The Economic "Situation"

By Nick, Chief John Bull Correspondent-

Yes, its that time again. I don't ever stop annoying all two of you who actually read this blog. Its time for another post, but this time, about the economy.

As a stock/forex/commodities trader, people look at me like I know exactly what's going on and why in our economy. But, to tell you the truth, I have absolutley no idea. No one, not even Mr. Bernankie (spelling?) the Chairman of the Federal Reserve, actually knows where we are in relation to going into a recession.

Some people are saying "Oh, our economy isn't doing that bad! People are just focusing on the bad sectors!" while yet others say "Oh, God! We're F#$%ed! We're all doomed! This is the start of a new era where we're not the King anymore! We're F@#$ed!"

As usual, and as I previously stated, I have no Idea, and no one truly does. I think that the economy can't possibly get any worse news than we already have. I think we've hit bottom, even though house pices haven't. But a few of the things causing this "era of economic uncertainty" are: The Mortgage Crisis (and all the stupid people who took the loans), rising costs of living, the China situation, the "War on Terrorism", and the (dun, dun, dun) $Dollar.

The Mortgage Crisis: This is simple. Retards took out loans that they couldn't pay, or that they could only pay for a short time before the interest rate sky-rocketed. This caused banks to forclose on millions of homes, and led to a decrease in home prices.

Rising Costs of Living: Most people know this. Its the fact that prices for the basic needs in life, like food and gasoline, are steadily rising, meaning that the middle-class American (the driving force behind the US, and the US Economy) has less money to spend on luxury goods, and even some nessesities. That, plus the fact that they don't have a home now, probably won't allow them to buy like crazy for a while. Pretty simple so far.

The China Situation: Most people have heard of outsourcing. Thats what this is. American blue-collar jobs moving overseas to China, mainly. Mostly because they can make it for really cheap there, in their free-market-zoned areas. Some politicians claim that this is part of America becoming a post-industrial nation. Meaning that most, or all of our jobs are in the service sector. But the true meaning of "post-industrial" is that the service sector's growth far out-paces that of the industrial sector, so that it seams that there are little to no jobs in the industrial environment.

War on Terrorism: Everyone's heard of this. Bush's trillion-dollar war. It is costing the country and our economy trillions in dollars, and resources, such as oil, and metal. It also ties into the next vice.

The (dun, dun, dun) $Dollar: This, of course, is the problem with the declining dollar. Besides being good for exports (the few we actually have), it is hell on the financial sector. But not only the declining dollar: the Chinese have trillions of $USD's that they've aquired over the years from our imports from them, that they connot use, because they bearly import anything from us. But the US Companies cannot use them either, because they're in the vaults of the Bank of China, and those of Chinese compainies. But the reason for the dollar's decline is because of a side-effect of the War on Terrorism and the American way of Life: Debt. America has a nine-trillion dollar national debt that's 15 zero's or $9,000,000,000,000,000. Caused primarily from the US borrowing from US companies and US allies for the costs War on Terrorism. These natoins will not, however, nearly ever call on us to "pay-up". Making us pay would force the US government and economy into Bankruptcy, of course causing the world as we know it to end. Basically, the dollar is backed, not by the value of gold, silver, or anything, andthing, that is, besides Debt. That's why the dollar is "in the crapper" so to speak.

I Know some of you are saying "well what about that stimulus package from the government? Won't that help?" The answer: absolutley not. About 3/4 of the US econonomy is in the craper right now. The total yearly output of the US economy is eleven-trillion dollars (that's $11,000,000,000,000,000) and the stimulus package gives only about onehundred-billion to lenders only. We cannot count on the government to get us out of this. You know that saying "Good enough for government work". We'll have to rely on good old-fashioned caputalism to come up with a solution to cover the losses, for a price of course.