By Dr. Jim Willie:
Japan has proved without confusion that 0% is a permanent stuck position. The United States will repeat the path, but with a vast mudslide. Japan has had the advantage of a strong industrial base, a sizeable trade surplus, and no war budget. Thus it has been capable of funding much of its own deficits. It does possess a big debt burden. But the US has $1 of new debt for every $1 in government revenue. The US war budget is almost as large as its total revenue. The US depends upon foreign creditors, many of whom have been thoroughly alienated. The emerging economy nations have embarked on initiatives to avoid the US$ in commerce. Apart from the structural and foreign angles, the US is stuck with a 0% policy. The USFed has no Exit Strategy at their avail, precisely what the Jackass has stated for over a year. It cannot manage any change, as sharp knives, machetes, and guillotines await on the other side of the monetary doorway. The present 0% road to ruin is fixed, as the USFed cannot change course from it. This is simple to see, when eyes are open and mind functioning rationally. The gaggle of US economists is locked in the Keynesian straitjacket, complete with commitment to its aberrations, mired in debt. They believe zero cost money can lead the way out of an indebted bind. They hold out hope of recovery, more than create feasible conditions for one. Together with the bankers, they show signs recently of awakening to their helpless helm devoid of tools, perhaps even an awakening to the systemic failure.....read on
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