Bill Jenkins who writes for the Daily Reckoning an online magazine dedicated to finacial analysis that if the Americans don’t go back to work there will be no recovery.
What does he mean by that?
Well it’s very simple. Real wealth is created by people. People who farm the land, make products and who in return earn a living with that labour. Whether that is money or pruduce and a home is not reall important. Money is just a translantion from real wealth to being able to barter with different people at different times irrespective of whether you have produce or stuff to barter with. At least that is how it supposed to be.
But not so anymore. All the real wealth creating jobs have been moved off shore and large portions of the land are now owned by food corporations and oversees corporate entities.
While during the great depression 80% of the Americans lived of the land and owned their own farms and only 20% of it’s population lived in cities now 80% of it’s population lives in cities and only 20% are still involved in farming. With no real world jobs to go back to and with no control over their food supply the Americans are sitting ducks for what is to come. There is no way 300 million people can survive in what is essentially a finance speculation driven and unsustainable society.
Yesterday it was published that a record 34 million Americans were depending on food stamps. In Detroit you can buy a house for a dollar. That is right $1.- and nobody buys because there is no work to be had in what was once the greatest wealth creating machine of the world.
We over here in silly old New Zealand still believe that the US will recover and is preparing to catch up with Australia and our Government wants to invest in our infra structure. Why? Well, it is not because we as a country will be growing. Because we won’t. There will be no country in the world which can afford our meat, Dairy and timber.
It is because our government knows what’s coming and they know what will happen with NZ in the next 10 years. What will happen to this country in the next 10 year? We will have to sell off our resources and land to repay the loans from our oversees loan sharks. For example our reserve bank has already borrowed US $9 billion from the Federal Reserve of New York. Oh, you didn’t know that? Well, that was because nobody told you and only because a US senator asked Bernanke did I find out. Yes, US $ 9 billion of the $ 700.- billion bailout went straight into the Reserve Bank of New Zealand without anybody knowing. Just by the way as the rest of that bail out money went ot oversees banks and nobody knows to which one or to whom.
Watch it here.
We will never catch up with Australia because our economy is going into an inreversible decline if we don’t disconnect from the internationl finance system and we will end up neocolonised by big corporations and we will be tenants in our own country.