7 reasons NOT to count on an Economic recovery
Things are bad, unemployment is hitting double digits in many metro areas, nationally we are hovering at about 10% with the official record, with the real unemployment rate at 15.8 based upon the U-6 Federal Data (the real unemployment rate)
1 - Let’s face it, most Americans are in debt up to their eyeballs.
Stanley Johnson is the typical American in the Typical American family. He has to pay off that house, car, golf clubs and that lawmower… he bought them 4 years ago, and still is making payments on it and cannot afford another new set of stuff to buy.
2 - With 1 out 8 Americans in foreclosure or skipping payments on their house due to job losses, the banks are reporting these things to the credit agencies, leaving 15% or more of the population with ugly credit scores and unable to buy anything in the future on credit. At one point its foreseeable that laws will be passed saying “you can’t count any negative credit items from 2007 to 2012″ for loan applications.
3 - The federal reserve printed off massive amounts of money calling it a pretty name “Quantitative easing” but see this is the problem, what money goes into the money supply eventually has to leave it or you face massive inflation. When the time comes, they are going to send intrest rates out the roof to suck the money back… and that is going to increase the cost of credit sky high and send the country right back into a massive recession.
4 - China and other countries are re-thinking using the US dollar as the currency of reserve, at one point we are going to get our credit card cut off, hence forcing us to actually cut back on spending. That will be one ugly day… and that day is on it’s way quick.
5 - College students can’t get college loans - Due to the credit crunch, students are finding themselves not able to get college loans. This is nailing a generation of individuals that would otherwise be able to increase their potential and in the next 20 years perhaps figure a way for us get out of this mess, but alas that future inventor that if given a chance might invent something dramatic that will allow this country to take the lead in several industries now has to report to McDonalds for work for the duration, denying him or her that chance to fix this mess.
6 - Since we borrowed so much money, that money has to be paid back in the form of higher taxes, those dollars were to be used for research and development in 2018, not paying China back for plastic toys sold at Walmart that we bought in 2006. This will suck money out of the economy so fast that the US won’t be able to buy more stuff to spur the economy… most of our budget is going to be allocated to mailing intrest only checks to China.
7 - Technologically stagnate - let’s face it, we are using the same basic combustion engine burning dinosaur bones that we used 100 years ago. Yes, the internet progressed, but when you really think about it, not so much in the past 10 years with the vast majority of innovation being almost solely limited to increasing and improving already available 10 year old technology. (such as broadband access, smart phones, etc).. and no, limiting a form to 140 characters isn’t considered a technological breakthrough…
Ask many people on the street, and you’ll hear the same thing that in 1999 we were doing better than 2009. Take a look at GM circa 1999 vs 2009…. and it will start to sink in.
Look how the world changed from 1989 to 1999, then look how the world changed from 1999 to 2009… something slowed down.. and slowed down dramatically.
The virtual reality world simulated by the Matrix resembles human civilization around the turn of the 21st century (this time period was chosen because it is supposedly the pinnacle of human civilization). Perhaps Agent Smith was right.
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