My best guess is that our next 15 years will be very similar to England’s from 1925-1940. They still enjoyed international dominance…..(all the cheap labor helped eventhough their currency was devalued) and had a great reputation. However, beneath the surface their demise started. Imagine what England will be like (assuming they do not get into the EU) when the same thing happens to us.
No one here is talking about the spiral. Money supply hits those closest to it, ie…bankers, those receiving huge bonuses in today’s dollar. Those plebes further down the money supply see a fraction of (in this case) bailout $$ at a fraction of its purchaseing power. Not “event” just a steady decline. Most will go from eating Filet, to New York, to Chuck to hamburger, to horse. We will get paid more but becasue most of our consumables come from overseas we simply will be able to afford less and less.
That is why all this focus on Wall Street is such a farce. How many people in your life have a better standared of living today then 5 or 10 years ago? I have one…and his rich dad died. Most people are working harder or living with less or both.
As far as I can tell the “wealth” that we experienced when Greenspan expanded the money supply only came from one place. HOME EQUITY. Again, how many people do you kwow that have more home equity then they did 5-10 years ago?