Ricracing

Yes

And it's not communist talking! A lot of academical studies say that the whole country is better off that way.
See what what is happening in the UK now after social cuts: http://www.guardian.co.uk/uk/london-riots

v_therussian

People don't see how much China and the U.S. are interdependent. We keep saying that China has some kind of a hold on the U.S., but in reality, they are just as dependent on the States, if not more. We consume so much of their products, that without us, there would be no China anymore. Not to forget also, that China has some serious governmental problems - just look at how they handled the high speed train crash from a couple of weeks ago. They tried to bury the wrecked cars in the ground next to the crash site before reporters got there. I mean, common - you really believe anything they put out? They are up shit's creek, man. It's clear from their inflationary levels and many other things. Just because they are buying the most cars and building a lot of new infrastructure, doesn't mean they don't have any problems. But yes, as of right now, they are in a pretty decent shape, all things compared. Just saying that simply because their situation is "better", doesn't mean it's "good".

You say Republicans don't see things as they really are? I say, NOBODY has any clarity of vision right now. I think the entire political system has become so corrupt and disconnected from reality, that people in the ruling echelons everywhere around the world are completely disconnected from reality. This has happened before in some countries - best example would be the Russian Tzars from late 19th-early 20th century period. They became so ignorant of reality, that they lost all touch with what was happening with the people. And we all know what that resulted in.

It doesn't help that there is a very high unemployment rate - in the U.S. and worldwide, really. But that issue cannot be viewed without taking into consideration of the fact that the new generation growing up now is spoiled. The vast majority of the new generation coming into the workforce have no idea how to work. They all want to drive Bentleys and have corner offices - they demand instant gratification. And while the marketplace is forcing them to remain unemployed, we fund all types of social assistance programs, that enable them to sit on their asses, smoke pot and play PS3, instead of striving to achieve. There's a huge disparity, for instance, in the U.S. - there are 3 engineering positions available for each qualified engineer in the workforce. Why? No one wants a "boring" engineering job - everyone wants to be a businessman, the boss. Or a ball player, a rapper - you name it.

But none of this really matters next to the fact that during Obama's Presidency, the Federal Government has spent more money, than under all Presidents combined prior to him. But that's not even so bad - what's bad is that there are no positive results from it. Every child knows, in business, if you spend a dollar, you have to make that dollar back AND make a profit that will cover your costs and hopefully, leave you with a few pennies of net profit. These guys "up there" are not aware of this - they fool themselves by believing in convoluted economic models, that promise everything, but have no real-life effectiveness. Because they are only theoretical - nobody bothers to test them in real-life anymore. This is true for many major money managers as well - they are so committed to theoretical high math and physics of their models, they don't pay attention to the fundamentals. And fundamentals, as the result, are diminishing. In this light - and this may actually be the real reason the markets are melting down - it is obvious that world leadership is pathetic. Whether we like it or not, we have been overrun by fools. And most intelligent people are throwing in the towel, saying "I'm just going to live my life and not worry about what goes on over there".

I've outgrown believing in Ayn Rand's economic theories of pure capitalism, but nevertheless, if you read her Atlas Shrugged, you'll gain instant insight into what is happening right now. It is so clear - it was clear to her many decades ago. And we've all fell into this trap anyway.

I could go on, but I just don't want to get into this any more. EU's problems are very similar. And there's also some kind of a push for a Global Currency - that's becoming more and more obvious. That is a way to control the world, in case anyone is wondering. And that will be the first real step toward the new world order, promised by Bush Sr. way back in 1992. We are too ignorant to see the reality from behind our big-screen tv's, BMW iDrives, iPhones, iPads, PS3s and all that BS... and that, my friend, can only lead to us getting what we deserve.

The only real answer is education, never ceasing to ask questions and learning the truth regardless of cost. Spreading the truth, educating people around you. There are lots of great new technologies that can infinitely improve the quality of life on Earth - they are the source of the new economy. Reducing pollution, exploring the Universe - all these things that only exist in sci-fi novels are becoming attainable right now more than ever. Yet we sit here and watch the stock market. Let that motherf***er plummet - it's a dinosaur and it needs to become extinct, to give way for the new economy that will reflect our reality...

/rant

tachyon

The following facts are from the White House Office of Management and Budget:

In 1995 under President Clinton (his 3rd year of office) the U.S. took in receipts of $1.69 trillion and spent $1.90 trillion (in constant 2005 dollars).

In 2003 under President Bush (his 3rd year of office) the U.S. took in receipts of $1.90 trillion and spent $2.30 trillion (in constant 2005 dollars).

In 2011 under President Obama (his 3rd year of office) the U.S. will take in receipts of $1.90 trillion and spend $3.34 trillion (in constant 2005 dollars).

President Obama has achieved 12% higher tax revenues than Clinton, yet he has spent 76% more than Clinton.

President Obama has achieved the same tax revenues as Bush, but will spend 45% more than Bush.

And you think we have a tax problem?

m630

While this is nearly impossible to discuss in earnest in this format, it should just be understood that it was in fact the US govt, not "greedy bankers" that caused the subprime meltdown, dont believe the hype you read in biased media or made for tv movies, trust me, I was there and know what was going on and what caused it. You have to look at root causes and find that US politicians developed the conditions that made it possible for brokers, not bankers, to exploit. Of course there are many that are compliciate in the problem as greed always rules unfortunately in our world, but if not for the fact that Fannie and Freddie via empowerment from our Congress and Presidents (going back to Clinton) put the guidelines in place that made this the perfect storm so to speak where those savvy can then look to exploit. Yes, certainly brokers and then some investment bankers made the situation grave, but as in just about any situation, if you leave a situation where one can take advantage of a situation, there wil be those that do so and do so in spectacular form as in the subprime meltdown. And dont forget the complicate behavior of the S&P and other rating agencies, they are the major major contributors to the global meltdown, they did it in the subprime debacle when the rated junkbonds as AAA, just as now they are doing with the US debt downgrading. Its nearly comical that anyone even cares that S&P has any real standing since they proved they are clueless in how to rate anyone in the subprime fiasco.

I appreciate your inquiring into understanding the global economy, and I agree that the US doesnt administer it, but by defacto the rest of the world keeps turning to our currency for safe habor, thats not our fault, but its just the facts of todays reality. Vlad made some good points regarding China, they have no hold over the US no matter how loud they proclaim it. They cannot survive without the US, so they cannot stop buying our debt now or call it due. We fuel their economy in this global web that is in place, just like so many external factors affect and fuel our economy, so I could care less about what China says, we are certainly interdependent and thats fine, but pay little attention to their retoric, they are just playing politics as expected, if they even had a semi-free market system, they would be no where and have no ecomomic strength, but they build their economic might on the backs of all their citizens who starve or freeze in poverty while their ruling communist party live like emperors.

EU has many problems and a long way to go, but it has almost nothing to due with the US, they spend way too much when you account for what they have available to spend and thats why they are in a crunch.