Obama's Victory
Just my 2 cents worth of this political exercise.
Obama is a socialist while Romney is capitalist. America really needed a capitalist to help it get out of the "financial cliff" , the result of which would be just unimaginable. But the electorate has spoken. America is certainly a divided nation.
We can read all these statements about this and that. Analysis. Statistics. Experts. The hard truth remains. Obama WILL SPEND A LOT to fund his socialist programs. So what does that mean? Simple, he has to tax people. According to Obama, he will only tax the rich. Fine. They can afford it. But is it really enough to plug the leaks in the US deficit ( simple terms, spending negative cash). I don't think so.
Socialists are great. they help people. help the underprivileged. Spend more with Obamacare. provide free education or spend more for education. Build more railways. Establish more regulatory Agencies which also cost money. Spend more money on Solar companies which lose money. Welfare...and more Welfare...uh oh...But it all boils down to affordability. Can the US afford it? The answer lies in this table:
http://en.wikipedia.org/wiki/List_of_countries_by_public_debt
USA even has a higher debt ratio than France. France is already having a hard time with debt. Japan has twice the ratio of the US which probably explains it's economy has been stagnant for decades.
Why is this table significant? You'll know you better run for cover when the debt ratio nears the levels of Greece, Portugal, Iceland. The USA has more slack because it is the biggest economy in the world. however, will it be able to survive having the same levels as Japan? with this Obama win, US is following Europe's model. But if you watch CNN, you can feel the pain of people living in Greece, Portugal, Italy , France, and Spain. Most as a result of the failed policies and laws of it's mostly socialist leaders. Maybe mathematically , we can say that Obama = Europe? Such a scary hypothesis . Greece is in so much pain it's ratio is currently 189%. There is hope though, Argentina despite it's economic collapse was able to bounce back in a decade owing to smart finance guys and political will.
When I say run for cover, not relying on your social security , 401K, real estate investments , and other mitigating factors can help. One has really to be smart about it or suffer. Forecasts have already predicted a downward spiral to the value of the $. That usually happens when the government prints more paper without the assets to back it or the government having too much debt. Who knows if it will come true. But be smart about your financial paths. Making the wrong move in the face of your environment will certainly be very painful when $hit hits the fan. Be proactive with your present and future. Read up and adjust.
Remains to be seen if Obama can manage the US or just be a very good Social worker. In four years we will know. Keep a close eye on this very important ratio and you will know what to do. : )
It is ironic that my blog is named horizons, but coincidentally, i would say widen your horizons. "Be water my friend....." --- BRUCE LEE.
Obama is a socialist while Romney is capitalist. America really needed a capitalist to help it get out of the "financial cliff" , the result of which would be just unimaginable. But the electorate has spoken. America is certainly a divided nation.
We can read all these statements about this and that. Analysis. Statistics. Experts. The hard truth remains. Obama WILL SPEND A LOT to fund his socialist programs. So what does that mean? Simple, he has to tax people. According to Obama, he will only tax the rich. Fine. They can afford it. But is it really enough to plug the leaks in the US deficit ( simple terms, spending negative cash). I don't think so.
Socialists are great. they help people. help the underprivileged. Spend more with Obamacare. provide free education or spend more for education. Build more railways. Establish more regulatory Agencies which also cost money. Spend more money on Solar companies which lose money. Welfare...and more Welfare...uh oh...But it all boils down to affordability. Can the US afford it? The answer lies in this table:
http://en.wikipedia.org/wiki/List_of_countries_by_public_debt
USA even has a higher debt ratio than France. France is already having a hard time with debt. Japan has twice the ratio of the US which probably explains it's economy has been stagnant for decades.
Why is this table significant? You'll know you better run for cover when the debt ratio nears the levels of Greece, Portugal, Iceland. The USA has more slack because it is the biggest economy in the world. however, will it be able to survive having the same levels as Japan? with this Obama win, US is following Europe's model. But if you watch CNN, you can feel the pain of people living in Greece, Portugal, Italy , France, and Spain. Most as a result of the failed policies and laws of it's mostly socialist leaders. Maybe mathematically , we can say that Obama = Europe? Such a scary hypothesis . Greece is in so much pain it's ratio is currently 189%. There is hope though, Argentina despite it's economic collapse was able to bounce back in a decade owing to smart finance guys and political will.
When I say run for cover, not relying on your social security , 401K, real estate investments , and other mitigating factors can help. One has really to be smart about it or suffer. Forecasts have already predicted a downward spiral to the value of the $. That usually happens when the government prints more paper without the assets to back it or the government having too much debt. Who knows if it will come true. But be smart about your financial paths. Making the wrong move in the face of your environment will certainly be very painful when $hit hits the fan. Be proactive with your present and future. Read up and adjust.
Remains to be seen if Obama can manage the US or just be a very good Social worker. In four years we will know. Keep a close eye on this very important ratio and you will know what to do. : )
It is ironic that my blog is named horizons, but coincidentally, i would say widen your horizons. "Be water my friend....." --- BRUCE LEE.
Comments
Post a Comment