Welcome to cash country/or goodbye plastic fandango

Cash is king. That's the word on wall street or it least it is until the hyperinflation from injecting what will turn out to be more than a trillion dollars in to what has become a world economy hits like a heat wave. This is going to be a strange economic depression. Our money will be worth less , but the demand for goods will also be a lot less We already have it all. This is what happens in a cash economy the market really does regulate itself. Because there is no hallucinated wealth [credit] to distort it.

This is the big hole in Johm McCains free market theories. Giving money to individuals or small companies who in turn hand it over to big companies to build everything from houses to malls to office parks based solely on the profit made from building. With nothing more than wishful thinking about the real demand for it is so foolish as to defy belief.

This is the huge irony. In an economy based on consumption all the big multinational corporations hire marketing firms to tell them what the demand for their products. will be in the near and far future. Yet it seems to the marketing gurus that demand will always keep rising so keep it coming. The Hummer is a great example. Why would anyone think that a huge expensive truck that can carry very little would sell like Honda civics. So it was a real shock to GM executives when they ended up with thousands of unsold Hummers.

let us look at two examples of what is happening economically right now. Latino day laborers all over the country are going back home because there is no more work here. All the Starter Castles have been built. There enough people unemployed or under employed that they are doing their own gardening, cooking and cleaning their own houses, and best of all rasing their own children.

Across town banks have hired moving companies to clean out foreclosed houses. It seems shocking but understandable when you think about it. That people who are losing their homes and going bankrupt are probably going to be living in a 2 bedroom apartment and have no room for all the consumer goods they stuffed into a 3500sq ft house not to mention the garage. So these moving companies are taking furniture, electronics and everything else to landfills and burying it.

What a ironic contradiction. The people at the bottom are in a depression just like the 1930s and so are the people in the upper middle class too. The middle class is hanging on because they bought houses and cars they could afford and have some real job skills. Just like in the Great Depression people will have to move to find work. Oh do not worry the rich are still rich, just not as rich.

So in the cash economy it does not matter if you do not have a credit card because you went bankrupt or you have a credit card but you are not using it because you are afraid of going bankrupt the effect is the same. No more economy based on ever increasing consumption, and what an economy it will be.

Here are some of the positive effects. The immigration problem will solve itself. No more work illegale immigrants will go back home. More leisure time. If we are not out spending like drunken sailors on leave and working like Hebrew slaves to pay for it all. Perhaps we will spend more time doing the activities we really enjoy. Reconnect with family and friends since we will not be playing the keeping up with the Jone's game anymore. Oh and the cost of higher eduction will come down to where people can really afford it. Which means more people will be going to or back to college. That is good for the whole country. Perhaps we will even start to manufacture our own trade goods again. What a novel idea.

We are Americans and we have had enough of the positive thinking and attuide propaganda all our lives that we will be able to make lemonade out all these economic lemons we are getting and will continue to get for years to come. Welcome to cash country my Friends. :-)