The bestselling author reveals how the U.S. financial sector has hijacked our economy and put America’s global future at risk
In American Theocracy, Kevin Phillips warned us of the perilous interaction of debt, financial recklessness, and the increasing cost of scarce oil. The current housing and mortgage debacle is proof once more of Phillips’s prescience, and only the first harbinger of a national crisis. In Bad Money, Phillips describes the consequences of our misguided economic policies, our mounting debt, our collapsing housing market, our threatened oil, and the end of American domination of world markets. America’s current challenges (and failures) run striking parallels to the decline of previous leading world economic powers—especially the Dutch and British. Global overreach, worn-out politics, excessive debt, and exhausted energy regimes are all chilling signals that the United States is crumbling as the world superpower.
“Bad money” refers to a new phenomenon in wayward megafinance—the emergence of a U.S. economy that is globally dependent and dominated by hubris-driven financial services. Also “bad” are the risk miscalculations and strategic abuses of new multitrillion-dollar products such as asset-backed securities and the lure of buccaneering vehicles like hedge funds. Finally, the U.S. dollar has been turned into bad money as it has weakened and become vulnerable to the world’s other currencies. In all these ways, “bad” finance has failed the American people and pointed U.S. capitalism toward a global crisis. Bad Money is the perfect follow- up to Phillips’s last book, whose dire warnings are now proving frighteningly accurate.
Author: Kevin Phillips
Publisher: Viking Adult
Customer Reviews
-
Bad Money is right on the Money
After listening to this audio book I felt like I was beginning to understand some of the financial quagmire big money has gotten our country into, perhaps it will make me a wiser investor. I have bought this book for several of my friends.
-
Overpopulation---the neglected cause of the next depression
Kevin Philips has written an excellent book describing the current meltdown of the US economy and building a strong case that the US may well be headed towards a second great depression.
<br />
<br />He also makes the connection with scarcity of cheap oil, arguing that this is one of the reasons that the US may fall from its position of leadership.
<br />
<br />The facts presented are chilling, but present only part of the story.
<br />
<br />For years, Americans have been ignoring one of the most serious problems they face, and that is how population growth makes inevitable a scarcity of resources.
<br />
<br />Quite recently the population within the US has been growing at about .9% per year, meaning that all resources (water, food, oil and oil substitutes) must grow at .9% per year for the average standard of living to remain constant. Population growth within the US is almost entirely due to illegal immigration and the increased fertility of illegal immigrants.
<br />
<br />In spite of all of the press coverage of first the ozone hole, then global warming, then peak oil and its consequences, virtually nobody makes the connection that overpopulation is the underlying cause for all of these problems.
<br />
<br />The reason is that it would demand that the US adopt policies that stop illegal immigration and give a full range of family planning options to all who wanted them, and these issues are highly unpopular in the first case with the left, in the second with the far right. Both policies are opposed by religious groups, who have in effect prevented an informed discussion of population issues.
<br />
<br />The basic thesis of this book is correct: depletion of oil sounds the death knell for US supremacy in world ecoomic affairs.
<br />
<br />For decades we have been pretending that population growth does not matter because it can be superceded by technological progress and the resulting economic growth. For several decades, the "green revolution," largely based on the increased productivity that oil products could provide in food harvests, has enabled us to ignore population growth. For decades we were able to borrow from the Chinese and create arcane derivatives based upon mathematical models understood by only a few savants, thereby enabling a false sense of wealth among US consumers. Realizing that we were running out of the resource that made this pyramid scheme possible, we invaded Iraq, in an attempt to further delay the day of reckoning.
<br />
<br />Now we must pay the piper. The results will not be easy to bear. In the period 1929-32, the Dow lost 89% of its value and unemployment rose to 25%. This time around, the collapse will end with a much lower average standard of living for US citizens, as they indeed begin to compete with an unlimited number of Indians and Chinese who are willing to do their jobs for pennies on the dollar.
|
