It is pretty obvious that our elected officials still don't get it on how to remedy our current economic crisis. A severe case of denial has confounded our whole congressional body. To this day while our economy crumbles beneath our feet our flatfooted elected officials hem and haw on the various ways to alleviate what is still a major catastrophe. Like the Hippocratic oath for doctors "First do no more harm" has not been the approach that has been taken. When the first initial bail out of over 750 billion dollars only produced an economic windfall for the top 1% of the population and kept the rest of us on life support is testament to the ineptness of congress itself. This in itself proved how erroneous our government officials attempts are at fixing what they conceive of being necessary steps at improving our economy.
Much more deep seated problems have been brewing for over 35 years long before the financial meltdown of 2009. We have to go as far back to the mid 1960's when education went through a transition that under mind our whole public educational system. When that happened a completely different realm of reality over took a nation. In 1993 when NAFTA was signed proved to be a major catalyst in the eradication of millions and millions of middle class wage jobs from all over the United States. Without the majority of the population earning middle class wages only further reduces the United States ability to actually climb out of the abyss of economic devastation that this nation fell into and is still in. The same thing can be said of any country where there has been a vast erosion of the middle class.
To put this all in perspective requires some hard realities that have come to light. The US is still faced with a Standard and Poor very negative bond rating. Almost as bad as Greece faced not too long ago.. It turns out that even with China owning over 20 Trillion dollars of United States Treasuries and Japan is next with owning over 900 Billion is small consolation to the newfound poor, the destitute, the hungry, and all those who faced foreclosure only to be denied of loan modifications because their individual credit rating has gone down the toilet.
China has been very busy as of late buying up more US Treasuries through broker dealers in Great Britain. What is scary is that private investors are slowing down their purchase of US treasuries out of fear that the United States debt ceiling continues to be a ploy for political gain. All of this has to raise eyebrows as to why the United States government is so useless in procuring the necessary steps to avert a more serious financial disaster of what would be of epic proportions.
The real hard facts are these: Today the United States is flat broke. There is so little middle class wage earners left that can contribute to tax base. One of the major reasons is that every city, town, and state are faced with enormous budget shortfalls. Real inflation is rising at rates of 900% faster than what is actually being reported. The dollar is so weak it has only made inflation skyrocket. The escalating cost of living continues to accelerate the foreclosures and costs Americans over $300 billion annually. All this vanishing liquidly is sending global financial markets down. The Dow has lost more than 20% it's worst performance since the 1930's. Global food prices have not only increased but have increased by drastic amounts. In some parts of the world this instability and lack of affordability contributes to the volatility of those countries which also increases tensions through-out those regions. Here in the United States the affects of all this global tension continues to thwart economic revival. But, more significantly is the reality that current government policies have only deepened our dive down that abyss of economic devastation.
What the United States has done in effect with trade policies over the last 30 years has opened up so many loopholes for corporations to gain greater profit margins by shedding American workers. This has only increased foreign domestic productivity while ours continues to shrink. So that now our trade deficit is so disproportional any attempt at job creation can't and won't happen until policies are in place to start to equal the "playing field." A trade deficit of trillions of dollars continues to thwart our economic recovery. This is one of the biggest reasons why the United States is still in very deep financial trouble. This imbalance will only create more devastation in every Americans quality of life. A recent study indicated that for the first time life expectancy here in the US has plummeted drastically. No longer are Americans able to live longer fuller lives. This in itself indicates the horrendous impact that the financial crisis does impact longevity.
Without a resurgence in middle class wage earners for the majority of working age citizens will only push this nation further away from ever recovering economically. With all the global conflicts continuing and the current immigration crisis has put the United States again front and center to spend billions in foreign aid. Money that will continue to push our national debt even higher. This is the real reality of today. A dismal prognosis for a country whose governmental officials remain flatfooted in their approaches only to come up with solutions that make the wealthy even wealthier.
History repeating? Yes, in a very distinct way because the same type of scenario that is happening now caused the Great Depression. When we look at the travesties that occurred during that period in our history today's massive debt crisis is much worse. In the 1920's was a period much like the late 1990's thru 2008 where both real estate and financial markets reach unprecedented heights which was followed by massive influx of capital, which lead to excessive borrowing. This is what led to the financial and real estate collapse in both 1933 and 2008. In 2008 the Auto industry reached "critical mass" which only exasperated this whole crisis.
When the Washington establishment ignored warnings that a cancer in the financial and real estate markets was at lethal strength which happened in 1929 and in 2008 our country was shoved down into that abyss of economic destruction. The continued risky loan practices and throwing the book away on sound prudent banking policies just to obtain the massive campaign contributions for members of congress all seemed to be the normal way business was done in Washington in the 1920's and in 2008. The only difference today is the corruption in government is much worse. The moral fiber of public officials and leaders of industry has been deteriorating for far too long.
With continued borrowing without reforming current policies and implementing a total National Economic Reform agenda will cause a catastrophe of biblical proportions. A tidal wave of treasury obligations has now formed and with it rides the Grim Reaper. The sooner our "illustrious" legislatures realize that only through total unequivocal reform of all national and international policies, mandates, and laws targeted at producing the conditions that will achieve a national unemployment rate of 3.5% with 95% of workers employed earning middle class or living wages will pull the United States out of that abyss and into a bright and secure future. It can be done! But, time is running out.