|Figure 1 - Saving Miguel, a novel by|
John Bradford Branney. A terrifying
look at what could happen if the world
stays on its current trajectory.
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It began really unraveling on September 11, 2001. Not only could the terrorists get away with striking civilian targets inside the United States of America's borders, the terrorists could inflict a security virus on the U.S. economy that has yet to recover. The attack by terrorists on U.S. soil led to the retaliation by the U.S. on Iraq and Afghanistan soil. Twelve years later, America is still engaged in these two wars, paying for it with both lives and dollars. Add the cost of these two wars to the cost of additional security at airports, sports events, and our borders, plus economic stimulus programs, plus government bailouts, plus the unprecedented domestic spending spree on food stamps, cell phones, and welfare, plus Obamacare, and what happens? Fire up the old printing press and make some more of those U.S. dollars because the United States of America is overextended.
|Figure 2 - Afghanistan War rages on |
with both human and economic casualties.
Courtesy of Huffington Post.
But long term, can the U.S. economy continue on its current fiscal and economic path? How long will U.S. investors like China continue to finance our fiscal irresponsibility? When will investors in t-bills from the good old U.SA. say enough is enough? And what happens when the U.S. can no longer find investors to fund its massive debt? What happens to the value and the spending power of the U.S. dollar as more and more money is printed to cover the ever increasing government debt?
The U.S. dollar cannot sustain its clout in the world marketplace if it continues on the same path it is heading. The politicians in Washington can talk all they want about the U.S. dollar being the bastion and bellwether of the global economy, but as the U.S. continues to pile on more and more debt, funded by an ever increasing supply of U.S. dollars, sooner or later the bubble bursts and the U.S. dollar plummets in value, causing the biggest global economic landslide the world has ever known.
So, is the world of Saving Miguel realistic? Is there enough hope and good sense in the world to prevent it from happening? Read the book and see what the horrific consequences are if we do not get a grip on our governments.
Not everywhere in the economy is gloomy. I want to close this post number 6 on a positive note. I am providing a link on Mark Carney, the new governor of the Bank of England. At this stage, Britain's economy is not as dire as many predicted it would be at this stage. They have had two consecutive quarters of growth and according to this article their manufacturing sector is strengthening and oil shale drilling has curbed inflation on fuel prices. Good job, Britain!
Alex Brummer on Mark Carney, Governor of the Bank of England
Click Here for the World of Miguel