Dr. Susmit Kumar, Ph.D.

All the top US-based economists and management professors are no doubt brilliants and they know that US economy is heading to disaster. But they do not want to accept it publicly. These people are just propagating disastrous economic theory which is ultimately leading the US to decades of severe economic depression. If they would tell the truth or deviate from the disastrous US economic policy, they will be nowhere in the US.

 

Every economist and MBA knows the name of Warren Buffet – please read below what he said in 2005 – I have another article, published on editorial page from New York Times in 2005. Within 3 years of Warren Buffet’s statement, the US had 2008 Great Recession and since then it is just surviving on zero interest rate of the US Fed.

 

(1)  You can Google the words – “sharecropper warren buffett” and get several search results – following paragraph is from Forbes website. (Sharecropper is a tenant farmer who gives a part of each crop as rent.)

 

Buffett: Berkshire Hathaway CEO Blasts 'Sharecropper's Society', Chris Noon, www.forbes.com March 7, 2005

 

“Buffett blasted the U.S. for its continued trade deficit. "A country that is now aspiring to an 'Ownership Society' will not find happiness in--and I'll use hyperbole here for emphasis--a 'Sharecropper's Society,'" Buffett wrote, "But that's precisely where our trade policies, supported by Republicans and Democrats alike, are taking us."

 

(2)

America's Truth Deficit, William Grieder, New York Times, July 18, 2005

 

DURING the cold war, as the Soviet economic system slowly unraveled, internal reform was impossible because highly placed officials who recognized the systemic disorders could not talk about them honestly. The United States is now in an equivalent predicament. Its weakening position in the global trading system is obvious and ominous, yet leaders in politics, business, finance and the news media are not willing to discuss candidly what is happening and why. Instead, they recycle the usual bromides about the benefits of free trade and assurances that everything will work out for the best.

Much like Soviet leaders, the American establishment is enthralled by utopian convictions -- the market orthodoxy of free trade globalization. The United States is heading for yet another record trade deficit in 2005, possibly 25 percent larger than last year's. Our economy's international debt position -- accumulated from many years of tolerating larger and larger trade deficits -- began compounding ferociously in the last five years. Our net foreign indebtedness is now more than 25 percent of gross domestic product and at the current pace will reach 50 percent in four or five years .​

For years, elite opinion dismissed the buildup of foreign indebtedness as a trivial issue. Now that it is too large to deny, they concede the trend is "unsustainable." That's an economist's euphemism which means: things cannot go on like this, not without ugly consequences for American living standards. But why alarm the public? The authorities assure us timely policy adjustments will fix the matter.​

Reporters and editors typically take cues from the same influential sources and learned experts in business, finance and government. If the news media decided to cast these facts as the story of the world's only superpower losing ground in global competition and becoming financially dependent on strategic rivals like China, the public would take greater notice. But governing elites would regard such clarity as inflammatory. America's awesome trade problem is instead portrayed as something else -- an esoteric technical dispute about currency values, the dollar versus the Chinese yuan. The context is guaranteed to baffle and benumb citizens.​

The possibility that the United States can no longer afford globalization, at least not as it now functions, is what opinion leaders do not wish to discuss. A few brave dissenters have stated the matter plainly and called for significant policy shifts to stop the hemorrhaging. Warren Buffett, the legendary investor, says the United States is destined to become not an "ownership society," but a "sharecropper society." But his analysis, and others like it, are brushed aside.