The other day I was handed a report from Decision Economics, Inc.
Sinai’s Market Perspectives: The Weakening Dollar and “Next Great Global Currency”, published on March 4th, 2008.*
After reading the report, I think you’ll agree this is the price of not giving a darn and living off our credit card. Real fighting stuff in my opinion.
*This proprietary research article is provided through the generosity of Decision Economics, Inc. and Dr. Allen Sinai, President.
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6 comments:
This is an excellent account of the credit and economic conditions of our country. It is a shame that most people simply struggle for the dollar, instead of understanding it and how credit works. Indeed, credit has come very far from its intended purpose.
It's curious: Will other countries learn and adapt from the American credit problem, or will they ignore it altogether.
Perhaps we'll add a link on our site about how credit works...
Christopher D. Elliott
The Iconocaste
www.theiconocaste.org
I read recently that the average household in the U.S. has $10,000 in credit card debt. I have none. Several people in my family have none. That means that many households have WAY more than $10,000 in credit card debt that they will never be able to pay off. I agree with Iconocaste that people don't understand credit. Additionally, we've not been taught about delayed gratification. Cookie now or cookie later? Most of us take the cookie now and damn the consequences.
Bad Money by Kevin Phillips speaks of the same woes as Sinai's Market Perspective. The book even reminded me of Mr. Iacocca's Talking Straight. A college professor once told me that Americans won't react until someone hits them in their pocket book. Perhaps the current financial woes will cause Americans to get involved in the change that so far we only talk about.
I own and run three companies. My contention is that Americans are becoming so incredibly stupid and ignorant of their own system of economics that they will eventually vote to destroy it. We now have two candidates for the highest office in the land who know nothing of how great this free enterprise system works and has become the envy of the world. I would invite you to ask any 10 graduating students today what the value of profit is, and maybe one would be able to tell you the correct answer.
We value symbolism over substance, style over honest analysis, and entitlement over work. I am watching people applaud the coming explosion in the size of government involvement in life...when 20 years ago it was angrily resisted. I see lawmakers more concerned with a professional athlete's drug habits than our own energy independence.
Political correctness and Liberalism will murder this country. They do not know how money is made...and therefore will continually implement policies that will eventually kill the very goose that supports them.
Keep your powder dry.
To SB: You are spot on. The ignorance of economics is abysmal. Your question about profit is one I used to use in my industry classes, "what is the function of profit?", or, sometimes, what is the meaning of profit. Best answer I ever received was from a hourly greenchain puller. He said "Profit has enable me to be an owner."
As for political correctness and the liberal miasma, I direct you to these two URL's by Mr. Atkinson, an Aussie, who has hit the nail on the head.
Political Correctness
http://mywebsite.bigpond.com/smartboard/pc.htm
A Study Of Our Decline by Philip Atkinson — Undeniable Signs Of Communal Senility The Retreat From Reason
http://www.users.bigpond.com/smartboard/decline/chap9.htm
Sincerely,
BD
Instant gratification is the motto of the American public. It is an unfortunate truth that has been a growing reality brought on by American media, advertising, technology and a false sense of "everything will be okay, as long as I have ______". A sad reality that grips most Americans, myself included. We need to instill a solid disciplin into our children and ourselfs before we can see an end to this mess of personal debit.
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