http://www.businesspundit.com/the-economic-consequences-of-debt/ Entrepreneurship, Startup Companies and Business Philosophy Fri, 20 Nov 2009 20:31:15 -0600 http://wordpress.org/?v=2.8.5 hourly 1 http://www.businesspundit.com/the-economic-consequences-of-debt/comment-page-1/#comment-10284 Alan Mon, 03 Nov 2008 14:07:43 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=1281#comment-10284 Fast forward to a subprime mortgage meltdown, hyper asset deflation, and a major economic recession in 2008, and the author of the above article begins to look like a true believer in a South Pacific Cargo Cult. Apparently the concept of Balanced Trade completely eludes the comprehension of true believers in Free Trade. Like true believers in Free Love & Free Lunch, it never occurs to these folks that Free Anything is beneficial to some at the expense of others. The squandering of our industrial assets via outsourcing benefited a privileged, exploitive slice of American citizenry at the expense of both the middleclass & blue collar class who now live from service sector paycheck to paycheck, drowning in unsustainable debt. Politicians cannot speak of this disastrously self-destructive process because they are now as financially dependent upon these forces of globalization as are any sweatshop worker in any developing nation. Even worse, globalization depends upon fossil fuels to move goods halfway around the world, and so we find ourselves in a $3 trillion dollar war in the middle east to both protect & intimidate the oil producers & their cartels. To finance this debacle, we have, of course, borrowed another $700 billion dollars from the American people and loaned it to the very institutions that helped to create all of this mess. So, you see, Warren Buffett is right: we are living in Squanderville, USA. Fast forward to a subprime mortgage meltdown, hyper asset deflation, and a major economic recession in 2008, and the author of the above article begins to look like a true believer in a South Pacific Cargo Cult. Apparently the concept of Balanced Trade completely eludes the comprehension of true believers in Free Trade. Like true believers in Free Love & Free Lunch, it never occurs to these folks that Free Anything is beneficial to some at the expense of others. The squandering of our industrial assets via outsourcing benefited a privileged, exploitive slice of American citizenry at the expense of both the middleclass & blue collar class who now live from service sector paycheck to paycheck, drowning in unsustainable debt. Politicians cannot speak of this disastrously self-destructive process because they are now as financially dependent upon these forces of globalization as are any sweatshop worker in any developing nation. Even worse, globalization depends upon fossil fuels to move goods halfway around the world, and so we find ourselves in a $3 trillion dollar war in the middle east to both protect & intimidate the oil producers & their cartels. To finance this debacle, we have, of course, borrowed another $700 billion dollars from the American people and loaned it to the very institutions that helped to create all of this mess. So, you see, Warren Buffett is right: we are living in Squanderville, USA.

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