The Economic Collapse – Wasn’T It Obvious?
There are a few key factors that have led us to where we are today. These factors are obvious, long running and the result should not be a surprise to anyone.
Industry – The US was once the industrial giant of the world. We managed to stop the aggression of the Japanese and Nazi forces of WW2 because we could produce equipment and supplies faster than they could destroy them. A determined, educated, unified people were able to take advantage of the vast natural resources of the US to do what no other nation on earth could do. Manufacturing was the word of the day and remained so for decades to follow. The other result of WW2 was making the world a smaller place. Our isolationist ideals disappeared and the US was open for business to the world. International trade agreements, tax loop holes and cheap foreign labor followed. Over the years, a vast number of US manufacturers shipped the once American jobs overseas. The idea of cheap labor and rapid turn around was too much temptation for investors and executives to pass up. As these manufacturing jobs disappeared, so did the jobs for the people making the machinery and raw products for the factories. At the same time, upper management and investors were seeing higher sales and these profits were “trickling down”. This change in how America did business started the rise of the service industry. Additionally, at least early on, America had a trade advantage. Although jobs were lost in the US, exports provided a good economic cushion.
Trade – In 1960, America was exporting 3.5 billion dollars more than she was importing. This was directly attributed to the quality, know-how and raw numbers of American products. At this time, if you wanted the best made product you could buy, you bought American made products. In many cases, only America knew how to make the products. Over the years though, the quality dropped because the products were being made as cheap as possible. The care and pride that Americans put into their work was replaced by foreign manufacturers that were not concerned with the image of America. Many of these manufacturers would become known as sweat shops. As time past, the same foreign manufacturers that were making our products also became our competitors. It stands to reason that if you are competing, you make the other guy’s product more expensive and less reliable than your own. Then it gets worse. By shipping our technology overseas, we opened ourselves up to reverse engineering. Our competitors did not have to invent or design products to compete anymore. They simply copied what we provided and made it cheaper. By 2006, we had lost our trade surplus and fallen to a 750 billion dollar trade deficit.
The result – It is as clear as day. When the US stopped producing and manufacturing products in America, it lost its American market. This happened because there were fewer jobs here due to lack of manufacturing as well as the introduction of foreign products. The country was staying afloat by selling to international customers. Eventually, these customers went away as well. This big shift first appeared in the 70′s. America fell into a huge recession as a result.
Paper: The new American Product – The country realized the impact of not having a real product to sell. The services industry relied on the manufacturing industry to stay alive. As one died off, so did the other. Unemployment soared to heights not seen since the great depression. At this time, two American products arose; one old and one new. The old product was war. America still had a distinct advantage in this market. If there was one product other nations wanted to be American made, it was weapons and ammunition. Conflicts and civil wars sprung up all over the world and America’s best product was flourishing. The Iran / Iraq war broke out and lasted for eight years with America providing arms to both sides. Grenada, Latin America, Africa and others were hot spots for war and weapons. However, this product alone wasn’t enough. At this time, Wall Street becomes popular again. The birth of the Michael Douglas film and the yuppie was upon us. America again had a global advantage with a product that she had mastered and others would attempt to duplicate to no avail. The paper boom took off and trillions of dollars were flowing through the economy. The national debt was paid, the Jones’ were discussing their latest trades on the golf course and all was good. The services industry was revived by an abundance of customers demanding the highest levels of catering. There was a problem though. A big one looming out there that those in the know knew was going to bite us eventually. The problem: Paper and numbers are not real. The same homes, businesses and products that were there before the paper were still there after the paper but they somehow gained incredible value.
The result – After the fast moving magicians and top investors took their money and ran, some companies that were actually playing by the rules and actually wanted value to their investment began to look at what this paper was really worth. END GAME. The ugly truth came out. America still had no products outside of weapons and warfare other than maybe some software and processors. The failing American education and morality system had not produced many new ideas, strategies or products. The greedy got too greedy and the show was over. Because America was the root of the problem, she felt it first and because she was the world’s best customer, everyone else followed.
All the common sense of economics is slapping us in the face. You can not buy more than you sell and not expect to go broke. We have been doing this for 30 years. To be in business, you have to have a product or service to sell. Our products are not made well and not made here and our services rely on people here having jobs. The paper and imaginary figures do not have value either. Let’s get back to basics and look at some simple examples. If I have a car, it has some value. If I loan the car to you, the car still has value but now there is risk that I may lose that value – we are working on trust. Now I sell my car to a third party and it is still loaned out to the second party. I have removed my risk but the third party has increased theirs. The third party goes to collect the car from the second party only to find out that he has loaned it out to a 4th party. The 4th party wrecks it. Let’s analyze what has happened. The original owner has lost nothing. He got paid and got out. The second and fourth party benefited from the use of the vehicle and also lost nothing. Only the third party lost out. He paid X thousands of dollars for something that is now worthless. The lesson here is the same one the entire economy is learning now: Don’t pay for something you can’t take possession of and evaluate the value of, for yourself. You can be sure the first party knew this and that he will practice this sort of behavior again. He lost nothing but he gained favors from another party by letting him use the vehicle.
We invest in the markets through brokers. They call themselves managers but they are brokers. A package of companies is wrapped up in a nice package, these guys tell us what they expect the package will do and we give them our money. The fact is, we are buying a car that is loaned out to someone else. The broker isn’t making his money by looking out for us, he makes his money by selling the packages – just like an encyclopedia salesman. The difference? You get the encyclopedias. In reality, a large number of us small fish willingly give our money to a few big fish in hopes of a return. The whole system is based on trust. Ask yourself this: How much can you trust someone that banks millions of dollars EVERY year while others starve? Use Exxon as an example. We were supposed to believe that $4 and more per gallon of gas was due to their costs going up. Over the five years of stupid gas prices, Exxon gave investors 150 billion dollars. These are profits after massive salaries and bonuses are paid, after billions in reinvestment and research are paid. Are they looking out for your best interest? Do you trust them? Do you believe they have a good moral fiber?
All the signs are there and have been there for a very long time. Are we to believe that the best and brightest economic minds couldn’t figure this out?
Watch the video related to economic collapse
Insight into a deliberate economic collapse this is more like a part 1 there’s more to be exposed about this topic , was originally going to use a multitude of perspectives but David Icke’s recent interview on Croatian TV explained it rather well. Hopefully will make a follow up to this concerning another aspect of this deliberate economic collapse.
Help answer the question about economic collapse
How are you preparing for an Economic Collapse?How are you preparing for an Economic Collapse?
By buying Gold, Canned Foods, Silver, Foreign Currencies, Planting a Garden, ect?
So how are you preparing for an Economic Collapse? How will you invest? Where will you get food?
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Rob Matson -
About the Author:
Rob Matson
http://sonsofpatriotism.us.to
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