The whole thing has been built on debt,
Just look at our phantom monetary system.
The amazing thing is we are actually debating if we should bail out Detriot.
Manufacturing is vitally important to any economy and the US is no different. We cannot be a nation of bankers. For a case-study in why not Google Iceland at this very moment.
Again, we're debating not how but if the domestic automobile industry should be saved. Here we have $700 billion out the window to the bankers who caused this mess and $2 TRILLION out the back door to nowhere in an undisclosed move by the Fed chairman Bernanke and Treasury Secretary Paulson and we are debating if we should lend a hand to one of the only value-added industries remaining in this country? Effing amazing.
Granted, Detroit was losing market share but they were still viable. But this financial tsunami froze credit markets and ruined consumer confidence and spending which might prove to be the nail in the coffin for Detroit. I view Detroit as what they call civilian casualties in the military: Collateral Damage. The financial mess accelerated Detroit's demise and we are debating extending a lifeline. Simply amazing. All you can do is write your congressman and both senators.
What's rather ironic is that if the federal government would have sent that $700 billion and $2 trillion to each and every American in the form of a check it would have found it's way back in to the banking system anyway in the form of deposits from which the bankers could continue their ponzi scheme called fractional lending and, boom, instant recovery. People would have bought cars and confidence would have been restored. But because John Q Public does not have a lobbying cohort in Washington DC we just get stuck paying the tab.
The collapse will come when the United States as a nation can no longer support it debt service ratio. At some point the global economy will not want our bills, notes, and bonds. Our credit will be denied and our barrower rating lowered. That is when it will all come tumbling down. Until this cataclysmic event we are on a steady path to this ultimate demise. Exactly when this will happen I am not certain. It may not even happen in my lifetime. But with all the promises our government continues to make to support the standard of living for its citizens and extend aide to foreign countries the breaking point will come, eventually. After all, the structure of the whole monetary system is destined to fail as it creates more debt with each dollar produced out of thin air.