Where is American Economy headed to?

The American economy has been sputtering along for more than a year now. Unemployment is up, along with the national debt. America is currently at a tipping point. America’s deficit and debt is out of control and unsustainable. Once again Obama is crying out to banks telling them they need to lend to boost the American economy. The other day, President Obama said that he had a new plan to create jobs for America. Yes, we’ve heard that before, but I would submit to you that it was the Obama Administration with all these extra rules and regulations such as Franks Dodds, ObamaCare.

While some people believe that the worst is behind us, and that the Great Recession is over, others believe that our troubles are just beginning. We can continue with the status quo ideas of tax and spend, while kicking the can down the road, or we can make some tough decisions and keep America as the bright spot of the world. America’s future depends largely on the financial leverage that makes commercial financing possible. Obama says he has a new plan, most folks see this latest teleprompter play as trying to steal the thunder from the GOP primary race; yes, me too, and thus, I dismiss Obama’s current Midwestern Tour as media grandstanding and PR fluff.
There are other factors, but most people refuse to believe that the countries we borrow from will stop loaning to us. The fact is many of them already have. China recently sold 97% of our short term debt bonds they invested in. After the US taxes go up and the new congress is sworn in, the debt ceiling will have to be lifted again. $14 trillion just isn’t enough debt for the United States; the government needs to keep spending, especially in these financially difficult times.

America is not a pretty sight under current policies. Our outstanding debt, as I currently write this paper, stands at $14,194,788,320,729.55. Most Americans work hard every day so that some time down the road they can have their own shot at the American dream. The future of American business lending is built on financial organizations seeing some sort of advantageous interest in providing today’s businesses with capital to operate for years to come.

The value of the dollar is declining fast and the economy is sluggish, so we print money hoping people will spend it. Now they need more than twice the amount of dollars to buy what one dollar used to, so we print more money. The near-term future does not look good. Plan for the worst and hope for the best. We as a people must demand of our politicians to forget about their next election and instead, focus on fixing our country’s most pressing fiscal problems.