The state of the Economy as I see it.
The state of the economy is in one word Bad. Here in Phx Arizona we posted the worst foreclosure rate since the recession started with more than 8000 homes just in March 2010. Two years ago a house by my residence was bought for just over $150,000. Unfortunately the young lady who had lived in the home was just foreclosed on and now that same home is listed for $45,000.
At this point we watch as the dollar drops and prices inflate. Gas is on the climb and nearing $3.00 a gallon and a national debt that is going through the roof. Now we are at the point where we are left with only three viable options:
1) Print more money
2) Raise taxes
3) Cut the budget in half
If we continue to print money, we WILL experience hyperinflation and an economic collapse.
If the government raises taxes, small business will suffer and begin shutting down. Small business’s employ 80% of the population and with higher taxes comes layoffs and down sizing taking us from a recession to a full depression.
If we cut the budget, every person could be affected by losing government subsidies this could include Medicare, social security, welfare, grants, military cuts, the post office, education and public service would all see wages and job cuts.
Medicare and social security are already running deficits now. Also America pays 500 million dollars a DAY in interest payments to foreign countries.
So at this point we are stuck between a rock and a hard place. Where do we go from here?
What I have done in this economy. I have gotten out of debt and saved up an emergency fund. I have a 6 month plus food supply. I am purchasing silver one ounce coins. I have also prepared for a collapse of our power and water systems due to our aging infrastructure. According to the American society of Civil Engineers our infrastructure now requires 2.2 trillion dollars to bring our infrastructure up from a D rating to a B rating.
This is the state of the economy as I see it, and it is Bad.