General discussion

Locked

Does Anyone Care Anymore??????

By sleepin'dawg ·
This is an excerpt from an article I read quite recently (yesterday) which I couldn't help thinking about overnight. So many of the points being made are valid, all the more so when applied to my own situation both corporate and personal. Lately, for one reason or another, so many of my corporate decisions have been made based on the performance of the globalization of the economy and I have been becoming increasingly aware of the potential for disaster and upheaval in the markets a la September - October 1987. We are overdue for a market correction and when it comes, so many will lose huge sums from their portfolios and IRAs unless they have found some way of positioning themselves to ride out the storm with minimal losses. There will be all sorts of opportunities to acquire investments on the cheap, in the aftermath but one can't be expected to do so if they are struggling to retain some modicum of their asset values. It gives me no pleasure in being a harbinger of doom but its better to be prepared and have a plan in place and not need it than to need some sort of plan and not have it.

From my own personal observations we've been overdue for one of those catastrophic market corrections for some time now and while these things can't be forecast with any degree of absolute accuracy I see it hitting somewhere in or after October of this year but before the same period in 2007. The markets may not correct all together but rather in a cascading effect of sector by sector but the end result could well be anywhere from 2000 to 4000 points net loss to the Dow and the corresponding indices of all the other markets including China's. The current state of the overheated Chinese economy could make them the first to slip but they should be and probably will be the first to recover. The dollar will decline further and nationwide unemployment could rise well into the double digits, approaching 15% and perhaps even 20%. As I said, does anyone care??? Is anyone even aware???


Does anybody in America care that freedom, liberty and privacy are being diluted, diminished and destroyed? Or that government is running up some of the biggest deficits in annual spending, foreign trade and national debt ever recorded? Or that America has become a de facto world empire that may already be in decline?

Kevin Phillips' new book, American Theocracy: The Peril and Politics of Radical Religion, Oil, and Borrowed Money in the 21st Century, puts together an amazing array of historical, religious, economic and political data to argue that the U.S. is about to join its imperial predecessors on the downhill slide - Rome, Spain, the Netherlands and Britain.

Phillips says the alarming signs are everywhere from the desperate attempt to retain oil sources by invading Iraq; to the "theocrats" seizing the Republican Party; to the evolution of the U.S. economy in which the production of valuable, manufactured goods has been replaced by a massive funny-money system of finance and, most ominously, government and private debt.

The scope of this book is massive and his analysis reads like a warning. Phillips sketches a future bankrupted nation by a web of religious, energy and debt that leaves America, the world's remaining superpower, all but helpless before emerging powers such as China, well before 2050.

An examination of empires in world history (Rome, Spain, Holland, and the United Kingdom), shows an identifiable progression from expansion, to dominance, to maturity and to what seems like inevitable decline. In that latter stage, governments and most people rarely see what's coming. Those who do can profit from their foresight.

Phillips traces the imperial journeys of each of these empire nations. He goes back centuries and compares those historic events to the current situation in the United States, the present world imperial power.

Phillips examines many aspects of each nation's imperial progress, politics, economics, religion, industry, finance and war. As he says: "The United States is hardly the first [empire] and we can profit from the examples of what went wrong before." There's a lot of arresting facts and figures in this book, although I don't agree with all of the author's conclusions. But you will come away fascinated with these disturbing past parallels -- and what they may portend for America's future.

It's an eye opener -- and it's not a pretty picture for Uncle Sam and Americans, sad to say.


Phillips notes that two economic predictors of imperial end times are: 1) marked declines in a nation's manufacturing and industrial capacity and; 2) an increase in what he calls "financialization" as all sorts of intangible financial services replace tangible production.

In 1950, 30% of U.S. GDP came from industry and only 10.9 from financial services. In a reversal, 2003 U.S. industrial production amounted to only 12.7% of GDP and financial services had grown to 20.4%. Even more telling, in 2005, 45% of all corporate profits came from financial services and only 7% from manufacturing. And as Phillips shows, a lot of these modern "financial services" consist of little more then creating new forms of debt, then pushing all those debt papers around while collecting fees for doing nothing really productive.

In the declining years of the Spanish, Dutch and British empires, virtually the same patterns developed as we now see in the United States. Similarities with the current dilemma of the U.S. include a huge national debt, major and continued deficit spending, worrisome huge trade imbalances and a decline in the value of the imperial nation's currency.

Sounds familiar, doesn't it? And yet another reason to consider offshore as the place for your financial haven.

Speaking of debt, borrowing and "financialization". There has lately been a lot of activity in the derivatives markets. Massive and/or a collection of minor hiccups there, have preceded all recent market turmoil of the past and with the current levels of activity. they are an accident looking and waiting for a place and chance to happen. Grab ahold of your wallets and purses, we're all going to be in for a rough ride. Some of us will get through better than others but here's to the peers of TR enduring.

Dawg ]:)

P.S. I've read the book, referred to. It is a good read for anyone even though they may have no interest in the markets and don't dabble in investments.

Edited for spelling, punctuation and additional clarity.

This conversation is currently closed to new comments.

62 total posts (Page 5 of 7)   Prev   03 | 04 | 05 | 06 | 07   Next
| Thread display: Collapse - | Expand +

All Comments

Collapse -

I guess you're not sleeping, Dawg

by OnTheRopes In reply to Does Anyone Care Anymore? ...

I saw the erosion of American manufacturing capacity going on even when I was working to become a Journeyman Mold Maker in the late 70?s. I?ve had a lot of discussions with my co-workers about the future of the manufacturing industry. As long as they had a job, most of them didn?t care. If they?re employed today they probably still don?t care or don?t want to think about it. I know that many of my former peers have to work for less per hour today than they made in the 90?s.
I think Mr. Phillips has been paying attention and it looks like his book would be a good read.

Collapse -

I care, 'dawg. I really do.

by maxwell edison In reply to Does Anyone Care Anymore? ...

Can't we all just get along? What the world needs now is love, sweet love. We're all brothers and sisters in spirit, and we all need to care for one another. After all, inside, we're all the same color. Imagine all the people living life in peace, with no need for greed or hunger, a real brotherhood of man sharing all the world. Then, it really will be a beautiful day in the neighborhood.

Let there be peace on Earth and we can discover where have all the flowers gone. Everything is beautiful and we can all make it a better world if we make love, not war. There is only one people. We are one and the same. We are all one spirit. We are all one name. And yes, bring joy to the world because we shall overcome.

We need to do it for the children; and as we all know, it takes a village to raise a child. You may call me a dreamer, 'dawg. But I'm not the only one. And I hope someday you'll join us, and the world will live as one.

See, I really do care.

Collapse -

Call an exorcist!

by jdclyde In reply to I care, 'dawg. I really d ...

A communist spirit has posessed Maxwell!

Run away! Run away! :0

Collapse -

No, jd, you misunderstand

by maxwell edison In reply to Call an exorcist!

You should get in-touch with your inner-child. You should feel the love. You should become a part of the brotherhood of man. Peace, brother.

Collapse -

EVIL! EVIL!!!!!

by jdclyde In reply to No, jd, you misunderstand

A quick silver stake through the heart should to the trick........

Collapse -

Max

by maecuff In reply to No, jd, you misunderstand

Be careful about giving advice regarding finding your inner child. I located mine once, his name is Jason and he wears a hockey mask.

Collapse -

I admit it, Max.....

by gadgetgirl In reply to I care, 'dawg. I really d ...

You got me with that one. Have you any idea how far water can travel when drinking and giggling at the same time? No? - well, pass me the monitor wipes, kleenex and keyboard cleaner all in one go....

Max, you sarcastic personification you, that was hilarious.

Thanks for making my morning!!

GG

Collapse -

Oh surrrreeee

by jdclyde In reply to I admit it, Max.....

I rip off a song and you call it an "earwig". Max does it and it is hilarious.

We see how you are getting...... ;\


Collapse -

No, love,

by gadgetgirl In reply to Oh surrrreeee

it was his version of a sickly sweet reply that made me have a muttleyfit, and mess up my immaculate working area......

]:)

GG

Collapse -

Hey jd, you've either got it. . . . . .

by maxwell edison In reply to Oh surrrreeee

....or you don't.

Back to Community Forum
62 total posts (Page 5 of 7)   Prev   03 | 04 | 05 | 06 | 07   Next

Related Discussions

Related Forums