dogman_1234 :
http://money.cnn.com/2012/12/18/news/economy/road-construction-funding/index.html?iid=HP_River
Hey China, here is more for you to buy out form us.
Lube up guys, this one is gonna be rough!
The article makes no sense once one understands how US foreign policy works. So am not sure how much of it is actually true.
Us foreign policy is all about how it can buy Assets all over including china, and not aloow certain nations like china to buy assets back in US. The only thing they are allowed to buy is entities like worthless US bonds.
Here an earlier interview, with one of the more reliable economists who speaks most sense in the US today.
http://www.youtube.com/watch?v=CSSIWCdt8ew
One must understand, today in your country, The battle is not China vs your country, but your country against your own!! To be more specific it is a 1% over the rest of the economy. Its finance vs the real economy. Finance has taken over america in the last few decades, industry which is what made you great. Look at how washington works. Campaign contributions from corporates (finance mainly), runs your government. Policies are created to benifit them over the rest of the economy, anyday, anytime! When banks were bailed out, what did the FED do? They just simply created money and gave it to the banks, to let them do whatever they want.
What central banks do (or supposed to do), is actually create money and push it into an economy (with a certain target to keep inflation within limits), by funding public infrastructure at free of cost, so you can drive on them for free without paying any toll!!
Instead what is happening is,
1. Either commercial banks create money and push it into the economy (central banks are not allowed to). Now these private entities decide where the created money can be allocated and what it can be used for in an economy. Guess what happens? They push it into
already existing assests like housing to obtain maximum profit with least risk.
Look what is happening in europe. In europe, government (centeral bank) cant create money. They can only borrow! So lenders (financial industry), dictates what the productive economy should do. Cut jobs, cut spending, sell off and privatise public infrastructure, and go into recession for god knows how long!!!
2. Central banks create money, but dont use it for the economy. In the US, centeral banks can create money, but after they create it they are not using it to help the economy at large, but they are pushing it to the banks or into military spending nd so forth. This is one of the key reasons why your economy is still doin not so great, or still in a recession (Depending on whom u ask). Now with not enough money in governemnt, what will they do to build/maintain "U.S. highways and bridges"? They are forced to sell it for lack of funds. Meaning, they get privatised. By privatising, who do you think is buying them? Financial industry at large. Now, what happens is, what you earn as the rest of the economy, part of the savings which could have gone into buying goods and services to enhance your lifestyle, instead you will be giving this to a financial class who get more economic power to buy more public assets (by creating economic tool booths everywhere possible). Roads, highways, electricity, water, you name it is next!! What belongs to public can now belong to a finncial class who *earned it* buy not earning it!!!!!!!!
Welcome to new world of Washington style (Wall street style), Financial Capitilism vs Industrial Capitilism!!!
http://michael-hudson.com/1998/09/financial-capitalism-v-industrial-capitalism/ (Not an easy read. You *won't* find better articles than this, that considers of the entire economic system)
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