Sep 03 2012

In about Five Months…

“What we collectively decide about how to bail out our economy, how we pull our economy out of a ditch and what rules we put in place to make sure this problem does not happen again, will shape our country for the next 50 years.  This is it.” – Elizabeth Warren

 

After surviving the worst economic wipeout of the past seventy years or so, I remain hopeful that those in positions of great influence and power will never allow this to happen again.  And yet as the end of the year approaches, there are some troubling issues looming once again here in the US.

 

About a year ago, we had the great debt ceiling stand-off.  The entire world watched with great anticipation as members of Congress duked it out before finally punting the issue about twenty yards down the field.  So in a few months we will be dealing with significant budget cuts to defense and non-defense programs at the same time we will see an increase in taxes…unless the two parties can somehow come together and get something right before the clock strikes midnight.  This doesn’t even consider the presidential election or what is going on elsewhere on the planet.

 

In case you are not aware, Europe is in a deep recession, China’s economy is slowing, India has all forms of trouble brewing, Russia is trying to keep a social powder keg on ice, and Japan is probably a little worse off than the US.

 

Will the world as we know it come to an end if Congress can’t get it right and avert the automatic budget cuts and tax increases?  I don’t think so, but the thousands of people that will lose their jobs combined with reduced spending will most certainly impact the economic recovery – and I don’t see how it will be positive.  Surely our leaders will take the proper course of action and avert more economic turmoil…surely…

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