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USA became independent in 1776. It has adopted the first ever written constitution of the world. USA is perhaps the best nation on earth to maintain rules of law and individual freedom. These values have attracted massive inflows of human and financial capital to the nation. But the wealth gap between the very rich and the rest of the American society has been widening ominously. The total U.S. public, household and corporate debt has mounted to a mind-boggling $37 trillion. This colossal amount has been created by a relatively few households with massive net worth, which is stored in the form of credits to households and governments. The absolute majority is perhaps deeply indebted. USA imports annually $700 billion more than it exports. Effectively, USA exports dollar bills (promises for repayment in future) to buy $700 billion worth of real merchandise and service from the rest of the world.

 

Enhancing American competitiveness and continuance of democratic freedom in USA is very important for mankind. Optimal strategies to enhance American competitiveness have been communicated in letters to the U.S. President in January, 2005 and the U.S Senate Banking and Finance Committee in February 2005. These letters follow missives written to the U.S Congress in 2003, to the Security and Exchange Commission and the Federal Reserve in 2001 and the research support rendered at the Federal Reserve during 1990-1995. The U.S Congress has responded, the Federal Reserve has acted and the Security and Exchange Commission has changed some policies. But such responses and actions are not sufficient to enhance the American competitiveness. To see why take a look at a newly released book, entitled, "Prosperity."

According to Federal Reserve website: The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals.

Prosperity of USA appears to be based on a Ponzi scheme, which is to borrow more and more to pay for rising expenditures by the federal and state governments and the households. This will likely burst if dollar is not held as the reserve currency by other nations in the world and if currency games to depress the values of the developing world currencies cannot continue. It is perhaps important for the U.S. establishment to continue its strategy of taking control of the global oil reserves to force the rest of the world trade in dollar and to invest their export savings including from oil in the U.S. Will the world including the absolute majority of Americans cooperate with the U.S. establishment in such a strategy? This question may be resolved only by taking the current war to its penulmitate state. But it will cost humanity dearly. The absolute majority of Americans may not be prepared to sacrifice their lives in such an uncertain gambit.

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