Saturday, May 23, 2009- by Eric deCarbonnel
Lost Vegas: Vanguard.
During the boom years, no place in America boomed more than Las Vegas. But when the economy collapsed, Vegas fell hard. Laura Ling tours the wreckage of Sin City, from unemployed strippers and half-built, abandoned casino projects, to hospitals turning away cancer patients and ambulances, to one of the few remaining boom industries--evicting people
“Lost Vegas” previews the terrifying future facing America. We are looking at a disaster unprecedented in recent history.
America's flawed "pro-growth" economy
In the 1980s, the US adopted economic policies that favored cost cutting and global trade. And where the US used to be the manufacturing sector of the world, it stopped making goods, and instead started buying goods from Asia, where products were cheaper because people were paid less to make them.
The US was flooded with cheap goods, and Americans were encouraged to spend more money. And eventually consumer spending which used to account for 60% of the US economy had jumped to 70%. Factory workers in the midwest lost their jobs and many of them ended up leaving for growing places like Las Vegas.
--Quote from "Lost Vegas"
In the last twenty five years, the US has outsourced virtually its entire manufacturing sector. We as a nation have allowed ourselves to become totally dependent on foreign oil (those 11mph SUVs), and we have outsourced the productions of our most basic necessities to places like China. This means that a devaluation of the dollar will instantly wipe out America’s standard of living, leaving us as third world citizens. This dollar devaluation is now underway.
(See The US Import Bubble or The Death of American Manufacturing for more info on America’s flawed "pro-growth" economy)
The ‘bad’ phase of this financial crisis is only beginning
Up until now, while things may have been bad on an individual level (job loss, foreclosures, etc…), the financial crisis hasn’t impacted the way America works. People may have cut back on spending, but the basics of American life haven’t been drastically altered. However, that is about to change as the dollar collapses over the coming months.
(See Loud Paradigm Shift Rumblings or Fed Planning 15-Fold Increase In US Monetary Base for more on the information on what is happening to the dollar.)
No Savings
Savings are going to be wiped out by the dollar’s collapse. Oh, there will be plenty of $100 bills floating around the economy, but these bills won’t buy anything of value.
No Credit
Although the financial crisis has greatly impacted the ability to borrow, right now it is still possible for American consumers to borrow money. As proof, I just got another 0% credit card last month (which I used to buy gold on ebay).
However, credit card limits aren’t going to be increased to keep up with inflation, which means a year from now nearly all credit cards will be useless (credit cards of foreign banks denominated in foreign currencies might still work). Additionally, hyperinflation has the impact of vaporizing the financial sector of the country where it occurs, which means it will be soon next to impossible to borrow money in the US.
No Jobs
The dollar has beginning to fall, and over the next year it will lose most of its value. As it does, most of America’s service economy, like Las Vegas, will disintegrate, as consumer spending in real terms (ie: gold or other stable currencies) will drop like a rock. The US service sector will evaporate, bringing unemployment to levels exceeding the great depression.
Millions will die
When people go broke, so do their governments.
--Quote from "Lost Vegas"
As the US service economy disintegrates, public health services/programs will be cut back, and individuals will have no savings/credit/income to pay for medical care. The “Lost Vegas” video should give an idea what this will look like: patients will be turned away from hospital. Pharmacies will also close because no one will have any means of paying for medication. It will be a disaster…
Crime will spread
“This economy is so stupid, man. People are going to start going to jail eventually… because, you know, they’re worried about their kids, the health of their kids, feeding their kids… they're going to do whatever it takes to feed their kids, man… I got kids, man… I gotta feed, man.”
--Quote from "Lost Vegas"
We are heading towards a future with millions of desperate people at a time when critical services, including law enforcement, will be cutting back. To make matters worse, oil prices will soar in dollars, leading to possible shortages and supply disruptions. Because of rising fuel costs and budget constraints, police forces will have to cut back on their fuel use, which means less patrolling…
This is what really scares me. You can stockpile all the food and gold in the world, but it is useless if it gets stolen from you.
How will your community do?
Look around you. Do you see any farmland, mines, oil wells/refining, factories, or unique landmarks able attract foreign tourist? If you do, then you are luck, as these places will bring in income which will help sustain your local economy (Alaska will probably be the state best able to weather the crisis).
However, if all you see is retailers, hotels, casinos, houses, skyscrapers, restaurants, bars, clubs, etc, then your community is in trouble. "Lost Vegas" offers a preview of what faces a local economy concentrated entirely in the service sector.
Longer term, the US will recover
In the longer term, the manufacturing in the United States will recover. Companies will start outsourcing jobs here, as we will be the new China (weak currency with millions of people desperate for work). The US is also blessed with some of the best agricultural land on Earth. The people responsible for this economic/financial mess will go to jail, and the US economy will experience real grow based on the production real goods (and not over-consumption and foreign debt).
It is the next two years which terrify me. I might go visit my sister in Russia for a prolonged stay.
Lost Vegas: Vanguard.
During the boom years, no place in America boomed more than Las Vegas. But when the economy collapsed, Vegas fell hard. Laura Ling tours the wreckage of Sin City, from unemployed strippers and half-built, abandoned casino projects, to hospitals turning away cancer patients and ambulances, to one of the few remaining boom industries--evicting people
“Lost Vegas” previews the terrifying future facing America. We are looking at a disaster unprecedented in recent history.
America's flawed "pro-growth" economy
In the 1980s, the US adopted economic policies that favored cost cutting and global trade. And where the US used to be the manufacturing sector of the world, it stopped making goods, and instead started buying goods from Asia, where products were cheaper because people were paid less to make them.
The US was flooded with cheap goods, and Americans were encouraged to spend more money. And eventually consumer spending which used to account for 60% of the US economy had jumped to 70%. Factory workers in the midwest lost their jobs and many of them ended up leaving for growing places like Las Vegas.
--Quote from "Lost Vegas"
In the last twenty five years, the US has outsourced virtually its entire manufacturing sector. We as a nation have allowed ourselves to become totally dependent on foreign oil (those 11mph SUVs), and we have outsourced the productions of our most basic necessities to places like China. This means that a devaluation of the dollar will instantly wipe out America’s standard of living, leaving us as third world citizens. This dollar devaluation is now underway.
(See The US Import Bubble or The Death of American Manufacturing for more info on America’s flawed "pro-growth" economy)
The ‘bad’ phase of this financial crisis is only beginning
Up until now, while things may have been bad on an individual level (job loss, foreclosures, etc…), the financial crisis hasn’t impacted the way America works. People may have cut back on spending, but the basics of American life haven’t been drastically altered. However, that is about to change as the dollar collapses over the coming months.
(See Loud Paradigm Shift Rumblings or Fed Planning 15-Fold Increase In US Monetary Base for more on the information on what is happening to the dollar.)
No Savings
Savings are going to be wiped out by the dollar’s collapse. Oh, there will be plenty of $100 bills floating around the economy, but these bills won’t buy anything of value.
No Credit
Although the financial crisis has greatly impacted the ability to borrow, right now it is still possible for American consumers to borrow money. As proof, I just got another 0% credit card last month (which I used to buy gold on ebay).
However, credit card limits aren’t going to be increased to keep up with inflation, which means a year from now nearly all credit cards will be useless (credit cards of foreign banks denominated in foreign currencies might still work). Additionally, hyperinflation has the impact of vaporizing the financial sector of the country where it occurs, which means it will be soon next to impossible to borrow money in the US.
No Jobs
The dollar has beginning to fall, and over the next year it will lose most of its value. As it does, most of America’s service economy, like Las Vegas, will disintegrate, as consumer spending in real terms (ie: gold or other stable currencies) will drop like a rock. The US service sector will evaporate, bringing unemployment to levels exceeding the great depression.
Millions will die
When people go broke, so do their governments.
--Quote from "Lost Vegas"
As the US service economy disintegrates, public health services/programs will be cut back, and individuals will have no savings/credit/income to pay for medical care. The “Lost Vegas” video should give an idea what this will look like: patients will be turned away from hospital. Pharmacies will also close because no one will have any means of paying for medication. It will be a disaster…
Crime will spread
“This economy is so stupid, man. People are going to start going to jail eventually… because, you know, they’re worried about their kids, the health of their kids, feeding their kids… they're going to do whatever it takes to feed their kids, man… I got kids, man… I gotta feed, man.”
--Quote from "Lost Vegas"
We are heading towards a future with millions of desperate people at a time when critical services, including law enforcement, will be cutting back. To make matters worse, oil prices will soar in dollars, leading to possible shortages and supply disruptions. Because of rising fuel costs and budget constraints, police forces will have to cut back on their fuel use, which means less patrolling…
This is what really scares me. You can stockpile all the food and gold in the world, but it is useless if it gets stolen from you.
How will your community do?
Look around you. Do you see any farmland, mines, oil wells/refining, factories, or unique landmarks able attract foreign tourist? If you do, then you are luck, as these places will bring in income which will help sustain your local economy (Alaska will probably be the state best able to weather the crisis).
However, if all you see is retailers, hotels, casinos, houses, skyscrapers, restaurants, bars, clubs, etc, then your community is in trouble. "Lost Vegas" offers a preview of what faces a local economy concentrated entirely in the service sector.
Longer term, the US will recover
In the longer term, the manufacturing in the United States will recover. Companies will start outsourcing jobs here, as we will be the new China (weak currency with millions of people desperate for work). The US is also blessed with some of the best agricultural land on Earth. The people responsible for this economic/financial mess will go to jail, and the US economy will experience real grow based on the production real goods (and not over-consumption and foreign debt).
It is the next two years which terrify me. I might go visit my sister in Russia for a prolonged stay.
26/5 2009 13:52 le 0
12134 jeg synes artiklen og videoen tegner et for negativt billede af usa
en recession er noget normalt ind i mellem
og usa har stadig verdens største basis af multinationale virksomheder, der sikrer beskæftigelse også i usa
så jeg synes artiklen tegner et urealistisk skræmmebillede af situationen i usa
en recession er noget normalt ind i mellem
og usa har stadig verdens største basis af multinationale virksomheder, der sikrer beskæftigelse også i usa
så jeg synes artiklen tegner et urealistisk skræmmebillede af situationen i usa
