Good Bye USA!

Since last century, US have been most powerful nation in the world for 1 reason and 1 reason only: Economic dominance. Using their economic dominance, they were able to buy weapons and defeated the axis forces and become the absolute leader in the United Nations. They were also using their money to control many commodities in the world including crude oil. 

So in general, every success story and greatness achieved by USA today rely on economy. Without it, they are nothing. They are nothing different than Zimbabwe, Argentina or Vietnam. They will lose their military dominance, political dominance and entertainment dominance(Hollywood).

Yes, i wish a good farewell to USA today after Federal Reserve of USA decided to cut the interest rate and discount rate by 50 basis point. Except Japan, no other advance country in this world ever had an interest rate of 100 BP or below and will never try to do such thing.

Japan is very different than USA. Japanese economy is built based on saving and manufacturing. Japanese save a lot of money into banks and that money is used to build factory. It produces electronic products such as TV, Camera, Computer etc. and car such as toyota, honda, mitsubishi stc.

That's why Japan's interest rate can be kept at 0.5%. Japanese do not want to borrow money to spend, they borrow money to invest and most of the money borrowed is not coming from printing press or borrowing from foreign nations but from money saved by average japan citizen. As we know, if too much money saved into the banks, the interest rate has to kept low.

Unlike Japan, American borrow money to spend and money they borrow is not coming from saving but by printing press or by borrowing from foreign nations. By logic, if we borrow money to spend on new car or tv , we can't pay it back because those products do not generate income. So we will bankrupt. The same situation occur for US economy. They borrow money all over the world or print money just to spend which does not generate return. That's why US debt level keep growing at a rapid pace. 

How can a country has a debt of more than 10 trillion keep their interest rate at 1%? Who wants to save their money in banks when the interest earned is so low and if no one wants to save their money, how can US government repay their >10 trillions?

Print more money? Sound really like Argentina and Zimbabwe to me because the most dangerous effect of low interest to economy is not low savings but high borrowing. US firms and citizen will borrow even more money to spend because credit is cheap. Banks will lend more money to unqualified borrower because credit is cheap.

When this credit crisis started, we called it sub prime mortgages crisis. It simply mean sub prime borrower can't pay back their money to banks. Are we doing the exact same thing now? credit is cheap again and yes, banks will lend money to sub prime borrower again.

This is simple logic and even a uneducated person understand it. How can all the "expert in economics" person don't understand it??

Lastly i wish USA a good farewell and thanks for the memory of being the most dominance country in the world. Good luck and all the best.