Finalist-PhilBlogAwards 2010

Finalist-PhilBlogAwards 2010
Finalist for society, politics, history blogs

BrightWorld

Pages

Wednesday, July 09, 2008

US WATCH: THE ‘VIRTUAL ECONOMY’ WRECKED UNCLE SAM

Bro. Erle Frayne Argonza

So, fellows out there, whatever happened that the once mighty US economy—once contributing to 40% of Gross World Product (GWP)—is now drifting downwards, producing now just 22% of GWP? That the EU would itself catch up with the USA and equally produces 22% of GWP, though EU’s money is bloodily mightier than Uncle Sam’s once mythical Dollar?

As a matter of realistic forecasting, if trends today would continue across the globe, Asia would overshadow both the US and EU, as follows: China will overtake each one of them by 2015; India, by 2022; ASEAN, by 2030.

While the US ‘real economy’ keeps on contracting (and the EU’s stagnates), the Asian economies are still expanding. 100 years ago the Western thinkers Oswald Spengler and Arnold Toynbee already forecast so sharply the ‘decline of the West’, while Daniel Bell foresaw in the 1950s-60s the rise of Asia-Pacific and its overtaking of the US 60 years hence (2005-2015 period). No one listened to them.

If we all recall, in the 1930s the great statesman Franklin Delano Roosevelt launched the ambitious New Deal. This program initiated gigantic growths in the ‘real economy’, solved unemployment, and led to high-growth and high-wage trends for sustained periods. By ‘real’ is meant the most productive sectors, namely: manufacturing/industry, agriculture, infrastructures, S&T, and transportation & communications.

By 1971, with enormous pressures from the financial cartels, the famed ‘gold standard’ was junked, the fixed exchange rate system was likewise junked in favor of ‘floating rate’, and after which serial liberalization of economic sectors and the bureaucracy went on in very radical fashion. This led eventually to the rise of the ‘virtual economy’ led by predatory finance, featuring hedge fund operations and ‘vulture funds’ to salve crisis-ridden financial enclaves more so overseas.

The ‘gambling economy’ based on speculation, conceit, lies, rather than based on the real value of consumable articles of trade, became the dominant modality in the USA. Debts and more debts piled up, since having no debt was moralized as bad behavior. Debs quadrupled in just a few decades, resulting to $5 Trillion worth of debts today.

How can an economy that churns out merely $12+ Trillion a year pay up for debts worth 4 times the GDP? It’s madness, blatant madness! The US economy is largely now a bubble, so gigantic that when it bursts, it can reveal the real flaws behind the ailments, and the weakness of the ‘real economy’ altogether.

The message to the next President & VP of the USA is to take down that ‘gambling economy’ or ‘virtual economy’ and quickly bring back the powerful ‘real economy’ in place. Failing to do that, Uncle Sam will be faced with many mass out-migrations beyond 2010, as true-blue Americans leave for more stable and promising jobs and businesses offshore. They’ve already began doing that in fact.

[Writ 05 June 2008, Quezon City, MetroManila]

2 comments:

mckaye k said...

You explained the plight of America so well. I am sorry to say. For several months, the US press was faulting the oil companies and small gas station owners. Then the truth was revealed. In addition, I must say that I am outraged. I am outraged that our government would vote laws into existence that would allow greedy speculators an opportunity to get richer at the expense of the entire country.

Erle Frayne Argonza y Delago said...

Hi McKaye! Thanks for the nice feedback. Do better spread the news about the real situation of how predatory finance is killing America. The Executive Intelligence Review and The Guardian are recommendable sites for indepth analysis and research. Better pray that Obama or McCain really understand America's situation, they are politicians and not economists and there's the bad rub--whoever wins among them would continue to mismanage America.