Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I was wondering if anybody noticed that the Media and pretty much every official has glossed over the root of the problem. It seems like the Media's analysis of this problem goes as far as the Interest Rates being low in the early 2000s and that there was deregulation in the financial sector.
This is also true in popular finance publications such as the Wall Street Journal, Forbes, Time, and Fortune. It's the greed and corruption of brokerage houses, mortgage firms, banks, and governments that caused the mess... and it stops at there.
The media occasionally "hints" on the idea that the capital flowing in for the massive credit expansion came from foreigners and that's about it. They don't take the next step and basically explain that the TRADE DEFICIT and their trade surplus is being funneled back in to the USA in the form of buyers for MBS, CDOs, and other derivatives.
The Trade Deficit... simple as that. Without solving this issue, this problem will continue to occur since our foreign creditors will continuously try to find ways (besides treasuries) to poor their excess surplus and our financial institutions will continue to find ways to accommodate (whether in commodities, real estate, tech firms, new financial "instruments", etc.).
Or am I being silly, and the Trade Deficit isn't at the root of the problem?
Anyhow, I've contacted my local news agencies to see if they can do a piece on how the Trade Deficit is the root cause of the problem. I've contacted our local NBC (KNBC) and Channel 9 (Kcal9) "investigative" reporters. But I don't really think it'll result in anything (I don't think they'll bite the hand that feeds them). At least in blogs and forums... everybody has a voice. I think we need to raise that voice... and let people know!
The media may not have a clue whats going on entirely. Media folks are humans just like the people on this forum. Some know what time it is. Some have no clue. Some have a small idea about what is going on but they don't see the big picture. Besides that, do you know how much research it would take on their part to properly cover this effing mess? They would have to go back and explain the gold standard. Then explain our current system. Then explain what asset hyperinflation is (i.e. bubbles). Then they would have to explain what caused all this. Then they would have to go back and research pros and cons of gold backed currency and alternatives to it and pros and cons of each. Not a easy task, and it would take more than a 30 minute segment. That is a 1.5 hour feature length film at the least.
People have trouble understanding derivatives (my thread on OTC Derivatives died a quick 'Wall St' death from lack of interest) - and now you want them to understand how the trade deficit ties in to all this???
Their eyes glaze over...if it isn't about the stock market and how their 401(k)s are doing, they don't wanna know. I never liked the term 'sheeple' but I now have to admit that so many of them are!
The media may not have a clue whats going on entirely. Media folks are humans just like the people on this forum. Some know what time it is. Some have no clue. Some have a small idea about what is going on but they don't see the big picture. Besides that, do you know how much research it would take on their part to properly cover this effing mess? They would have to go back and explain the gold standard. Then explain our current system. Then explain what asset hyperinflation is (i.e. bubbles). Then they would have to explain what caused all this. Then they would have to go back and research pros and cons of gold backed currency and alternatives to it and pros and cons of each. Not a easy task, and it would take more than a 30 minute segment. That is a 1.5 hour feature length film at the least.
Well, they do cover Al Queda and terrorists in hour+ long "specials"... why not cover the economy.. "Issue #1" my ass
I'm not sure about the "gold" standard thing... if gold should back all currencies... then why is China, Saudi Arabia, etc. doing so well? I don't think their currencies are backed by gold. http://en.wikipedia.org/wiki/Chinese_currency
The Trade Deficit is actually really easy to understand... all they have to do is show the circular flow diagram of how "capital" flows between households, companies, government, banks, and foreigners. Isn't that how crime investigations work? Follow the money trail?
The money trail would show large amounts of capital flowing out of the country... coming back in in the form of "loans"/"investments" from our foreign creditors (In fact, I think the general public has "accepted" that we're indebted to foreigners....Why has Americans accepted this?). I think it's pretty easy to understand... more going out than coming in... and that only continues as companies move overseas.
The same Corporations that profit from the trade losses are the same ones that OWN the major media sources. They did that as part of the coup.
Just bidness, yunno?
Sadly, just business can only last so long.
As we have already seen, American prosperity has only been an illusion all of this time. America has cracks all over and is on the verge of collapse every day.
Without America, these corporations basically loose the largest per capita market in the world. It's frustrating to see how short-sighted and slow these highly paid frat boys are. I would think that even our foreign creditors understand that this trend is unsustainable.
In my honest opinion, the reason why the media hasn't covered the root of the problem is because the average person doesn't really care. Why would someone want to spend an hour watching a documentary about the economy when they could be watching "Dancing with the Stars" instead? From what I've observed, most people don't want to be bothered with the mechanics of the problem, as long as the government can magically "fix" the problems. Most people are not interested in keeping corporations or the government accountable. After all, who has time for all that when we can focus on celebrity gossip instead!
In my honest opinion, the reason why the media hasn't covered the root of the problem is because the average person doesn't really care. Why would someone want to spend an hour watching a documentary about the economy when they could be watching "Dancing with the Stars" instead? From what I've observed, most people don't want to be bothered with the mechanics of the problem, as long as the government can magically "fix" the problems. Most people are not interested in keeping corporations or the government accountable. After all, who has time for all that when we can focus on celebrity gossip instead!
Sadly downtownnola,
I think this is very true. Although, I do believe a lot of people these days actually tune into the local news in the evenings... and the local news does have an economy/money segment. CNBC, CNN, etc... can very well do a whole economy piece.
I think at the very least the News can incorporate a little more depth in their reporting... I haven't heard a peep about the Trade Deficit besides the quarterly negative numbers. I would think "some" Americans would like to know the root of the issue.
You actually thought that journalism has "thinking" involved with it... they just like to use "hype" and "prevalent prejudices" as the basis for their facts... I don't believe the "face value" of journalism and yes, it has gotten worse through the years because "hype" and "prevalent prejudices" are more likely to sell and capture attention than simple facts... I don't believe journalism entirely, our society hinges on what "they" expect instead of what "is" anymore... if it's not what "they" expect regardless of how illogical or incomprehenisbly "stupid" it is, they won't be reading it and you be out a job...
Without America, these corporations basically loose the largest per capita market in the world.
Maybe not for long: together the US and Europe have, what, some 700 million people. China and India have some 2.4 trillion, then you have the rest of Asia.
Not that Chindia et al per capita will rise to US-EUR levels any time soon, but, from an economy-of-scale standpoint what is better, sell some stuff to 700 million people with high average income or a lot of stuff to some 3.1 trillion and climbing, all with mediocre average income?
I am not saying that this is right or sustainable, but a lot of resource-movers seem to be thinking this way.
Finally, when you point to the trade deficit, and rightly so, underlying that you also point to the lack of productive goods-producing employment in the US.
As I mentioned in another thread, Chinese companies are buying up US and European financial and industrial assets and they are forming global conglomerates.
Just for example, yesterday Asia's biggest manufacturer of construction machinery, a Chinese company, bought Italy's biggest manufacturer of plant and machinery to make concrete for construction that already has 20% of the European market. Together they will form a complementary group that will reach six continents: the Chinese company's turnover is about four times the Italian company's turnover. Which of the two will be the dominant partner?
The crux of the matter is that captains of US industry have sold out the average US worker to globalization. The politicians in the US can protect and subsidize the average US worker only for so long, whether through monetary policy or fiscal policy. That time is now expiring (it may have another four or eight years to go, or it could be tomorrow, who knows?).
Now, either they make the effort to restore to the average US worker gainful real employment actually making things, or the real income of the average US worker will not only continue to decline, however stealthily through loose credit, it may plummet rapidly regardless of whether credit is loose or tight.
The foreigners are now starting to collect the bill by buying up financial and industrial assets.
Maybe they will be the ones to put the average US worker back into productive employment, but the rules will be a hybrid of what we are used to in the US and what they are used to in countries like China.
Mark my words.
If you want to lobby for anything, lobby for conditions that would make both basic and high tech manufacturing profitable in the US and take action before the average US worker loses complete sovereignty and "citizenship" is reduced to a word.
But, as others have pointed out, it may already be way too late for these television-watching, cultureless, high-on-the-money-supply, welfare-junky zombies.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
