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could you add WTF Finance to your blogroll list?
Toggle Commented Feb 28, 2011 on Why people emigrate at New Economist
I know this is an old article, but of course the risks have intensified and they will continue to intensify. The mess has been created as fiat currency has been debased in order to "afford" the bailout policies of the past century. Nobody is willing to allow the economy to correct and the solution is always more of the same...more credit, more spending, more debasing of the currency, more government and more fed interference. The problem never got solved but the symptoms of the problems have been continuously masked with such policies. You can read my thoughts about the financial and business world at WTF Finance .
Loose monetary policy by the Federal Reserve in combination with Big Government policies by the Federal Government allowed Americans to live above and beyond their means. Not just for a couple of years but for many decades. All this would have never been possible without the USD being the World Reserve Currency but this type of market manipulation and fiat currency debasing is unsustainable. Ultimately Government cannot be financed through the debasing of the currency. The GDP will crash as much of it depends on deficit spending by the Federal Government and credit spending by the consumer. The sooner Americans learn to live within their means the better and the easier it will be for them to adjust. America needs to get rid of excessive regulation and make it a business friendly environment, reduce the burden of taxation and allow RE to crash. Only then will it become viable for companies to produce in the US and for Americans to make ends meet. You cannot artificial prop up housing, keep the living cost elevated and expect to have a viable economy. In order for jobs to come back and be created in the US you need to get rid of minimum wage laws, only then will you be competitive. To manipulate the real estate market is the absolute worst thing that is being done to the US economy. It's not at all a surprise that the jobs that are being created are of less pay as the many jobs that were were "temporary" jobs made possible through the artificial environment. Of course it doesn't help to have an anti-business environment but the combination does everything to ensure that jobs aren't being created and that Americans become more dependent on the Government that debases the currency. Sure, the inflationary policies with all the bailouts help mask the symptoms of the problem but they don't solve the underlying issue, it only delays the inevitable bust.
Toggle Commented Feb 27, 2011 on Hmmm... at Financial Armageddon
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Feb 26, 2011