Re: Personal Debts and US Capitalism
- From: "zzbunker" <zzbunker@xxxxxxxxxxxx>
- Date: 19 Oct 2005 00:06:08 -0700
Steven L. Robinson wrote:
> Personal Debts and US Capitalism
>
> by Rick Wolff
>
> <http://mrzine.monthlyreview.org/wolff151005.html>
>
> There is no precedent in US -- or any other -- history for the level of
> personal debt now carried by the American people. Consider the raw numbers.
> In 1974, Federal Reserve data show that US mortgage plus other consumer debt
> totaled $627 billion. By 1994, the total debt had risen to $4,206 billion,
> and by 2004, it reached $9,709 billion. For the second quarter of 2005, the
> Fed announced that the nation's debt service ratio (debt payments as a
> percentage of after-tax income) was 13.6%, the highest since the Fed began
> recording this statistic in 1980. Past borrowing now costs Americans so much
> in debt service that more borrowing is required to maintain, let alone
> expand consumption.
>
> These facts raise two questions: what caused this mountain of debt to arise
> and what are its consequences? Answering these questions is an urgent matter
> since, as has been known for centuries, the risks of high debt include
> economic collapse.
What caused it is quite simple
The Great Depression and The US Courts and US Congress
idiot way to fix the great depression.
Since their brilliant-idiot method to fix Al Capone for good,
was steroids, George Stenbrenner, Arizona Water Projects,
The Teamsters, and Hollywood.
And so that quite naturally leads, just as the Mississippi River
does, to New Orleans Levy and Oil Rig
construction, GM, and Hollywood as the "permanent economic fix"
for the sick and aliing US economy.
But Texas and Hollywood forget to factor in Florida,
Hawaii, Alaska, Blizzards, Hurricanes,
and mysteriously dead cattle in the "fix".
So to compenstate for their idiot fix
you have to borrow lots of money from *Chinese*
rather than US flu doctors.
And since China is like 12,000 miles away,
that takes a LOT of gasoline, a lot
more gasoline than Texas, Alaska, and GM have.
.
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- From: Steven L. Robinson
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