Monday, November 9, 2009

Money Around The World

Today's Around The World will center around the financial side of things. Everyone, at least in the stock market, seems to think things are going great and everything is starting to improve. Unfortunately, this is not the reality of what is actually going on. Unemployment is over 10%, foreclosures continue to go up, our national debt is over 12 trillion dollars, and the dollar is collapsing which will lead to inflation. The problem there is if the dollar continues to collapse then we could have inflation regardless of whether or not the economy continues to improve.

Last quarter our economy grew by 3.5%, which is great under normal circumstances. The problem is, to get that growth the government spent or freed up 3 trillion dollars. This basically devalued the dollar, not expand our economy. For us to come out of this we are going to have to produce, manufacture, and invent new goods. Creating government funded wealth will only dig us further into a whole.

I hope things will get better but everything in my mind looks like we are in for a very rough period still. America is relying on debt to get us out, and at this point we are starting to see the side effects of what our government has done. Yes, the economy is growing again, but because it is from government money the dollar is weakening and commodities are becoming more and more expensive. This will lead to inflation, which could collapse our economy again.

So many companies and people are looking for a hand out from the government. The best anyone can do is say no to government help, because soon enough all that debt that our country has out there will come due. If we can't pay it then the interest rates of the 80's will look like a sale compared to where we will be headed. Contact your local congressman and demand that government balances its books before the rest of the world forces us to.

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