Editorial No. 3: Failure of America

“Failure” is a nice English word, one of very many that have multiple, if related, meanings. It may mean just “lack of success” but it can also mean “loss of ability to function properly” as is the case in the use of this word in regard to the American economy.

As Mike Stathis has shown America’s ongoing financial collapse heralds a decades long depression even though the collapse itself is not over yet — we are not yet down to the last bank standing in the U.S., although we could be there very soon. So countdown for the beginning of the after-crisis recession has not even started. By the onset of the crisis America had consumed much more than she had produced or indeed was ever able to produce. And now the payback period is upon her, as usual the due date comes as an unpleasant and complete surprise, and it’s going to hurt and it’s going to take a very long time, even in galactic terms, to repay everything due and owing. Recent bailouts won’t help and won’t change anything for the simple reason that it’s all about empty confidence-building rather than about improving the fundamentals and it’s all on paper, it’s not real — all America’s assets are on paper and are not real — other than that America has no resources worth mentioning — while the debts that she has accumulated are all real. Nobody is predicting a horrible ending for America, what experts are predicting for America is horror without an ending.

Just look at the horror:

* All American investment banks have now collapsed. There isn’t a single private investment bank left in the whole of America. Other banks have all been heavily battered as well and just won’t function like they used to. Are more U.S. banks going to fall? You betcha. What’s more, not all positions associated with the failed banks have been closed yet which means that more money will surely be taken from the American stock exchange in the near and medium-term future, undermining pensions, savings and health plans (free business advice: sell all your U.S. stocks NOW, a little later could be too late!).

* Thousands of companies all across America have announced layoffs and more will undoubtedly do so. And this is in America — one of the five poorest countries in the world (as measured by the number of poor and homeless people), a country where over 50 million people are already living below the poverty line, with one in four families not having enough to eat.

* America has accumulated a huge national debt, and there is really nothing that can be done to repay it, either short- or long-term as America does not have enough products that she can sell on the world markets and anyway buying American-made products is the last thing that the world markets will want to do in the prevailing circumstances.

The consequences of these events are not only felt on the “drunken” Wall Street, they are — and will be even more — felt all across America, more and more with every hour and every day. As businesses fail, unemployment will rise into double digits, real wages will fall, and Americans won’t be able to buy foreign products that they are unable to manufacture themselves (which products make up a large majority of their consumption). And you can depend on the future American governments to make things even worse with their misplaced focus on fighting yet more wars, pursuing repressive policies abroad and propping up repressive undemocratic regimes with billions of much needed U.S. taxpayer money (free business advice: liquidate all your U.S. assets NOW, thank me later).

The problem is not with the turmoil on the world markets or with the cyclical nature of economic development — the problem lies with America herself for she is but a phony democracy, where the regime of overbearing corporate plutocracy is perpetuated through the use of an age-old trick of the two dominating parties (really two wings of the party of those forever in power) alternating successively in government, in effect employing the deceitful good/bad cop dichotomy. Every major Western nation has had either a revolution or another regime change event. But the craven people of America are too scared of their oppressive government to either demand or force major changes or even to overthrow it and so America will continue to fail to function properly, will continue to degenerate towards a failed state and nothing will help her. But again it won’t be a horrible ending — just enduring horror without an end in sight.

The sick American Eagle?

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