US Economy Turnaround – State Supported Laissez-faire
Problems in the US economy could cause a global recession
Racist Australia supported by Pakistan’s ISI
Is Indian economy improving?
The economy is not improving.
‘The times are a changing’ – from being the torch bearers of Laissez-faire and free trade, US lawmakers are turning protectionists - something which the country has always fought great economic battles over in order to get to top of the heap.
How many bursting bubbles can the Fed and US taxpayers’ money support in these extraordinary times, when many financial institutions that were considered rock solid are coming down crumbling like sand castles to hostile winds.
Gorge Bush has another battle to fight to protect homes caught up in the sub-prime triggered crisis which is threatening the US financial market and sending shock waves around other global markets.
Should the malignant strain take root in the US economy and investors’ confidence erodes, a crisis worse that the 1929 Great Depression stares in the face.
The mess such a scenario will create around the globe cannot be gauged easily but the warning signs are scary.
There are so many US dollars around that it will be difficult for any economy to decouple fast enough to save itself from the impact of a sinking dollar.
One wonders whether state intervention will be able to save the situation because confidence in the American model is fast eroding.
At the same time, the verdict is clear that globalization, free trade and the principles of laissez-faire are not enough for creating an equitable global society.
It is also becoming apparent that the Russian botched up socialist economic model which collapsed in the late 1980’s and early 1990’s was actually responsible for supporting the West’s capitalist model.
Attracting the best brains from other countries to fuel unfair competition and unleash it on the very nations from where the brain drain did take place kept the US economy on its growth path.
But once the Russian model collapsed and the need to remain competitive lost out to living expensively, out of cheap credit taken from countries like China and meddling in the Middle East to suppress oil prices, the worlds greatest economy along with all its military might is suddenly very vulnerable.
There are many lessons to learn from what is unfolding on Wall Street, and countries trying out the American model for development need to take correctional steps, lest they get trampled over.
