America is losing wealth far faster than any other nation on earth is.
America is losing wealth far faster than any other nation on earth is. In fact, since the mid-1970s there has been a transfer of wealth of almost 8 trillion dollars from the United States to the rest of the world. Sadly, most Americans have no idea what is happening. Most Americans of them are completely unaware that America is being transformed from a wealthy nation into a poor nation at breathtaking speed. Most Americans just assume that America will always have the largest economy on earth and will always be the wealthiest nation on the globe. Unfortunately, just because something was true in the past does not mean that it will be true in the future.
Right now, the United States is bleeding wealth at a pace that is almost unimaginable. Every single month, tens of billions of dollars of wealth is permanently transferred from the American people to the rest of the world. That means that the overall economic pie is shrinking. While the rich and the poor are busy fighting over the distribution of wealth in this country, the size of the pie that they are dividing up is continually getting smaller. America is poorer than it was last month, and next month it will be even poorer. If this continues, it will result in a complete and total economic nightmare.
Let’s break this down to a real simple example. Imagine that you are playing a game with a whole bunch of people, and you have been chosen to play the role of the United States. So you go stand on a giant map of the United States and you are given much more money than anyone else in the game. However, with each turn 50 billion dollars is taken out of your pile of money and is given to the other players.
What is going to happen eventually?
Yes, that is right – you are going to run out of money at some point.
In order to continue playing you will need to borrow more money from the other players or you will need to print up some more money.
Does that sound familiar?
In January, the U.S. trade deficit with the rest of the world hit 52.6 billion dollars.
That means that we bought 52.6 billion dollars more stuff from the rest of the world than they bought from us.
That 52.6 billion dollars is gone and it is not coming back. Next month another 50 billion dollars will leave the country.
Are you starting to get the picture? ………….. CONTINUE READING HERE
I heard something about the economy supposedly picking up but people are still continuing to lose their jobs from what I’ve seen.
Every once in a while, there is a moment of good news, but generally, it is swallowed up by the bad news which cannot improve without dealing with the debt! Period! Shooting down Obamacare will go a long way, too, to at least turning the corner and giving some hope to small business owners.
On this Synal you are correct. Take a look at ZeroHedge’s and Gallup’s work on real unemployment and reporting gaps.
Typo Sorry. “Synap”
Reblogged this on Talon's Point and commented:
So simple even a caveman can understand it. Now if we could just find a caveman to explain it to the anti business left.
Ha! Ya really!
In truth, it’s not so much that we spend money overseas, it’s that we spend it on disposable junk. For the first 100-125 years we spent far more in Europe than we did here but, we spenta lot of it on capital goods, stuff to make stuff with, not garbage to sell in Wal-Mart.
Consumer goods are disposable with very little residual value after use. What can you do with a broken computer after all, they are no longer economic to repair so you throw it away and buy a new one.
Solutions? I don’t really have any although I do think ending almost all foreign aid would be a good start. That tends to be a pure money drain with no return.
Agreed! Certainly stop the aid to those who are NOT allies! lol That honestly cracks me up – that we send huge sums of money (all borrowed, of course) to nations who hate us or hmmm are allied with those who hate us! Unbelievable! Who thinks of this stuff???
What we need is a president like Reagan who rescued us from a similar buffoon to Obama, Mr Carter. Can’t really tell which of the two is the worst, but they go down as the worst and next to worst presidents in our history.
John
An excellent read (among several others) for this topic is “The Price of Inequality” by Nobel Prize winner in Economics Joseph Stiglitz. I highly recommend it Barb, and to your commentators, to become much more informed of our nation’s 50-year historical economic performance. It clearly reveals a glaring theme over all the presidential administrations and 98th through 112th United States Congresses. It also shows the continued political and social fallacy of tunnel-vision and oversimplification of economic policy.
Best wishes