Sunday, January 22, 2012
Carney Drops a Bombshell
Kudos to Bank of Canada governor, Mark Carney, for coming right out and warning that the crippled U.S. economy is unlikely to ever fully recover.
“It’s going to take a number of years before they get back to the U.S. that we used to know — in fact, they are not, in our opinion, ultimately going to get back to the U.S. that we used to know,” he said.
Carney pointed to China as a market with great potential and as a place where Canada is currently under-represented, but cautioned it would take time to enhance trade between the two countries.
“It’s going to take multiple visits, multiple initiatives. Not, obviously, from the public sector alone, but clearly a focus from the private sector,” Carney said. “That is absolutely essential for developing our future and it’s a key element of our medium-term growth.”
Reagan and his contemporaries, Mulroney and Thatcher, set America's demise in motion with their delusional free trade notions. Reagan's apostles continued his work, gutting America's manufacturing base and, with it, displacing its once vibrant and robust middle class that manufacturing once anchored and nourished to make way for what became casino capitalism.
Yet a permanently degraded economy is but one wound America has suffered. There are others. These include the greatest levels of inequality in the developed world, class warfare, the strangling of social and economic mobility, and the evolution of the United States as the first true warfare state in modern history. All of these open wounds will continue to sap American strength. In America, as in Canada, the ability of the government to intervene to set these troubles right seems to have been lost. Now it will be up to the American people to compel change.