will iraq be the catalyst for creating a third world america?

[datasuspect]

the continued violence in the region proves we cannot assert our dollar-hegemony through war anymore.

subprime housing lending markets are imploding.

the housing bubble is bursting.

china might diversify a disproportionate (relative to our trade imbalance) amount of their currency reserves.

is hyperinflation waiting in the wings? another great depression?

any econ types know more about this?

[BushOut06]

1. You forgot about skyrocketing gas prices

What happens when Americans can no longer afford to drive to work? Mass transit is fine if you live in an area that offers a good system, but much of the country doesn't really have a viable mass transit option.

[datasuspect]

2. i think we will see

5-10/gallon prices for gas in the near future.

[HCE SuiGeneris]

3. Don't blame Iraq, blame the neocons and enabling DLC'ers. n/t

[datasuspect]

4. i more inclined to blame a number of factors

like the "credit recovery."

but the significant expenditure in iraq cannot be doing anything except enriching the most wealthy.

[HCE SuiGeneris]

5. Iraq is but a symptom of the failed policies that have been implemented.

I agree though, the financial bleed-out from our sojourn into Iraq is crippling.

[Double T]

6. But I thought the american economy was bush booming............

Iraq, along with all of the other bushco, wall street and corporate america destruction have 'US' headed to a third world nation status.

[Esra Star]

7. A vast number of citizens already live as if they are in the third

world. That number is growing.
Out of touch leaders who think they can break the bank at the casino,
will one day lose enough to bring the empire down.

[PsN2Wind]

8. No but "immigration reform"

could well do it. Adding 12 million or more legal residents with the spouses and children probably at least triplying that number, many unskilled, low skilled, uneducated, non-english speaking should do it.

[datasuspect]

11. we're all fighting for the same crumbs

a legal US debt slave (citizen or permanent resident) has more in common with the undocumented worker than they do with the economic witch doctors who are purposely driving this country into an economic depression.

[PsN2Wind]

13. That may be true

but those of us that have supported the table, from which those crumbs are falling, for 45 or 50 years, would rather see the crumbs divided by our children and grandchildren than have to be fought for.

[datasuspect]

16. in any event

the results of immigration pale in comparison to the results of the pilferage undertaken by the highest levels of the government and industry.

[movonne]

9. I think that is what this administration set out to do...that's the only

way that the corporations can control us...and now I'm afraid that the money dems (dlc) is part of it...

[gravity]

10. Our economy could possibly enter a recession

but I wouldn't worry about a complete collapse anytime soon.

I don't see the Iraq war playing a big part in it. It increased our government deficits, and probably raised the price of oil some, but it's not the catalyst for destruction.

The housing bubble is bursting, but there is light at the end of the tunnel. Once the dust settles, homes will be cheaper to buy and lending will be back to more sound practices again. The people who risks their money in the housing market are going to get burned, but new home buyers will benefit.

When one part of the economy collapses, it usually will just mean that investment will go to other parts of the economy. It's stupid to sustain the housing market the way it is now, since there are so many homes on the market right now that can't be sold as it is. The lower housing prices in the future means that new home buyers could spend more of their income on goods and services supporting other sectors of the economy.

There is both good and bad news about the economy right now, so don't believe that a collapse is inevitable.

[datasuspect]

12. but how do you replace the lost capacity?

the mortgage backed investments constitute much of the basis for the valuation of the US dollar.

our debt is financed by countries that trade in the valuation of our currency.

when they dump that, and there is no more value in the credit based investment instruments, what do you replace that with?

the US does not have the manufacturing base it had in the 30s. it had even less than that in the late 80s or early 90s prior to NAFTA, it has EVEN LESS now.

we have no significant manufacturing infrastructure with which to manufacture goods for purchase, which is the basis for a RATIONAL economy.

we are significantly dependent on china for much of our economy at this point in history.

[Karenina]

14. Wrong tense.

[WilliamPitt]

15. The catalyst happened long ago.

But Iraq could move us cloer to the endgame.