Sam Taliaferro at the Panama Investor Blog continues to put together interesting work. I read his blog to keep up on the state of the economy, real estate, politics, business, and pretty much anything else going on in Panama. However, every once in a while he steps out into the rest of the world and delivers a gem that has very little to do with Panama.
This time he discusses the current move from capitalism to socialism. He clearly explains who will be blamed, how the people will and are calling for socialism, and how it will turn out.
“The real blame clearly lays with the Federal Reserve for flooding the U.S. (and the world) with money (debt) and the legislators who failed in their duties to watch the regulators. Everyone was more than happy with the status quo until things went predictably wrong.
Now it will be the capitalists who will be blamed and the U.S. will cow tow to European socialist leaders. The American people will barely whimper because all they want is relief from debt and higher security. They will trade their freedom for both because they have forgotten what our grand parents fought and died for and our educational system has dumbed us down to believe in the fairy tale of equality for the masses. Now they will get equality and they won’t like it. The pendulum swings.”
The only part I disagree with is Europe’s ability to come out on top in this mess. Europe is even more leveraged than the US and in my opinion will have an even uglier depression. Europe will be in no place to bail out the US or tell the US what to do. I do agree that Asia will handle it much better, not because they do not rely on the West to buy their goods, but because they are the lenders in the end, not the Europeans.
No related posts.
I just wanted to thank you very much for this enlightening article. I have already bookmarked your site, when I have more free time I am going to have to do some further reading. Well back to my dreaming of Panama or back to the books – I wonder which one is going to win out.