Economy

My views on the economic outlook of the United States and what the future has in store for us all.

Herman Cain’s 9-9-9 Plan: Good or Bad?

Herman Cain is your non-typical presidential candidate, and an interesting one at that. When you look at his life-long achievements, they are grand and admirable. But when it comes to his political experience, he has virtually none, and he has only begun to see how brutal, conniving and dishonest politicians can be. And this is what concerns me most. When you take a little bit of naivety and mix it with a brand new federal tax code, you are seriously exposing yourself to some very harsh unintended consequences if you…
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Are We Already in a Double Dip Recession?

Lots of folks are starting to panic a bit now that the stock market has shed roughly 15% in the last 10 days. And rightly so. We haven’t seen the market tank this bad since the recession started back in 2008. But this time it’s a little more interesting. Well, maybe scary is a better word. Unlike the recession of 2008, we don’t have the same mechanisms at our disposal to try and quell the panic and stimulate the economy. We’re also starting off in a worse spot. Interest rates…
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US Credit Downgrade – Tea Party’s Fault? Bah!

“If the US Government was a family, they would be making $58,000 a year, they spend $75,000 a year, & are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand.” – Dave Ramsey The main focus of the Tea Party is to cut Federal Government spending. That’s it. Nothing more, and nothing less. So based on the above quote, why…
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United States Treasury Bubble?

The market has completely panicked. The DOW fell -265 points on August 2nd, 2011 and -512.76 August 4th 2011, as investors fled stocks and put their money into government backed securities like short-term and long-term treasury’s. The fear of a debt default, which was completely unfounded (politicized by Obama and Geithner), has been eliminated now that the debt ceiling has been increased and the government has the authority to borrow more money. At the same time, the economy appears to be heading towards a double dip recession as the entire…
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How US Treasury Bill Yields Work

There’s a lot of talk these days about US Treasury Bills, and a lot of folks don’t know what one is, or why they are important. US Treasuries are certificates issued by the United States Government. Think of them as IOUs or loans. The government will issue Treasury Bills when they need to raise money they don’t have, usually to fund things like war, big spending projects or in recent times, pay their bills (I won’t get into why that is bad in this post). Treasuries can be bought by…
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How to Solve Illegal Immigration

Let me first begin by saying I’m not discriminating against Mexicans and I am not racist. I believe anyone who is not a criminal should be allowed citizenship into the United States. I do not believe we need military troops patrolling our borders. I do not believe there is any need to remove those who already reside in the country illegally. There’s a better way to solve the problem. To solve this problem, one must ask themselves why is it immigrants are entering the country illegally in the first place?…
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Inflation In the United States – It’s Already Here!

inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer…
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