Everybody who is involved with finance fears that the U. S. Economy is heading towards a recession. Some actually fear that the United States is heading towards, not a recession, but a depression. The scariest thing is that it could actually be worse than that of the 1930s. Bold words, but America is headed for an economic hard fall that no-one is prepared for. With election 2008 coming in full force, the candidates try to address the biggest issues facing America. Immigration is the biggest issue on the Republican side and for the Independents.
While immigration may help a depression occur sooner, it is not even close to the reason. Democrats on the other hand view health care as their most important issue. If a depression happens and nationalized health care was in place, the depression would just get worse and worse. The Government has caused this problem. Their attempts at healing it are nothing more than placing a small band aid on a huge gaping wound. The problem with placing a band aid and a gaping wound is that it helps the problem for a few weeks but actually makes the problem worse in the long run.
Instead of foreseeing this, the Government has let this wound get so big it is now infected and out of control. Inflation is the only real cause to this downward spiral, and the Government is responsible. Our paper dollars are backed by nothing except our assurance that the United States of America is the greatest country in the world. Our dollar is really worth nothing but paper and ink. The U. S. Dollar has become almost meaningless on the world economy. For the first time in history the U. S. Dollar is worth less than the Canadian dollar.
In November of this 2007 the Canadian Dollar was worth $1. 09 U. S. If this is not the biggest indication of America’s economic problems, then what is? In 1962 the average cost per gallon was only 25 cents usd. In 2002 gasoline was an at an average of $1. 40, still low by todays standards, but adjusted for inflation gas was actually cheaper in 2002 than in 1962. Our national debt has already passed 9. 1 trillion U. S. Dollars. Who do we actually owe that money to? We owe $3,991,754,006,234. 96 to other countries, and we owe $5,180,516,146,138. 48 to ourselves!
When the Government needs more money they just seem to print as much as they want. They Government also just sell bonds to foreign countries whenever they feel like it. What will happen when China comes to collect its money? The USD was backed by something of value at its creation and that lasted all the way until Franklin D. Roosevelt took the Country off of the gold standard. By printing money at will, he was able to bring the Country out of the depression. It is quite ironic when you think that that the Government printing this money will actually be what puts us into this depression.
The only real way to fix the problem of inflation and put this economy back on track would to be in fact going back to the gold standard. Now will the Government ever do this? No, of course not. They will not just relinquish their power that they currently enjoy. Instead the Federal Government raises and lowers interest rates at will. This doesn’t actually solve the problem; it just creates a bigger one. Lowering and raising the interest rate helps for just a short while. People are getting fed up with this game that the Government is playing, a game that really only takes power away from the people.