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Who's on First? Who is to blame for the economic meltdown

Updated on July 5, 2011

who created the problem economy

It is a complicated question with an equally complicated answer.

The first mistake people make is trying to say that we are in this mess because of Obama, Bush, Clinton,,,. This mess goes back a very long way to before WWII, but went into high gear when we went off of the gold standard.

It was Eisenhower who first tapped into the Social Security fund to get money for the great construction plan. That was also the last time any of the money was ever put back.

It was LBJ whocame up with the scam to steal all of the money from the Social Security closed account and transfer it into the General Fund with virtually no tell-tale paper trail.

It was JFK who changed the way we count the unemployed so that today the Feds say we have 9% when it is really 22+%.
Clinton changed the “basket of goods” that was used to determine inflation to substitute cheaper items instead of showing true inflation. In reality it changed from the cost of living to the cost of survival.

EVERY administration from BOTH parties are EQUALLY to blame!!!

If you want to really understand how all of this comes together this video is the best and simplest I’ve ever seen.


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    • profile image

      Borsia 6 years ago

      Chris; what you are really saying is that we should use the real numbers and tell the truth,,, lol.

      That goes against everything Washington stands for!!!

    • CHRIS57 profile image

      CHRIS57 6 years ago from Northern Germany

      Borsia, i am just doing a little math:

      If US industrial output is 10% of GDP then the same absolute number will be 15% of GDP if the GDP is lower by factor (10/15 = 2/3). It also means that in real terms the US economy is much smaller than 14 trillion.

      I think i am not too far off, because:

      current GDP: 14 Trillion

      subtract trade deficit: 0,7 Trillion

      subtract Quantitive easing: 2 Trillion

      subtract 2 billion/day captital flow: 0,7 Trillion

      real GDP: 10,6 Trillion

      industrial output: 1,4 Trillion

      productivity ratio (output/real GDP): 13,2% which is close to the productivity "water level" of the world.

      So the difference between real GDP and official GDP is money out of thin air, borrowed from the friendly world in the neighbourhood.

      It is a sad story, Americans don´t deserve it, but apparently the dept drug has addicted all

    • profile image

      Borsia 6 years ago

      Chris; devaluing the dollar is just another way of saying inflation. Obama and the FR are doing that quite well. But there is no good coming out of a lesser dollar it only means that your money won't go as far as it does today.

      It would be great in American industry could take off again but the problem is that we don't make anything. Go through your home and see how many items are made in America? If you are like 95% the answer will be very few.

      The US didn't just move the labor force off shore they moved th infrastructure as well.

      I'm not sure what you mean by "shrink the economy" That would mean 1/3 less employment and 1/3 less income.

    • CHRIS57 profile image

      CHRIS57 6 years ago from Northern Germany

      Great hub, fully on target.

      My personal feeling is that things got to the wrong side with JFK. As the cold war picked up momentum with the Cuba crisis and fuelled spending on unproductive toys like tanks, rockets.. the US gradually lost contact to the competitive edge of producing things.

      Today US productivity is 10%, some 5% less than the median world productivity. Guess what 5% of the GDP are: 700 Billion, and that is roughly the US trade deficit.

      For me the solution to this mess holds 2 options:

      1. Increase industrial production, become competitive, devalue the USD, get rid of the USD role of reserve currency.

      2. Shrink the US economy to some 2/3 of todays level, but take care to keep industry. Then industrial productivity will be levelled with the world productivity.

      And all has nothing to do with the Bushs, Obamas, Clintons, Reagans. They all had and have their share in this.