Thursday, July 09, 2009


Orchid or liberty said...

I guess since this is an empty "original post" we can toss in any comment we like subject to the normal limits of all that is good and decent on this fair land.

Glyn Davies said...

You're welcome - but Im not sure how the empty post happened.

Empty Post said...

It has taken me a decade to work out what makes America tick and I have learnt that the American small business sector plays a central role in America's psyche.

The stress on the American small business sector is now in 'plain sight' and so severe that America's economy is now 'teetering on the edge'; it's at 'tipping point'.

If President Obama doesn't take immediate steps to reverse the fortunes of American small businesses there will be no 'growing economy' – America will dive into a depression. I don't think my Welsh compatriots fully understand the consequences for Wales if the US small business sector implodes. American small businesses are literally the back-bone of the American economy.

What's behind the crisis in the American small business community?

Very simple: President Obama's 'stimulus' did not specifically target banking facilities for small business owners/operators. Not only are the banks not lending to American small businesses (even those with good business models), but ordinary bank facilities are drying up and Obama is not doing enough to remedy this disastrous trend.

But the largest job creator (the American small business sector) can switch to largest job destroyer.

Small businesses in the US are starting to implode in tidal waves. They are laying off people – each layoff is small relative to the size of the job market, but there are millions of US small businesses and with so many 'wee layoffs' this is building a 'drawbridge mentality' in America’s heartlands, which apart from a further concomitant drop off in US consumer confidence and hence consumer spending, risks driving Congress towards protectionism.

Once American small businesses go to the wall 'en masse' – this mess will travel across the 'wee pond' and impact on the EU/UK/Welsh job scene. In fact, it is already happening – but not recognized in the UK as a serious issue for the UK – specifically, the impact of American small businesses en masse failures feeding into the UK economy.

Sadly, the importance of maintaining normal banking facilities for American small business community has escaped President Obama – and I must report that this has the gravest consequences for the Welsh economy.

The biggest thing that Rhodri Morgan can do right now is get Gordon Brown to talk to all the European leaders of nations to act as a group to implore President Obama to take immediate action to save the American small business sector.

For, if the American small business sector implodes, the consequences for the Welsh economy and the nations of Europe will be very severe – our economies will dive into a terrible depression so severe that nations will be imperiled.