Aishwaria Rai Showing His Boobs

The policy challenge the U.S. ...

How to recover when one is the first world power, when all eyes are on you when it does not show signs of weakness, when the global economic system depends on your motto?

The U.S. faces the problems of capitalism and its monetary system. How does it work? The whole system is based on debt. Banks create money by lending, the borrower consumes and pays the principal of the loan (which must then be recreated for the stability of the money supply) and interest. Where will the money come from to pay the interest? Work (not wind), the creation of wealth, growth of course! That is why our system imposes a perpetual growth to pay the interest generated by this system so that it keeps running.


When all goes well, everyone has eyes that glow thinking of the leverage it provides (in the U.S. have profited very well before the crisis by issuing treasury bonds for, inter alia, finance investments abroad and Bingo They cashed the difference between the return on their investment and the cost of good ...). The economy is growing, profits fall, consumption and borrowing all that support, interest rates rise. But come the day when a stone blocks the machine ... And there, the leverage works too ... but in the other direction. And the waterfall is hellish: slowing growth, declining revenues, declining consumption, unemployment, loss of trust, insolvency and therefore increase funding down .. In short the whole machine jams. What

without provoking the wrath of inflation or deflation (Which are the consequences of the adjustment of the monetary system, monetary policy to the situation, consumption and hence the confidence of the people)? Yes, we must boost growth! But how? What are the alternatives?

For USA, it is high time to redress the balance on the trade deficit! The net external debt of the USA is logically linked to its trade deficit for over 20 years. In late 2007, foreign assets held by the U.S. amounted to 122% of their GDP and their debt to the world amounted to 135% of their GDP . It why that we are witnessing a resurgence of protectionism ("sub- underlying ). For that, you devalue the USD (Also, it reduces the real value of external debt denominated in U.S. USD Bingo) with rates of 0% (but it's the same everywhere and it allows improve the growth / interest-free growth) and by creating money (increasing the money supply). Suddenly, you become more competitive and boost its economy is ...

Unfortunately, much water has flowed under the bridge (the side of the world has changed) and everyone hears do not let the first China (Brics and in general) not to mention the record level of debt and uncontrollable U.S.. But what will China do? China is the first creditor of the USA and needs of U.S. consumption for its exports, not to mention the energy dependence and MP. She works extensively on the issue with its partners Brics ...

And the U.S.? If they fail in their purpose, what will they do? If they see the risk Chinese, how to defend their central geopolitical position? First World military power, the last resort? By

there, admire the next episode: "Foreclosure-gate" ...

Sure?

We are here my friend!