In a depressing sign of the times the national debt clock in New York city has run out of digits to show the national debt. 10 trillion dollars came to too many digits, with means, essentially, we’re toast.
Does it even matter who gets elected? Neither Obama or McCain has any idea what to about the economy, as evidenced by their talking point responses during the debate the other night. Remember, a few months ago, not many had an idea of what was about to happen, and the candidates certainly were’nt talking about it. That said, what makes you think they all of a sudden have a solution. Well, they don’t. There are some potential solutions (I use that word loosely).
First, we could buy American. American products, made by American workers. That would have the effect of circulating money in the U.S. A monumental challenge, given that so many goods these days are produced by cheap foreign labor. To ask an American in these times to pay a little more for the sake of the country may not resonate when the cash just doesn’t exist in some households. Some will be able to do it though.
There’s the possibility of imposing tariffs on these cheap goods, tariffs to the point where many companies would decide to stay in the U.S. rather than oursource. A possible job creator. China wouldn’t be too happy about that, and we run the risk that they may call our debt to them due. A crippling thought. At the same time, China’s economy would collapse if American companies pulled out of their country. Would those companies cooperate in dealing with China? Would they…
Then there’s the North American Union angle, where we could merge with Canada and Mexico. If there was no U.S., then who would you collect your debt from? China probably wouldn’t go for that either.
The ugliest possibility of course is war. Potentially millions of lives being lost and literally, landscapes changing forever. But, if you win, you can write off that debt. Not a good option, but when the existence of the country is at stake, who knows what would happen. There are people running the world behind the scenes (do you think Bush is actually making decisions?), and a crackdown on the American people can’t be counted out if-if this country is at the brink of collapse.
I don’t know for sure, but I think the economy will recover to some degree. It will never be what it was-it’s a global economy now. But how long, how many years?