U.S. Debt Crisis May Cause ‘Fall of Rome’ Scenario, Duncan Says

U.S. budget deficits will continue to pile up in the next decade, eventually reaching an unsustainable level that may result in an economic collapse, according to Richard Duncan, author of “The Dollar Crisis.”
The U.S. has little chance of resolving its deteriorating financial position because the manufacturing industry continues to shrink, leaving the nation with few goods to export, said Duncan, now at Singapore-based Blackhorse Asset Management.
In “The Dollar Crisis,” first published in 2003, Duncan argued that persistent current account deficits by the U.S. were creating an unsustainable boom in global credit that was destined to break down, resulting in a worldwide recession.    

Read More

The New World We Live In

I think history will mention 2007 as the last year of the western civilisation that have dominated the world since the middle ages(1500AD-date). Especially diffirent is the last 60 years(after the second world war).

Humanity has been able to multiply our knowledge and our understanding of our environment and ourselves(science) such that,60 years looks like a millenium ago. Our achievements have been tremendous and remarkable. During the collapse of the soviet Union(USSR), people talked about the end of history and the last man(google) where people assumed western civilisation had triumphed and will dominate humanity as the main ideology since the rival ideology of communism and socialism had been defeated. So there we went, booming, prospering and teching, untill 2007.

The whole system choked on itself.
As we sought an absolutist ideology of unregulated free market capitalism, we have created a system of corporate greed whose unsatiable greed have resulted in things like outsourcing, turning some countries to be the consumers and some to be the producers. However, they forgot the history, that countries can only be rich by selling things other countries want to buy.
How can we be rich by washing each others clothes and charging them for it- its called services
We by becoming the consumers mean, we kill employment(-check USA & Britain),we kill innovation as there is no more the motivation to seek the unknown, we create large negative trade deficits because we produce nothing but buy more than anyone ,just to name a few.

As a result of this so called Globalisation(even though the Doha Round of talks failed) we have in effect become the deptors with disgruntled creditors.
Our creditors are from far away places like UAE, Kuwait, China, India, Japan and Russia.

Unfortunately, as it is with every people, they also have plans of their own for during our dominance, we have shown the good and bad sides of power and they have learnt well. They know which side of the coin they have to be to have what they want.

Now we face a dangerous world. By trying to avoid the collapse of our societies, we have taken desperate measures that have resulted in what is effectively state socialism even though the media(Rupert Murdoch's pupets) do not mention it directly.
Look up the definition of socialism if you dont remember from JSS to know that when governments bail out and buy large says in business with taxpayer's money we have a socialist state. This is exactly what capitalism is against. If we are capitalist, then the fall of one is an opportunity for a competitor, who will now have the chance to excel at the expense of the fallen. But Now if the government bails out the fallen, where is the need for the competition???? Hence where is the capitalism?????

My friends, I admonish you. as Proverbs 4:7 .....and with all thy getting get
understanding.Lets seek to understand our days that we shall be able to make better judgement and defend our western civilisation that has brought us the properity, knowledge and development you and me enjoy today.

We live in a completely new world today.

Lessons America Can't Teach Us Now

American capitalism could still teach the rest of the world a few lessons - but it's increasingly teaching us what never to do if you are a country loyal to a free-market economy.
For instance:

Never nationalize a troubled insurance company, especially two days after the Treasury and the FED say that no more taxpayer money will be used to rescue bankrupt financial companies.

As a government, never interfere to rescue and sell a failed investment bank and then decide several months later not to do the same for other failed investment banks. Applying that kind of double standard for the same species of financial creature signals to the market that monetary authorities are making up the rules as they go along. That lack of a strategic or systemic view takes a toll on market confidence.

Read More