As much as I want to get on the band wagon and say, yes this is a great idea, we should rebuild infrastructure, it’s pushing our greater fiscal problems down the road, again ♦. [Obama unveils plans to pump billions into US infrastructure in Miami speech - theguardian 29 March 2013] Spending our way to prosperity is as much of a Ponzi scheme as that proposed to the clients of Bernie Madoff.
We are facing a future calamity with our currency which will test this country to its limits. In the next decade we shall likely see the dollar as no longer the reserve currency for the world. The effect of this will be an immediate devaluation of the currency, perhaps greater than 50%. Once removed as the primary reserve currency, the U.S. will not be able to flood the market as they currently do under a euphemism called Quantitative easing. All of this is because the balance between enlarging our debt while creating fewer goods & services to offset, means we can’t repay the debt. We aren’t going to beat the reality of economics. The economies of other countries are already disengaging from the dollar as best they can because they see what we won’t, an out of control spending habit. No economy has survived a runaway expansion of currency.
I know there will be people immediately jumping all over this and saying, I’m being negative or some such excuse for avoiding this looming problem. I realize the Kool-aid is delicious, but you have to stop drinking it. We need to find people willing to remove the barriers to economic growth and promise less while spending less, a whole lot less if we want to remain a viable technically advanced and economically stable country , otherwise I’m afraid the future for generations behind me will be far removed from what we have today.
Low wage jobs are dominating the U.S. recovery After 2007.
In the U.S., jobs paying between $14 and $21 per hour made up about 60% those lost during the recession, but such mid-wage jobs have comprised only about 27% of jobs gained during the recovery through mid-2012. In contrast, lower-paying jobs constituted about 58% of the jobs regained. See both articles: Bureau of Labor Statistics Washington Post – 31 Aug 2012
How can you tell when government officials are lying to you? During the investigation of the housing & financial crisis, several media outlets as well as supporters of government financial institutions denied problems with FANNIE MAE & FREDDIE MAC. This 2004 video shows how those in power will deny the statements which later we know were true, government sponsored loan programs were pushed into the market place with the expressed idea of giving loans to families who couldn’t meet loan standards.
As a response to this, various financial institutions thought to make money off a scheme of shoring up lost profits. Mortgages were often sold with a short term reasonable rate of interest but then would mature to an adjustable rate placing the home out of the capacity of the homeowner to maintain the loan. Newly created and devastating investment programs came under the heading of collateralized derivatives or collateralized mortgage obligation. These CDO’s and CMO’s were backed by a large number of mortgage loans that were over-leveraged. When the housing bubble burst, all of the financial institutional chicanery came tumbling down.
BLOG BACKGROUND LINKS
IMF Calls For Alternative To Dollar As World Currency
The Economic Normalcy Bias
Currency Amounts in New Special Drawing Rights
A New American Century?
When Does Government Debt Crowd Out Private Investment
Bureau of Labor Statistics
Obama unveils plans to pump billions into US infrastructure