Today and the next few days everything we read is some how linked to the election. I for one will be happy to see election day come and go, except I don't think it will end on election day
We should focus on other important issues, although the issues won't change between now and election day, who is elected could change our future in ways many have not thought about. A new administration may have a different problem solving thought process re: such as the debt that can't be paid. Federal state and local pensions, private business, main St, unemployment due to BK etc resulting in lost jobs is just one issue but a large issue facing the country
In a nut shell, the answer is BK or Fed bail outs, and I doubt it matters who is elected, these problems will persist
For example: Do we put families out on the side walk who have been evicted for non payment of rent or do the banks take the hit when the mortgage isn't paid
Do pensions not pay or does the Fed rescue the pensions
Does the state of Ill. go BK or does the Fed rescue Ill.?? There are so many examples of BK or Fed rescue that one could list a dozen examples
IMHO no matter what happens the economic system will either implode or the folks will endure another recession, or if we don't recover from recession soon enough then depression will surely follow
One can't simply wave a magic wand and the debt will disappear
We think the world has an equal amount of debt/printing. That may be some what true today, but the debt obligations coming down the road is far greater in the USA as a % of GDP than most every other country. However, one can look at Japan and say economic devastation won't happen
This non debt payment IMHO will be the greatest test of the reserve dollar, to date, and a possible loss of confidence in the USD. If Biden prints and taxes to implement his Green Deal to the extent we think will happen, will this push us over the cliff
Will the reserve dollar lose confidence in the world currency markets,
IMHO if Biden is elected the Green Deal, depending on how it is implemented, may be the end of the reserve dollar. Printing and re-distribution of wealth will not end well
I am not an economist... so take my comments with a grain of salt...
The US already had an unhealthy debt vs GDP ratio, before Trump came into power. I believe, many voters chose Trump, because they thought a businessman would handle this situation better than a politician.
Unfortunately, the virus dramatically changed the economic environment. At this point, millions of people are sitting at home, unemployed. How are they going to pay for food?
Stimulus checks... printing more money out of thin air. This will eventually hurt the dollar, and/or cause inflation, which in the end will hurt the majority of people.
And we are quickly approaching another crisis.... renters, who have been unable to pay their landlord for a few months. Most states have implemented temporary laws to prohibit evictions.... most of these laws expire at the end of the year. What will happen then?
Extension of these laws? That will ruin landlords and bankrupt them.
Let millions of people be evicted and become homeless? Right now some 500,000 people are homeless. and look what this has done to our " inner cities" in the country ! Adding a few million more homeless peple to that??? Unthinkable.... .
IMHO , there is only one way out of this.....open up everything, get people back to work.
Life as it is right now, cannot go on. It will turn into a apocalyptic nightmare.... with roaming armed bands taking over your neighborhood and people being killed for a loaf of bread...in other words, a war zone which we have seen only in science fiction movies..
Yes, opening up, will cause more corona fatalities, but proper prevention techniques should help.
.in other words, a war zone which we have seen only in science fiction movies..
At the risk of beating a dead horse... We see this scenario in Socialist countries all the time. Take a walk through a random neighborhood in Venezuela.
Oddly enough, we have people actively working to bring it here. Somehow, to them, it's more fair to have all (excluding the ruling class) fighting over a loaf of bread than for a large percentage of them to have more than enough bread.