Reply #7: Thanks for the Link

[orwell]

The business sector has done quite well under the * regime. In fact, the numbers show business are raking in the free cash. That is what is so unusual about this cycle. Instead of investing the cash in new domestic productive capital, they are either building plants overseas, keeping it for takeovers or dividend payouts, or investing it in financial instruments. (This may explain one of the reasons why long term rates have been falling during this Fed tightening cycle.)

Over the long term, this has ominous implications for both the labor market and the US economy as a whole. When you effectively cede your manufacturing base to foreign suppliers, you open yourself up to a very dependent relationship.

It is becoming increasingly clear that what we bring to the global economic table is hundreds of millions of rabid credit charged consumers. What happens when the rest of the world wants us to pay the bill?