Commentaries

Back in the early fifties, when America became the biggest Mercantilist beast on the planet (like China now), a deficit debt would have been a very dirty word. America has since moved into its final “huge deficit and debt” stage now and the only economic way that fits this outright consumer model is Keynesian. This has nothing to do with a script, and everything to do with economic survival. This last is certainly not a global tenet, but is a very individual tenet that applies differently to the varying economic needs of all countries. Therefore each country’s government must do exactly what it takes to survive economically, simply because that is, undeniably, the mandate of every government in the world today.

Deficits certainly do matter to some countries that follow these Keynesian deficit ways. But to newly Mercantilist countries such as China, Russia, India and Brazil, there is simply no need for deficits simply because they have their own massive savings. Why should such countries adopt huge deficits just to feed and waste their savings to support the Keynesian debts of western countries?

As I’ve said, the mandate of every government must be to ensure the economic survival of their own country. And herein lies the greatest fault with adopting huge Keynesian deficits — America for too long has been too dependent on foreign credit, to the extent that her own government has now completely forfeited her mandate for individual economic survival because of too heavy a reliance on these outside dependencies. The US government is not therefore fulfilling its economic mandate for survival, this control has been lost because of her loose Keynesian debt and deficit policies.

America, under the guise of modern leadership, has thus become nothing more than a weak banana republic, with no individual mandate or any control over America’s economic survival, no urgency, dwindling leadership, running on empty, even now going begging to the likes of China to buy more of her IOUs to support the American economy.

Regarding the author’s disgruntled description of China’s currency manipulation, I really think this is very amusing. For decades now, the US govt has been manipulated commodities like gold and oil for the sole benefit of propping up the dollar. And when this precedent was set so many years ago, is it any real wonder that China is only now doing the same. After all, it could be said that China has only learned all this from The Master.

So, concerning America’s laughable manufacturing as well export figures as perhaps the saviour of the US economy, can we perhaps have some real and valid reasons why a weak dollar is so good for America?