The Real Reason the Economy Is Broken (And Will Stay That Way)

Peak Prosperity ^ | 2-16-2013 | Chris Martenson

[P.O.E.]

I can only read your post and shake my head.

Why?

Why use only 1” 1/2 crushed bluestone?

[familyop]

"The Real Reason the Economy Is Broken"

A. Lack of manufacturing. We've seen third world countries with large populations living in squalor in economies that try to thrive on agriculture and energy without much manufacturing (exception: Canada, with very small, ingenuous population and enormous amounts of oil and other natural resources).

B. Because Americans were born lazy, stupid and worthless, while foreign communist slaves are far better than Americans. You deserve to be unemployed, starved, watched for trivial regulatory violations, to continue to be rental slaves, frightened and robbed to prevent you from having children, marked for the rest of your lives with records of trivial/irrelevant complaints (cigarette smoking, using your private properties without permits, writing sexist pronouns, owning firearms,...), put in romanistic dungeons for romanistic torture entertainment and eventually exterminated to make room for animals and the natural environment (and oh, us bipartisan elite folks, of course).

America, choose one of the answers above. Are you right (A), or are the sitting bureaucrat sturgeons of debt right (B)?

[Hint: most of the elite folks are much more recently descended from Europe than we real Americans defamed and officiously robbed by them.]

[Carriage Hill]

That’s the filler and “base coat”; pave it over with 4” of a “rice coat layer” for a smooth patch on the road. That muzzie’d be so sealed-in by tar and layers of macadam, that he’s never get out, except via pneumatic drill and a backhoe.

[Caipirabob]

This problem is further compounded by dozens of millions of illegal aliens are here robbing, raping and murdering us (through disease, alcohol, guns/knives and inundating our K-12 public education institutions with their sweet little Reconquistas)......

Top 10 rule of an economic meltdown : "Do NOT be a foreigner"

Retribution will be monstrous and brought by the same people who coaxed them here to begin with.

[BfloGuy]

Other than that one beef I have with his views, “Crash Course” is superb.

Well, that's a pretty big beef. It's the same one I have with this article. It's nonsense to claim that the problem with our economy is that it's costing more to extract fuel and minerals and consumers won't pay it.

The problem with our economy is that the Fed printed too much money which led to a huge, exploding real estate bubble. This crisis was swiftly followed by the election of a president who has kept the money-printing in place all the while threatening businesses with higher taxes and ballooning labor costs.

The article sucked. IMHO.

[Erik Latranyi]

Simply put, they are running out of other people’s money.

[hattend]

BTTT

[griswold3]

Japan is trying to address their ‘Comfortable Poor’.

When debating how to stimulate aggregate demand, no one brings up “Say’s Law”. There are answers out there but first they have to admit they were wrong in the first place. It’s the first step to real recovery.
But, Central Planners never think they’re wrong.

[dennisw]

******The worldwide experiment of using an exponential rise in debt driven by Governments and their Central Banks to hide the lack of jobs that produce real goods is beginning to fail******

Automation and computerization have severely reduced the number of men needed to produced steel, washing machines and injection mold plastics etc. In the case of America we had evil free trade polices that accelerated this decline in "guys jobs". It made Japan and China richer and us poorer and now Asia leads in many technological areas that feed into production of high tech items. American big corporations and big capital got wealthier from free trade as US workers got poorer. WalMart became larger (in income) than General Motors 17 years ago. WalMart showed you could make more money selling foreign and some domestic items than producing them which is what we used to be known for and what sustains a middle class.. The real estate bubble (ginned up by Greenspan/Federal Reserve easy money policies) temporarily created millions of good paying guys jobs. So many guy jobs we had a few hundred thousands illegal aliens guys also hammering nails.

There is nothing good after this "new normal" so do not lie to yourselves. There will be no automobile making revolution to supplant the obsolete (cliched) buggy whip manufacturers and make America more prosperous. There will be armies of non-producers (welfare state takers) who will look to the state for sustenance and who will vote for the Obamas who will provide this. Capital and wealth will become more concentrated because a fair and decent wealth distribution depends on a morally solid and prosperous middle class that only gets this way by making useful real tangible goods for a real world not a phony world of paper assets, and hyper-fiatized Federal Reserve issued money . You gotta mine it, make it or grow it. Computerization, automation , free trade kill this.

I despise the cultural left, capitalism is the best economic system, but we have large contradictions in it right now

[P.O.E.]

Much better. Talk about “shovel ready”....