American Economy since 1929 (Economie Merican depuis 1929)
SECTION I: History of US Economy
We need some measure to apply to the Dow Jones index.
It can be gold.
Figure 2 captures this inverse correlation between financial assets and gold. As you can see, between 1980 and 2000, monetary inflation benefited the Dow Jones Industrial Average (Dow) and during that period, gold performed poorly. However, since the turn of the millennium, monetary inflation has benefited hard assets and American stocks have underperformed relative to gold. At present, the Dow to gold ratio is at 8.4 and if history is any guide, over the following years, gold should continue to appreciate more than American stocks.
Figure 2: Dow Jones Industrial Average/Gold ratio (1928-2009)
http://www.marketoracle.co.uk/Article24395.html
It can be analyzed in the following manner:
Period A: After the start of the Great Depression till it hits the bottom.
Period B: The Great Recession through WWII till a new boom starts after the War.
Period C: The Golden Period for US economy after WWII to the Vietnam War.
Period D: In confusion during the Vietnam War.
Period E: Recession after the Vietnam War.
Period F: Early stage of IT industry growth based on mainframe technology.
Period G: Full-scale IT-driven economy with Windows 95 and the Internet.
Period H: Saturation of effects of IT power in the society and Wall Street
From an international point of view:
Period A: The U.S. dollar is not a key currency. Only domestic market counts.
Period B: The U.S. supply power finds great needs in the war economy against Germany and Japan.
Period C: The U.S. dollar becomes a key currency while the U.S. industry dominates over the global market.
Period D: Japan and Germany have grown to be economic power.
Period E: Japanese industry is taking over American's.
Period F: Competition with Japanese IT industry and the final showdown with the USSR.
Period G: Explosion of American IT industry with Microsoft, Intel, Apple, Cisco, Google, Yahoo, Amazon, etc. dominating the global IT market.
Period H: Expansion of the global market, leading to job transfer from the U.S. to emerging countries.
In particular, through the Period C and D, the American industry grew, beginning with cars, chemicals, and electric consumer durables in 1950's and expanding to the aerospace industry, the home building industry, and the computer industry in 1960's. As symbolized by the Apollo Project, the U.S. led the world in the advanced technology. GM, IBM, and Coca Cola became icons representing prosperity of the U.S. in this period. Indeed, it is big manufacturing companies that occupy most of assets of the U.S. industry. At the end of 1960's, the average salary of American workers became 50% higher than than in 1950. This is the era in which the traditional mainstream value system of European Americans dominated. Though this value system came to be severely challenged by American minorities and new generations through the Vietnam War.
Specifically, through the Period C and D, the American technology led the world though the Soviet Union still posed a threat with its nuclear warfare capability.
Yet, in the Period D, the effect of the Vietnam Was came to appear. Financial deficit, tax rise, inflation, and an interest rate hike stopped growth of the American economy. Advanced technologies developed in the defense sector and NASA were yet to find their application fields in the consumer sector.
During the Period E, namely 1970's, the U.S. economy faced complicated challenges, though its development of advanced technology continued. First, old regime in the industry remained through the Vietnam War and the Apollo Project. For example, GM stuck to old-fashioned big cars while Japanese makers started to provide fuel-efficient compact cars. Oil crises and an increase in competition with Japan made clear the insufficient level of energy efficiency and productivity in the manufacturing. Though the U.S. financial sector underwent online computerization, the effect of computer power did not prevail widely and deep in the society. So, the American Government started to take new measures to stimulate and restructure research & development in the industrial sector.
In the Period F, the Japanese industry came to show mighty presence in the U.S. market. Especially, the Japanese electronic industry rapidly increased export to the U.S. The electronics technology those Japanese makers applied to their products characterized the trend of the era. Even the U.S. military started to use Japanese electronics component for their advanced weapons. Accordingly, the U.S. further changed its regimes and policies on development of technology in its industry. In order to compete with the Japanese hi-tech industry, the U.S. Government introduced special measures to directly and indirectly foster its hi-tech sector. However, due to huge current-account deficit, its industrial power looked in a slump, which was reflected in the Dow Jones index/gold price ratio.
Then, the Period G started with Windows 95, an operating system that first integrated the Internet connectivity into a personal computer. This system galvanized not only the American industry but the whole American society and individuals. Economic and financial activities in America were 100 times magnified in a sense. New wealth started to be created on the cyber space which came to surpass value of gold so quickly.
Now we are in the Period of H. It is characterized by the 9/11 Terror, the Iraqi/Afghan Wars, the sub-prime loan scheme crimes, and the 2008 Financial Crisis. To calm down Americans, it was even needed to elect an African American to the U.S. president. FRB looks like losing a chart to navigate the American economy. The magic power of the IT technology also looks like losing its leverage to mobilize American consumers' passion and creativity. And, American consumers have its credit limit shrunk. No matter how much they run computer software that takes the latest data from the money market, it won't give them any effective advice. China have taken any minor manufacturing work; India is taking any software-related work from the American labor market. The American unemployment rate in June 2011 is still around 9%. Wall Street and the IT technology do not look like creating more value than bare gold.
SECTION II: Hiroshima
After the atomic bomb attack on August 6, 1945:
Before the atomic bomb attack on August 6, 1945:
The U.S. military sent several B29 bombers to Japan on August 6 from an island called Tinian located in the south of Saipan in the East Pacific Ocean.
Three of them flew to Hiroshima, Kokura, and Nagasaki to check weather conditions on each Japanese city. Hiroshima had a good weather.
So, taking seven hours from Tinian, other three B29s, one for bombing, the second for measurement, the last for picture taking, flew to Hiroshima to first drop measurement instruments with parachutes ahead of planned drop of the atomic (nuclear) bomb. They dropped total three parachutes with the instruments. Then the main bomber flying at 31,600ft（9,632m）threw the first atomic bomb ever mankind used in real war down to the central part of Hiroshima without a parachute. It blasted at the height of 1,800ft (600m).
Among 50 kg of Uranium 235 amassed in the bomb, one kilogram exploded.
Unlucky 17 to 23 American prisoners of war, at the time kept in military facilities or moved under escort in Hiroshima City, were all killed by this atomic bomb attack.
On the Japanese side, 15,000 soldiers and other military personnel were killed by this single atomic bomb attack on Hiroshima City.
http://www.post-gazette.com/pg/08230/904953-54.stm
http://www.us-japandialogueonpows.org/HoroshimaPOW-J.htm
Note: It is said that America lost about 400 to 700 B29s in the war against the Empire of Japan, but the U.S. military claims that only 130 B29s were shot down in the battle and others were lost due to malfunction. Yet, it is estimated that about 300 B29s were downed by the Imperial military of Japan.
US B29
Japanese Empire's Zero
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Act 8:5 Then Philip went down to the city of Samaria, and preached Christ unto them.
Act 8:6 And the people with one accord gave heed unto those things which Philip spake, hearing and seeing the miracles which he did.
Act 8:7 For unclean spirits, crying with loud voice, came out of many that were possessed with them: and many taken with palsies, and that were lame, were healed.