Tags: Economy | Maelstrom | fear | destruction

US Economy Heads Into 2016 Maelstrom

US Economy Heads Into 2016 Maelstrom
(Dollar Photo Club)

Monday, 28 December 2015 08:56 AM Current | Bio | Archive

A maelstrom is a situation marked by confusion, turbulence, strong feelings, violence, and destruction. It seems clear this describes what the American economy faces in 2016.

You might ask, “What are the factors that lead you to have this perspective?”

First, I have considered why I might be wrong:
  • The inflation rate is too low.  Federal Reserve Chairman Janet Yellen has emphasized her belief that government must create the economic circumstances where there is a 2% inflation rate.
  • The unemployment rate is around 5.5% or thereabouts.
  • The economy is growing at a healthy rate of 2%. 
  • The U.S. banking system is on sound footing. Congress and the Federal Reserve saved it from collapse by infusing a massive amount of taxpayer money and keeping investor’s yield on their investment capital at 0%.
  • The budget deficit is controllable, and the total debt is sustainable. The recent budget successfully passed with a bipartisan vote.  Besides, the Republican Congress led by Speaker Ryan will fix it next year. 
  • The housing industry is recovering; corporate profits for next year are predicted to be good; consumer spending is improving; oil prices are low, and people are buying cars like crazy.
  • China is repositioning its economy and will gain strength.
  • The EU will absorb the refugees and will solve the euro problem.

Second, there are certain the factors indicating why I may be right.
  • All the above is baloney.
The entrenched political establishment in Washington, D.C., the Federal Reserve, and Wall Street have been double-dealing, dishonest, and deceitful for years. The voters know it.

What will the voters do? To paraphrase a famous line from the movie Network, “They are mad as hell and they are not going to take it anymore.”

The upcoming election for president highlights this. Three of the four Republican presidential contenders leading in the polls are outright anti-establishment candidates, and one is quasi-establishment. The Republican Party of the faux conservatives is having a tough time coming to grips with their rapidly becoming an endangered species.

The three presidential contenders on the Democratic side comprising a traditional socialist, an Alinsky type socialist, and somebody named O’Malley. 

The primaries will be super-nasty.  The presidential election itself will be a vicious political battle. The economy will suffer.

China is going into the toilet. Since it is the major trading partner for an awful lot of countries, those countries will get flushed as well.

The Middle East crisis is an immense danger to all Americans and their loyalist ally Israel.

The experiment called the European Union is cracking. There is no glue that will keep it together. 

Japan is an economic time bomb.

The crisis in the Middle East is easy to understand.  The Muslims want to kill all the Jews and subjugate the rest of the world. They are only fighting among themselves to see which of them will ultimately take control of Islam. Islamic terrorism will be a part of daily life in America.

South and Central America, and Sub-Shara Africa will continue their current course of disorder and disarray. 

The only consistent in the world will be that every day the weather will change.

The economy of the United States in 2016 will be caught up in the maelstrom of unremitting political, social, and financial confusion, uproar, and, at times, chaos.    

Denis Kleinfeld is known as a strategic tax and wealth protection lawyer, widely published author and creative teacher. To read more of his articles, CLICK HERE NOW.

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The economy of the United States in 2016 will be caught up in the maelstrom of unremitting political, social, and financial confusion, uproar, and, at times, chaos.
Economy, Maelstrom, fear, destruction
Monday, 28 December 2015 08:56 AM
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