Some call me the eternal optimist and some think I am just plain banana’s. Well truth be told with all that I am witnessing on a daily basis, those who call me by the latter title would seem to be on the right track. I beg to differ and here is why.
Yes I know, sleazy politicians and crooked bankers abound. Of course we have no leadership either and the ship seems to be floating with nary a Captain in sight let alone on deck. Trillion plus dollars in annual deficits are enough to boggle anyone’s mind. Reserves being pumped out into the system by the trillions, yet these same dollars go no where and therefore have zero velocity, meaning they are virtually a moot point. Of course we can be certain this liquidity will help re- liquify our stupid, er excuse me, greedy, excuse me again, easy money Bankers of old who are now tighter than my pants on Thanksgiving night. The obvious conclusion to the stimulus and cash infusion can only be it was designed to stimulate the biggest contributors to Washington D.C. Don’t you agree?
I mean let us be honest about who is kidding who. The secret bailout list was just released and a who’s who of megacorps were on the list and included a fair amount of foreign owned firms. Hmmm. No one I know is on the list and I assume you can all make the same claim.
Of course this is only the beginning of this ice cube my friends. And to be honest I must question myself daily as to why am I so optimistic. I have not even mentioned my personal industry has already self destructed, yet I see the silver lining.
Before I explain, I heard an explanation for $1 Trillion , I found a fitting metaphor. In $1 increments, you can fill up almost 600 Olympic size pools. A spectacular visual comes to mind. Let us peek through this curtain and see what is on my mind.
I will begin by defanging the so called unfunded liability issue which will scare anyone. The figure bandied about is approx $100 trillion. What is not widely reported is the point that this amount is to be paid over the next 50 odd years. I submit further malfeasance in reportage from our media friends by not stating that over this period of time, the US will have a combined GDP of some $800 trillion assuming a zero growth rate for the next 50 years. I think it is clear economically that we can cover these liabilities although I do concur that we should dramatically curtail this spending none the less just as a matter of prudence. Just because it will be available, no need to let congress spend it imprudently I say.
Next to demographics. The US and the Middle East are the only geographic sectors on the planet with population growth capable of sustaining and growing economies. In simple terms many nations are aging and most will not be able to fulfill their obligations. Demographics tend to drive growth so it is a good position to be in at this point in time.
I also like the comparative freedom and business spirit inherent in most Americans. It is truly remarkable and has brought us to this point. Of course bad policies and management have us currently hamstrung, but we have been here before. We will be out of this cycle as well. We no doubt will see the greener pasture again.
I do not deem to make it sound oh so simple. It will require hard work and inspirational leadership, but we have it within us all. We must insure our leaders are capable of not stopping our moving ship, but allowing us to steam at full speed ahead and most definitely unhindered.
Make your voice heard and tell them all what you want. What we all want. Remember, they work for us.
I personally never want to hear a former KGB man call us ” a parasite on the world ” again, and have it go unanswered. This should not stand. Ever.