Life size bronze statues depicting men standing in a line during the Great Depression at the FDR Memorial in D.C. (PHOTO CREDIT: Mark Wilson/GETTY IMAGES)
FROM CNN's Jack Cafferty:
The United States may be headed for Third World status... according to a new study by two economists and endorsed by a Nobel laureate.
It suggests that President Obama may be repeating mistakes made during the Great Depression, which caused the worst economic collapse ever. The authors say the administration's plan to put hundreds of billions of dollars into the economy will undermine it in the long run, hurt long-term growth and possibly delay recovery by years. They say the U.S. could fall from First to Third World status, much like Argentina did.
We might already be on our way. Consider the following: A report by The World Economic Forum shows Switzerland has toppled the U.S. as the world's most competitive economy, pointing to the collapse of our banking system as a key issue.
China - which holds lots and lots of our debt - is worried about the U.S. Federal Reserve's policy of printing more money to buy bonds.
One top Chinese official says if the U.S. keeps this up, it will lead to inflation and quote "after a year or two, the dollar will fall hard." That would be on top of the steep declines in the value of the dollar already recorded in the last few years. He suggests that might mean the Chinese will be forced to invest elsewhere.
And a United Nations panel is proposing that a new global currency replace the dollar as the world's reserve currency. The signs are beginning to mount that the mightiest economic engine the world has ever known is beginning to falter.
Here’s my question to you: Is the U.S. headed for Third World status?
Interested to know which ones made it on air?
I believe if we keep sending middle class jobs overseas, the middle class will collapse and the country will be like most third world countries, where you have 5% of the population rich and the 95% poor. It is time for America to start protecting itself.
No, however, stimulus packages that increase the national debt aren't helping. The government is responding to a credit crash by extending the country's credit line? How will this work?
You're kidding, right? Go to the inner cities, spend some time in Appalachia: Tens of millions of Americans are ALREADY living in the Third World! But don't you worry none about the Trumps, Hiltons, Fords, etc. They'll do just fine!
Jeff from Hawaii writes:
Jack, I have seen quite a bit of the world. Third world country, no, but if the good old U-S-of-A doesn't get off its butt and start manufacturing goods instead of ideas and worthless paper exchanges, second world rating cannot be far off.
I'm afraid we are heading for Third World status. With so many people jobless and our borders open to any gang member, drug dealer, person with infectious disease, or even a terrorist… how can things go any way but downhill?
One would have to be delusional not to see what is coming our way: We are no longer a solid manufacturing nation. We print money with wild abandon, keep raising the debt ceiling and, like Jack said, are losing our middle class. There's been talk for quite some time to change from the dollar to a more stable reserve currency. What country in their right mind is going to continue to invest in what we have to offer?