Is capitalism/credit going to be the downfall of the Empire of the United States?

Let me elaborate - Though the capitalism/credit question may imply more than just one question, it is essentially related in the fact that credit is a byproduct of capitalism. As capitalism began, it was simply the pursuit of happiness. What one could dream one could essentially create and capitalize on. As it went further, people began to want what was created now instead of save for it. Because of this, credit was created. As credit is essentially a tax on the future earnings of one's labor, this begins to make people slaves to working. With the recent borrowing rates at record lows, this causes a huge leverage opportunity which has been taken advantage of to the max, even by our own government. Will this tax on the future earnings of the U.S. as measured by the GDP put us into the position of an individual who seeks bancruptcy protection? I understand the government can simply raise taxes, but at what cost? The GDP? How about Inflation? Any thoughts on this subject would be great!

Answer:
The credit bubble and inflation have nothing to do with Capitalism. The Federal Reserve, the cause of those problems, is a Socialistic counterfeiting Government-run Banking Cartel that prints worthless pieces of paper for 3 cents.

You should watch Money, Banking, and the Federal Reserve, so that you actually understand what the root of the problem is.

http://video.google.com/url?docid=-46621...

Presidential candidate Ron Paul is currently running against this scam and for the restoration of Capitalism instead of Corporatism in America, not to mention the reinstatement of the Constitution.

http://ronpaul2008.com

Leveraging can swing either way. I use it to my advantage. If I borrow money, it's for a purchase that is going to make me money. A multi unit piece of real estate, for example. Or maybe for a tool that I need for business.

In any case, I would have made less money if I didn't borrow any.

Now it's a dangerous thing to those who are using it the wrong way. Living outside of their means. The biggest problem is that public school doesn't teach anyone about these things. I believe it's by design, though. As you said, they become slaves to working. I call these people wage slaves. The problem is that they simply don't know any better... and, well, that's how the rich like it. Cheap, uninformed work force that'll do anything for that paycheck.

Take a look at this piece of writing, pretty accurate.

http://www.raceandhistory.com/historical...

As far as it causing the downfall, nah, I don't think it will destroy everything. But I do believe the credit market will burst at some point. It's already to the point where the middle class is paying more credit bills than their income. The sub prime lending market already crashed. I bet it will be back, though. It's like a wave going up and down on the shore. Sometimes it's bigger. But, in any case, it comes and goes.

imo, the USA is in a precarious position because un backed American dollars are stimulating economic growth in foreign countries, China especially.

There are WAY too many U. S. dollars in circulation . If this was just a problem in America the FED could simply contract the money supply. But it isn't confined to America. The question is how many dollars can circulate around the world before they start to lose value....Which in turn would cause countries to trade dollars for something of lasting value.

Watch for Gold to appreciate in price!
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Is capitalism/credit going to be the downfall of the Empire of the United States?

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