The Great New Depression - Made in USA


brazil
#1
.

Brazil: The enclosed article was published by a number of newspapers and magazine in February 2005. The article is generating a lot of letters to the editor, and emails to me.
Most people are saying that the article is very interesting.
If you enjoyed reading this article, please send a copy to your friends.

The enclosed article is the version that the Brazilian people are reading in Brazil. The other version of the article which is being published in Asia, and the Middle East starts after the Headlines - October 31, 2008, and doesn’t include the beginning of the article the portion related to Brazil.


**************************************


“The United States and the First Great Depression of the New Millennium.”

Panic among the major holders of US dollar also contributed to the stampede like we had never seen before - and at the end, Chernobyl looked like nothing when compared with the final meltdown of the US dollar, and US economy during the summer of 2006.
By: Ricardo C. Amaral



Today, Brazil and most South American countries in general are disconnecting from the United States economy, and at the same time they are making new strong connections to the economies of such countries as China, India, and Russia.

Since I wrote a letter to the president of the European Central Bank in December 2001 giving him the reasons why Brazil should adopt the Euro as its new currency, most of my predictions came to past, and since then the US dollar has declined in value against the Euro by 67 percent. (Brazzil magazine published that letter in March 2002)

Today, wealthy Brazilians still have billions of dollars invested here in the United States. Most of these investors probably will lose a large part of their investments in the coming years, because they will not take their money out of the US, and they refuse to believe in the coming melting down of the US dollar and US economy. Following is an example of the type of newspaper article that they will be reading at the time of the next United States presidential election in November of 2008.


Headlines - October 31, 2008.

Here we are one week away from the 2008 United States presidential election. What a ride Americans, and the rest of the world had in the second term of the Bush administration. Some people did not believe it was possible for George W. Bush to do a worse job on his second term, than he did in his first.

A number of events came together to form the perfect storm that pushed the globe into a worldwide depression. The current worldwide depression is getting worse by the day, and it is having a more profound impact than the depression of the 1930’s. Today, some mainstream economists have identified George W. Bush and his administration as the culprits responsible for setting the spark that caused the meltdown of the global economy.

The entire fiasco started in November of 2000, with the conclusion of the American presidential election, when the US Supreme Court selected George W. Bush as the new president of the United States. If there were a similar election in any country in Asia, South America, or in Africa, I am sure that the United States mainstream media would characterize the event as a “coup d'état.”


A Major Turning Point in US History.

The terrorist attack of September 11, 2001, had a profound impact in the United States. The attack did not destroy only some property, and over 3,000 human lives; it also destroyed the soul of the American system.

The Constitution of the United States with its Bill of Rights were the soul of the American system, and had served well the needs of the American people for over 220 years. But during the years of the Bush administration, I was sorry to see the American people allowing the destruction of such a great document in the name of fighting terrorism.

Benjamin Franklin, one of the founding fathers of the US nation, once said: "Those who would give up essential liberty, to purchase a little temporary safety, deserve neither liberty nor safety." But over time Americans forgot the teachings of this great American, and since September 11, 2001 the US government took many measures that destroyed the American soul—including the adoption of the US Patriot Act, and the formation of Homeland Security with its special powers.


Osama bin Laden - A New Living Legend.

Before September 11, 2001, most people had never heard of Osama bin Laden and Al-Qaeda. After 9/11 he became a legend, and a hero to the Arab world in a similar way that the revolutionary Ernesto Che Guevara (1928-1967) became a legend in the Americas.

Osama bin Laden had fought against the Russians, and he had helped the Afghan people destroy, and discredit the Soviet war machine – in the Afghanistan War – soon after that the Soviet Empire collapsed. Many people also admired him for his daring planning and spectacular implementation of the September 11, 2001 attacks inside the United States. (That kind of event is supposed to happen only in Hollywood movies.)


When Actual Performance – Doesn’t Count

In November of 2004, the world was shocked to find out that the American people had re-elect George W. Bush. Among other things George W. Bush and his close circle of advisers had placed the United States on a very delicate international position when the United States attacked Iraq. The reasons given to the international community of why the United States had to go to war against Iraq, turned out to be completely wrong. After looking for two years, the Americans never found the “Weapons of Mass Destruction” that they claimed Saddam Hussein had at the time of the invasion in March of 2003.

Remember the American people (59 million Americans, about 27 percent of the total eligible voters in the US) voted to keep George W. Bush in power despite his terrible performance during his first term. They also gave him complete control of the American government with a Republican majority in the House of Representatives and in the Senate. That was history repeating itself, and it was the 1920’s all over again.

George W. Bush followed the footsteps of two other prior Republican presidents - Ronald Reagan, and of his father George H. W. Bush. The Ronald Reagan years established a new mindset for the Republican Party: the level of “Debt Doesn’t Matter,” and they thought the US government could get away with a reckless policy of large deficit spending with no end in sight.

During the years of the Bush administration - from 2001 to 2008 – the United States finances were completely out of control, and the United States had been borrowing around 89 percent of the savings of the entire world - year after year.

For anyone to understand what the US government was really doing in terms of its finances during the Bush administration, you had to study what happened in similar cases to corporations such as: Enron, WorldCom, and Global Crossing – massive administrative mismanagement, and deception.


The Money Pit.

To put the American fiasco in perspective, we have to put the spotlight on the United States government’s cumulative national debt. The cumulative US national debts were only $ 930 billion dollars as of December 31, 1980 - right before Ronald Reagan became president of the United States. Since then, the US national debt has increased to an estimated $ 13 trillion dollars as of September 30, 2008 – that figure does not include all the other US government unfunded outstanding liabilities conservatively estimated at US$ 70 trillion dollars.

Here is the detail of the additions to the US national debt by president:

Ronald Reagan (8 years in office) added to US debt $ 1.7 trillion dollars.
George Bush Senior (4 years in office) added to US debt $ 1.5 trillion dollars.
Bill Clinton (8 years in office) added to US debt $ 1.6 trillion dollars.
George Bush Junior (first term, 4 years in office) added to US debt $ 1.8 trillion dollars.
George Bush Junior (second term, 4 years in office) added to US debt $ 5 trillion dollars.

Since December 31, 1980 the Republican presidents added $ 10 trillion dollars to the cumulative US national debt, and the Democratic president added $ 1.6 trillion dollars. The Republican administrations added 87 percent of the new US national debt, and the Democratic administration added only 13 percent of the new debt.

All Republican presidents starting with Ronald Reagan have had a complete disregard for sound long-term economic policy, and how their current policies would affect future generations. All these Republican presidents had one thing in common: they did run a very large credit card bill during their administrations, and they were leaving all these debt to future American generations to pay. Since December 31, 1980 the United States had only one fiscally responsible president - former president Bill Clinton - a democrat.


History Repeats Itself.

During George W. Bush’s presidential campaign for the 2004 election no one in the US mainstream media brought to the attention of the American people that: “the United States had a Republican president, and Republicans had a majority in the House of Representatives, and in the Senate during the years 1921 to 1930. And we all know the result of the Republican policies during these ten years - The Great Depression of the 1930’s.”

Today, looking back from our point of view in October 2008, we should not be surprised that Americans had learned nothing from their prior history. The Republicans policies and complete control of the US government from 2001 to 2008 resulted in a major meltdown of the US economy - and the first “Great Depression” of the new Millennium.

The Iraq war was completely out of control by December of 2004, and it was clear to the rest of the world that the Iraq war had become an all out civil war. The American army had become irrelevant, and served only as target practice for the insurgency in the Iraqi civil war – but the American casualties, and the costs of the war were pilling up sky high.


Death of the Last Superpower

The idea of the Soviet Union being a superpower died in Afghanistan in the late 1980’s. The idea that the USA was the lone superpower in the world died a fast death in Iraq in the years 2003 to 2006. By the end of 2004, it was clear to most people around the world that Iraq had immersed into a nasty civil war - and the Americans had lost another war - just as they had lost the Vietnam War in the 1970’s.

The American population was very angry with George W. Bush, and members of congress had started impeachment proceedings to get him, and his vice president Dick Cheney out of office. These men had caused massive damage to American prestige and credibility all around the world, by starting the Iraq war against United Nations approval, and also against accepted principles of international law. What was the most hurtful thing for the American people was that the Iraqi fiasco had been broadcasted live to the rest of the world, and signaled the end of the line for the last superpower.


The First Great Depression of the New Millennium.

During the second term of George W. Bush’s presidency, finally all the American mismanagement and mistakes did catch up with the American economy, and a number of trends merged into a perfect storm causing the final meltdown of the US economy.

The American economy went through a downward spiraling out of control implosion. Massive US government budget and trade deficits forced the Federal Reserve Bank to raise interest rates to try to stop the steep decline of the US dollar in world markets against other currencies.

Soon after September 11, 2001 the US dollar started sinking in world markets like the Titanic. The Economist had a Special Report regarding the US dollar on its December 2004 issue – “The disappearing dollar.” The article said: the decline of the US dollar in the last 3 years makes the United States responsible for the biggest international monetary default in the history of the world. The US dollar had declined by 67 percent versus the euro from US$ 0.82 in November 2001 to US$ 1.37 in December 2004.

The world lost its confidence in the US economy because they realized that the US economy was over leveraged, and would not have the necessary cash flow to pay its bills in the future. The US economy was outsourcing its good paying jobs by the millions to other countries - in the last four years the US economy had exported over 10 million jobs. A flood of US corporations started reincorporating in tax havens to avoid paying US corporate taxes.

To compound the US economic problems, US corporations started repudiating the benefit payments of their pension and health plans. Everybody wanted to pass their pension responsibility to the US government – the trend started with the steel industry, then the airline industry, the major auto manufacturers, and after that, every company with a substantial pension plan. The US government had no choice other than to swallow approximately US$ 600 billion in new pension liabilities.

After a number of new terrorist attacks inside the United States, the market dynamic of all these events combined to cause a major institutional collapse in the derivatives market, and that started a domino effect in the entire financial system causing a massive meltdown.

Panic among the major holders of US dollar also contributed to the stampede like we had never seen before - and at the end, Chernobyl looked like nothing when compared with the final meltdown of the US dollar, and US economy during the summer of 2006.

Copyright © 2005 All rights reserved.
By: Ricardo C. Amaral
Author / Economist
brazilamaral@yahoo.com

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no1important
#2
Quote:

Today, Brazil and most South American countries in general are disconnecting from the United States economy, and at the same time they are making new strong connections to the economies of such countries as China, India, and Russia.

You won't find too many Americans getting this or realizing that the Euro not the green back or America is slowly becoming the world economy/currency and other countries are starting to rely less and less on America. They will just deny deny and deny.

Most of them have no concept on what goes on in the real world, just what "W" and his cohorts tell them.

"W" will have driven the American dollar and economy so far down the gutter it will take a century, if ever for them to become dominant again(not to mention isolating America). By then though China will be so far ahead as well America will never recover to even todays level.[/quote]
 
Liberal Aggression
#3
[quote="no1important"]
Quote:

You won't find too many Americans getting this or realizing that the Euro not the green back or America is slowly becoming the world economy/currency and other countries are starting to rely less and less on America.

You certainly won't find any that get their news from a network broadcast and understand this.
 
EagleSmack
#4
Brazil? October 2008?

Ho hum. Fantasies of the Third World.
 
peapod
#5
Are you hiding in the bushes...wearing yellow??
 
EagleSmack
#6
October 2009.... Brazil is the world's newest Super Power!

The UN will now build the new UN Building in Rio!

Mexico is fed up with US Citizens crossing the border to get jobs in agriculture and jobs that Mexicans are just not willing to do.

Canadians are bothered by the constant moaning south of their border that sounds like...

"We should be more like Canada and Brazil"
 
alienofwar
#7
What has just been posted up is complete garbage and has lots of holes in it...and is obviously extremely biased against the U.S almost to the point where they seem to give credit to Osama Bin Laden causing the collapse of the twin towers. For shame that these articles even got the attention of our eyes.


The funny thing too Eaglesmack is that most Canadians are so out of touch with economic reality that they somehow believe that if the U.S falls, they will just trade with other countries and everything will be fine in their socialist paradise. LOL, only problem is that Canada is so interconnected economically with the U.S that if we fall so will the Canadians.

Another thing that is failed to mention is the economic benefits of having a low dollar in the first place. It makes your goods much more cheaper to export and foreign goods more expensive, therefore helping the U.S economy. And its actually helping too...latest figures show the GDP above 4.0%! Meaning that the economy is moving at a very healthy pace...only thing is the job growth has not kept up. But many economists predict that the reason is because companies at the moment ar investing their capital in more efficient technology rather than man power. But there is a huge pool of capital just sitting their...over 7 trillion waiting to be spent...many experts predict that soon enough this money will be spent on hiring more people into the labor force.

So who ever posted these articles on this thread have nothing to celebrate about concerning the U.S dollar....the Canadian economy is already starting to hurt as a result of this from GDP figures showing a measly 1.7% last quarter. I see nothing to brag about.

Jeremy
 
no1important
#8
I saw this site today. It shows where America Ranks in the world on various "issues". It is an interesting read.

http://www.citypages.com/databank/26...ticle12985.asp
 
Reverend Blair
#9
Now Eaglesmack and the Alien will say, "Yeah, but we have guns."
 
EagleSmack
#10
Oh sure Jeremy... they say

"We'll just trade with Russia"

As if the Russians have buying power of the US.

"We'll just trade with China"

And China will take Canada for everything it has. It is funny how they place so much hope in China. The country that signed the Kyoto Agreement with the caveat that they do not have to follow the emissions standards. How conveinent isn't it. The US should sign it as well and state as China did...

"We'll sign, but we won't have to follow the rules."

Oh... because China is a "Developing" nation. One of the biggest economies if not the biggest convince the world that they are a "Developing" nation.

How the Chinese must laugh at the weakness of the West.
 
Reverend Blair
#11
 
alienofwar
#12
Also interesting to note to is that China (one of the largest polluters next to the U.S) doesn't even get the same heat about not being included in the Kyoto agreement as the U.S does. Both India and China combined are even larger polluter's than the U.S....yet why are they not included into the Kyoto protocal?
 
jamie
#13
[quote="no1important"]
Quote:

You won't find too many Americans getting this or realizing that the Euro not the green back or America is slowly becoming the world economy/currency and other countries are starting to rely less and less on America. They will just deny deny and deny...... Most of them have no concept on what goes on in the real world, just what "W" and his cohorts tell them.

Actually, a lot of Americans in the States have realized for years that certain foreign forces are slowly-but-surely eliminating the 'identity' of other sovereign countries, in an attempt to make a New World Order.
 
Reverend Blair
#14
Quote:

Both India and China combined are even larger polluter's than the U.S....yet why are they not included into the Kyoto protocal?

China has 1,298,847,624 (July 2004 est.) people, India has 1,065,070,607 (July 2004 est.) people. The US has 293,027,571 (July 2004 est.) people. Yet it takes China and India combined to outpace the crap spewing out of your country, Jamie. They have 2 billion more people than the US. Think about it.

Further...China is involved in Kyoto. As a developing nation they won't come fully on-board until 2012, but they are already working on programs to reduce their greenhouse gasses.

Perhaps you should try learning some facts, Jimmy-boy.

Oh yeah...almost forgot...George Bush is a coke-headed, insider-trading war criminal with a messiah complex.
 
Vanni Fucci
Free Thinker
#15
Quote: Originally Posted by jamie

Actually, a lot of Americans in the States have realized for years that certain foreign forces are slowly-but-surely eliminating the 'identity' of other sovereign countries, in an attempt to make a New World Order.

No argument here, except that the American government and their PNAC affiliates are equally responsible for marching our sorry asses down the road to an NWO...

bastards!
 
alienofwar
#16
"China has 1,298,847,624 (July 2004 est.) people, India has 1,065,070,607 (July 2004 est.) people. The US has 293,027,571 (July 2004 est.) people. Yet it takes China and India combined to outpace the crap spewing out of your country, Jamie. They have 2 billion more people than the US. Think about it."

So because they have alot more people they have an excuse?

But then again, when you think about it, the same excuse could be used for the U.S. Canada pollutes almost as much as the U.S per capita...so because we have more people than you, does that excuse us from joining the Kyoto protocol?
 
Reverend Blair
#17
You spew out 25% of the world's greenhouse gas all on your own, Alien. More than China and India combined in total, not per capita.

A lot of that isn't for industry or any other useful reason, it's so numbnuts idiots with micro-penises can feel manly driving their 4x4 to work down the freeway.
 
merryclaire
#18
one of the worst and possibly the only bad thing about living in Canada is that we are right beside the US.

i keep hoping that when the rest of the world has had enough and starts bombing the states, they will remember that we are nice here and are not americans.

sometimes i seriously think about packing up my family and moving north to get as far away from the border as i can.

it is only a matter of time before the americans start to pay the consequences for their actions and i really don't want to be sitting next to the border when it starts.

do i want this to happen? no, i sure don't. i believe absolutely that most americans are just normal ppl doing the best they can. but do i think it will happen? yes, it is only a matter of time.
 
merryclaire
#19
hmmm, rereading my quote, i'm afraid that maybe i came across sounding too cavalier.
i don't want anybody to be bombing anyone. i used a poor word choice.
my point that i badly stated, was that sometimes, i get scared over the american administration and what they are doing. i am worried that they will one day have to pay the consequences of those actions and that we by association, may also have to pay those consequences.
but, i will say that it is fairly certain that george-baby will not be one of those paying any consequences.
i think alienofwar needs to, among other things read a bit of noam chompsky. it is extremely disturbing how some americans eat with relish all that their government feeds them without ever thinking for themselves.
 
Reverend Blair
#20
The fall-out that the US faces will certainly spill over into Canada. The biggest threat is economic. We've put all of our eggs in one basket, yet it is clear that the present US economic system is neither desirable nor sustainable.

Massive debt, an ever-shrinking middle class, an almost insurmoutable trade deficit, and a foreign policy more determined by corporate profits than geo-political reality, and a callous disregard for the environment are not the way to build a sustainable economy.
 
EagleSmack
#21
[quote="Reverend Blair"]
Quote:


Further...China is involved in Kyoto. As a developing nation they won't come fully on-board until 2012, but they are already working on programs to reduce their greenhouse gasses.

China... a developing nation. Keep talking so that people can see how truly in the dark you are.
 
EagleSmack
#22
Quote: Originally Posted by alienofwar

Also interesting to note to is that China (one of the largest polluters next to the U.S) doesn't even get the same heat about not being included in the Kyoto agreement as the U.S does. Both India and China combined are even larger polluter's than the U.S....yet why are they not included into the Kyoto protocal?

They're included, they just do not have to abide by the agreement for many years. When that time comes around they will just say...

"We are still developing... we want another 10 years to go unmolested."

China will just smile and nod as the East always does to the West.

Pundits will always attack the US over China because China could care less what the West thinks of them. You can bash them all you want and they will just smile and nod... smile and nod.

Thats not fun.
 
Reverend Blair
#23
 
alienofwar
#24
India and China's fuel emissions output is close to the U.S total I would say. Although dont expect it to stay that way, at the rate those two countries are growing. I still think everyone should of came on board for this thing to work. Although I still think we have to slowly adjust ourselves off our fossil fuel addiction without disrutping our economies. Seriously though, I dont see China changing at all, at the rate they ar growing and pumping out those coal burners, I dont expect any change for that country. Even if they said they would join in 2012, I wouldn't trust them.

Anyways though, me not being the typical "knee jerk conservative", I tend to support any policy that would help support the enviroment...but in a responsible manner not based on world wide mass hysteria resulting from news reports of geological disasters. I personally don't care what Rush Limbaugh says, I am almost certain that our release of carbon dioxide into the atmosphere is having an impact...it doesn't take a chimpanzee to figure that out. I dont even listen to Rush Limbaugh..based on the fact he supports illegal immigration and doesn't believe that humans are contributing to global warming. He has a good point most of the times though.

Also, growing up with David Suzuki helped alot. Im actually going to see him in a lecture hes presenting at the California Academy of Sciences in San Francisco on April 27. I have never heard him speak in person and I believe it migh be my last chance to do so. And ughh, I dont look forward to bumping into all those Canadian liberals who populate San Francisco, Im going to be a needle in a haystack at that lecture, lol.
 
Mooseskin Johnny
#25
Quote: Originally Posted by merryclaire

one of the worst and possibly the only bad thing about living in Canada is that we are right beside the US.

When the Americans are behaving themselves, the US is a good country to be next to. When they go on one of their periodic rampages, one wants to move as far away as possible. Right now is one of the bad times and the future does not look good.
 
EagleSmack
#26
Merry... you will be remembered for your weakness not your association to the US.

That makes you a target.
 
EagleSmack
#27
Quote: Originally Posted by Mooseskin Johnny

Quote: Originally Posted by merryclaire

one of the worst and possibly the only bad thing about living in Canada is that we are right beside the US.

When the Americans are behaving themselves, the US is a good country to be next to. When they go on one of their periodic rampages, one wants to move as far away as possible. Right now is one of the bad times and the future does not look good.

What about France? Spain? Iran? Is that far enough?
 
Reverend Blair
#28
 
Paco
#29
Good, bad, or indifferent, America is writing history. 500 years from now, young people will read about America and will know its victories and its failures. Canada will get some small paragraph in the middle of their history books and will be noted as a sovereign nation that bordered America.

When I think of Canada, I am reminded of Theodore Roosevelt…

"It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself for a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat."

Citizenship in a Republic, Speech at the Sorbonne, Paris, April 23, 1910
 
mrmom2
#30
eaglesmack there are plenty of financial reports and shows in the states saying this its not crap its simple economics you can't keep spending more than you take in sooner or later the bank calls in its loans and the us loans arew just about due
 

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