The Chop Shop Economy

[yurbud]

This is the best couple of paragraphs describing our economic situation I've read.

If Americans got their heads out of their asses and started thinking about this stuff instead of whose pastor said what and whose dick was in who, we might get something done.

The Chop Shop Economy
Other People's Money

By ALAN FARAGO

{snip}

Taken as a whole, the US financial system was turned into a chop shop where stolen property is taken to be dismantled and sold off piecemeal. That Republicans, the party of fiscal conservatism and limited government, presided over the unravelling of fiscal common sense is astounding.

Today, the Bush administration is engaged in a highly risky gamble through monetary policy: that the consumer can withstand more inflation so long as housing markets are jump started in the process.

A more cynical view is that allowing inflation to rise while home values decline will establish some sort of lower order, miserable equilibrium that will allow Republicans to hold onto political power. In response, we get more fictions-- like the weak American dollar will lift exports and the fortunres of the economy.

Paul Craig Roberts wrote recently, "According to the latest US statistics as reported in the February 28 issue of Manufacturing and Technology News, in 2007 imports were 14 percent of US GDP and US manufacturing comprised 12% of US GDP. A country whose imports exceed its industrial production cannot close its trade deficit by exporting more."

http://counterpunch.com/farago03282008.html">FULL TEXT

[Donkeykick]

1. Fantastic Article,

Thanks! :thumbsup:

[yurbud]

2. de nada, Joe Cool

[StClone]

3. It follows what we've come to see and believe.

http://youtube.com/watch?v=Kb5KXozi_HM

[JDPriestly]

4. Kicked and recommended. This is a Must Read for everyone on DU.