Yet another way to draw laughter from the audience

Here is an article from BBC News titled – Geithner assures China investors. US Treasury secretary Timothy Geithner is on a visit to Beijing. The article says that in a speech at Beijing university Geithner said “Chinese financial assets are very safe” drawing laughter from the audience.

US States with highest unemployment in April 2009

Take a look at this link – http://www.bls.gov/opub/ted/

The graph on that page is inserted here -

The mislead country

The USA’s (and many other developed countries) current economy is built on a phony foundation of borrowing and debt. The economy should not have grown so much in the first place. In fact, the growth in the USA’s GDP has largely been contributed by borrowing more; its not due to production and savings. And this is not sustainable. No amount of government spending is going to rectify the situation. It will only lead to inflation. The government is already in deep debt and has no savings from which it is stimulating the economy. It is doing so by taking more debt and assuming that the economy will stimulate enough to get more revenue from future taxes in order to pay off the debt.

It is generally assumed that the future will always be larger than the present and that there will be capability to pay for the current debts in the future. This is an extremely flawed assumption given the crisis that we face due to the inevitable depletion of the fuel with the most ‘surplus energy’, crude oil.

The right thing for the USA to do right now is to take the pill of recession, cut the huge government spending and let the private, more efficient companies use the capital to produce goods.

Prediction of the US economic collapse

Recently I came across this article – http://www.naturalnews.com/019659.html. If the date on this article is to be believed then, the author has amazing predicted the many events that have already occurred. Others like Peter Schiff had also predicted the current collapse.

The article talks about the Fed buying the Treasury bills when no one else is willing to buy it. This is what exactly happened about 2 or 3 months ago when the Fed declared that it will be buying $1.2 trillion worth of T-bills.

According to the article, hyperinflation is the most probable exit taken by such crisis since printing money to pay off debt is the easiest way for the greedy governments. This is what happened in Germany in 1923 and this is what will happen in the USA now.

Violent Society

I was shocked, although not ‘very’ shocked, to read first part of the following sentence which is an excerpt from the “Opinions” page of the New York Times -

“America is an insanely violent society, and the worst of that violence is made insanely easy by the widespread availability of guns.”

Here is the whole article.

US President’s great innovation

Finally, the US president is talking right. The US President Obama has unveiled a high speed passenger rail plan. He thinks that such an investment is necessary to reduce traffic congestion on roads, improve the environment & also to reduce their dependence on foreign oil. Wow. Haven’t you and I know this… ummm… for a million years now?! Great innovation and great policy Mr. Obama!