The superclass is laughing their way to the bank. Are you?

Posted on March 28, 2009
Filed Under business | Leave a Comment

The recent worldwide economic downturn has the middle and lower classes paying the price for the mistakes, mismanagement and greed of the global superclass. The most worrisome thing about the vulnerability of the U.S. economy is the extent of official understatement and misstatement, i.e., the preference for minimizing how many problems there and how interconnected they are.

Undercut by the malfeasance of its overgrown, rapacious, and blundering financial sector, the United States is in the process of losing the global economic hegemony it has enjoyed since World War II. Poor strategic judgment in the Middle East has made things worse, and the combined challenge is so great that even the new government in Washington may not be able to make much difference. This is in contrast to Obama’s change that we can believe in motto.

In the meantime, the credit markets have seized, banks have closed their doors for good, countries have amassed an immense amount of debt, and private debt worldwide has skyrocketed to unsustainable heights. But the elites of our modern world feel very little pain themselves. While the majority of the middle class have already lost or live in fear of losing their jobs, the superclass members are enjoying their wealth living in their huge mansions, eating and drinking the finest of foods and wines while looking for Ferrari parts maintaining the extravagant lifestyle they are used to. And why not? At the end of the day, taxpayers will pay the bill with government bailouts being the norm of the day for saving an already compromised economic system.

The rise of the financial sector as one of the main paths to wealth creation over manufacturing during the last 25 years has come to hurt us all. The amount of personal debt in the United States now exceeds public debt by such a huge margin that a better future is not likely for this or the next generation. The 2009 and 2010 years will be pivotal to both the dominance of the U.S. over other states and the economic systems in place for wealth creation and management. It won’t be long before China, India, and possibly Mexicom emerge as the next superpowers in control of the world’s fate.

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