Posted by Lexington Green on June 26th, 2009 (All posts by Lexington Green)
The underlying fundamentals are toxic: US gross debt as a percentage of GDP (currently at 375%) is still climbing, housing prices are still falling (wealth destruction as far as the eye can see), un/underemployment is still rising (an inability to service debt), the financial industry is back to its old tricks (bonuses are shooting through the roof again, etc.), China is still manipulating its currency (dashing prospects of future jobs), commodities (higher costs for daily life) are shooting up again, etc. Worse, what action has been taken is largely short term masking of symptoms and not a cure. Our government “brain-trust” is using all of its financial powder on deprecated 20th Century economic measures to prop up the industries that got us into this crisis: like the greasing of palms in the bloated construction industry (what relation that industry has to our future prosperity is a big mystery) and the flooding of a failing oligopoly (the financial industry) with free money.
So where is it heading?
“… a post-Westphalian century replete with neo-feudalism and global guerrillas is on an inexorable march.”