Zeev's Turnips Talk Politics (ZTTP)

[harrypothead]

We are a service and debt driven economy. We make nothing anymore. The cost of our goods, services and labor rises as the fed prints more and more money. More money is good for government. They "pay down the debt" and finance fiscal irresponsibility with cheaper dollars, but we have priced ourselves out of the global market. We are no longer competitive, so we buy from others, and even our tech jobs are being exported to the developing world. For how long this is sustainable, I have no idea. Some speak of a credit bubble. If in fact we are inflating a credit bubble, we have been doing so since the late 60's. If current real estate values are not sustainable, we are in a boat load of trouble. Time will tell.