Socialist or Capitalist? Crisis or Fad?
The Fiscal Crisis is NOT as Bogus as Some Would Like to Believe.
There has been a lot of people concerned about a Fiscal crisis. Others consider this fear ridiculous. I think this fear is well met, and that everyone should be wary of the near future.
According to the Wall Street Journal, the dates one should be concerned about are March 1, March 27 and April 15. At the end of last year, Obama managed to stave off a "fiscal cliff" by pushing the deadline for discussing the budget to these dates. At the upcoming gatherings, officials will be discussing "across-the-board spending cuts," "funding of government operations," and "a new law that withholds lawmakers' pay," respectively. While some believe that the "fiscal cliff" was a Faux Pa back at the end of the year, (in my opinion) the more educated economists, brokers, etc believe that our country merely forgot to slam on the brakes before going over this cliff.
Many businesses are moving elsewhere. According to this article, GDP is slowing down:
Recession Warning Chart (Business Insider)
Obama is taxing more than the "wealthy." According to this article, taxation is increasing:
Taxes on Most Americans Will Go Up (Fox News)
Our deficit is currently about $1 trillion while the government's tax income is about $4 trillion. I believe that 25% is a good amount of debt. However, the national debt is still growing and none of our presidents have done much to fix that (except Clinton). Anyone who believes that we won't be worse of if this figure isn't dealt with needs to research Greece's current economy.
Here are a few articles about that:
Greece Goes Bankrupt in 2012 (The Guardian)
Greece Staves off Bankruptcy 2013 (BBC News)
The Way Greeks Live Now (New York Times)
I don't want to know how many people are unemployed and/or homeless because I'm sure the figure is quite depressing. (If you Google it, then I'm sure you'll find something.)
The best argument in the opposite case has been this article posted by bbmaven and Bilifuduo
Is There a US Fiscal Crisis? (Psychology Today)
I personally have to question the legitamacy of the arguments made in the article, and to whom the arguments are referring to when it says "Is there a US fiscal crisis?" Is it referring to US citizens, large institutions, our government, foreign trade, or maybe just the nation as a whole? It most certainly isn't the common citizen of the United States who will be benefitting from our economic climate. Obama almost printed a $1 trillion dollar coin as a joke about our "imaginary debt." That would've been a fairly sound economic move believe it or not, but while our government (and the banks) have the ability to print money to pay off this "debt," on a non-government level, the US dollar is still quite a bit more substantial. I'm bothered by people who believe that no one has to pay off the $16 trillion debt figure (projected to be as high as 76% by the end of the decade). I don't believe it will be our government who eventually pays it off- it will be the populace in an indirect fashion. My point here is that our government may not be heading towards a "fiscal crisis," but the market (the economy) at our level is not looking very optimistic.
(There is no such thing as a free lunch. Neither is the national debt as made up as the left would lead us to think, nor is it quite as serious compared to a great many other things as the right would have us consider. My point is that both sides have been neglecting the key things hurting our economic environment.)
Our fiat system of currency and our federal reserve banking has limitations that I think many are ignoring, and that this has also allowed many large, corporate institutions (and our government) to abuse its power.
Here's one trader's non-politically motivated stance on the market:
One Trader's Bet (Business Insider)
His argument is that many markets like the S&P (INX) and Dow Jones (DJI) are at all time highs while VIX (aka "the Fear Index" is at unprecedented lows.) The links will take you to Google's Finance charts.
Add in the fact that the government is suing the S&P over the bad housing market (code named "Operation Alchemist;" something planned several years ago) and... well, I'm sure you can put all the puzzle pieces together.
All we need now is a war, and bad-a-bing bad-a-BOOM! Wasn't there a nuclear test somewhere in the world recently? Wow, we're in a great position as a country!
North Korea's Nuclear Test (The Economist)