US 'Economic Stimulus' Budget Review

[Spino]

Interesting enough I was thinking of something simular but from a very different angle. To put it short, the current economic system requires eternal growth, something that by it's very nature is impossible. Currently there's been several signs, for years, indicating that the current system is close to its end in the western world and it's fairly safe to bet that the end will be unstable, with events simular to the current recession (or I'm off with 50+ years).

And then you suggest that the larger focus on the service sector, something that is in the current market's very nature, that causes deeper recessions...

Spoiler Alert, click show to read: 

Well for me they are linked, as both things are simply to evolution of the market, to its end.

Got absolutly not idea what would replace the current system though.

Well industry or not first and foremost an overhaul of our monetary policy is way overdue. Relying on a system that allows banks to generate ridiculous amounts of money vis a vis credit which ultimately places the entire system deeply into debt seems to defy all reason. I fail to see how a system is sustainable. So long as such a system is allowed to continue unabated it will only encourage foolishness and irresponsible practices (i.e. the sub-prime market) to take root to the detriment of the entire system. I suppose this is why the gold standard argument often comes up in these types of conversations, it deals with basing currency on something more than guarantees based on projected growth. It seems to me if your your currency/credit is based on nothing but on an empty guarantee of sustainable growth then incompetence combined with lack of confidence in the entities generating such credit can and will routinely wreak havoc. But my grasp of these matters is entirely superficial and based on the few articles and documentaries I've bothered to check out. I guess we'll see what happens once the dust settles.

Here's another question. What would happen to the existing system (and affected currencies) if someone else offered a more reliable and sustainable alternative during a global economic crisis? Meaning what would happen if someone decided to 'cheat' and take a dramatic step outside the widely accepted rules of the game? It seems to me that the current system works only because everyone seems to buy into the game. What would happen if some nation were to break ranks and back its currency with something more than an empty guarantee based on projections? I'm not necessarily talking about a gold standard but simply an alternative to the widely accepted norm.

Spino, are you sure that the industrial production actually drops in the US and not just the employment in the industrial sector?

Well I'm not really sure which is why I put that question out there to begin with. I suppose my problem is in our dependence on industries that produce 'nothing' (i.e. service industries) versus those that produce 'something' (i.e. tangible items that can be used, rented, sold or scrapped/recycled). Based purely on my observations it is painfully apparent that all but a handful of consumer goods are made in the USA. If I were to take a tally of everything in my home I'll wager all but the raw materials used to make my home and a smattering of goods I've bought were made here in the US. It seems like everything I wear, watch, use, etc. (along with a growing percentage of the things I eat), are manufactured or produced outside the USA.