Cheap Shot

Russian Prime Minister Vladimir Putin recently called the United States parasites on the world economy. Wow you know its getting tough when the communists take a cheap shot at you and not only are they right, but they are dead on. He also went on to say that we have no actual wealth because it is all leveraged and we still don't live within our means. In addition we have other countries fight our illegal wars and they also end up financing them. He said that countries like China, Russia, and Japan will take big hits financially as they are heavily vested in U.S. Treasuries, that eventually will become worthless investments. I personally find it hard to build a case for calling Vladimir a nationalist disgruntled idiot, making fabricated comments about the U.S. how about you?. Maybe we can step back and take a good objective look at ourselves as we all have bought into the borrow, and then borrow some more American dream program. It looks like the sun is now setting on this unsustainable belief system and we will all pay rich or poor. It hurts when others tell the truth about your weaknesses whether their intentions are negative or positive. It will not be easy for this Nation to give up its addiction for cheap easy money, but nothing worth while ever is.

Credibility Lost

The recent news that a vote to raise the debt ceiling has passed should be viewed as a temporary band-aid fix at best, to a problem that will plague this nation for years if not decades. In delaying a default on U.S. debt by lopping another round of borrowing into the equation, we are increasing the odds of a double dip economy and delaying the solution of growth, innovation, and job creation. The polarized environment in Washington will undoubtedly spread worldwide as other Nations lose respect, and credibility is lost for the United States. Our own press labeled news story after story as an aura of immaturity when striving towards compromise. As we all know credibility comes hard earned like anything of substance in life, and this could take quite a while to undo. We continue to take a back seat to other Nations that have waited in the wings to emerge as world leaders. They continue to out work us, out invent us, and are on a path to supplanting the very core of our past successes, a dominant educational process followed by young innovators creating products to be sold to the countries that hunger for them. This path will not change until we have leaders on both sides putting this countries needs before their own.

Debt Bomb

As we watch the final hours countdown on the debt ceiling debacle, one can only feel that Americans are somehow being held hostage by Democrats and Republicans alike. A decision either way will be at best a choosing of the lesser of two evils. One decision will result in the possible cutting of the Nations AAA credit rating effecting the cost of everything from interest on credit card rates, mortgages, car loans, and the debasing of American currency, the other decision a continued fiscally irresponsible path with dramatic future ramifications. Other countries must be amazed at our inability to proceed on a sustainable economic path, and a loss of respect will likely be the outcome. It is wrong to pass the proverbial buck onto the backs of future generations and drift into a comfortable retirement as many boomers will. How will we look into the eyes of our grandchildren knowing that we have mortgaged future opportunities and pilfered valuable resources that are needed to maintain a healthy economy now and in the future.

Ending Partisan Politics

As quantitative easing policy's end this month cracks in the foundation of wall street are beginning to show. The latest data on manufacturing, and the unemployment front are clearly disappointing, and just as we thought we could remove the training wheels from this economic recovery so it could ride on its own it has began to falter once more. Now we have a disagreement between parties on the issue of whether to raise the debt ceiling or not, and if this is not ironed out soon we could see a double dip in the market just as we have seen in housing. The lack of a common sense strategy is about to show its ramifications due to a continued borrow and spend philosophy. And the unrestricted printing of money can not have a positive outcome due to the debasing and dilution of American currency. If our dollar is replaced as the prime choice of reserve currencies worldwide things can only free fall from there. It is time for our elected officials to man up and put aside partisan politics before we encounter something worse than what he have recently experienced in the last few years. The futures of our children and grandchildren depend on it.

End Of The Golden Age

As America approaches the 1.5 Trillion dollar deficit level this year it appears to be on track to be replaced by China, India, and any other fiscally responsible contender as the preeminent economic superpower. Our seemingly endless spending binge is running its coarse, and even more importantly we do not seem to have any viable solutions to offset continued quantitative easing positions made by the authorities. At the same time other nations are working diligently to provide young innovators with a higher level of education followed by an already higher level of work ethic. These two elements will provide the needed one, two knockout punch that replaces us on the global stage. We will always have a seat at the g20 summit due to our nuclear proliferation capabilities, but our monetary credibility is definitely in decline. This nation will watch as others pass us in providing the world with essential products needed to combat the most important issue of our lifetime within the renewable energy sector. If we are to reverse these trends we must act now by first mitigating any fiscal decision making that involves deficit spending, and allow innovative revenue growth generation to take hold and expand. This can only occur as much needed venture capitol is allowed to flood back into the marketplace.

Reversal Of Fortune

Many corporate titans have looked outside the boarders of the United states in an effort to find cheap labor and huge tax benefits. Now the lions share of highly sought after engineering positions here in the U.S. are being given to students from other countries. Some CEO's have stated that these individuals are more driven, and willing to get the job done for less than American students, they are given temporary visas which usually last only two years and can reapply after the visa expires. This trend of in-sourcing technology talent, is just another nail in the coffin for kids born in this country looking to capitalize on a great career. Our government is just as responsible as these greedy corporate entities, in enabling this dysfunctional activity to progress. As over 15 million unemployed Americans barely get by, they are being replaced by non citizen's at an alarming rate. This country seems to be on an unsustainable trajectory at so many levels, it would be shameful to alter significantly the most important part of the American Dream which is Higher Education, and the ability to find employment in the occupation of your choosing.

Paradox

To say that our economy is on a path of improvement, is a contradiction of the latest core data numbers that clearly reflect a downturn at best. The numbers show that consumer spending has come to a screeching halt due to the high price of food, and fuel at the pumps. GDP has contracted to 1.8% this year from 3.1% last year. Unemployment has risen from 8.8% to 9% with only an anemic 200,000 jobs created recently. The increase in corporate earnings is due to internal cost cutting which cannot be replicated next year without a pattern of growth. A continued decline in the dollar and the rise of commodities send a clear message of a bubble driven stock market, and increased inflationary conditions. And the news to be released by the Fed in June, as to ending or continuing its quantitative easing policies will undoubtedly put massive pressure on the bull run of late on wall street. Those that agree that all is well are in clear violation of the laws of common sense. But as we all know we did not arrive at this juncture by making intelligent, prudent decisions.