LINKS TO: US Economics at the peak in August 2007

Beginning of August 2007

Financial TV host flips out over the state of the economy
http://www.youtube.com/watch?v=2eaMj1...

Drink the Kool Aide - No problem here, just move along.
http://www.youtube.com/watch?v=7RUhBQ...

Cramer "Walk Away" Clarification
http://www.youtube.com/watch?v=FJYcxq...

Background of current Economic Situation

Failure of the sub-prime market
http://www.youtube.com/watch?v=QmxlDk...

Mortgage worries plague Wall St.
http://www.youtube.com/watch?v=MMlmCP...

The Subprime Woes
http://www.youtube.com/watch?v=nTDZU5...

China Delivers US $10 Billion Deal: Hush $$$ For Critics?
http://www.youtube.com/watch?v=HuUaBR...

Bush Has Doubled National Debt with Deficits
http://www.youtube.com/watch?v=lowq9v...

Reading Materials:

Mish's Global Economic Trend Analysis
http://globaleconomicanalysis.blogspo...

US Economy
http://en.wikipedia.org/wiki/US_Economy

Government Debt
http://en.wikipedia.org/wiki/Governme...

Reserve Currency
http://en.wikipedia.org/wiki/Reserve_...

Globalization
http://en.wikipedia.org/wiki/Globaliz...

Absolute Advantage
http://en.wikipedia.org/wiki/Absolute...

Adam Smith -- The Wealth of Nations
http://www.amazon.com/Wealth-Nations-...

The Creature from Jekyll Island: A Second Look at the Federal Reserve
http://www.amazon.com/Creature-Jekyll...

Implode O Meter - Housing
http://ml-implode.com/
Judge Franklin R. Taft Denies Ml-Implode Motion To Strike via Anti-SLAPP
http://ml-implode.com/viewnews/2007-0...

Adam Smith -- The Wealth of Nations
http://www.amazon.com/Wealth-Nations-...

The Creature from Jekyll Island: A Second Look at the Federal Reserve
http://www.amazon.com/Creature-Jekyll...

The main fallacy in monetary theory and policy is the confusion of money and wealth. ... Money -- and financial assets easily converted to money -- may not be wealth for society as a whole if the production of goods and services has not kept pace with claims on it. Early spenders may have some success, but inflation will dilute the buying power of others. The bottom line is that real wealth has to be produced; it can't be printed.
—Bob McTeer, former Fed governor (found at BadMacro)

Page 43
Every man is rich or poor according to the degree in which he can afford to enjoy the necessaries, conveniences, and amusements of human life. But after the division of labour has once thoroughly taken place, it is but a very small part of these with which a man's own labour can supply him. The far greater part of them he must derive from the labour of other people, and he must be rich or poor according to the quantity of that labour which he can command, or which he can afford to purchase. The value of any commodity, therefore, to the person who possesses it, and who means not to use or consume it himself, but to exchange it for other commodieties, is equal to the quantity of labour which it enables him to purchase or command. Labour, therefore, is the real measure of exchangeable value of all commodities.
- Adam Smith, Page 43, The Wealth of Nations, Bantam Classics

The last part is most important:
Labour, therefore, is the real measure of exchangeable value of all commodities.

This is why the market is a force of nature. At its base level it represents energy in and energy out. Use your own theory about Money. But 20 dollars of labor earned 20 years ago isn't worth the same labor (energy). Someone is stealing the value of your labor right out of your pocket.

Technorati: china debt fed federal-reserve globalization housing-bust outsourcing stock-market subprime trade-deficit