An economically honest appraisal of the United States would identify our nation continuing to be in the derivatives phase of the floating exchange rate system.
This phase is dominated by financial instruments that were strictly illegal in the United States Federal Deposit Insurance Corporation (FDIC) banking system between 1946 and 1982.
The regulations that were lost had established the foundation of a credit guidance policy that allowed for rising physical capital intensity and productivity growth based on physical investments.
Because of the deregulation of financial systems, predatory gambling through asset price speculation now dominates most banking in the North Atlantic nations.
Every category of infrastructure in the United States is now either beyond its design life or inadequate for the number of people attempting to use the infrastructure. College education is unaffordable for most people, productive science and technology investments continue to decline, the labor force participation rate is at historic lows, industrial productive capacity continues to be exported to Asian Pacific nations, while homelessness is now endemic in most major cities in the United States.
The endemic feature of homelessness is the result of real estate asset price inflation, a continuing decline in purchasing power for middle income wage earners, a dramatic rise in healthcare costs, and economic hopelessness leading to increased drug and alcohol abuse.
The most important feature in the decline of the United States other than the decline in infrastructure is a continuing increase in private debt that is accelerating all other problems.
All of these factors are linked to destructive changes in our financial system.
The value of the United States currency only survives today because of its dominance as a global reserve currency which allows for the deficit purchasing of products cheaply from mostly Asian Pacific nations.
Someday, this dominance will end and our nation will be left with collapsed infrastructure and without the productive industry necessary to rebuild.
There have been multiple efforts to reform our financial system in recent years yet none has the popularity of public banking as a method of reestablishing the foundation of a credit guidance policy that leads our nation back to prosperity.
The state of our union is not good and will continue in that direction until we can, once again, reform our financial system.
Visit Alaska’s public banking Facebook page and let us work together for a robust recovery that someday can be celebrated in a truly honest future State of the Union Address.
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