Wednesday, October 15, 2014

America is the most dependant country on the planet

I think America is the most dependant country on the planet. We depend on the rest of the world, like no other country does. We don’t have the ability anymore to produce the consumer goods that we require and so we count on the rest of the world to fill the void, to send us all the goods that they produce in exchange for nothing - because we don’t have the exports to pay for our imports. We count on the world to lend us the money to buy the products that they produce. We have the world’s biggest trade deficits, the biggest current account deficits, we’re the worlds’ biggest indebted nation. So, in a way, we’re like a global economic parasite - we feed off the rest of the world and we need to maintain the illusion that the world depends on America instead of the other way around. Of course, in the long run, I think this relationship is doing far more damage to America than to the global economy, because eventually the world is going to figure out what we’re doing, and they’re not going to support us anymore, and the world will pull the plug on america and then, of course, because this has gone on for so many years and our economy has been able to evolve in such an unsustainable bubble fashion - it’s going to be very, very painful when we have to live within our means again and start to produce and save rather than borrow and consume.

- Source, Peter Schiff via Russia Today