Skip navigation

Category Archives: The United States and the Global Economy

New Jersey Governor Chris Christie must be wondering what is wrong with his fellow Republican Congressional Representatives as they stall Sandy Storm reparation and re-building funds for his irate and angered constituents who have waited nearly two months for direly needed relief aid.

The current chain of events show how little influence the House Speaker Boehner has over his Republican Congress. The Republicans are in a state of complete disarray as they bicker, back stab, and continue their in-fighting with each other over serious Congressional Funding issues.

A Great Republican President once stated that no house divided can long stand. And so Abraham Lincoln’s great wisdom goes unheeded as Congress becomes a quagmire of inaction, lacking in civility and charity.

Republican Conservative John W. Dean is deeply vexed by a party which has become “Conservatives Without a Conscience”. The recent $9 Billion stop-gap bill to provide badly needed relief to Sandy Storm victims falls far short of the $60 Billion required for rebuilding and subsidizing a recovery for storm victims, who are suffering physically, mentally, and the indignity of not being valued American citizens.

Today, Conservative Fundamentalist Republicans scorn President Ronald Reagan and both father and son George H.W. Bush’s and George W. Bush’s fiscal spending policies, while resolutely quiet about President Bill Clinton‘s fiscal spending policies. I wonder how these “fiscally responsible Republicans” would have felt about President Eisenhower‘s funding of the National Interstate Highway System which has paid for itself a hundred times over for itself. Construction was authorized by the Federal Aid Highway Act of 1956, and the original portion was completed 35 years later. The cost of construction has been estimated at $425 billion (in 2006 dollars).

I doubt any of these “Neo-Fiscal-Fascist Republicans” realize how close they are to being “Fascist  Capitalists” like those who supported Francisco Franco y Bahamonde, Adolf Hitler and Benito Mussolini.

I can only wonder what the “Neo-Fiscal-Fascist Republicans” “final solution” will be for the Sandy Storm Victims. Right now they are $51 Billion shy of the beginning of a real solution.

What would Founding Father, President Thomas Jefferson have done with these “Neo-Fiscal-Fascist Republicans”? He probably would have put them under an Executive Order of Arrest for deliberately endangering American lives.

President Obama’s only alternative may be to declare a “State of National Emergency” in New York, Rhode Island, and Connecticut and force Congress to allocate the required relief funds or suffer Executive Order’s to have the Department of Justice to bring suit to the Supreme Court accusing Congress for endangering our National Security! President John Quincy Adams would not have hesitated to take said action under such circumstances.

Advertisements

On August 6, 2011, Standard and Poor’s, a financial-services company and division of McGraw-Hill Companies that publishes financial research and analysis on stock and bonds, weighed in on the US Government’s National Debt. After “analysis”, S&P concluded that the US Government’s Credit Rating should be down-graded from the highest ranking of AAA to the second highest ranking of AA+, but with a negative outlook. In simple English this means that the United States Government has demonstrated an inability to control spending and sustain revenue income consummate with United States National Interests. In other words, the United States Government, in good faith, can not pay its bills. The financial equivalent is that the United States Government is in default on its loans.

S&P’s analysis and conclusion is grossly inaccurate! S&P’s track record on reporting the economic health of various financial institutions has been dismal to say the least. Credit Rating Agencies (CRA’s) like S&P have been subject to criticism in the wake of large losses beginning in 2007 in the collateralized debt organization (CDO) market that occurred despite being assigned top ratings by CRA’s  like S&P, Moody’s,  and many others. “In November 2009, ten months after launching an investigation, the European Commission (EC) formally charged S&P with abusing its position as the sole provider of international securities identification codes for U.S. securities by requiring European financial firms and data vendors to pay licensing fees for their use”. S&P’s duplicitous actions speak for themselves.

The United States economy is larger than the combined economies of the next three largest in the world China, Japan, and India. Why is the US economy unique in the world? And why is the US economy shrinking as a ratio to other world economies? The reason is that the US economy is not a Global Economy like all the other countries of the world! In order to survive the US economy must not play in the Global Economy “free for all”. Why? Because the US economy can not compete in a Global Economy. The US economy grew after World War II because it did not play in the Global Economy. The Global Economy has been chasing the US economy right up until the 1970’s.  At that time the gasoline crisis hit the United States and the US economy has been in decline ever since. At that time the United States began to play the Global Economy game.  It was a game the US economy could not win. The new Global Economy was based on production costs. The United States had always played a different game and was first in the world in science and technology, engineering, manufacturing,  education and thus in production. But not anymore. The United States has steadily declined in the Global Economy in engineering, manufacturing, education, production and now it is in jeopardy of losing its edge in science and technology. What the other countries can not steal they buy in cold, hard US greenbacks. The world currency is the US currency. But for how much longer?

As long as we play by Global Economy rules we are intrinsically intertwined in the Global Economy. This is a death spiral to the United States economy. Soon the United States will no longer be first in the production of energy. And once the US loses its edge in the production of energy it will no longer be able to compete in the Global Economy. How does  the United States  regain their global domination? How does the United States regain its premier positions in science and technology, engineering, manufacturing, education, and finally production? By listening to a voice of the past.

Doctor W. Edward Deming Ph.D. from Yale University with graduate degrees  in mathematics and mathematical physics. He was a professor of statistics at New York University’s graduate school of business administration (1946–1993), and he taught at Columbia University’s graduate School of business (1988–1993). He also was a consultant for private business. In 1982, Dr. Deming had his book published by the MIT Center for Advanced Engineering as Quality, Productivity, and Competitive Position, later renamed Out of the Crisis in 1986. “Dr. Deming offered a theory of management based on his famous 14 Points for Management”. Dr. Deming believed  that “Management’s failure to plan for the future brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved products and services. Long-term commitment to new learning and new philosophy is required of any management that seeks transformation. The timid and the fainthearted, and the people that expect quick results, are doomed to disappointment.”

For more information on W. Edward Deming, Ph.D. please see http://en.wikipedia.org/wiki/W._Edwards_Deming/. For further information please see http://deming.org/. If you are interested in W. Edward Deming’s pragmatic approach to business please order a copy of his book “Out of the Crisis” published in 1986. The book is available at

%d bloggers like this: