Great Empire or Grand Illusion?

re:#43 by nasah
Presidents come and go. This one will go too. Eventually.
But this president`s popularity increased with the perception of threat to national security following 9/11. I do not even remember what his agenda was prior to that. I think he was big on tax cuts but what else? 9/11 changed all that. In one stroke, Bush gained the kind of popularity that one can only dream about.
A superpower, when challenged, reacted in the only way a superpower would react. In the process, some excesses have been committed but they are inevitable. We can go on debating if attacking Iraq was right or wrong. But i am surprised at the reaction of the muslim world. What has saddam Hussein done for them anyway? Did he not attack a muslim country many years ago? Did he not use chemical weapons on his own populaton? If USA perceived him to be a security risk, then it thought it fit to eliminate that risk. Of course, there are deeper plots and the truth will never be known. Iraq`s oil fields have been secured for future. If saudi arabia becomes a great threat, US would do the same to the House of Sauds that it did to Iraq. Attacking Iraq was easy but convincing Americans about the necessity of this attack has not been so easy. Having secured its interests in Iraq, it needs to get the hell out of Iraq and let a coalition of forces do the governing. Ultimately, Iraqi people need to be involved in governance. I do not know when that will happen.

I disagree when you say that America is the most hated country in the world. It is not hated in India. I doubt if Chinese hate America though they may envy the American value system and prosperity. So, already much of the world does not hate america. It is only the rabid mullah types in the Islamic world who hate america. They have always hated America. Now they have more reason to do so (after Iraq invasion).
All this still does not change the fact that USA is still the greatest country in the world. An immigrant like me with a funny sounding name (funny to most Americans i am sure) still can make a decent living because of talent and education AND not because of where i am born or my caste or if i have the right connections. It is this system that is worth preserving and fighting for.
Sridhar

re: SR

Another interesting article on a less known, but important theme in international relations. I really found this to be instructive.

Ciao

sridhar -- this is the greatest country in the world -- ruled by the Biggest Bumbling Buffoon of the United States Presidency -- Born-Again-To-Kill

the worst President in the 200 hundred years old Presidential line of the United States.

elected/selected by the 5 Supreme Court Judges – NOT by the voters

look at this -- in JUST THREE years where we were and where we are now:

from the most respected country in the world -- to the MOST HATED country in the entire world --

from the most prosperous with a half a trillion dollar surplus budget -- to a more than trillion dollars deficit budget in just three years --

from no war with any country THREE years ago -- to war and with threats of war against half of the world --

from no American kids dying in a godforsaken foreign lands ONLY THREE ago -- to scores of our American sons killed and maimed -- every day – almost everywhere.

from the peacemakers of the world three years ago -- to the despicable colonial invaders and occupiers of sovereign foreign lands.

and yes this is the greatest country of the world --

because this LAWLESS president will be made one term migrant, transient worker -- will be PUNISHED for his illegal misdeeds and misbehavior -- of his cheating and LYING --

because WE the US voters will kick this aberration -- this dangerously demented war monger out from his accidental chair -- that he does not deserve to occupy --

we the voters of the United States will give the boot to this son-of-bush -- in Novemmber 2004 -- just the same way WE booted out his hyperthyroid father -- 11 years ago

and why?

because this IS the greatest country of the entire world -- a country that WILL live by the RULE OF LAW internationally -- as it WILL live by the RULE OF LAW -- nationally.

after November 2004 -- our boys ARE coming home -- not killing people in foreign lands -- and not getting killed and maimed by others -- in foreign lands.

George Bush is an Aberration and an Anomaly -- a transient phenomenon -- that WILL disappear as a blip from the rader of the American politics -- in keeping with the ideals aspirations and the history of this great land.

Does our Colony Building Imperial President -- besides being a delinquent dyslexic dimwit --suffer from – Adult Attention Deficit Disorder -- also called AADD/ADHD/ADD/ADS --

a condition that is considered to be a major cause of Juvenile Delinquency and Adult’s CHEATIN n LYIN Misbehavior.

According to our inimitable Maureen Down of New York Times he does….

MAUREEN DOWD

````Let`s apply the A.A.D.D. quiz to our fidgety president and his foreign policy team:

1) -- ``I find my mind wandering from tasks that are uninteresting or difficult.``

(Like nation building, which we said we`d never do but are muddling through now, with no coherent strategy, in Iraq, Afghanistan and the Middle East, and soon in Liberia.)

2) -- ``I say things without thinking and later regret having said them.``

(Such as declaring we have ``prevailed`` in Iraq two months before the commander there admits, ``We`re still at war.``

Or bubbling about the statue of Saddam falling and then months later posting a $25 million bounty on the real Saddam`s head.

Or saying Saddam had W.M.D.`s that posed an imminent threat to us and then failing to find a single warhead.

Or saying we`d already found the weapons when all we`d found was some trashed trailer.

Or saying we`d get Osama ``dead or alive`` and Al Qaeda was ``on the run.``)

3) -- ``I make quick decisions without thinking enough about their possible bad results.``

(Such as how our troops will be targets in hostile, dangerous territory, stuck there for years sorting out tribal and sectarian warfare.)

4) -- ``I have a quick temper, a short fuse.``

(Like the president, taunting the Iraqi militants, saying, ``Bring `em on.`` Shouldn`t that sort of trash talking be reserved for football and Schwarzenegger sequels?

5) -- ``I have trouble planning in what order to do a series of tasks or activities.``

(Such as threatening to rumble with North Korea and Iran while we`re still prone to stumble in Afghanistan and Iraq.)

6) -- ``In group activities it is hard for me to wait my turn.``

(Why wait for the pansy allies, even if you`ll need their help after?)

7) -- ``I usually work on more than one project at a time, and fail to finish many of them.``

(Yes. Al Qaeda is recrudescing. In Afghanistan, the Taliban is coming back, warlords rule and the vice and virtue police are at it again.

Iran and North Korea are defying us.

Saddam is still lurking, even as we struggle in Iraq to get the lights on, the oil industry up and the violence down.

We say everything is O.K. while the senators who went to Iraq last week say we`re stretched thin in the face of more and more attacks by Saddam loyalists.

Yep. These guys definitely have E.A.D.D. — Empire Attention Deficit Disorder.
(NYT)

Besides Afghanistan, Iraq, Iran, Syria North Korea Cuba -- yesterday it was Turkey`s Turn -- and today we are going to Liberia --

what this Trashy Tongue Twit from Tree Hopping Tarzana Texas is up to -- hopping from tree to tree around the world -- picking street fights with everybody --

who the hell he thinks will pay for all this -- his dad?

Folks this MORON has to go in Nov 2004 -- moral bankruptcy we can live with -- but financial bankruptcy? -- no way --

the stupido has to go –

so folks -- in 2004 PLEASE don’t forget to VOTE -- don`t forget to get this monkey off our back -- AND -- our wallet

re: America`s affluence
Sometimes ignorance is bliss. So we hear someone in Chowk say:
``The quickest way to make money, increase production etc. is to take it from others thru force. I think the USA still has the power to do that. And it has been doing that, openly, since WWII.``
Living in USA, i find the above statement very offensive. Let the idiot who wrote the above statement give us proof.
Of course, history has been kind to US. But much of America`s prosperity has to do with unleashing private enterprise. It is just not easy for many governments and people (especially those used to dictators ruling their nations) to imagine that a faceless single individual could be so important in creating wealth. While World War 1 brought sudden increase in productivity, industrial growth etc for the nation, US linked its fate to free market even during the most difficult times as during the Great Depression. It is hard to imagine but true that during that period, some 100,000 Americans for the first (and perhaps the last) time migrated to Soviet Union for work. Soviet Union at the time was being touted as a successful model and the eg was even more glaring during the Depression. But USA did ride out of that bad phase and continued with ``free market``. Advent of motor car (with Ford being a household name) unleashed another era of prosperity coupled with increasing mobility. Of course all was not hunky dory. With increasing mobility came disruption in family life, change in moral values and so on. But we are talking about material wealth here.
While one can keep debating on the nature economic policies that lead to gradual prosperity of USA, one thing cannot be debated: the important role of immigrant population towards economic prosperity. What started as a slave labor for plantation workers in 18th century USA soon gave rise to first wave of immigrants from much of Europe. There were millions of them and yet they did not create any large scale social upheavel. Here again, the concept of free will and freedom of movement of labor helped. People migrated to areas with jobs and created prosperity. In the words of an economist:
``Immigrants supplied the labor that a growing economy urgently demanded. What is more, economic growth allowed the accommodation of newcomers without forcing thorny questions of redistribution -- always the occasion for social contest and upheaval. Here, as so often in American history, especially during the period of heavy immigration before the First World War, economic growth worked as a pre-emptive solution to potential social conflict.``
The INS amendment of 1965 opened the doors to Asian countries. Much of immigration in the last several decades has happened from Asia (Phillipines, China, India etc). But most of the recent immigrants are skilled except perhaps the large wave of semi-skilled and unskilled labor force pouring in from Mexico. All of these have contributed to USA`s economy. America still needs a large number of immigrant population for economic growth.

USA is today not only the sole superpower but also an economic power. http://www.dallasfed.org/htm/pubs/annual/arpt01c.html

``Americans make up just 5 percent of the world’s population, but our $10 trillion economy accounts for a quarter of global output. We own, consume and make more of nearly everything—from cars and houses to movies and sports events. We’re among the world’s leaders in just about every cutting-edge technology. We’re the world’s greatest trading nation—the biggest importer and the top exporter.

U.S. industrial production is six times larger than in 1950. Total output has expanded more than fivefold. So has the capital stock—a measure of the economy’s capacity to produce goods and services``

Some people in this forum have been suggesting that US would somehow start to disintegrate after Iraq war. This is stupid.
``Annual defense spending per capita during World War II was an inflation-adjusted $3,381—or 29 percent of the nation’s total production. Today, each American’s share of the defense budget comes to $1,050, just 3 percent of our total output.``

``Throughout history, world powers have fallen because their economy couldn’t support their military. The latest, of course, was the Soviet Union, whose inefficient socialist economy couldn’t keep pace with the Cold War spending of the United States.``
(same url as above)

So, USA will continue to lead the way. There is much to celebrate about USA. But 2 things that comes instantly to mind are the freedom one enjoys here and the unbridled prosperity that an average American enjoys. If you do not believe me, read Dilip D`Souza`s column on What is good about America and you will understand why this is still the most favorite destination for new immigrants.
Sridhar

SR # 37,

My own observation of the in international trading practices and ``free trade`` are in line with what you have written. But without a person with financial background or knowledge substantiating it, I would not have taken them seriously enough. Thanks!

``… sometimes it is good to follow the written word without paying attention to the spirit it was written in.``

Further in the same vein...

``But life shows her irony, through islamists doing the same, with contrary results``.

I`d deliberately refrained from writing this additional statement for fear of dragging this thread to a Hindu-Muslim mudslinging.
But I hope you`ll try to understand this from a different perspective now.

Adios

Romair #38 The US also has started cracking down on illegal immigrants and send them packing. They dont even spare ex-pakistan armymen, who are exempt from the indignity of following laws and rules like - imagine! - ordinary people. And you had to learn this the hard way...very bad. very very bad, this lack of respect for army officers.

SR: Thanks for the replies, again.

I must admit this has been a most enlightening thread. You have provided a lot of interesting information on how economics relates to international affairs and politics. Would you happen to have the background of doing an analysis of Pakistan`s economy, without any political/democratic biases, its present and future, in comparison to where it was three years ago (not in comparison to the rest of the world). Most analysts I have read, seem to have too much of political baggage to do an objective analysis. The anti-Martial Law brigade never sees anything right. While the pro sees everything right.

On the issue of military or economics deciding superpower status, I think I need to clarify furthur. I agree with you that economics is a primary factor in being a superpower. However, I don`t think it is the only factor. There seems to be a cycle that true superpowers follow:

- They get internally successful and grow strong economically. The standard of living of their population increases, and soon their internal resources become too limited to compensate for the growing standard of living demands of their citizens.

- They realize that they have to gain control of resources outside their borders, at cheap rates, to continue their growth. In the old days the superpowers would just invade other nations, outright, and colonize them directly (or kill them and take their land). However, now in the times of kindler gentler superpowers, they do so through support of autocratic rulers in other countries, who sell their nation`s resources at cheap rates to benefit themselves.

- However, every now and then, even now, the superpowers need to invade to ensure they don`t lose control of the international resources. Or at least they have to be able to threaten and invasion. To do this, they need gigantic militaries (specifically navies and now Air Forces also). This is a huge investment. However, the paybacks are much higher, due to control of resources. So they build giant miltiaries, way beyond what they need to their own defence.

- Their economies are strong enough to support these militaries, and it turns into a cycle, where their citizens` needs keep growing and they have to control more and more resources, and thus their militaries keep getting bigger.

Based on this, regardless of what happens internally (upto a certain limit), as long as they can invade successfully, then can compensate, to a great deal, for the shortcomings you mentioned. The moment they lose the ability to invade, regardless of how strong their economies are (Britain, Germany, France, etc.are good examples), they cease to be superpowers, because then they are forced to follow the normal rules of economics that everyone is living by, i.e. they cannot just forcefully take someone else`s stuff and have to build it themselves and compete.

USSR is an example of a country that tried to become a superpower, without first developing an strong internal economy. It had a huge military, but it was a fake superpower. And thus could not sustain its superpower-ness. The USA is a genuine superpower (economics + military). In fact, even with a large military, the Russian navy was never large and powerful enough to carry out the types of invasions, half way around the world, the USA can carry out. So USSR wasn`t even a true military superpower.

I think once a country has reached the combined economic + military superpower status, it enters into an unstoppable cycle, i.e more military invasions needed to meet internal demands, specially if the internal economic situation is getting weaker. The USA is caught in this circle now. I think it will continue to invade, more and more, and will continue to increase the size of its military. And I think for the near future, it can get away with it due to the terroist propoganda, as long as it doesn`t do it as bluntly as it did in Iraq.

This combined with the reasons you mentioend, is probably why Bush and Co. are out to invade eveyone and their grandmother.

#25 Maharana [“… (are) the nations in business with US … getting appropriate values for their goods/service? Who decides those values? Is it just the market?

Why … puppet regimes are installed …? Is it not for exploiting their natural resources…? “]

No, there is no such thing as universally acceptable “fair value” when it comes to trade under the International Dollar Standard system.

The global currency exchange rate system is an absolute scam. (I know the bankers in this forum will be after my hide teaching me the basics of finance, but it has to be pointed out.) What it does is to assign different weight to different populations (pools of labor) that live within certain restricted national boundaries that are completely unnatural. The absurdness, artificiality and injustice of this system of global imbalance can be illustrated by taking two twin brothers from a developing country, say, Sri Lanka. Both go to the same university (medical or engineering, or law etc) and both graduate with the same qualification. One of them moves to America the other stays in Columbo. Now, does it sound reasonable that the services of the one are worth five times the other in terms of internal purchasing power?

Capital today moves at the speed of light. At night when you are asleep in the US your money is in Japan, and so on.

Similarly, “goods and services” also move about the world relatively free of barriers and they move at the speed of an airplane or a ship and in some cases even at the speed of light.

The rules change, however, when it comes to the other ingredient of the production process: labor. Labor is very distinctly divided up and kept within separate jurisdictions and it’s movement strictly controlled by laws and police enforcement.

The implications of this stratification are far reaching. This system disproportionately benefits the multi-national mega-corporations. It does not even so much work to the advantage of the average US or European worker except in the short run.

This situation is only made much worse by the monetary system we have in place today where the country that has the universally accepted currency can essentially get a free ride at the expense of the others. This is what I tried to point out in the article: “For three decades now they have been willing to trade their materials, their sweat equity, and their living standards in exchange for paper that America prints at essentially no cost. How long will they keep playing this game is anybody’s guess?”

This is a very pivotal issue that most people don’t ever even think of. This is major corner stone of today’s global economic imbalance.


ALSO #31 Maharana

[ …``As long as America remains true to the American Constitution… Jeffersonian spirit …``

Ah, the famous Jefersonian spirit. So many of us have been taken in by that.

… the meaning of equality, liberty, justice of mankind … applicable only to the WHITE RACE.

But such is the power of propaganda and garbled history by ideologues, that it took me a while to digest the uncomfortable truth.

… sometimes it is good to follow the written word without paying attention to the spirit it was written in. …”]

Don’t be too hard on poor old Massa Tom. He was a product of his time after all. Let me add to your list further. Thomas Jefferson, the author of the Bill of Rights, was also the first one ever, as president, to suspend the habius corpus in the case of his personal political rival whom he had arrested by the army and then charged with high treason. I am, of course, referring to the case of Colonel Aaron Burr, a hero of the Revolutionary War who contested against Jefferson for the presidency and lost by ONE VOTE on the THIRD TALLY (after two ties) in Congress (The Congress then, was the Electoral College). Jefferson was also pompous and arrogant. He owned several slaves and even had at least one daughter from a slave girl. He was the first president to attack a Middle Eastern country when in 1801 he sent the US Navy to go and bomb the hell out of Tripoli harbor, 183 years before Ronal Reagan bombed Qaddaffi, and so on and so forth. But in spite of all that I hold Jefferson in high esteem because of what he has left behind.

In this particular instance I would entirely agree with your concluding statement: “…sometimes it is good to follow the written word without paying attention to the spirit it was written in…”


#27 tahmed [“…real estate is overvalued worldwide, but far more … in UK and Europe than in the …Given the great leverage one gets … I would think real estate should be the place to invest…”]

The best thing one can say about real estate is that even if its price goes to hell, you can at least live in a house, where as with stocks or bonds gone worthless you cannot even wipe your poop off – they are printed on glazed paper. It is sobering to note that real estate price in Tokyo, for instance, have gone down for nine years in a row and are presently about 70% below where they were at the peak of the bubble in 1989-90. So if you bought something for a hundred then, it would fetch thirty on the market today. The poor bastard who borrowed 90 of the original 100 is now holding something that is worth 30 and the remaining balance on his loan is probably still 80. So, there is no such thing as a “risk-free return” never mind what the bankers tell you about US Treasuries.

#28 Romair

(a) Do you think US invasions and targets are specifically based on the use of Euro by the Iraqis and Iranis?

(b) the defining line for an economic superpower is its ability to invade other countries… The moment a country has lost this ability, it has ceased to be an economic superpower…

(c) If the British still controlled India, and their other territories, they would still be an economic superpower to rival the USA.

The British left India when they knew they did not have the power any longer to invade India successfully and quelch forcefully any kind of independence movement. That is when they ceased to be a superpower

(d) The quickest way to make money, increase production etc. is to take it from others thru force. I think the USA still has the power to do that. And it has been doing that, openly, since WWII.

The US needs to do the above to maintain its superpower status. As long as it can successfully do so, it will be able to compensate for any internal economic shortcomings…”]

(a) Saving the dollar based system, in my view, has to be a factor in that whole calculus. It will probably buy an extra decade. But that’s a lot. Hadrian built a wall in northern England to keep the barbarians of Scotland at bay and that extended Roman rule of Brittania for another century. So, it is sometimes useful to take measure that you know will lead to trouble in the long run because short term advantages are immediate and substantial.

(b) I beg to differ. What you are saying is that the basic power to possess is the military power and that yields political power which in turn yield economic power. That is a view held by many, but I so not subscribe to that view. To my way of thinking, economic power is the foundation stone. It’s the back bone. Only an economically powerful entity can project political and military power. Military might, of course, being nothing more than “politics through other means,” as Karl von Clausewitz would say.

(c) Again, I would prefer to re-phrase the statement and instead say: “if the British were still an economic superpower, they would then have the means to still control their colonies.”

There are those who believe as you do. It may be a chicken and egg kind of an issue, but that is not how I see it. By the way, Winston Churchill also believed as you do. He opposed the Atlee government’s move to quit India on exactly these grounds that it will reduce Britain to the status of a second rate power. Frankly, I don’t think he understood economics at all.

(d) The US is able to do what it does not because of the Seventh Fleet, but because of the BLIND FAITH that fools around the world have in the (intrinsically worthless) ALMIGHTY DOLLAR.

…SR

Nope...still can`t do it...

The Chowk Staff has implimented a `new and improved` InterAct window that somehow DOES NOT allow messages longer than a certain length. My combined message for all was over the size so it does not show. I`ll try to post it in smaller chunks now...

political side of the ledger is not looking too good either as norman mailer points out in this critique. and strangely enough he also blames one particular ethnic group:

http://www.nybooks.com/articles/16470

``And there were other factors for using our military skills, minor but significant: these reasons return us to the ongoing malaise of the white American male. He had been taking a daily drubbing over the last thirty years.``

all is not lost however. yesterday, a federal judge ordered the release of four people who were arrested last week for having ties to kashmiri terrorist groups. and this is what makes america great. that it has enough people in position of authority who are willing to act on their conscience even if it means going against popular opinion and against official state sponsored ideology. compare this with what goes on in pak. the most powerful man in pak, i.e. president musharraf does not have the balls to speak against blasphemy law even though he knows that law is morally wrong. and he is not the only one. our idiot judges are busy hauling cricketers into court for appearing in indian commercials rather than righting numerous evil acts committed by state machinery on a daily basis.

coming back to the u.s. i dont think future is rosy by any means given the cowardliness displayed by royal opposition and the media. determining future direction of the country is going to be a good old fashioned gunfight..

godot #30 on spanish: the irony is that 90% of the spanish speaking immigrants to the US are partially or fully descendent from american indians and some blacks. spanish was forced on the local population through draconian means by spanish invaders who wiped out millions of indians, and even today there are indian reservations in mexico (i visited one of these a few years ago) where they do not speak spanish at all. interestingly, even the latinos themselves realize that their future rests with english, and most second generation latinos are no more latinos but plain english speaking.

the US was indeed a great experiment in the 18th century - the american revolution represented the first time that the globally accepted institution of kingship was challenged and overthrown. i think a quiet but perhaps even more significant experiment is currently taking place in the US: people maturing beyond their traditional nationalistic identities and seeing themselves as first and foremost as part of a broader human race. whether this experiment works of does not remains to be seen i think. it will work if people understand and accept the values that made the US the leader in human progress. it will fail if they dont. my feeling is that the first generation of immigrants generally doesnt get it. the hope then lies with the second generation, with the public schools representing a great source of imparting these values.

So Waterloo was won on the playing fields of Eton. And the future of the human race may well rest in the playing fields of your neighboring elementary school.

Inquirer, SR,

``As long as America remains true to the American Constitution… Jeffersonian spirit …"

Ah, the famous Jefersonian spirit. So many of us have been taken in by that.
Just happens that, there is a book authored by the same Jefferson titled ``Virginia`` (If i remember its title correctly). And that book lays out in very clear and certain terms the meaning of equality, liberty, justice of mankind to mean these concepts to be applicable only to the WHITE RACE.
It came as a shock to me as well, when i read it first. But such is the power of propaganda and garbled history by ideologues, that it took me a while to digest the uncomfortable truth. Ofcourse today American constitution is the greatest in the world with no mention of the spirit of the authors who wrote it.
Hmmmm.. sometimes it is good to follow the written word without paying attention to the spirit it was written in.

Adios

#16 veeresh [“… Empire or illusion, they seem to be having great fun while they are at it.

Which is more than what can be said for other parts of the world…”]

And they will CONTINUE to have more fun and the ‘other parts of the world’ will continue to be poor as long as this religious faith in the pieces of paper (that America can print in unlimited quantities as and when it wishes) stays strong. That is why this (worship of the Almighty Dollar) is the most powerful religion the world has ever seen. Ultimately, it all boils down to BLIND FAITH.


#18 Inquirer [“… As long as America remains true to the American Constitution… Jeffersonian spirit … and retains a sense of fiscal responsibility… it will be an ascendant nation. …”]

True, very true. But the “AS LONG AS” has become an “IF” and that is a very big IF… As time passes America becomes less and less true to the Jeffersonian spirit and forgets about fiscal responsibility. The US Constitution SPECIFICALLY says that CONGRESS (and not a cartel of private banks, such as the Fed) shall have the power to issue money. It also defined the dollar in terms of weight in gold and silver. It also gives congress the power to declare war. There were good reasons why those wise old men put down those things in the constitution. But today’s America has gone away from the constitution in many ways. And THAT, my dear friend, is why America is faltering. The political establishment is so corrupt and rotten to the core and the government so big and over bloated that it is a wonder America is still doing as well as it is – but for how much longer? This is a testimony to the greatness of the spirit of enterprise that despite such odds the nation is still not down on its knees.

The weight of government is back-breaking. For every single working man, woman and child who earns a wage in America and gets a W-2, the burden of government is $10.76 per hour. That is per HOUR, per WORKER assuming they all work 52 weeks a year and 40 hours every week. No other economy could have survived such a burden, and if things don’t change and change fast, neither will the American economy.

#19 soundmeister [“… Chill dude--Amreeka still rich---we still poor--- that`s the bottomline! :)) …”]

Thanks for your comments. I’ll try to chill as you say, but just because I am paranoid it doesn’t mean that they are not really out to get us all? :)


#22 nazarhayatkhan [“…It was all going great for US. … the decay of all great powers began when they reached … this stage of power and culture...”]

Happens to all Great Powers and America is no exception to history. Great Britian started losing its financial might, slowly but surely, almost 30 years prior to the start of the First World War. It wasn’t until after the Second WW that it became obvious to the world that the party was over for the British. Turkey was the “sick man of Europe” for a long time before it every became obvious. The Spanish Empire became a net debtor and lost its economic might almost half a century before the Armada invaded Britain. Roman treasury was going bankrupt during the Julio-Caludian dynasty when no one could have guessed that Rome’s heydays are over. America can be no different.

#23 einsteinwallah

[“…The world may not think so yet, but America may be getting ready to depart.

(i) Departing to where? Planet Mars?

(ii) Indian currency notes … have a promise … ``I promise to pay the bearer the sum of x rupees``. I wonder what these promises mean…”]

(i) No not to Mars, but to your backyard… It’s a figure of speech dude… as I’m sure you well know. Or are you just interested in playing semantics?

(ii) I cannot say about India, but in the US there was a very specific definition of what was meant by the world “Dollar”. It certainly wasn’t just a worthless piece of paper that you could run on a printing press. The “note” was a substitute for the intrinsic value. The note thus was a liability of the issuer. (please refer to: Monetary History of the United States by Milton Friedman, Anna Jacobson Schwartz)


#24 sac

[“… (i) If one were to use debtor/creditor nation criterion, everyone would be buying yen and yuan. Yet there is still a capital flow towards the US.

(ii) Its a charade… but I am content to bury my head in the sand and put my faith in the ingenuity and inventiveness of the human race…”]

(i) Yes there is still flow into the US. Most of the left over flow is owning to the current account deficit and not additional direct investment. The Bank of International Settlements has just issued its annual report. The picture even they (who are establishment touts) paint a picture that is not very pretty.

The US is like a massive supertanker that can not be turned on a dime as a speed boat can be turned. It takes a long time before it becomes clear that a turn is underway.

(ii) We can all pretend to ‘see’ the emperor’s clothes with the eye of faith or we can shout out loud that he is butt naked. But I do understand and admire your optimism. It is important to have optimists, they are essential to human progress because they invent things like the airplane. But don’t write off the pessimist (or realist, as the case may be) either, it is he who invents the parachute.

It`s time to go perform domestic duties now. The rest for later...

…SR