GEN: What are the core problems of the US economy?
Achim anchor: The central problem has a name, Dutch Disease - the Dutch disease. The privilege of a decade-long inflow of cheap capital from all over the world has hindered the development of its own export base and one-sidedly promoted by the real estate and services sector, especially the financial sector.
A strong economy based on services is only to be maintained if either the reduced export industry is productive or if there is permanent access to foreign credit. Both of these were the case in the USA - the remaining industry and agriculture - are now extremely capital-intensive and at the same time the USA has been massively overseas for nearly four decades. The current account deficit in 2015 was nearly 500 billion dollars.
Excessive imports and sharply rising capital intensity free up local workers in well-paid and secure jobs in the industry, which then have to look for new, poorly paid and insecure jobs in the service sector. Only a little more than half of the American employment contracts are now indefinite.
Although the profit ratios have also shifted accordingly in favor of the service industry, there is little in the case of employees, because they can not actually save and therefore are not involved in capital formation. In the financial industry, much of the high profits do not even reach the shareholders. This constellation, in turn, is responsible for the extreme budget deficit and poverty problems, which in turn are the main reason for the extremely high public debt, in addition to the overwhelming military spending.
You can read the rest and/or listen to the interview @
https://deutsche-wirtschafts-nachrichten.de/2016/11/19/oekonom-harte-landung-des-dollars-als-welt-waehrung-moeglich/ (translation required)
Perhaps this is why the powers that be are permitting Trump to become president - with the mess which Trump is inheriting from Obama ad-Dajjal, they expect his policies to create a fiscal disaster for which he alone will be blamed, further solidifying the hold which globalism (a.k.a. fascism) will have on the future world economy.
"You never let a serious crisis go to waste. And what I mean by that it's an opportunity to do things you think you could not do before."
By the way, it would not surprise me if Mayor Emanuel became President when Trump leaves office. Mark my words.