A few guys who understand basic economics

Here is a link of what the Controller General David Walker aka accountant of the United States had to say about our budget problems.
http://www.youtube.com/watch?v=OS2fI2p9iVs

Here is a link to President of EuroPacific Capital explaining economics to so called financial experts on CNN, Fox News and MSNBC
http://www.youtube.com/watch?v=2I0QN-FYkpw

I am doing my research paper on the effect mainstream media and the government have on our perception of the state our economy is in. If you understand basic micro and macro economics concepts as well as mathematics you can see there are major imbalances in our economy. However who wants to hear our economy is in really bad shape. Obama talks about change and about yes we can. It seems like he knows what he's talking about. Bush was an idiot, so under Obama's watch we will experience much more prosperity than we did these last eight years.

I believe most Americans are addicted to instant gratification, and want to plug their ears when they hear bad news coming. The government knows this, and to keep their constituents happy they will do anything to artificially boost the economy and push off problems like the budget deficit to a later date, in order to get elected and re-elected. I personally wouldn't put too much stock in what most politicians like George Bush and Barack Obama because they look at the short term, with no thought of the long term effects their policies have on our future.

What we have done as country is not made an economy that is impervious to shocks but one that allows the consequences to be postponed to a later unfortunately that date may have finally arrived.

Here is a link to the US budget deficit for this year
http://www.google.com/hostednews/afp/article/ALeqM5j0XkcxqZsE-Ymo6glpUs2IMO8ifA

Here is a link to the World Trade balance. Look who is at the bottom with
a $568.8 billion trade deficit.
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2187rank.html

Link to an article on our $53 trillion dollar debt
http://www.cnsnews.com/Public/content/article.aspx?RsrcID=37211


Law of Supply and Demand. That competition between consumers and producers brings the supply of goods and the demand for them into balance. Cardinal 'law' of free-market economic theory. Overproduction lowers prices, increasing demand; over consumption raises prices, reducing demand.

Our economy has over consumed and overproduced, and we have allocated too many resources to the nonproductive service sector. Right now we need an economic cleansing in the form of the recession to bring real estate, car and stock prices down to earth, and to transition our credit based phony service economy into a savings based production economy. That means our wages will be more on par with European countries, we won't have an unlimited credit card, and we won't be able to consume half of the world's resources. If we don't change course and keep our same economic policies of overspending and inflating the money supply you'd just have to look at Germany in the 1920's to see what we'll become.