Best of the Week
Most Popular
1.Gold Price Target of USD 2,300 - GoldCore
2.Greece Banking System Collapse Monday as ECB Pulls the Plug, Capital Controls Ahead of GrExit - Nadeem_Walayat
3.Why British Muslims Are Leaving Elysium Paradise for Syrian Hell - Nadeem_Walayat
4.Greece BANKRUPT! Financial and Economic Collapse to Follow IMF Debt Default - Nadeem_Walayat
5.Extreme Gold/Silver Shorting - Zeal_LLC
6.European Empire Strikes Back Against Greek Debt Fantasy, Counting Down to GREXIT - Nadeem_Walayat
7.Gold And Silver – Three Choices: Sell, Hold, Hold and Add. A Trading Treatise - Michael_Noonan
8.Gold and Silver Price Headed for Breakdown - Jordan_Roy_Byrne
9.Greece Crisis OXI - Raul_I_Meijer
10.Flatline Investing and Dead End Debt Schemes - Doug_Wakefield
Last 5 days
Fed’s Full Normalization and the Stock Market - 3rd July 15
The U.S. Dollar's 2014-2015 Rally: Wave 3 in Action - 3rd July 15
Stock Market Where are we? And where are we Going? - 3rd July 15
Xi’s Anti-Corruption Campaign Is Key to China’s Prospects - 3rd July 15
How the New Iranian Nuclear Deal Will Impact Crude Oil - 3rd July 15
China's Stock Market Rollercoaster Ride Continues - 3rd July 15
Gold Stocks Cheap to Buy but Not for Long - 3rd July 15
Capital Controls and a Bank Holiday in Greece… Here’s How You Can Profit - 3rd July 15
Greece's Varoufakis: I will Resign if there's a 'Yes' Vote - 2nd July 15
The Student Loan Bubble: Gambling with America’s Future - 2nd July 15
Inflation Is Lurking, but This Asset Can Protect You - 2nd July 15
Three Total Wealth Stock Investor Tactics You’ll Need Because Greece Isn’t Over - 2nd July 15
Why This $5.6 Trillion Investor Profit Boom Is Set To Take Off - 2nd July 15
Greek Debt Crisis: "Too late to prepare now" - Video - 2nd July 15
Guaranteed US Dollar Death Dynamics - 2nd July 15
The Greek Stress Test & The Reality Of Incremental Changes - 2nd July 15
Forget Drachmas Greece Syriza Government Could Instruct Central Bank to Print Euros! - 2nd July 15
Greece Debt Crisis Trigger for Stock Market Crash or Bull Rally? Video - 1st July 15
Gold Stocks Break Below 2008 Low - 1st July 15
SPX Stock Market Retracement May be Over - 1st July 15
Silver Tunnel Vision 'Experts' - 1st July 15
Gold And Silver - Monthly, Quarterly Ending Analysis - 1st July 15
Europe’s Controlled Demolition - 1st July 15
The End of Dow 18,000; Bailouts No Longer Extended  - 1st July 15
Athens Mayor: Greek Government Should Resign - 1st July 15
China Stocks - This Is What a Bubble Looks Like - 30th June 15
Stocks Plunge on Greece Euro-Zone Financial Armageddon Blackmail - 30th June 15
Greece Crisis Shows Importance of Gold as Europeans Buy Coins and Bars - 30th June 15
Stock Investors Express Route to Profits in the Healthcare Sector - 30th June 15
Beyond the Greek Impasse - 30th June 15
Gold GDXJ : Impulse Move Pending - 30th June 15
Fed Interest Rate Increase Could Be Best Thing to Happen to Gold - 30th June 15
Marc Faber - Greece is Basically Bankrupt - 30th June 15
Greece - Shoot the Dog and Sell the Farm - 29th June 15
Grexit?, BIS Warning, Chinese Market Crash & Systemic Risk Shake the Global Economy - 29th June 15
The New "Sharing Economy" May Not Be the Profit Bonanza Everyone's Expecting - 29th June 15
Gold and Silver Greece and Short Positions - 29th June 15
Volatility and Sleep-Walking Markets - 29th June 15
Greece BANKRUPT! Financial and Economic Collapse to Follow IMF Debt Default - 29th June 15
Stock Market More Decline Ahead? - 29th June 15
China Stock Market Crackup - The Final Trap Looms... - 29th June 15
Greece Banking System Collapse Monday as ECB Pulls the Plug, Capital Controls Ahead of GrExit - 28th June 15
Investor Stock Play for Two Growing Missile Threats - 28th June 15
Stock Market Uptrend/downtrend Inflection Point - 27th June 15
Greece Crisis OXI - 27th June 15
Gold And Silver – Three Choices: Sell, Hold, Hold and Add. A Trading Treatise - 27th June 15
It’s Time to Change the Way You Look at Disney Forever - 27th June 15
Flatline Investing and Dead End Debt Schemes - 27th June 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

China Stocks - Where are they going?

Another Victim of America’s Ponzi Scheme Economy (Part 2)

Politics / US Economy Jul 08, 2009 - 04:21 AM GMT

By: Mike_Stathis

Politics

Best Financial Markets Analysis ArticleToday, America’s “New Economy” is based exclusively on services - primarily financial and technology-based services, with a whole slew of attorneys and consultants to support transactions and legal agreements.


But there are other service industries as well. Over the past few decades, as America's economy has transitioned from old to new, millions of manufacturing jobs have been sent overseas. Many of these jobs have been replaced with blue collar service jobs like landscaping, valets, nannies, maid services, pet services, massage therapy and fitness trainers. Today, each represents a large and growing industry in America.

Others have enrolled in for-profit colleges hoping to transition into another career. Little do they realize, most of these “new job opportunities end up being dead-end jobs.

The fact is that economic and career opportunities are shrinking by the day in America; all due to the system of unfair trade advocated by politicians who have been bought off by industry lobbyist groups. 

Which would you rather have; a manufacturing job with a nice stable salary, healthcare, disability, and retirement benefits? Or a job parking cars for tips.

If you’re a teenager or college student, you might opt for the later. The work is easy and you get several employee benefits - you get to see “hot” girls and drive “nice” cars. But those of us in the real world would prefer a stable job with a salary and employee benefits. 

America's "New Economy" high-tech cities are primary based in California. In contrast, the financial powerhouses reside in New York City, Boston, and Chicago.

But as you might already know, New York has been in decay for many years, as has Chicago. And even the high-tech capital of the world, California is facing bankruptcy, as are most states and cities. 

http://www.reuters.com/article/marketsNews/idUSN1927832320090319

(Readers of my July investment newsletter will note that I made specific warnings regarding California municipal bonds.)

Most people realize that America's largest cities have been in decay prior to the current economic meltdown. For well over a decade, "white flight" has been responsible for the overdevelopment of suburban America. Many of these regions have sought to isolate themselves from the larger nearby cities. To achieve this economic and societal independence, they’ve built sports stadiums, airports, expensive schools and museums. 

But these projects were financed largely by city taxes - property taxes, sales taxes and other taxes. What I am speaking of is a bubble in many small suburban areas across America that no one mentions. And it's in the process of imploding.  

President Obama is already discussing what to do with the glut of ghettos and slums that continue to grow by the day.  This just might be his best idea yet.
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5516536/US-cities-may-have-to-be-bulldozed-in-order-to-survive.html

Don’t be fooled by the Washington hacks. America's Second Great Depression is still in its early stages, so hold onto your hats and try to stay afloat, because I don't see anything getting better on a permanent basis until real solutions surface. 

As I detailed in America's Financial Apocalypse, the two most important of these solutions are a radical restructuring of free trade policies and overhauling the healthcare system. 

Of course there are many other changes needed. America's pseudo-free market system must be reassembled with a solid foundation of regulatory authority and accountability, so that the financial, energy and other industries provide as much benefit for consumers as for the wealthy elite. All lobbyist activities must also be banned. Finally, the Federal Reserve must be forced to surrender its control of monetary authority.

Contrary to popular belief, not a single one of these issues have been (and most likely will never be) addressed sufficiently by Washington because our leaders are under the control of the Federal Reserve and corporate America. And while corporations certainly aren’t happy with the current healthcare system, it gives them an excuse to send jobs overseas. 

Rather than huge manufacturing industries reminiscent of America’s “Old Economy,” the “New Economy” is characterized by high-tech firms big and small. But many of the jobs from this industry have been outsourced overseas, from Dell Computers and Amazon.com to Microsoft and IBM.

The “New Economy” is also characterized by huge financial institutions which scavenge off of consumers and corporations. This does nothing to create net productivity. The only productivity the financial industry creates is when it dumps off toxic investments to foreigners. But as we know, this represents securities fraud.

As you might imagine, most of America’s largest financial services firms also make extensive use of outsourcing.  In America’s “New Economy” it has become exceedingly difficult to point to just one large corporation that has not outsourced jobs. Advocates of free trade claim outsourcing has created higher living standards, lower prices for consumers and better jobs for Americans. You decide.  

As it stands today, America’s Ponzi scheme economy is in midst of collapse. Instead of providing real solutions, Washington insists on picking up the pieces and putting them back together. President Obama has backed away from his promises to restructure free trade. He also promised to hold all those responsible for the real estate and banking Ponzi scheme accountable, but has done nothing. Furthermore, his healthcare plan will not offer the kind of solution needed to restore America’s previous economic strength.

Finally, rather than diminish the control of the Federal Reserve, Obama’s strings have been pulled by Emanuel, Summers and Geithner to grant the Fed as the dictator of the U.S. financial system. This is an extremely dangerous move that will lead to nothing other than disaster.

We cannot permit Washington to reassemble this broken Ponzi scheme while placing even more power in the hands of the perpetrators because it will collapse again, causing much more devastation than we see today. 

This is the reality of America.

2

By Mike Stathis
www.avaresearch.com

Copyright © 2009. All Rights Reserved. Mike Stathis.

Mike Stathis is the Managing Principal of Apex Venture Advisors , a business and investment intelligence firm serving the needs of venture firms, corporations and hedge funds on a variety of projects. Mike's work in the private markets includes valuation analysis, deal structuring, and business strategy. In the public markets he has assisted hedge funds with investment strategy, valuation analysis, market forecasting, risk management, and distressed securities analysis. Prior to Apex Advisors, Mike worked at UBS and Bear Stearns, focusing on asset management and merchant banking.

The accuracy of his predictions and insights detailed in the 2006 release of America's Financial Apocalypse and Cashing in on the Real Estate Bubble have positioned him as one of America's most insightful and creative financial minds. These books serve as proof that he remains well ahead of the curve, as he continues to position his clients with a unique competitive advantage. His first book, The Startup Company Bible for Entrepreneurs has become required reading for high-tech entrepreneurs, and is used in several business schools as a required text for completion of the MBA program.

Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher. These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.

Requests to the Publisher for permission or further information should be sent to info@apexva.com

Books Published
"America's Financial Apocalypse" (Condensed Version)  http://www.amazon.com/...

"Cashing in on the Real Estate Bubble"  http://www.amazon.com/...

"The Startup Company Bible for Entrepreneurs"   http://www.amazon.com...

Disclaimer: All investment commentaries and recommendations herein have been presented for educational purposes, are generic and not meant to serve as individual investment advice, and should not be taken as such. Readers should consult their registered financial representative to determine the suitability of all investment strategies discussed. Without a consideration of each investor's financial profile. The investment strategies herein do not apply to 401(k), IRA or any other tax-deferred retirement accounts due to the limitations of these investment vehicles.

Mike Stathis Archive

© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History