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US on collision course with economic ruin
Published: 23 October, 2010, 00:52
Edited: 27 October, 2010, 23:28
TAGS: Crisis, Politics, G20, USA, Economy
Finance ministers from the G-20 nations will meet in South Korea to address the global financial crisis. US Treasury Secretary Timothy Geithner is expected to push his plan aimed at rebalancing the world economy.
Geithner wants to set new targets to reduce deficits in countries in order to fix global trade imbalances. Currently, the world's nations are split on his trade plan.
“I don’t even know how they can take Geithner seriously anymore,” said Peter Schiff, the president of Euro Pacific Capital and author of “How and Economy Grows and Why it Crashes.” “The policies that we’re pursuing here in America are exasperating the very imbalances that the Treasury Secretary claims that he wants to reign in. The biggest offender is the United States.”
The US is spending too much, barrowing large sums of money and expanding already large trade deficits, he explained. Geithner may have inherited a broken system, but he continued to break it more, said Schiff.
“It could be repaired,” he said. “America needs to save more. America needs to produce more and we’re not going to do that with the current policies in place. We need to reverse course. We need to shrink the size of our government. We need higher interest rates in America, not low interest rates. People need to save their money, not go deeper into debt.”
The US cannot continue the same policies and blame others; it simply does not make sense.
“Everybody gains from Trade,” added Schiff. “But now we’re not really trading.”
He explained that the US is an addict, addicted to spending and borrowing money. China needs to cut off the supply of money, he argued. Foreign governments enable the US to continue failed policies that continue to hinder the global economy.
“As long as the world will lend us money, our politicians will spend it to get elected, but that’s not helping America,” Schiff said.
“The United States is in the process of collapsing. It doesn’t mean it’s irreparable. I think we are on a collision course with economic ruin, it doesn’t mean that we don’t still control our own destiny,” he added.
He argued that the US can reclaim a viable economy if they enact proper policies to do so. The current policies will lead to economic ruin.
22.10.2010, 12:02
11 comments
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USA help bring down the communism. It was a bad idea. As a result, USSR/Russia and China in particular have learned how to use the capitalism better than USA. USA was a great country until around 1990. Since then, this country is collapsing economically, about to become a third world country. Since then, the politicians had nothing better to do but to issue laws, rules and regulations after laws, rules and regulations until most industries have moved out of the country. Now, the people have become mostly a service industry. At the same time, the freedom in USA has become worst than in the communism. Now USA is a POLICE STATE. The social laws have impaired the society. Its people have become isolated. At the same time, to increase the social activities, homosexuality has increase, a clear sign of a Caligula Syndrome. Bringing down the communism was a bad idea. As a result, the USA Empire is history.
USA , since the time of Nixon, have generously helped China to raise its standards of living, by manufacturing in China and importing to USA Chinese goods at the expense of USA'Sr own industries. Now the Chinese economy is sufficiently developed and prosperous to be able to be prosperous selling to its own people and other countries without exporting to USA, so USA will be able to look after its own interests again, by developing its own industries again. Wages are dropping in USA to accomodate this.
This 'financial ruin' is by design. They want the dollar to crap out, so they can usher in their global currency. MONEY is freedom. Money is power. If they can hijack America by destroying its currency and replace it with their own, guess what??? The most powerful country in the world was just conquered, and the American People had no clue. WAKE UP AMERICA!! Stop financing the rebuilding of the rest of the world and don't file a tax return. Tell the oligarchy where they can shove their New World Order.