http://www.economyincrisis.org/articles Informative articles on the true state of the US economy en-us Major Problems <p> <strong>Americans have been defeated in an economic war with consequences as meaningful and damaging as if having lost a military war.</strong> Strangely, the citizens do not feel the pain and economic destruction to the same extent as a perilous military defeat; they are oblivious to how this defeat happened and how it is affecting them, going about their merry way, living well in passive and painless submission, on borrowed money and cheap imports from China and Japan.</p><p> China and Japan each operate their economies as one huge business that is done first-and-foremost for the best interest of their countries. Functioning with a unique, effective and most-creative system of guided and managed capitalism.</p><p>Each nation may have a handful of rich entrepreneurs, but no-one makes money at the expense or the well-being of the country. The economies of China and Japan are planned, guided and nurtured where necessary, with defined goals – for the benefit of their countries – and ready to strike and destroy any competition standing in their way.</p> Sat, 19 Jul 2008 00:00:00 -0400 http://www.economyincrisis.org/articles/show/1530 Bank Crisis <p>Earlier this week it was forecasted banks would announce severe losses when their quarterly reports were made public. Merrill Lynch shocked the public when it declared a larger-than-expected $4.9 billion loss last quarter, according to <em>CNN Money.</em> This is the fourth consecutive quarterly loss for the bank.</p><p>The housing and credit problems are destroying bank profits. One California bank was taken over by the government earlier this week, angering and scaring its clients.</p> Fri, 18 Jul 2008 00:00:00 -0400 http://www.economyincrisis.org/articles/show/1531 Oil Addiction <p>Former Vice President Al Gore challenged America to rely on renewable energy sources in the future. This goal can be achieved in 10 years if the citizens are willing to change while encouraging the new president to fulfill this objective.</p><p>Gore pointed out our reliance on foreign fuels must end. The U.S. continues to borrow money from China – $405.5 billion in 2007 – to finance our oil consumption from the OPEC nations. Americans are making the Middle Eastern countries rich enough to purchase stocks, bonds and realty. This practice endangers America’s future as a sovereign nation.</p> Fri, 18 Jul 2008 00:00:00 -0400 http://www.economyincrisis.org/articles/show/1532 Oil Addiction <p>Dependence of oil is crippling America, leading our current administration to propose this solution to the problem. More oil! If the U.S. simply increases domestic output, the “psychology” of the market will change, according to President Bush.</p><p> It is unknown what the president means by psychology. Hopefully the psychology of the market causes a decrease in demand from foreign fuel and a search for alternative sources of energy.</p> Fri, 18 Jul 2008 00:00:00 -0400 http://www.economyincrisis.org/articles/show/1533 Fannie and Freddie <p>Foreign banks own almost $1.5 trillion in debt from mortgage giants Fannie Mae and Freddie Mac. Most of this debt is owned by China, Russia and the Middle East, leading purchasers of American Treasury and debt.</p><p>At current estimates, China possesses’ around $400 billion in debt, Middle Eastern nations $200 billion and Russia $150 billion, according to <em>Telegraph.co.uk </em></p><p>While the financial institutions continue to implode in this credit crisis and the dollar continues decline, how long will these nations finance our extravagant spending? It is time for American politicians, businesses and citizens to begin living within the means of a responsible budget.</p> Fri, 18 Jul 2008 00:00:00 -0400 http://www.economyincrisis.org/articles/show/1534 Acquisitions <p>European company EADS, parent of Airbus, wants to begin shopping the U.S. to buy-up manufacturers to produce commercial aircraft platforms. EADS wants to reduce its production of platforms and the declining dollar makes American companies attractive for purchase.</p> Fri, 18 Jul 2008 00:00:00 -0400 http://www.economyincrisis.org/articles/show/1535 NAFTA <p>The people of Texas have spoken a resounding “No!” to the NAFTA Superhighway. The highway was the first step in a plan for a North American Union (NAU) that will end America as you know it.</p><p>The Texas Department of Transportation – urged by the protest of tens-of-thousands of Texans – announced it will forgo plans to erect the new Trans-Texas Corridor, which would have connected all of North America through a massive foreign owned toll road running through the middle of the U.S. The outpouring of support by the people of Texas is an initial victory against the much larger NAU.</p><p>If implemented, the NAU will open up the borders among all three nations and create a common currency known as the Amero.</p> Thu, 17 Jul 2008 00:00:00 -0400 http://www.economyincrisis.org/articles/show/1524 Oil Addiction <p>After crude oil prices fell more than $10 in two days to around $134 a barrel, the price again rose to around $138 per barrel. The price fluctuations are credited to a slowing global economy and less demand, but nonetheless, many are bewildered by the shifty market.</p><p>One recent theory explaining the market looks back to 2006, when the price of oil was $78 a barrel, and falling. On Oct. 20, 2006, OPEC decided to reduce production by 1.2 million barrels daily in an effort to drive up prices, according to <em>CNN Money.</em></p><p>Congratulations OPEC! Prices have risen and the world can no longer afford oil. Now it is a distinct possibility the global economy may actually stagnate and shrink if prices increase or remain steady.</p> Thu, 17 Jul 2008 00:00:00 -0400 http://www.economyincrisis.org/articles/show/1525 Housing Crisis <p>The Fed is urging Congress to pass new regulations to save the mortgage companies Fannie Mae and Freddie Mac. The plan would increase the Treasury’s line of credit to the two desperate giants, buy their shares and oversee their capital.</p><p>Question is, are these entities beyond the point of saving? Fannie and Freddie guarantee about $5.5 trillion in mortgages while U.S. national debt exceeds $9.4 trillion. The companies said they possess enough assets to cover their losses. However, if the government needs to save these two companies, it may be a check it cannot cash.</p> Thu, 17 Jul 2008 00:00:00 -0400 http://www.economyincrisis.org/articles/show/1526 Recession 2008 <p>In February 2008, New York University professor Nouriel Roubini predicted many events to come, all relating to our current economic mess. He told of panic in the financial sector, negligence in credit spending and said America entered a recession in December 2008. Perhaps more leaders should have listened to this business professor to fix today’s problems.</p> Thu, 17 Jul 2008 00:00:00 -0400 http://www.economyincrisis.org/articles/show/1527