The Sojourner
Economy Exposed.com
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All the problems with the current economy are consequences of inflation, the government has created too much money. For a while the money went into stocks and real-estate, which distorted the economy, the decision making process, consumption and savings decisions. The economy is way out of balance. Now, the market is trying to balance out from all the inflation, the government is again creating more inflation, this is extremely dangerous to have this much inflation. Consumer exclusively but commodity prices as well will show the result to all this. These inflation on prices are being hidden in the short term because of bankruptcies, leveraging and so on. These are temporary factors, and the factors that will be forcing prices up and gaining momentum in the background. The worse it gets, or is getting, the more the government is going to interfere, the more they try to stimulate the economy, the more they try to revive it, the more of a disastrous conclusion will occur.
The Problem
We are going in the wrong direction. Just as health, we need to find out the root causes of the problems that are occurring. Interest rates are too low, people need to save and need to be rewarded for saving. They need to make it expensive to borrow. The US needs to produce, they need to make more stuff, not consume more stuff, in order to accomplish there is a need for capital, and this is done by saving and need capital to be more efficient, which means the need for less regulations, there is a need for smaller government, that is the trick to get more capital, if taxes are to be lowered there will be a need for smaller government. Lower taxes equals more capital.
The US is getting more regulation, bigger government, more expensive government, ownerous regulation, force feeding more credit into the economy, keeping interest rates much too low, bailing out companies that should go bankrupt and the successful companies are being taxed, taking away money from them, the ones that need to expand.
It is all about who you know, what political connections you have it has nothing to do with how good you are and this is something that everyone knows but now it is right in the spotlight. The government is bailing out all the losers and not helping out the winners that deserve the help. This is how the current economic situation is being handled.