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Getting a handle on this brave new age of change is intellectually difficult. For all that we have known since the end of WW2 is passing away. The idea of hearkening back to what we have known is the overwhelming tendency. Yet the face of America is changing before our very eyes and a brave new era of change is upon us. What will the new dynamic in America be is the question?

Some have indicated that President Obama is conducting "class warfare" while others state that he is a "technocrat" that believes in the centralized power of the state. One thing is certain that regardless of his belief system he is acting with a bold self assuredness that his ideas are not only right but that the American people want the change that he is going about to affect. This self assuredness may just be the the arrogance of the naive. For there is the law of unintended consequence to be reckoned with, and the old adage of what can go wrong will go wrong can be applied. As stated before no man can know with certainty what the future holds. One can only extrapolate from preceding events some kind of logical extension of events into the future.

If the past is pro log, then what the likely outcome of the current policies of the Obama administration hold is not one of cheer but grave concern. History tells us that any nation state, business, or individual that runs constant deficits will at some point in time become bankrupt. The massive stimulus and budget that the Obama administration has enacted or is about to enact is setting up a scenario where the economy will run like that of a person who has eaten too much candy and when the sugar high wears off will crash and burn. Only this time around there will not be the reserve of the full faith of the US government to fall back upon. For with the massive deficits the USD and borrowing capacity of the US will have been debased. The following will be a malaise similar to that of Germany in the 20's and 30's where there will be hyperinflation and massive unemployment. Instead of a scenario like that of America in the 1930's where the US enjoyed a base of manufacturing that was able to pull the US out of its economic malaise, that base has been dissipated over time and further exacerbated because of the Cap and Trade policies which will have further eroded that industrial base. As the cost of manufacturing in the US will have become prohibitively high to be competitive in world markets.

What does this leave for the American people? The only viable business left will be that of agribusiness as most of American manufacturing will have left these shores for more cost effective ones. The result will be massive unemployment or under employment for an American population that is largely urban or suburban. The cost of goods and services in the US will also be prohibitively high and those foreign manufactured goods will be out of reach for the average American as the USD will be virtually worthless. This then leads us to the viability of American capital markets, as the full faith of the USD erodes so does the locus of capital markets. With the enacting of further regulations with Washington being the determinate of those regulations it is likely that the US ergo NYC will cease to be the progenitor of capital flow. It might be a good guess that since China is the up and coming economic powerhouse in the world that Hong Kong might very well be the gate way of those capital flows in the future. This all portends that America will become the "sick man" of the world, much as the Austro-Hungarian and Ottoman empires were of the early 20Th century.