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November 12, 2007 at 07:38:10
America begins slide into third world status by Len Hart Page 1 of 2 page(s) |
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---The Economist, The Dollar Heads for a Tumble
The sum of all three trends equals the loss of US empire. The policies of three GOP administrations have not merely failed to reverse the trends, they birthed them and made them worse with ideology, bigotry and incompetence. Those who called a new Bush regime a "banana republic" during the 2000 election debacle could not have known how prescient they had been. All has come true. The "empire" is lost.
The dollar has dropped 12 percent since the start of the year. My own sources --European bankers --tell me the dollar will continue to fall until the US has what they have termed a "credible" regime and credible leadership. Smart money all over the world is dumping the dollar for the Euro. Until Bush is retired, the American people will continue to pay for his incompetence and his lawlessness. Bush is content to finance the trade deficit on the backs of American consumers.
At the very root of the problem is the fact that in 2004, the US topped the list of oil importing nations with imports of 11.8 million barrels of oil per day. That's more than the next three --China, German, and North Korea --combined. The problem is not only oil. The US Department of Commerce reports that the US "trade deficit" --our total exports vs our total imports --has increased 18% from 2004 to a record $726 billion in 2005. US dependence on oil is responsible, says the US commerce department, for some two-thirds of the increase in the US trade deficit in 2005.
Technically, price hikes due to trade imbalance is not inflation but to a consumer trying to make ends meet with a dollar that buys less and less, what difference does it make? There are two sides to any exchange rate: Europe's prospects matter as well as America's. In 2006 the Euro area looks likely to grow at its fastest pace for six years. That its GDP growth is modest by American standards, largely because of its slower population growth, is not the point: what matters is that this year it has surprised the soothsayers time and again. That has lifted its currency, and not just against the dollar. A euro now buys more yen than at any time since the single currency was created.
The unkindest cut of all is the Democratic sell out to the GOP! The result is the GOP has now "auctioned off" the office of President of the United States, an eventuality embodied in Mussolini's term: corporatism. Let's put it another way: the apparatus of the US government is now "owned" by rich, elite corporate interests who pay for the campaigns (bread and circuses), pay for the candidates, pay for the legislation they want and need to rape the environment, dominate the world's natural resources to include oil while enslaving the middle and lower classes.
Something similar occurred on March 28th, 193 AD, when the Praetorian guards, literally, sold the Roman empire to the wealthy senator Didius Julianus for the bargain price of 6250 drachmas. I haven't tried to buy drachmas (lately) but it sounds like a bargain compared to the absurdly high prices that are paid by US corporations for control of the US Presidency, indeed, the US government. Our modern day "Didius" has fared better than Julianus.
A magnificent feast was prepared by his order, and he amused himself until a very late hour, with dice, and the performances of Pylades, a celebrated dancer. Yet it was observed that after the crowd of flatterers dispersed, and left him to darkness, solitude, and terrible reflection, he passed a sleepless night; revolving most probably in his mind his own rash folly, the fate of his virtuous predecessor, and the doubtful and dangerous tenure of an empire, which had not been acquired by merit, but purchased by money.An important point must be made here. Gibbon reports that Julianus paid for the Roman Empire in "drachmas". "Drachmas" denotes Greek currency. At that time, the basic unit of currency in Ancient Rome was a bronze coin called an as or aes. A sestertius, another bronze coin, was worth four asses. A silver coin, the denarius, was worth 16 asses. [I will not go there!]- Gibbon, The Decline and Fall of the Roman Empire; See also: Edward Gibbon: General Observations on the Fall of the Roman Empire in the West
If Gibbon is correct, it is an indication that Rome, by that time in decline, had suffered a catastrophic devaluation of its coinage. Even now "real" money is considered by some to be "gold" if anything at all has intrinsic value. That Didius Julianus would pay in Greek currency, not Roman, indicates to me that the smart money had already dumped the as, the asses, and the sestertius for drachmas. At last, bronze would seem to have little intrinsic value as "real" money unless you had enough of it to melt down for public statuary. I would wager that only very wealthy Roman aristocracy possessed denarius, which they might have held against the complete collapse of bronze coins.
Kucinich Believes We MUST Impeach. He's right!
Part Deaux
Most economists will tell you that for most of some 50 years, the US enjoyed an economic pre-eminence if not dominance characterized by strong domestic industries, notably steel and automobile manufacturing. Since important discoveries in Southeast Texas and, later, West Texas, the US was, for awhile, the world's leading oil producing nation. As US dominance of world supplies began to slip, "terrorism" grew worse. [ See chart at this link. ] I recently provoked the ire of the Heritage Foundation by stating and proving --to the foundation's chagrin --the simple truth: Terrorism is Worse Under GOP Regimes. More than enough stats make an equally compelling case about crime: crime is always worse under GOP regimes. That this should turn out to be the case may have something to do with the fact that since 1980, unemployment, as well as terrorism, is always worse under GOP regimes.
Job Growth Per Year Under Most Recent PresidentsI don't believe in GOP coincidence theories. There are reasons for the sorry state of nation and state. GOP policies are injurious to the nation's fiscal health, its security, and the well-being of US citizens. The GOP is endemically corrupt and dishonest. I have stated and will repeat: the GOP is not a political party is it a criminal conspiracy not unlike that described by St. Thomas More in the England of Henry VIII.
Johnson 3.8%
Carter 3.1
Clinton 2.4
Kennedy 2.3
Nixon 2.3
Reagan 2.1
Bush 0.6
Based on data from the Bureau of Labor Statistics, Current Employment Statistics Survey.
...so God help me, I can perceive nothing but a certain conspiracy of rich men procuring their own commodities under the name and title of the commonwealth. They invent and devise all means and crafts, first how to keep safely, without fear of losing, that they have unjustly gathered together, and next how to hire and abuse the work and labour of the poor for as little money as may be.-Of the Religions in Utopia, St. Thomas More
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| 13 comments |
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What Kucinich won't say...
He won't say that a major part of our race to the bottom is open borders and illegal immigration. Greedy employers have driven wages down and a large percentage of the money illegals make isn't recirculated back into our country and our economy; it's sent to Mexico, much to the delight of the Mexican government, which encourages its citizens to come here. They've even produced a break in the United States color comic book describing exactly how to do it. This exporting of money is sanctioned and promoted by the big banks in violation of Federal banking laws, such as Bank of America, which initiated the practice of allowing $5,000 transfers of money to Mexico, no questions asked. Now who's got that kind of money? It's either a huge group of people banding together to make large transfers of money to many people in one transaction, or more likely, it's drug dealers. So much for the phoney war on drugs. by Sandy Sand (198 articles, 0 quicklinks, 227 diaries, 1548 comments [2 recommended, 0 rejected]) on Monday, Nov 12, 2007 at 9:43:01 AM  (0+)
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Mirror, mirror, on the wall
Reality is a chimera, changing according to individual perceptions, especially if the person has a strong filter, which reshapes information according to his or her own twisted, limited intellect. Many Americans filter their information through myth, --the home of the free, land of the brave, the greatest generation, our land of liberty, etc. Reality has got to be awful dangerous and "real" to penetrate that mindset, and even then, there are dangers. Specifically, scapegoating. We rarely look in the mirror and see the cause of our misery--complacency, classism, jingoism, racism, blindness. Nah, we need scapegoats and victims. were this another age, the lynch ropes would be more than symbols, but thankfully we are beyond that--I hope. Until we see our own behavior as part of the problem we and this country are in, all of this pissin in the wind and wailin at a wall full of holes avails us naught. by M. Davis (63 articles, 3 quicklinks, 17 diaries, 221 comments [4 recommended, 0 rejected]) on Monday, Nov 12, 2007 at 12:02:50 PM (0+)
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Reply: M. Davis...
So you really didn't have anything to say about the article? Or is that more of a 'standard' reply to any article out there? Yeah, beat the 'we only got ourselves to blame' drum some more... Whatever... by C.Bid (0 articles, 7 quicklinks, 7 diaries, 739 comments [2 recommended, 0 rejected]) on Monday, Nov 12, 2007 at 12:51:06 PM (0+)
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Reply: Wailing at the wall full of holes
Maybe the comment you complain about points to the root of the problem? As a Brit of some years, seeing in my youth, the jingoism, racism and crass mindset of the 'empire of the British'. "The native are revolting - we'll have to send a gun boat" - was a common saying and believed by all and sundry. I now see the same in the Americans. thankfully the British gave up their empire mostly peacefully, albeit, with some atrocities in far off lands like India. by ibrahim turner (26 articles, 32 quicklinks, 5 diaries, 184 comments [2 recommended, 0 rejected]) on Monday, Nov 12, 2007 at 1:56:30 PM (0+)
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Reply: Uh...
?????? I just thought the M.Davis comment was a standard kinda pointless comment -with little to do with the article. Yeah, we're to blame for a great deal of this crap... or at least the GOP is. I'm in agreement with the article. I don't feel like philosophizing on human nature... by C.Bid (0 articles, 7 quicklinks, 7 diaries, 739 comments [2 recommended, 0 rejected]) on Monday, Nov 12, 2007 at 2:16:10 PM (0+)
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Step One
The beginning of an answer appears in the article, and it is "credible government." If we continue to allow corporations, transnationals and even foreign governments to go shopping at the K Street influence market, our government will continue to lack credibility. For as long as we allow secretive corporations to run our elections for us with secret results and "take our word for it" victors, our government will lack credibility. As we hold our borders open, looking the other way, our government will lack credibility. While accept, however reluctantly, the dregs of another nations manufacturing output, moaning as we do that there are no alternatives, we as a people and by extension, our government will lack credibility. How can we wonder at the world holding the dollar in such low regard when we clearly have such contempt for it ourselves? A dollar will have renewed value when a credible government supports it, and we will not have a credible government until we are prepared to support a credible government as a people. by John Sanchez Jr. (9 articles, 0 quicklinks, 25 diaries, 1791 comments [148 recommended, 3 rejected]) on Monday, Nov 12, 2007 at 1:05:39 PM (0+)
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Jobs and Oil
While I understand the frustration that is projected in the article, there are more than one contradiction. One being that job creation by Democratic presidents was far greater than Bush. More jobs, more consumption of finite resources, more imported oil...so the comment about all the imported oil then is difficult for me to understand. The other is that the U.S. hit peak oil in 1970 and being that we are the largest consumers of oil on the planet and the largest economy on the planet; more exports of a formerly depleted resouce is simply math. And a trend that bridges both Republican and Democratic administrations. Our system is badly broken, the blunders of G.W. Bush, just exposed that fact in magnificent fashion. Bush is a disaster, of that I agree. But it is our very system of massive consumption of finite resources that is the greatest disaster of all. by Mike Folkerth (120 articles, 0 quicklinks, 2 diaries, 566 comments [1 recommended, 0 rejected]) on Monday, Nov 12, 2007 at 3:53:50 PM (0+)
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Reply: Amen
There's one I overlooked. The notion that he who burns the last gallon wins has got to go by the wayside. You mentioned our reaching peak oil domestically in the 1970's, and you are absolutely correct. The worldwide peak petroleum production is no more than four years away, if it is not happening now. The difference this time is a free market taking over. The oil will go to those who are willing to pay the most for it. Without the oil, and without alternatives to replace it, we cannot support our current population. It seems incumbent on us to have a government that is credible enough and responsible enough to throw over our domestic energy cartel and take the course that should have been embarked upon thirty years ago. That is to develop alternatives to petroleum as a motor fuel. Tick, tick, tick. by John Sanchez Jr. (9 articles, 0 quicklinks, 25 diaries, 1791 comments [148 recommended, 3 rejected]) on Monday, Nov 12, 2007 at 7:14:22 PM (0+)
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Alice in the looking glass
My point was a sort of Alice in the Looking Glass view of this mess. Some of us have our heads so far in the sand, that no matter how high gas prices go, nor how many foreclosures and tax sales are advertised in our daily newspapers, we will still maintain everything is OK, until the ship goes down and drowns us,. This "vision thing" has a lot of people putting their own eyes out in order to deny reality: and that reality this economy is in serious trouble; americans are spending like drunken soldiers on payday--we're running up credit cards credit bills---just like our very own dear government. And, like the government, we will pay the piper. We're already paying it at the gas pump when we eschew publi transportation., We're payinig it on revolving charge accounts and credit cards--29% interest on junk we really don't need. On the other end of the scale, there are people whose salaries have fallen so far behind real inflation, that athey are living off of their credit cards. This whole freaking economy is a stack of credit card houses listing over an earthquake fault and we and our beloved leaders are dancing in the streets as if happy days are here forever. Should the chinese deceide to declare economic warfare as a national goal, we're screwed---but, looking at all of the recalls of lead tainted toys and other goodies, we're screwed already. The fact that we're spending our stupid heads off in this Gimme Season proves we are financialy suicidal. by M. Davis (63 articles, 3 quicklinks, 17 diaries, 221 comments [4 recommended, 0 rejected]) on Monday, Nov 12, 2007 at 9:39:05 PM (0+)
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Reply: Thanks for clarifying...
I absolutely agree... by C.Bid (0 articles, 7 quicklinks, 7 diaries, 739 comments [2 recommended, 0 rejected]) on Tuesday, Nov 13, 2007 at 8:44:45 AM (0+)
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Re: "Jobs and Oil"
While I understand the frustration that is projected in the article, there are more than one contradiction. One being that job creation by Democratic presidents was far greater than Bush. More jobs, more consumption of finite resources, more imported oil...so the comment about all the imported oil then is difficult for me to understand. by Len Hart (134 articles, 175 quicklinks, 0 diaries, 555 comments) on Tuesday, Nov 13, 2007 at 2:38:14 AM (0+)
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"Amen"
You are correct. Peak Oil is here as a recent study confirms: click here New Study: Peak Oil is Here, Experts Predict "extreme shortages, wars, and social breakdown" by Len Hart (134 articles, 175 quicklinks, 0 diaries, 555 comments) on Tuesday, Nov 13, 2007 at 2:43:18 AM (0+)
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Peak OIL in a petro-economy
The Peak Oil debacle in the US will continue to create misery unless and until the Oil Addicts and Oligarchs stop seeing oil the end all and be all--of their world. That isn't going to happen because with supply and demand, they are in the cat bird seat--the less supply, the more dollars in their coffers, as is witnessed by the record profits they made this year. Consumers must be proactive in their energy consumption if they are to mitigate any of the negative effects of peak oil, at all, which may be beyond their means, as individuals, if there is no concerted effort made by tightly organized groups of individuals. The problem with "peak oil" is denial, both on the industy side out of self-interest and on the consumer side out of self-delusion. Those who are astute enough to see the handwriting on the wall need to begin formulating strategies NOW. That means riding herd on our corrupt congresskritters to provide more R&D dollars for alternative energy, but more so, it means we must take responsibility for our own energy use and begin moving away from petro madness. The machine is working hard at distraction, particularly the anti-peak oil propaganda machine, with their 200 year (or what ever it is), long time down the road figures. But, in the immediate concern, we need to be thinking about the chaos that will ensue on the road to the "200 year tap turn off". As we have already seen, anything can set prices roiling, thereby taking more out of our wallets. Economic theory aside, we need to move into consumer reality: that being, the more expensive petro-fuel becomes, the more hardship consumers who depend on the petro-economy will face. The only way to side track the coming craziness is to: by-pass the petro economy, simplify your lifestyle, and move to alternative energy NOW. Begin those strategies now and have them in place for hard times. All of the esoteric economic theory in the world won't save you ass when fuel is too high for you to purchase and the politicians and their handlers are grinning all the way to the bank. The time for change is now. We are too long on economic theory and too short of self-defense as it relates to personal oil dependence by M. Davis (63 articles, 3 quicklinks, 17 diaries, 221 comments [4 recommended, 0 rejected]) on Tuesday, Nov 13, 2007 at 7:24:16 AM (0+)
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