A grim economic pointer for the US

[donsu]

http://www.atimes.com/atimes/Global_Economy/HI28Dj01.html

One of the world's most exclusive business clubs warned the United States on Tuesday that its open-ended national-security and war expenditures, along with tax cuts that led to large budget deficits, could affect the country's status as a powerful economic force.

The Geneva-based World Economic Forum (WEF) issued its 2006-07 Global Competitiveness Index (GCI) rankings and listed the US in sixth place, down from the top spot, behind Switzerland, Finland and Sweden and just ahead of Japan.

-snip-

The report says the US faces major institutional challenges because the country's public institutions are inferior to those of other rich nations in terms of transparency and efficiency.

-snip-

The admonition from such a pro-market establishment group could serve as a red flag on the direction of the US economy. If international confidence in the US economy continues to ebb, the US dollar is likely to fall further and foreign investment will shrink.
-snip- (this snip talks about Palosi)
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and there is also this article:

The US, debtor nation

http://www.atimes.com/atimes/Global_Economy/HI28Dj02.html


The United States is a debtor nation, just like the poorest states in Africa, Latin America and Asia. Since the fourth quarter of last year, US citizens and businesses have paid more dividends, interest and the like to foreigners than they have received from abroad.

-snip-

The debt Americans are incurring is massive. Direct investment in US productive assets provides only about 11% of the needed funds, and the balance is obtained through the sale of Treasury securities, corporate bonds, bank accounts and other paper assets. Americans borrow nearly $60 billion each month to consume more than they produce. The total debt will exceed $6 trillion by the end of the year.

-snip-

Over the past five years, the process has accelerated, as Americans, financed by China and other Asian nations, over-invested in large houses and shopping malls instead of research and development, plants, equipment and software that drive productivity growth and product innovation. JPMorgan estimates that potential US GDP growth has declined from 3.5% 1996-2002 to 2.7% in the years since. Going forward, it estimates potential growth to be even lower.

Rising debt and falling growth are prescriptions for calamity.

-snip-

Branding his critics protectionists, instead of the Chinese, Bush appeases his domestic allies and foreign powers to the peril of the nation.
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are you ready?

[swag]

1. Standard and Poors recently warned that US Govt. Debt would be downgraded

to "just above junk" status by the year 2020 given the country's current fiscally abominable course.

[patrice]

2. Ready? What does that mean?

Cash out? Buy a piece of dirt without a mortgage and learn to grow and make things?

[donsu]

5. ready to do whatever you can to survive

nt

[Warren Stupidity]

3. The rape and pillage continues unabated.

By the time the global elites are finished with their game here there will be nothing of value left.

[rodeodance]

4. the country's public institutions are inferior ---

The report says the US faces major institutional challenges because the country's public institutions are inferior to those of other rich nations in terms of transparency and efficiency.

-snip-

[patrice]

6. = Education and Health Care!!

Put that in your pipe and smoke it all of you Socialism hating Social Darwinists!!!

Seeing that people get Educated and get the medical advice they need MAKES the economy of the US better, because we'd be a better investment than the DUMB and SICK country we are.

[ChicagoRonin]

7. Roman Empire part Deux

After we've exausted all legitimate means of trade and industry through our greed, laziness and indolence, and the rest of the world outstrips us in knowledge capital and resource management, the US will have only one card left to play: Use it's military might to steal everything and steal big.

Of course, how powerful that military might will be post-Iraq and Afghanistan is yet to be seen.