Solution to economic crisis. OBAMA will win this election if he has the answer to the root of our problems and builds solutions around them. This is the root of the problem. #1 Understand the root of the crisis #2 Create a solution
#1: Massive trade deficit is not being funded by savings, it is being funded by credit, the equity in our homes, and the value of our assets.
#2: Begin a shift in the attitude of American's and the leadership towards money and where we send it. We should keep it in our pockets.
Concept, if we send $700,000,000,000 overseas. Where is that money coming from? If American's are not saving their money, we don't have cash in our accounts, how are we funding that deficit.
My theory is that we feel ok with the deficit because we are pulling it out of our market place in ways that are not so visible. An economy losing that money, does not have the money in it to support increasing home prices.
If we send money overseas, we are removing money from all of our markets - stock markets - housing markets - auto markets. Thus, we are seeing massive crashes in all of these things.
Bottom Line: We have an attitude that all of this spending, sending money overseas this way with a massive trade deficit is killing our economy from the inside out.
When we spend money that we don't have, we later can't borrow that money for a home. We have borrowed it for consumption and sent the borrowed money overseas.
Please, consider my theory on the relationship between money attitudes that make it ok for us to send 700 billion dollars overseas and the resulting loss of ability for our country to support the prices we established in our markets.