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I came across this article while researching investments:
The coming 'tsunami of debt' and financial crisis in America | Money | theguardian.com
The lengthy article continues to describe a chain of events where the lack of available credit causes the 90% of the American People to eventually give up maintaining their lifestyles due to too high of a debt to income ratio, cutting off any more credit.
This in turn causes their spending to rapidly curtail, which leads to a rapid down turn in corporate profits, particularly for American Soil based convenience services, like Cell Phones and Takeout Pizza.
The Corporations layoff un-needed workers, and the spiral goes viral.
The article shows that major component of the crisis is being fed by the manipulations which has created ever increasing Income Gap between Elite and the Common Citizen.
But if you follow the path of what has caused that Gap to widen, it is not primarily the actions of the GOP and the private sector Wealthy Elite, but over the last 7 years, has been the policies and actions of the Progressive-Elite and their desire to foment the Cloward-Piven Strategy.
Normally, when facing a crisis of wealthy gouging of the common man, say Tea Pot Dome, we turn to Government and the Left for a counter.
But the Left Radicals of Bill Ayers, Francis Piven, President Obama, and most of his cabinet have been pursuing policies and actions, such as the deliberate creation of an Illegal Immigrant Wave, flooding the country with poverty stricken, low-income, low-skill manual Labor, which leads to a widening of the Income Gap and personal debt increases by the common citizens. It is the Cloward-Piven Strategy made reality.
So it is unlikely that our current Democratic Party, or American Political Left, pursuing their own power and aggrandizement, will do much, if anything, to avert the crisis, they appear to be deliberately creating it!
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Questions for Debate:
Is there any credence to this model?
Can it be countered or stopped? How?
When the American common people are force to default on personal debt en-masse, doesn't it follow that the American Government will also have to default as well?
Does the solution lie in Government Action, or in the Private Sector, or Both?
Is it to late?
-
The coming 'tsunami of debt' and financial crisis in America | Money | theguardian.com
The coming 'tsunami of debt' and financial crisis in America
Forces that caused the world economy to collapse, including income inequality and debt, are again in action, and could drag corporations down in their wake
Dimitri Papadimitriou
theguardian.com, Sunday 15 June 2014 12.58 EDT
The US Congressional Budget Office is projecting a continued economic recovery. So why look down the road – say, to 2017 – and worry?
Here's why: because the debt held by American households is rising ominously. And unless our economic policies change, that debt balloon, powered by radical income inequality, is going to become the next bust.
Our macro models at the Levy Economics Institute are showing that the US economy is about to face a repeat of pre-crisis-style, debt-led growth, based on increased borrowing. Falling government deficits are being replaced by rising debts on everyone else's ledgers – well, almost everyone else's.
What's emerging is a new sort of speculative bubble, this time based on consumer and corporate credit.
Right now, America is wrestling a three-headed monster of weak foreign demand, tight government budgets and high income inequality, ...
The lengthy article continues to describe a chain of events where the lack of available credit causes the 90% of the American People to eventually give up maintaining their lifestyles due to too high of a debt to income ratio, cutting off any more credit.
This in turn causes their spending to rapidly curtail, which leads to a rapid down turn in corporate profits, particularly for American Soil based convenience services, like Cell Phones and Takeout Pizza.
The Corporations layoff un-needed workers, and the spiral goes viral.
The article shows that major component of the crisis is being fed by the manipulations which has created ever increasing Income Gap between Elite and the Common Citizen.
But if you follow the path of what has caused that Gap to widen, it is not primarily the actions of the GOP and the private sector Wealthy Elite, but over the last 7 years, has been the policies and actions of the Progressive-Elite and their desire to foment the Cloward-Piven Strategy.
Normally, when facing a crisis of wealthy gouging of the common man, say Tea Pot Dome, we turn to Government and the Left for a counter.
But the Left Radicals of Bill Ayers, Francis Piven, President Obama, and most of his cabinet have been pursuing policies and actions, such as the deliberate creation of an Illegal Immigrant Wave, flooding the country with poverty stricken, low-income, low-skill manual Labor, which leads to a widening of the Income Gap and personal debt increases by the common citizens. It is the Cloward-Piven Strategy made reality.
So it is unlikely that our current Democratic Party, or American Political Left, pursuing their own power and aggrandizement, will do much, if anything, to avert the crisis, they appear to be deliberately creating it!
---------------------------------------------------------------------
Questions for Debate:
Is there any credence to this model?
Can it be countered or stopped? How?
When the American common people are force to default on personal debt en-masse, doesn't it follow that the American Government will also have to default as well?
Does the solution lie in Government Action, or in the Private Sector, or Both?
Is it to late?
-
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