The morning's -- Saturday, October 25 -- Star-Ledger headline read "Market panic leaves experts without a clue".
Without a clue? Are these brilliant idiots kidding us?
The United States while continuing to consume -- what? 25%? -- a large share of the world's products, sold offshore it's industrial base to make the products necessary for exchange in a functioning market where goods and services with value (others want what we produce) are traded. (Please note that the pieces of paper such as money and instruments of debt increase the market's efficiency thereby adding value BUT only in relationsip to REAL goods and services. If you are only exchanging the pieces of paper ... well, what can I say?)
Note: "According to the International Monetary Fund, the U.S. GDP of $13.8 trillion constitutes over 25.5% of the gross world product at market exchange rates and over 19% of the gross world product at purchasing power parity (PPP)."
So we -- the U.S. -- can no longer sustain our consumption of the share of world's goods and services we have been consuming ...BECAUSE we no longer produce good and services the world wants!!! Dah!!! That is, we don't produce enough to pay for what we have been buying.
And you don't think that is going to take a serious realignment of the global economy? Until we once again get back in balance?
And this is hard to understand? I think someone needs to go back and read that book about learning everything we need to know in kindergarten.
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