Originally Posted by svandamme
the 40% under value is not relative to just the USD
it's relative to all currencies, including the EURO, the Brittish pound, and others
so i'de say it's not just that alone that's dragging down the USD
i'm no economist, but my take is that free market economy , is doomed to fail
it's a greedy cesspool of low accountability respective to nations and the people in those nations... rich getting richer, sure, that's not new
but the current business methods are not sustainable
look at wallmart, dumping prices on everything, shaving every bit of cost in it's stores, not the least of it the employees... driving real "american" business , out of business with unbeatable tactics
and they can do it , because the consumer likes to buy lot's of cheap stuff rather then just the good quality stuff they really need
so what's happening with the US, if all businesses are finished off by wallmart like competition? eg, bottom dollar wages, chinese import products
all you get, is more unemployment
more debt
bigger gap between rich and poor and fewer inbetweens
all this , because companies these days, only manage and run based on delivering results to shareholders, nobody cares anymore about sustaining the local business, and the local employees
that's no part of free economy, and that's why it will not last
something has got to give
in history there has always been trade
and until the last hundred or so years, trade has always been enforced by military power
not anymore, sure the military still influences economies these days
but it is no longer a parallel partnership
all you get now, is inflation, growth, more, more more
but nothing more is added to the mix, there are no new conquests of territory, there are very few places left to start mining
just increased efficiency, every year
tell me
how much better can efficiency get, till it hits a ceiling?
can we get to 120% and keep going?
how many western countries, could ( if they wanted to ) shut down their borders and feed it's civilians with own produce? no more imports of essential supplies....?
now everybody rates economies on GDP surplus and deficit
if you sell more then you buy, you're doing good
but that doesn't mean you can take care of your peoples
in the future, i'm sure the true rating will be "who can take care of his own"
and GDP surplus, will be like in the old days, who can actually sell things he has in surplus, after all things locally are taken care off
those who fail, will have instability, internal struggles, violence, famine, disease, look at Africa
rough times ahead, sooner or later, doodoo will hit the fan, one way or another
the 2000 internet bubble was just a small scale example of what really is going to happen with the free market as a whole...
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