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alstry (36.06)

America Failing!?!?

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May 15, 2008 – Comments (2)

America is a bunch of concentric systems that need to operate in order to allow our country to function properly.  If these system's fail, America fails.  I will slowly identify these systems out over the next few weeks and reveal their import on our society.

 The first and most fundemental system of America is the government system.  It is the system which our nation was founded.  It is the system that makes us proud as a representative democracy with freedoms second to none compared to other nations.  It is also a system that is based on tax revenues to function to provide services.

Right now tax revenues are falling and deficits are rising at record rates.  Based on current receipts and outlook, the future only looks worse.  Various local, state, and federal agencies are slashing budgets and laying people off.  It is causing serious distress at many levels. 

With corporate profits falling, people losing their jobs, sales slowing, and the burdens on government rising we will likely continue to see the problem get much more serious in upcoming months.

Other important systems in America are identified as follows:

The Health Care System

The Banking/Finance System

The Real Estate System

The Consumer System

 

The above five systems account for over 80% of the economy in America.  Since I am a strong proponent of the 80/20 rule we will stop there.

If enough participants in any of the systems fail to maintain their payment obligations, a serious threat develops that the entire system fails.  The previous post on condo associations in illustrative. 

Right now, our systems are under serious stress.  The stress seems to be getting worse.  We saw what happened to a major bridge in Minnesota when just one support beam failed. 

What's in store ahead?

2 Comments – Post Your Own

#1) On May 15, 2008 at 8:52 AM, alstry (36.06) wrote:

U.S. May Empire State index falls to -3.2 vs 0.6 May 15, 2008The bank's Empire State Manufacturing index fell to negative 3.2 in May from 0.6 in April. This is the third month in the last four that the index has been negative. Readings below zero indicate contraction.

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#2) On May 15, 2008 at 9:50 AM, FourthAxis (< 20) wrote:

In keeping with your metaphore...Even after the bridge fell, politicians from both sides of the isle championed a gas tax that would further starve our infastructure of revenue.  My point? Business as usual.  Unfortunately I think it will take some sort of crisis that forces change upon the government. 

"I'll take - The Collapse of the Dollar - for $1000 Alex."

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