Wednesday, August 31, 2016

Its the ECONOMY Stupid!

Its the ECONOMY Stupid!
Its the ECONOMY Stupid!
Its the ECONOMY Stupid!

Dissecting the innards of the largest economy in the world is like David battling against a 100 Goliaths! But in the quiet peaceful doldrums of summer, one can sit down under the shade of a tree, let the breezes fill the space and cajole the mind into contemplation.

My take on the Quantitative Easing and its impact on the economy and how the experts continue to make it worse by injecting more of their unwanted and un-needed help. The Too Big to Fail concept has burdened the citizenry in ways that we have not fully felt yet, except in the slow drip of job losses. Although the unemployment remains at 4.9% and one has to ask about those 95 million sitting on their hands as well as how does one count and keep a straight face...but then I digress. Indeed at the end of the day the unfunded liability can be defaulted on and the Debt can be defaulted on and what will be left is a Third World Global Order...to the delight of some!

Wall Street continues to sell stocks at higher highs due to the cheap money available for stock buybacks, but at what costs...CAPEX? The future? main Street struggles to keep people employed, but demand decreases because the consumer is tapped out. If 70% of the economy is fueled by the consumer in the U.S. and 40% of the U.S. consumer fuels the world economy, a tapped out U.S. consumer with limited discretionary income and no job is not the answer anymore.

While Regulations continue to place a stranglehold on businesses the art of negotiating the Policy world costs more than $2 Trillion. The Impact of Regulatory Costs on Small Firms article from Small Business Association written in 2010 placed the cost at $1.75 Trillion.
Take a look at this Mind Map below. The arrows point to the influencer of the influenced. The tentacles of the FED's Quantitive Easing Trap continues to unfold and affect the Economy in ways that were never imagined. Of course the expert economists will find fault to protect their turf, but for us simple people with limited knowledge, this is a good place to start.


If you have opinions please convey them…it will make for a robust discussion. Thank you!


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