Government’s Cozy Intervention

With associations like that the government advisors, can take their government jobs and work for free.

Thanks for this PIM.  Us peons may wake up some day.

Yeah, well with the US dollar showing declines, the only benefits are Canada can buy US made goods cheaper,

The downside for the US is they may need to borrow money to prop up the economy.  The US may look to China again to sell some of them T-Bills, of which China now hold a few trillion dollars worth.

Since China holds the US economy in their hands, the Chinese may be wary of buying more Treasury Bills since the value of the ones they already have are losing money on the World Markets.

Granted the declining value of the US dollar may mean a better bargain for the Chinese in buying more T-bills meaning China will be able to increase their stranglehold on the US influence and economy.

But on the other hand, buying more T-Bills does not guarantee the US dollar will start to rise, that is what got the US economy in dire straits in the first place with the Banks and investment houses hedging them mortgages they held on US citizens would be a windfall, instead it turned into a disaster. Same thing could happen to China,

Anyone who constantly borrows with minimum payments does not a good credit rating make.

The US treat China as a Dollar Store so consumers can buy cheaply made consumer goods, giving US citizens a false sense of security all is well consumer buying wise, when in fact buying non US goods can result increasing joblessness in the US.

The time for the US now with the declining US dollar is to ramp up their manufacturing and export US made goods as fast as possible so other countries can take advantage of the cheaper US dollar.

The US protectionist to Buy American may work in some instances, but on big projects it will be disastrous with little or no competition if outside sources are not allowed to bid.  Quality versus cost needs to also be considered, but rarely is in most countries.  Those cheaply made and inferior Chinese made Tires which may soon hit US shores is one example, especially if and when these Chinese tires grenade themselves at 30 miles per hour and US citizens start dying. Who would be to blame? The US Consumer looking for the cheap of course.

But hey what do I know, I am just an Op.Ed Satirist!

The problem is in DC.. After the Great depression bank regulations were put in place, over the years since, the regulations have been slowly stripped.  Now we are most likely headed back to where we started with the "Great Depression".

When I see a report on the Dow that states "Institutional investors are driving the market" and as the banks use the source of the money to make money I know that this will ,sooner rather than later, fall in upon its self.  When that happens... well the past 2 years will look rosy by comparison.

Institutional Investors: The 'Dark Force' Driving Oil Prices Sky High?

‘what is driving the market’

Indeed, we maybe not the fools, but for sure we all are fooled! More important that we all wake up, it is becomming the final wake up call for many of us. Unfortunately when I started to mention all this in a book of the same name, people didn't believe me. Now the fire is near the house and can be watched van close by. As Roy correctly words, it is awfull it is evil. And all what is in waiting will surprise many of us. Hope people's awareness is born.

The moment China writes down the 2 trillion US$ the US owes them, that will be the end of the US Empire. A new one shall be born, but that will take a while.

Very good information.

There may be a need for some regulation but direct government is not ever a good idea.

JPMorgan is the government, lol I have always hated JPMorgan's their establishment is a very arrogant one.  Playing around with money like its jelly is not the way forward having been an accountant that has been part and parcel to bluffing banks that there is more money avalible within the companies I ran,  than there really was I know in the end jellyfying gets caught out when a recession hits.

The problem can only be solved if the companies can make money from a viable product, in the case of USA Ltd it needs home grown manufactured goods. This creates money and jobs but the problem of course the goods need to be very competitive to imported goods from countries that low overheads due to cheap labor cost.

This will cause a problem because certain imports need to be taxed to make home grown goods more attractive. Unfortunately quality is not the factor having better quality goods does not effectively mean their going to sell. The problem with placing higher taxes on imports is USA will get accused of causing a trade war. But its the only conceivable answer that I can think of to stop money flowing the wrong way further eradicating the US economy. 

This present recession will be surmounted but the problem will not go away as within 4 or 5 years if USA continues the same path heading deeper into debt there will be a much worse recession that could lead to a depression in USA.  I feel that has already been perceived by other leading nations and the dollar will cease to be the controlling factor concerning currencies. No one will want USA pulling them down if US really goes bust.