In January 2013, extended unemployment benefits run out, tax cut extension expires, and $2.4T in across the board cuts are implemented. All of this spells an unmitigated disaster. The parabolic debt curve must be arrested. The ONLY way to do this is to reduce the size of government, which has essentially replaced the private sector.
Considering it is unlikely we will go what is right, then what is likely depends on whether Obama or Romney are POTUS. Obama will expand government, to what end no one knows, and Romney will allow corporations to continue to loot the national treasury. Either way, we have new masters, the elite, and everyone else is left to fight for the scraps, meaning the housing and labor markets are toast.
It's possible Obama is the lesser of two evils considering the reality of our unsustainable debt trend. Growing government is better than allowing corporations free reign. What is unholy is a corporate government alliance, against which we don't stand a chance economically. I don't know if that's feasible after everything else has been abandoned, there just isn't enough to go around.
So, while corporations continue to move offshore, and government continues to grow, the only unknown is how long the US will be able to borrow money. That is an international concern, as friction overseas translates into dollars invested in Treasuries. There may be a period of calm when the US needs to borrow money, and no one is willing to lend. At that point, there will be no private industry, and corporations will be in the wind. At that point, it will be too late to discuss limiting government and regulating industry. We need both, the lack of which is the legacy of post WWII America.
It's possible Obama is the lesser of two evils considering the reality of our unsustainable debt trend. Growing government is better than allowing corporations free reign. What is unholy is a corporate government alliance, against which we don't stand a chance economically. I don't know if that's feasible after everything else has been abandoned, there just isn't enough to go around.
So, while corporations continue to move offshore, and government continues to grow, the only unknown is how long the US will be able to borrow money. That is an international concern, as friction overseas translates into dollars invested in Treasuries. There may be a period of calm when the US needs to borrow money, and no one is willing to lend. At that point, there will be no private industry, and corporations will be in the wind. At that point, it will be too late to discuss limiting government and regulating industry. We need both, the lack of which is the legacy of post WWII America.
No comments:
Post a Comment