Interesting comments by a former Fed chairman:
Friday, June 10, 2005
"Former Fed Chairman Paul Volcker said he doesn't see how the U.S.
can keep borrowing and consuming while letting foreign countries do
all the producing.
It's a recipe for American economic disaster.
On Thursday the Wall Street Journal reported bluntly that
"Mr. Volcker thinks a crisis is likely."
Rest of article here:
I believe the theory here is that the US is supposed to be producing and
exporting "intellectual property" with value that will offset the value
of the "hard goods" we import. Unfortunately this is not working since
we are also exporting our capacity to generate "IP" with all of the
overseas outsourcing, and we don't have an exclusive on the capacity to
produce "IP" to begin with.
What we'll end up with is a bunch of lawyers feeding off of each other
in the downward spiral as we end up with no capacity to produce anything
for ourselves and consequently no money to import what we need. We'll
end up rather like the undeveloped parts of the world are now.
Well, here's a guy who agrees with you...or he did <g>:
"We live in cheap and twisted times. Our leaders are low-rent Fascists and
our laws are a tangle of mockeries. Recent polls indicate that the only
people who feel optimistic about the future are first-year law students who
expect to get rich by haggling over the ruins.and they are probably
right." -- Hunter S. Thompson
Sure. Why not. Oh wait, perhaps it's because they have 2 billion
people to fight for them, and a good hunk of our industry. Remember
we won WWII because we could build a couple of war machines for every
one that the axis powers destroyed. I know, we've still got capacity
to produce tanks and planes, but not on the scale needed to beat China
with brute manufacturing force- Detroit would have been good for that,
but that's gone now. We also used to have a nation of people who
loved to work hard and innovate to get ahead. Now we've got a bunch
of overgrown whiny fat kids who sit on their asses and watch the tube
all day, people who can't even spill coffee on themselves without
running to find a lawyer, and whole piles of jerks who can't wait to
take the pill-of-the-week to make up for the fact that they're
How, exactly, are we supposed to enforce our claim on anything? Using
the poor to kill random brown people every couple of years isn't an
indication of strength, it's more akin to schoolyard bullying.
The US was a manfacturing based economy. Now, everyone seems
hell-bent on pretending we can get by with consumption as our
watchword. When you get an entire generation or two who think that
they are entitled to consume and feel no need to produce, it doesn't
create the kind of environment that allows a society to ratchet up
production that quickly. It's a different world now.
On Sun, 19 Jun 2005 06:55:57 -0500, the opaque Prometheus
I'm looking forward with trepidation to the History Channel show
"Boneyard" this week, starting tonight:
8-10pm EST-- Boneyard: Where Machines End Their Lives -
Where do machines go when they die? From B-52 Bombers
to massive aircraft carriers, from passenger cars to
Cold War cruise missiles and remnants of the Twin
Towers, all that we manufacture has a lifespan. But
reaching the end of their original purposes can be
just the beginning. Join us on a fascinating visual
journey as we follow some of our greatest achievements
in manufacturing, design engineering, and construction
to their after-lives and final resting places.
I'm keeping a box of Kleenex on the couch when I watch it.
Sadly, it marks the end of an era.
-- I'm in touch with my Inner Curmudgeon. --
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