Is Business Back?

Fortunately, for me, our business has so far remained unscathed. However, we are in a niche business that is not directly tethered to public consumption.

As far as future growth goes for the US economy, I see a somewhat gray future. The problem at this stage of the economy is going to be Washington. All the cards that are being dealt from Washington to date have created a dampening factor for growth, rather than an accelerant. This seems to be by design, which escapes me.

The problems will be exhasberated further when inflation sets in, which is going to be imminent due to all of the currency that has been printed to cover our butts.

The root cause is our government and private debt, which has swelled to a point where Asia and Europe are loosing faith in the US dollar. Talks are already underway between OPEC members, China, Russia, and France to unseat the US dollar as the standard currency for oil. Once that happens the US dollar's value will virtually go into a free fall from there.

China holds a sizable amount of US debt. They are already deeply concerned that their investments are turning sour and have been resistant to picking up further US debt. This is all happening at a time when we need seed monies to rebound the economy. Instead, the US government has overspent, much like drunken sailors that just got their first credit card. The spending is so bad that the US has not only demanded to up the debt limit on that card, but cultivated other cards for their spending spree.

While I am loath to say that this will ultimately drive the US into bankruptcy (California is exempt from that prediction), we surly are flirting with economic disaster and for the life of me I can see no reason why that needed to be that way.

Nevertheless, we have made our beds and we are going to have to sleep in them. What happens here will not stay here and this is exactly why the rest of the world is so nervous while we been busy accelerating our unchecked spending and debt.

All of the above really does not take into account the upcoming Mid East war that is very likely to break out in the next 1 to 2 years. When that happens world oil supplies will be severely disrupted and further cripple economic recovery. There are a number of world players that see such a potential war as a means to shift both power and wealth away from the US and into their domains. With the ballooning US debt, dismal economy, and a weak and ineffective foreign policy, the time to create such mischief is very ripe.

Recovery.......the bureaucrat keep saying that and they hope that one time it might just happen.

Before recovery it has to level out first, before it levels out, other issues have to be addressed.

At this time its fortunate that there a war on for consuming. but that barrel is almost empty. And having a war to help the econony is a path of self destruction.