenue driven economy that cannot stand on it’s own without everyone carrying a burden of debt?\u00a0 If so, that’s a damned shame and we should all be ashamed that we let it come to this.<\/p>\n
The Chinese don’t use credit cards.\u00a0 They don’t even use debit cards.\u00a0 To this end they may own America one day if they own our debts.\u00a0 Let’s play it out.\u00a0 We sell our bad debts to the US government (our mortgages).\u00a0 The US government runs a huge trade deficit to China using mortgage backed securities as collateral.\u00a0 China calls the note due.<\/p>\n
There you have it, a scenario where a foreign government can own our property because we could not pay our debts as a country.\u00a0 It may be far fetched but 10 years ago so was the notion that the US government could foreclose on a home loan.\u00a0 Government foreclosures are coming to a neighborhood near you soon.\u00a0 Let’s just hope foreign foreclosures don’t follow in the next decade.\u00a0 China could be putting Americans out on the street so the Hsui Huie family can move in.\u00a0 Nice.<\/p>\n","protected":false},"excerpt":{"rendered":"
While we’re all consumed with the dynamics of the global economy this week the US micro economy is going down the toilet.\u00a0 When we all wake up from this $700 billion dollar discussion next week we’re going to realize that we’ve lost more jobs last quarter than any other period since 1999.\u00a0 The GDP is … Continue reading The Micro is sucking…<\/span>