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Big A
07-20-2007, 03:22 AM
This article I think it says everything:
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March 14, 2007

Political and Economic Predictions for 2007

I've had a couple of friends tell me lately that things I said about American politics and the economy 4-5 years ago turned out to be exactly as I'd projected. It's too bad, since they weren't very happy things. But I figured that since I was right last time, I might as well publicly go on record about what I believe the future holds for the U.S. My analysis is based on my study of history and culture and what I'm talking about are probabilities. I don't claim any of the skills of a seer.

Foreclosures in the U.S. have already hit Great Depression levels in many areas and exceeded them in some.. This is coupled with unprecedented unemployment (well over Great Depression levels) if you use the real numbers and not the fudged government "statistics." And even the corrected stats don't count the underemployed and the working poor. My prediction is that the U.S. economy will continue to spiral downwards at an increasing rate, but that corporate "profits" (which, of course, include massive layoffs and neglect of infrastructure to appear to reap short-term gains) will allow the government to sustain the illusion of a potential recovery for a while yet. I expect that the facade will begin to break down completely after the 2008 election, and will be entirely gone by 2010, at which point the U.S. will no longer be able to pretend it's not in dire straits. By 2015 it'll be a recipient of international aid, rather than a bestower.

Along with the mortgage foreclosures, the contracting job market will plunge hundreds of thousands of heavy consumer debtors into bankruptcy, and the new laws will not allow those people to make a fresh start. Instead, they will be enslaved to debts they can no longer pay, and a new version of the crop-lien system will evolve in which creditors begin to control virtually every financial aspect of a consumer's life. Student loan debt will also push the current and next generation into debt servitude, without providing jobs that allow them to work off those debts in a reasonable time frame.

The U.S. stock market will become increasingly volatile as it's buffeted by one shock after another, and at first the world markets will take a hit ever time that happens. Eventually (and sooner rather than later), it will become apparent that the value of the dollar is no longer of primary importance to the rest of the developed world, and the European market will get stronger and become more stable as the U.S. market collapses. (Asian markets will remain more volatile, but will also eventually become independent from the U.S. market) This process will be accelerated when the world oil market -- except for U.S. holdings -- moves to the Euro.

As the dollar continues to drop in value, more and more of the multinationals with large U.S. holdings will invest in Euro, since that currency is likely to hold its value in the world market. (We can see this already, as large U.S. real estate companies are now buying up blocks of European apartments to counter the tumble in the real estate market in the U.S.) The U.S. dollar will go the way of the peso and the illusion of prosperity in the consumer market will take an enormous hit because imports will no longer be "cheap."

Debt-ridden, cash poor, with a diminishing tax base, a desperate U.S. will pursue acquisitions of oil and other resources via military adventurism. At the same time, repressive measures will continue to be employed, increased and tightened at home as an increasingly destitute population becomes more restless and resistant to a government that acts consistently against majority interests. More and more behaviors will become criminalized, adding to the artifical populations of criminals created by drug laws, "terror" laws, copyright laws, and the suggested "family violence" laws (which would criminalize any parent who physically disciplined a child). If everyone is a potential criminal, that will serve as the rationalization for increased surveillance, control and emphasis on "homeland security" and "protecting the public."

The U.S. prison population will continue to swell, as will U.S. "guest worker" programs (indentured servitude), so that the corporations that remain in the U.S. will have access to an enormous slave and indentured labor force. This will not, however, work out well for corporations in the long run, since even a huge drop in the wages in the U.S. won't bring the work force down to the level of labor in the third world countries they prefer to exploit, and U.S. made products will never be competitive with those produced in Asia, even if it were possible to retool the U.S. infrastructure and rebuild the country as a kind of third-world manufacturing base. The U.S. has also squandered the bulk of its easily accessible raw materials (oil, timber, copper, etc.), so that it is more cost effective to turn to richer stocks in Africa and Asia.

Destruction of the U.S. public school system and the promotion of largely unsupervised charter schools has already produced two generations of poorly educated additions to the citizenry and the work force. The lack of foundation makes it impossible for students to rise to high levels of achievement even in good colleges and universities. The U.S. underproduces highly trained personnel in almost every field in the sciences, and it has largely given up attempting to educate persons in the humanities and the social sciences. Increasingly, those corporations remaining in the U.S. will be forced to recruit from Europe and Asia to fill technical and professional positions.

Religious fundamentalism will rise as the economy worsens, and scapegoating of those who are different will dramatically increase, and will include the passage of laws (and perhaps Constitutional amendments) to abridge the freedoms of queers, women, and aliens and nonwhite persons. Black and brown people will be increasingly under the control of the criminal justice system, feeding the needs of the corporations who use them as forced labor and the police system that uses the threat of incarceration as a way to discourage political and economic protest.

Racist and homophobic violence will increase dramatically in this period, justified by the alleged "terrorist threat" that paints everyone who is not a Republican, white, American male as a potential "enemy." Profiling will be the rule, habeus corpus will be suspended for Americans, and detention camps for American political dissidents will spring up in different parts of the country. Dissidents will be criminalized, jailed, and isolated. Media control will continue to be more and more consolidated, and access to information will become harder to get. The U.S. internet will become entirely privatized and the large providers will be the gatekeepers, baldly employing a political agenda to limit free access to content. The "news" is already close to being as seamless as it was under the Soviet republic, and this will continue to be the case.

American military adventurism will continue to be justified by the "war on terror," and the U.S. will set up missile defense stations in Poland, Czechoslovakia and other "friendly" countries. It will retool its nuclear arsenal and revive the nuclear threat, forcing other nations to beef up their nuclear programs in reaction. As U.S. real power dwindles, U.S. imperialist efforts will become more desperate, and U.S. foreign policy of the next decade will make the brinksmanship of the Nixon/Kissinger era look like a calm and friendly game of chess.

The Democrats are not going to make an iota of difference -- they don't have the power to stop the coming economic crash, which is already well under way. Nor do they have the will to walk away from the strategy of military-intervention-as-resource-grab. They don't give a damn about the poor, or about the fact that the American middle class has virtually disappeared. They don't have the guts to stand up to to corporations, to socialize utilities or medicine, or to insist on rebuilding our infrastructure. They don't want to reinstitute the civil rights that were stripped from Americans or foreign residents. They will not end the drug war, and they will not end the war on terror. They will hold power briefly and ineffectively, and they will be replaced by the cronies of the same Republicans they are attempting to oust from power. The electoral system of the U.S. is bankrupt, the Constitution is shredded, and we no longer live under a rule of law -- the Democrats have neither the ability nor the fortitude to confront that fact and to set things right.

Over the years a lot of people have called me a pessimist when it comes to predicting what will happen. I'd like to take a moment to point out that I have been on the money about everything I've said would happen, and that things are just as bad there now as I said they'd be... and they're heading for worse.

Personally, I'd suggest getting and staying the hell out of the country if at all possible. If you have anything to invest, do it outside the U.S. and stay away from the dollar like the plague.



Posted by kalital at March 14, 2007 1:51 PM

Big A
07-20-2007, 03:27 AM
What is particularly interesting, is that his US$ points are 100% spot on.

Right now the US$ is the weakest it has been against the AU$ in 20 years.
I personally am starting to wind up my US interests and in the process of selling my US assets. If I don't do it as soon as possible, I'll start losing money.
At this moment, I am losing $20,000/month due to the US$ exchange rate only, compared to just 6 months ago.

I will be losing hundreds of thousands of $ in the sale of my US assets than if I would have sold them months ago, so I am trying to exit as quickly as possible and just concentrate on the Euro market.

This article above confirms everything that I believed lately and unfortunately what I beleived and what is described in the article is being proven almost on a daily basis.

Big A
07-20-2007, 04:01 AM
The AU$ is the strongest against the US$ in 20 years
The euro has reached a lifetime high against the US$
The british pound is the strongest agains the US$ in 26 years

littlemack
07-20-2007, 03:17 PM
A little "doomsday" though don't you think? :D
I personally do not believe that the US will go down the crapper THAT quickly. One day possibly a recession or a depression, but the US is a country filled with many intelligent, innovative, and creative minds. In fact, that is probably one of its greatest assets. The only thing about Europe is that its population is very "old." Very stable, Yes, but also older than the rest of the world in comparison. Whereas countries like China, India, other Asian countries and Latin America have very young populations. A lot of these people come to the US for the excellent quality of higher education that we offer. Some of these people go back to their homelands to work as doctors, engineers, and scientists. However, a great deal of them stay here because of the salaries and level of pay. There is a huge shortage of healthcare professionals in this country and that trend will continue to widen with an aging baby boomer population.
Now. Let's play devil's advocate and predict a massive depression in 7-8 years which this country is no stranger to I might add. Wouldn't that be a fantastic time to invest in this country? Do you really think it will stay depressed forever? Did you notice which city just took over as the most expensive city in the world to live? MOSCOW! I couldn't get over that when I heard it. Talk about wild. Look where that city was 10-15 years ago.
Should be fun to see what happens, but I'm not going to grab the next flight out of here. There are still plenty of opportunities to invest here.

OuchThatHurts
07-20-2007, 03:33 PM
I'll give my opinion on some of this soon. I have a lot to say on this and I agree with what the author is saying in that many of those things may happen but not for the reasons or in the manner in which he says they will.

There is no doubt though that the US investment for those that have accumulated wealth is a poor one. I was shocked to find the average household debt was $18k in 2000, not including mortgages. That means that the average citizen, if assets were liquidated, would be worth less than zero. Not as people, just financially. So already the majority of the population are forced into labor to pay for debts and they will unlikely have any real value. Any value they might achieve through home appreciation, is lost because home equity loans are the rage! Of course I read that almost 7 years ago. It's worse now.

More later... I could on for this for days!

OuchThatHurts
07-20-2007, 03:38 PM
It's not a matter of whether or not it's all going down. It's more of a matter of when. Sort of like the Titanic. The ship is sinking and there aren't enough lifeboats. The rich have them. But the rest don't. I'm have my lifeboat ready and won't hesitate to jump ship. Now I even have bigger problems with that because our current administration has made Americans so unpopular that I'm not sure now where I even want to shove off too. I won't say when this will occur but I guarantee it's within my 10-yr plan.

Any countries still favorable to US citizens out there? HellOOOoooo????

curiousity
07-20-2007, 06:52 PM
Interesting article. It reminds me of how blind people are to this situation. I was talking with my girlfriend's family telling them that the worsening of the US economy is a much, much bigger threat than any threat of terrorism. I was laughed at. Apparently I am mistaken with my notion that watching Fox news for a couple of hours a night doesn't qualify as being informed. :D Sad what people pass off as educated and informed these days.
EDIT: To be fair, it isn't just Fox News. Most of the news today is more about entertainment, etc instead of real, useful news.

I've been worried about this for a while when I discovered one of the reasons that the US dollar is still used internationally is that it has to be used to buy oil and this forces lots of countries to keep stacks of US currency for that reason. I think the dollar's loss of value would have been much faster if it weren't for this.

It definately stresses me out since I'm switching gears and starting out on a new career. I've started working on a Computer networking degree while working in the field. I figure this skill will travel well. I've given myself 10 years to became very proficient in the field, built up a nest egg for moving, and to have explored several different countries in the EU. Maybe learn a language if I decide on the country early on.

BTW, I was talking with a co-worker whose friend had just got back from the EU. He said Switzerland was the most amazing country there. I think the best fit is a personal choice/feel, but I'll be including Switzerland on my list of countries to visit.

Ouch, you are definitely right about it being a slow sinking Titanic. I really hope that it will last long enough for me to accomplish my goals. *crossing fingers*

MrWannabe
07-20-2007, 09:19 PM
So do you guys think financial economies even work???

Kaiser
07-21-2007, 01:32 PM
First, let me prefix this by stating I am an American (as you know BigA). I have been stating things like this for a couple years now BigA as far as the US isn't what it used to be. People always return the same answer: "US is the most powerful on earth" or "No better country on earth". They're blindsided by the media and being herded like sheep going to slaughter. I too have been around a little, not as much as you but nevertheless, around. I have witnessed different cultures, and would say that I am pretty well rounded. As different as the cultures are, you realize that there is something in their existence that makes them work. I think more and more Americans are "waking up" to the fact of this country's shortcomings. It took a while, but nevertheless a few more are resistent to media standpoints. Problem is, most have NOT seen anything outside of US soil to know the difference. To top it off, I dont even think we're the most powerful anymore. This is no stab at our military, it is just something I feel is becoming more and more evident every day. I would go on record and say that China would squash us due to the sheer numbers and the mindset. They already squash us in manufacturing. Yesterday I had $10K in patio furniture delivered. Of course it came from china, because the US cannot compete in price. I actually think the shipping cost more that the actual objects being shipped which brings up my final point. How long do you think a country like the US can act as a conductor instead of a contributor? When does the revolt begin, and when do we realize that without producing textiles ourselves, sooner or later we will lose more ground than we already have?

thebrick
07-21-2007, 01:59 PM
First, let me prefix this by stating I am an American (as you know BigA). I have been stating things like this for a couple years now BigA as far as the US isn't what it used to be. People always return the same answer: "US is the most powerful on earth" or "No better country on earth". They're blindsided by the media and being herded like sheep going to slaughter. I too have been around a little, not as much as you but nevertheless, around. I have witnessed different cultures, and would say that I am pretty well rounded. As different as the cultures are, you realize that there is something in their existence that makes them work. I think more and more Americans are "waking up" to the fact of this country's shortcomings. It took a while, but nevertheless a few more are resistent to media standpoints. Problem is, most have NOT seen anything outside of US soil to know the difference. To top it off, I dont even think we're the most powerful anymore. This is no stab at our military, it is just something I feel is becoming more and more evident every day. I would go on record and say that China would squash us due to the sheer numbers and the mindset. They already squash us in manufacturing. Yesterday I had $10K in patio furniture delivered. Of course it came from china, because the US cannot compete in price. I actually think the shipping cost more that the actual objects being shipped which brings up my final point. How long do you think a country like the US can act as a conductor instead of a contributor? When does the revolt begin, and when do we realize that without producing textiles ourselves, sooner or later we will lose more ground than we already have?

I agree 100% with what you said and the fact that most in the US have not been exposed to anything away from US soil is scary as hell to me. People in the states complain if they hear Spanish spoken, when in fact, much of the world is bilingual. For me its arrogance and ignorance rolled into one.

kawasaki1
07-21-2007, 02:25 PM
It's a damn good eye opener!!! The majority of people go around the routines of their lives, and never even consider these things!! An excellent heads-up!! Definitely time to start investing elsewhere........

Big A
07-21-2007, 03:26 PM
A little "doomsday" though don't you think? :D
I personally do not believe that the US will go down the crapper THAT quickly. One day possibly a recession or a depression, but the US is a country filled with many intelligent, innovative, and creative minds. In fact, that is probably one of its greatest assets. The only thing about Europe is that its population is very "old." Very stable, Yes, but also older than the rest of the world in comparison. Whereas countries like China, India, other Asian countries and Latin America have very young populations. A lot of these people come to the US for the excellent quality of higher education that we offer. Some of these people go back to their homelands to work as doctors, engineers, and scientists. However, a great deal of them stay here because of the salaries and level of pay. There is a huge shortage of healthcare professionals in this country and that trend will continue to widen with an aging baby boomer population.
Now. Let's play devil's advocate and predict a massive depression in 7-8 years which this country is no stranger to I might add. Wouldn't that be a fantastic time to invest in this country? Do you really think it will stay depressed forever? Did you notice which city just took over as the most expensive city in the world to live? MOSCOW! I couldn't get over that when I heard it. Talk about wild. Look where that city was 10-15 years ago.
Should be fun to see what happens, but I'm not going to grab the next flight out of here. There are still plenty of opportunities to invest here.

Well, I am currently losing $20,000/month right now because of the US$. So to me it's VERY real and VERY gloomy, so I am jumping ship as soon as possible.

MrWannabe
07-21-2007, 04:22 PM
No matter where we run or invest, it will all eventually crumble. A society can not have longevity when its fundamentals are profit/gain. All empires have fallen through history and in these more recent years it seems that the world powers rise and fall at an even faster rate. Something is definitely brewing and it aint keeping doing things how we presently do. Mankinds got a lot of growing up to do and we all better grow up fast cause it aint goona be pleasant...peace.

jayuk
07-21-2007, 10:26 PM
I think the initial post has a number of things which it is assuming, and its continued its "theory" based on things not changing and continung as they are!

To be really honest! the US is still a safe haven and is NOT going to collapse! Let me elaborate!

Ok, Euro!

Now, theres no denying it that the Euro was brough about by a largely German \ French force. As tbh they dont like the Yanks and never have! The UK had to join as at the time, the pathetic excuse of politicians thought they could broaden and further enchance trade relations...Blah! Now, the two single BIGGEST issues on the potential downfall of the US and its Economy are as follows

- PetroEuro! Yes! Its true, its exists, and its the MAIN reason (aside from securing Oil in Iraq) that USA and UK took there asses to War with Iraq. Saddam was well on his way to setting up trade of Oil in Euros!....take a look and read up! its all there and in Black and white!

- A major attack on US soil!

Both of the above would have disastorours effects on the US economy! The first one being the END of the US economy!

Point to note is that Iran are fast trying to set up exchanges to trade there Oil in Euros! However, the problem with Iran is that it doesnt have the capacity and resources to make use of Oil! Its buys over 50% external!!!

Now, why I think that the initial article was slightly erroneous is as follows

Iraq : USA have secured numerous amounts of Oil in Iraq. How ironic that as soon as Iraq was attacked 3rd party security personnel were strasight at the supply lines!! Lol... Well, can anyone here take a guess how much potential Revenue USA now has...by securing the Oil in Iraq?...Take a guess?...As much as the US

THIS, my friends is the single reason why the US economy will NOT go down the pan as the initial post describes!

Numbers? Are you ready?

Many estimate that Iraq has anything from 120-300 Billion Barrells of Oil! Many are also under the impressiont that this is wrong! And its DOUBLE!! so 240 - 600 BILLION barrells!!

Now, a little maths lol

300 Billion x $80/barrell :

300,000,000,000 x 80 : 24000000000000

Thats 24000 Billion! OR, 24 Trillion USD!!

This my friends, is WHY, the USA is still going to be the Super Power it is!

I can go into alot more detail if you want!

But guys! Rest assure the USA isnt going to collapse! Its going through its current turbulence as it had to make a hugh investment for the Wars! But with 24 Trillion secured!...thats its national debt wiped out and then some!!!

China , India etc.....there still going to be playing catch up for at least another 20-30 years!!!

Jay

littlemack
07-22-2007, 01:11 AM
Well, I am currently losing $20,000/month right now because of the US$. So to me it's VERY real and VERY gloomy, so I am jumping ship as soon as possible.

Ouch! Are you losing this money on the currency exchange back to AU? Can you hedge?