Critiques for the posting "The Debt Bubble - A Letter to Ben Bernanke" at VocalNation.net http://vocalnation.net Tue, 06 Jan 2009 20:39:14 +0100 http://www.vocalnation.net/images/promote/vn_feed_image.png http://www.vocalnation.net Feed provided by vocalnation.net. Click to visit. Subscribe to this feed by copying the URL from your browser's address bar into your feedreader of choice. You may choose to use a web-based feedreader such as Google Reader, NewsGator, Rojo, etc. or one of the many browser-plugin feed readers. http://vocalnation.net/posting/1427/A+Smaller+Slice+of+a+Shrinking+Pie/
Caferrell: There's no doubt that America's role as the world's sole superpower is diminishing.  And you're totally right about the comparison to previous empires... we're being over-extended in the same way.  If our enemies win this "war on terror", it'll be by bankrupting us.  

You've probably heard that with only about 5% of the world's population we use about 25% of the planets natural resources.  America can't sustain this, even by going to war for those resources.  Unfortunately we only have one earth, so there's going to be more and more competition for those resources.  This means that America is going to be receiving a smaller slice of a shrinking pie (declining fisheries, forestry, petroleum, etc.).  

I don't think it's clear though how abrupt or how far the drop is going to be though.  If the U.S. dollar drops significantly at some point the balance of trade should reach equilibrium.  The dollar will probably keep declining at least at it's current rate.  This in conjunction with a shrinking oil supply is going to require some lifestyle changes from the average American.  Hopefully we'll adjust by becoming a more self-reliant economy with a more sustainable use of our resources.  If not I can definitely imagine a more catastrophic outcome if we stay on this course and just deny what's happening.]]> Wed, 30 Jan 2008 03:27:59 +0100 Posting1427-1201663679 http://vocalnation.net/posting/1423/Purchasing+Power%3F/ ]]> Mon, 28 Jan 2008 00:16:35 +0100 Posting1423-1201479395 http://vocalnation.net/posting/1422/Good+article/ We agree on many points as to how we got to the desperate situatio in which we are now.
However I think that we need systemic change or we are doomed to the list of failed and bankrupt empires together the the British Empire, the Byzantines and the Romans.
The globalizaed "free-trade"economy together with the behavior of the Fed as the enabler to the drug addict that is the Federal gvernment signifies at the end og the day that our industry and equity are both going overseas.
I can't write ve
ry well here, i have my computer perched on my knees as I wait for wife and daughters. Send me an email, I'd love to discuss this further

caferrell@mac.com
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