Recently I was watching the news on CNN and the announcer asked a guest if the drought would effect food prices. Well I am not a rocket scientist, but I can answer that one. Yes it will. The quest hemmed and hawed and did everything he could to not answer the question. He started talking about gas prices coming down and that it should be easier on Americans to travel. That was not the question. I do not remember his name or his title but I do know the area he was being questioned about is the area he is responsible for in the Obama administration. Yet he could not give a straight answer. That is the nature of the Obama administration, it accepts responsibility for nothing. Of course maybe that is because they have done nothing in almost four years in office.
They are on Romney because at Bain Capital he outsourced jobs. Romney needs to get a pair and say Yes I did President Obama, but it certainly was not the four million jobs that have disappeared under your administration. Which is just a drop in the bucket compared to what is coming if something is not done between now and January. Let me go back and answer the question from the start of this piece. Yes food prices are going up. So are the prices of virtually everything else that is related to food prices. Yes that includes ethanol and all other food based products like beef, pork, and chicken which will cost more to feed. Which will be passed on to the consumer. Living in the country and being able to grow your own has certain advantages, but we can not grow everything. Many imported goods like coffee, sugar, chocolate, and peanuts to name a few items are outside of our control.
All the above are happening and are going to continue to happen regardless of what the government does. The only thing that can turn the economy around is creating jobs and putting people to work. The problem is the mandated budget cuts which Congress agreed to are going to eliminate over a half million jobs. That is almost as many as the Obama administration has been able to create in a year. So at best we are going to be set back a year. At worst those people will be put on unemployment. They will no longer be contributing to the system, which means the government will be spending more and earning less. Then a few months down the road when those peoples unemployment will run out. They will start losing their homes and the housing market will take another dive. Listening to the news this morning they were projecting another 3.9 million home foreclosures in the next year and a half. That did not include what will be caused by the failure to do anything about coming budget crisis.
What is suppose to get the economy going again? It requires some kind of action and I see none being offered by either side. Maybe they have the 2012 Blues and figure if the world is going to end on the 21st of December it does not matter what they do. Well I hate to tell them that those doomsdayers, of which I am one, may be wrong and you have to plan accordingly. Maybe on January 1st 2013 the politicians will wake up and say, "Hey we are still here, we have to do something to fix this." Of course that will not happen, because it will still be the other guys fault and regardless of who becomes President the bickering will continue. Also as I said I have heard neither one say, "This is what I am going to do and here is how I am going to create jobs." It has not happened and it will not happen, because they have not a clue of how to do it. Obama does not have the business background to do it. Romney's past says he is better at getting rid of jobs than making them. So America's problems will continue to roll along.
The only way to change anything is to change the leadership. We could at least put people into the system that have some vague idea of a solution that might fix the system. Solutions that will offer ways to create jobs. I have sent possible solutions to the Obama administration and they have evidently file thirt-teened my letters, right after putting me on their mailing list. That only proves what kind of idiots they have working in the present administration. Americans want solutions. We do not care if Romney sent jobs overseas. We want to know what the ones who are in charge right now are doing to fix the system. It is much easier to rail against Romney and Bain than to come up with a workable plan.
The stock market was at 7949 when Obama was sworn in. It had fallen to that point from a high of 14,164 at its all time high. The market once it was bailed out after hitting a low or 6,469 in March of 2009 started a slow but shaky recovery. It has trended up and in May hit a high of 13,338 which has been the high during Obama's term. The problem is that it dives with every minor bit of bad news. The market indicates very little in reality. It only shows that people are not smart enough to take Their money out of the market and put it into some other form of investment. My prediction is that if Obama gets reelected and things continue as they are the market will be somewhere below 4000 by his inauguration. It is not much better for a Romney scenario.
If anyone has run their own business they know that if it is not growing it is dying. It may take a while to die but sooner or later it will die. I was in a church that died a few years ago. It died by attrition. Were we not motivated enough, I do not know. When you have seven churches in a town of about 500 people they are pretty well committed. Our church did not die from a lack of funds. The survivors who closed the doors had to give away over $80,000 dollars. The church had rules about where the money went when the doors closed. Hopefully to the benefit of the Lord's work. The stock market is not under the same guidelines. When it dies the money just vanishes like it never existed. So where do all those billions go. Do they just evaporate or were they spent and never really existed to start with. Well they did exist when you earned them. The investors told you they held them and that they had value. If that was true when the market collapsed the money would still be there. However the market is nothing more than a shell game, but it is played with your money. When the market collapses you can rest assured the money will be under the shell being held by the bankers. So the bankers are not the incompetent ones. They are thieves with the laws written to their benefit. That is why there is a limit on how much the government has to insure your account for. The government knows the money is gone.
So what does all this mean to you. If you are hoping to retire it is a very iffy situation. If everything goes right it may happen, but the inflation rate will eat any hopes you have of getting by on what you get. Especially if all you have is Social Security. With all the Boomers retiring over the next few years the drain on the Social Security is going to increase at the same time the input into the system is decreasing. As I said at the start, I am not a rocket scientist, but even I know that the math does not work in that situation. So if the government fails to fix the problem everyone will have to work till they die. Except the bankers and the rich people who have the shell game stacked in their favor. So the budget deficit is not just a government problem. It is a very real problem for every working person in the country. If it goes unfixed every one will be in bondage to the system, except the few that figure out that living debt free is the only way to beat the system. Eventually they will keep raising your property taxes till you can no longer afford to even pay them
So yes the fact that the government is doing nothing to fix the problems America is facing will eventually effect you one way or the other. So you can get mad and get involved or sit back and say it is not my problem. In the later case you are wrong. As we use to say in the Army, "You are either part of the solution, or part of the problem." If you do not care what happens you are part of the problem. Getting involved and doing something may seem hopeless at points, but at least you know you are trying to be part of the solution. The first step you can take if you care is vote. Even if you simply write in a candidates name that you actually think could help. My vote goes the the ex governor, Jesse Ventura from Minnesota who was a professional wrestler and ex Navy seal. I will have his name memorized by the time I walk in the booth to vote this fall. If he got enough write in votes it might make a statement we are tired of it all. At least I am not supporting either one of the present candidates which have not a clue what to do.
The definition of insanity is, "Doing the same thing, over and over, the same way and expecting to get a different result." So if you think the present two parties are the solution you might want to question whether you are sane or not. If you determine you are sane, rock the boat this fall and write in a candidate or write none of the above. Do not prove your insanity by voting for the hopeless idiots running for office.