America's Superpower Status Coming to an End

Newsmax.com ^ | 3/1/05 | Paul Craig Roberts

[beyond the sea]

The U.S. economy is headed toward crisis, and the political leadership of the country – if it can be called leadership – is preoccupied with nonexistent weapons of mass destruction in the Middle East.

The U.S. economy is failing. The afflictions are serious. They could be fatal even if diagnosed and treated. America is losing the purchasing power of its currency and its ability to create middle-class jobs. Story Continues Below

The dollar's sharp decline and projections of continuing trade and budgetary red ink are undermining the dollar's role as reserve currency. A number of central banks have announced that they will be diversifying their currency holdings and will not be buying dollars at the same rate as in the past. This will put more pressure on the dollar. At some point, the flight will begin. Instead of buying fewer dollars, central banks will sell dollars, hoping to get out before the dollar hits bottom.

Suddenly, the advantage of being the reserve currency becomes a nightmare, as the world's accumulations of dollars are brought to market. An enormous supply and weak demand mean a very low exchange rate for the once almighty U.S. dollar.

Overnight, those cheap goods in Wal-Mart, which are the no-think economist's facile justification for Wal-Mart's decimation of communities, small businesses and employment, shoot up in price.

[Petronski]

Roberts calls Rumsfeld, Wolfowitz, Rice, Cheney and Bush the "Five Morons." In short, Roberts is a world-class playa hate-a.

[freedom44]

Oh yeah Paul Craig Roberts - tool shack.

[Paul_Denton]

The fact that most of our advanced weapons platforms have either been cancelled or toned down to such a state as to make them into only show case toys, should say a lot to us.

We have kicked terrorist ass with those "show off" weapons several times over. I doubt that they are toned down. When strong, feighn weakness, Sun Tzu says.

[My2Cents]

is preoccupied with nonexistent weapons of mass destruction in the Middle East.

Well, maybe he'd like to explain where Saddam's weapons went to.

I've read this guy before. He's a blowhard. Don't waste the bandwidth giving him space on this board.

[beyond the sea]

preoccupied with nonexistent weapons of mass destruction in the Middle East.

I wondered why he said that too. He should know, as we all rightfully suspect, that those weapons were removed from Iraq way before the U.S. military was able to get in there.

I only posted this because I was interested in the writer's take on the dollar and the world markets. I just think that our politicians may be keeping their heads in the sand on this issue, and it's very important, don't you think?

[Bogie]

The dollar lost about 27 percent last year, but since seems to have stabilized. Though there will probably be an other round of weakness, most of the damage is probably over. At some point Americans have to go back to work selling their products at very good international prices.

[Southack]

Drivel.

The Dollar's loss of domestic purchasing power is known as "inflation," which is trivial.

The Dollar's loss of foreign purchasing power means that Americans will buy more domestic things...hardly the stuff of economic ruin.

[jb6]

Overnight, those cheap goods in Wal-Mart, which are the no-think economist's facile justification for Wal-Mart's decimation of communities, small businesses and employment, shoot up in price.

Only so much as the cost of the oil to bring them to market. The Yuan is pegged to the dollar. Of course when you don't have any dollars to buy them with, that's another thing.

[Pro-Bush]

I thought NewsMax was like slanted tot he right? I would have expected this from Salon.com or other of similar ilk.

[Paul_Denton]

The Dollar's loss of foreign purchasing power means that Americans will buy more domestic things...hardly the stuff of economic ruin.

And those more domestic things are things NOT MADE IN CHINA.

[snarks_when_bored]

Let's see..."the rest of the world" has the following choice: (1) continue to support America and its currency; (2) dump America and its currency, and invest faith, trust and money in the benign intentions of the Chinese or the Russians or the Iranians or the Pakistanis or the Saudis or ...

It would serve "the rest of the world" right if America decided to let it go to a hell of its own creation. But that's not the American way.

[Echo Talon]

The U.S. economy is headed toward crisis, and the political leadership of the country – if it can be called leadership – is preoccupied with nonexistent weapons of mass destruction in the Middle East.

This is the first sentence and I stopped reading at the end of it.

[jb6]

Most of our airframes are twice as old as their pilots and the dies have been destroyed. What will replace them? A hundred F22s? China will not be impressed.

[Howlin]

Why is this guy referring back to stuff that happened a long time ago? Is this all he's got to bash Bush with?

[Petronski]

He will use whatever he can find.

[jb6]

The damage will be over when our government stops borrowing $2 billion/day from foreigners and not a day earlier.

[beyond the sea]

Economically speaking, the tax code can incentivize the market in healthy ways, unleashing our talent and energies to do more good for all.

I agree, but will Congress do what is necessary?

[Paul_Denton]

The U.S. economy is headed toward crisis, and the political leadership of the country – if it can be called leadership – is preoccupied with nonexistent weapons of mass destruction in the Middle East.

Meanwhile, to Paul Craig Roberts's dread, freedom is spreading like wildfire in the mideast. Dictators are terrorists are falling in a dominao effect that was touched off by Afganistan and Iraq. Syria pulls out pf Lebanon, Egypt allows elections for the first time.

[EternalVigilance]

Leftist wishful thinking...

[beyond the sea]

I look forward to having the write eat his words.

I do too.