Like the Author of this article , I don’t like to sound pessimistic and don’t like writing articles of doom and gloom. I am not a conspiracy theorist and I really do like to present a positive future. I try not to get myself involved in any particular politics as in my opinion they are all a bunch of people who stretch the truth and don’t work for the good of the people and totally out of touch with reality.
Here comes the “But”. But this time I wanted to share with you an article I read which I thought explains so well where we are going and why. It is not looking very ‘Rosy’.
We all need to Stop, Look, and Listen and I know I keep saying this. You don’t have to be a business person or an economist to work out the financial maths of this country USA. Just take the time to sit and think about your finances. If you are struggling and cannot see an easy way out of debt then you are also looking at the financial woes of USA.
I wrote my book Simply Fantastic – Living better on Less, for one reason only and that was to try to make people think about what they are spending their money on. To start planning for the future. Getting themselves out of using credit as a way of life. To teach kids to respect money and not to waste it or just expect it to given to them from the parents. That credit should be an absolute no! no! in their young lives.
I was making the observation that people were thinking and believing [and still do] that all this economic downturn would go away, like it usually did. No, that is not going to happen. We all need to take action to protect ourselves and family now!
So anyway , to get back to the article, I believe you will find it interesting and if you do, pass it on to your friends or anyone that you think may be interested.
I read this article on one of my favorite websites http://www.sovereignlife.com/ that you may like to visit for some very informative subjects. They also have a free Ebook 7 steps to freedom which is also interesting reading.
Remember “If you don’t do different, nothing will change”
No Way Out
By Doug Casey, Casey Research
I really dislike sounding inflammatory. Saying that things are going to go terribly wrong runs a risk of being classed with those who think the world will end in December 2012 because of something Nostradamus or the Bible says, or because that’s what the Mayan calendar predicts.
This is different. In the real world, cause has effect. Nobody has a crystal ball, but a good economist (there are some, though very few, in existence) can definitely pinpoint causes and estimate not only what their immediate and direct effects are likely to be (that’s not hard; a smart kid can usually do that) but the indirect and delayed effects.
In the first half of this year, people were looking at the U.S. economy and seeing that some things were better. Auto sales were up – because of the wasteful Cash for Clunkers program. Home sales were up – because of the $8,000 credit and distressed pricing. Employment was up – partly because of Census hiring, and partly because hundreds of billions have been thrown at the economy. The recovery impresses me as a charade.
Let’s get beyond what the popular media parrots are telling us and attempt to derive some reasonable assumptions about how things really are and where they’re headed.
A Brief Summary of Our Story So Far….
Before we get to where things stand at the moment, let’s briefly look at where we‘ve come from.
That a depression was in the cards has been foreseeable for decades. The distortions cranked into the system in the ‘60s – the era of “guns and butter” spending by the government – resulted in the tumult of the ‘70s. Things could, and one could argue should, have come unglued then. But they didn’t, for a number of reasons that have only become clear in retrospect:
- Interest rates were allowed to rise to curative levels;
- The markets were non-manipulated and so, as they became quite depressed, were left to send out real distress signals;
- The U.S. was still running a trade surplus;
- The dollar had only come off the gold standard in 1971 and was still relatively sound.
Then, starting with Reagan and Thatcher, the world’s governments started cutting taxes and deregulating. The USSR collapsed peaceably. China, then India, made a shift toward free markets. And on top of it all, the computer revolution got seriously underway. All told, a good formula for recovery and a sound foundation for a boom.
But sadly, taxes, government spending, and deficits soon started heading much higher. Despite the collapse of its only conceivable enemy, U.S. military spending continued to skyrocket. Monetary policy encouraged everyone to take on huge amounts of debt, much more than ever in the past, and everyone soon found they could live way above their means. The stock, real estate, and bond markets got pumped up to ridiculous levels. The main U.S. export became trillions of paper dollars. Worst of all, the U.S. devolved into just another country, undistinguished by anything other than a legacy of a high standard of living.