The Economic Future of the United States

As a senior citizen living on my savings, investments and Social Security I spent a lot of time thinking about how best to invest my savings and retirement funds to insure that it will last a lifetime. I listen to the “talking heads” on the financial channels, I read the Investors Business Daily, Forbes, the Wall Street Journal, various financial newsletters and have engaged financial consultants for advice , etc, etc. etc.

While each of these sources can always find a reason the market went up or the market went down after the fact, I have yet to find one who spends much time on trying to analyze where the nation and its financial future is headed. Other than those predicting the bankruptcy of Social Security system. Even those that predict the failure of Social Security cannot come up with a reasonable solution that Washington will support.

So I have taken it on myself to come up with my own prediction of the future of the economic health of our nation and what kind of future my children and grandchildren will have to face.

Greed and Power has the potential of our downfall. Our own desire to get the cheapest goods is in itself a form of greed. Because it overlooks the fact that in our quest to have more for less, some one must pay the price. In this case, it is often our neighbor’s job that pays the price, as it is lost to a foreign nation. The greed of corporate CEOs’ to take home the biggest paycheck possible, even though a family can live very, very ,very well on one or two million dollars. Even when they fail they get outrageous golden parachutes. The Greed for Power that our two political parties thrive on, that overwhelms rational decision making by our elected leaders. Forcing our elected leaders to become politicians rather than statesmen that should be making decisions for the betterment of our nation and its future generations of citizens. Seeking not what may be best for the future, but rather what is best for holding onto power for the next election. This in itself creates and environment of shortsighted appeasement to keep the masses voting for them, regardless of whether or not the voters are citizens of this nation. It never ceases to amaze me how quickly ordinary citizens once elected to office can forget where they came from and who they represent. Also, how arrogant they can become, thinking they are special people of privilege.

I am reminded of a time when you got your boarding pass for air travel at the gate kiosk . I was standing in a long line and many of us had waited patiently to get our passes, When I got to the front of the line, a big well dressed man cut in front of all of us. He was greeted by the girl at the counter; “Good Morning Senator“ she said. He got his pass and turned around just in front of me. I said “you must be a politician”, He replied “I prefer Statesman”. To which I replied, “No a statesman would have waited in line for his turn and not crowded in front of all of us, you’re a politician”. He started to say something, but stopped ,when all the other passengers started to applaud. He turned away embarrassed. Perhaps I should not have said what I did, but sometimes someone needs to remind elected leaders that they are after all only people like us.



How did we come to this?

We need to change, to step back from the television set, go back a few years and remember what our nation used to be like. Change the paradigm of our thinking and the way we choose to live. It is after all human nature to want to improve our lives and to succeed, but its time to redefine success. Madison Avenue advertising has played such an important roll in our lives, convincing us that success is, bigger ,it’s better, it’s thinner, it’s prettier , etc., etc. Bigger cars, bigger houses, more stuff, and more stuff, things you just cannot live without. From weight loss programs, to condoms, to hairspray, hairdryers, TV’s to CD’s, pills for diseases you did not even know you had. Television and now the internet have played such an important role in defining us. Putting us all in categories,. That identifies us as Liberals, Conservatives, Hispanic, Blue Collar, White collar, seniors, Consumers....., so on and so on. Making us feel like failures if we do not have a big house, or a big car or several TV’s and the latest gismo or gadget. Madison Avenue has done a great job helping to create the greatest consumer nation in the history of the world. There success has even a greater effect on our choice of leaders that we as a people choose vote for. For a candidate to be elected he/she must meet the beauty standard set by Madison Avenue. If you watched the political debates, you could not help but notice that the people running the show ignored the small skinny little people. If the candidate was a bit homely or soft-spoken, he did not have a chance, even if he had great ideas, and made perfect sense. President Lincoln, or Truman would never have made it to the White House today.

So what does this all mean?

It tells us we as American’s are letting others tell us what we like, what we don’t like, how we should look, how we should talk, how we should vote. We are allowing others to set their standard for our own self image and thinking . As Rush Limbaugh says “ I’ll do the thinking for you.” Great, just what we needed, another person to do our thinking for us. We need to step out of the box, and start to think for ourselves. Get out of the herd mentality, don't be a lemming following the herd over the cliff.

Face the facts; we are a people told how to think not only by the news media and Madison Avenue advertisements, but also by Washington. Spin is everywhere. Politically correct is a must. We lost our own sense of success and what it means to be an American. Independent, and Self reliant . However, we are told what it means, Open Boarders, Free health care, lawsuits are good, they protect you from your neighbor, (not to mention making the lawyers rich) Speak any language you want we will find someone to teach your kid in Ebonics, or Farsi or whatever you speak. It does not matter that you can’t understand what your neighbor is saying.

No, it is time to put our own citizens first in line our own nation. It is good to help other countries and as an American, I would not want it any other way. However, never at the expense of my fellow Americans.









The world consumes approx 26 billion bbl of oil a day now, but we only discover 6 billion bbl a day. The two most populous nations on earth have embarked on major economic expansion that has for several years greatly outstripped the US rate of growth. This has resulted in a huge increase in the demand for energy to feed their economic expansion.

We have not built a new refinery in the US in well over thirty years. EPA regulation and the public refusal to keep them out of their backyard insure that this situation will not change. Environmentalist fight tooth and nail to keep us from drilling in Artic wildlife preserve. The auto industry loves the Profit in the SUV’s since the fall under the truck classification and do not have to meet the EPA mileage standards set of cars. Now find themselves far behind in producing small fuel efficient cars.

Bottom Line the Days of cheap fuel is over. Forget it; plan on paying $4 to $5 a gallon for gas, and in the future look for $8 to $10 a gallon. In addition, when it gets scarce do not be surprised if the government increases the gas tax rapidly just to just to make up any savings you may have from using less gas. After all the Government needs that money to repair all the highways and bridges, that are in disrepair. Don’t they? Build the most energy efficient home possible because you may find yourself forced to choose between eating and paying the heating bill. You know you have to eat.

Yes the days of cheap oil is over the only person that predicted oil to reach a hundred dollars a barrel, was Stephen Leeb, PhD in his 2004 book “The Oil Factor”. People laughed and said that was crazy and call him the $100 a barrel man. Well now that oil is well over $100 a barrel and heading north to higher ground, they are not laughing now. Fortunately, I believed him and bought a few shares of oil stocks.

But just what does this mean? Dr Leeb brought to light in his 2004 book that we have reached “peak oil”. That means we have used up half the worlds supply of oil.

Now, even if we have not reached the point of half way, we know that the oil that is left is harder to get out of the earth, and will cost much more to bring to market for our use. So clearly gas will go higher and higher. Oh sure there will be ups and downs and when it goes down our leaders will again ignore the obvious peak oil views.

Hyper inflation is here now and it could continue for the next decade. Today, trucks that get at best 6 miles per gallon deliver everything we need to live. Oil is the commodity that provides for tires, asphalt. Plastic, fertilizer, carpet, nylon, fuel oil, and gas, thousands upon thousands of products made from oil. Not just, fuel for our cars or power plants.

Outsourcing is a polite way to say we have found a person in another country who will do your job for less. And we don’t have to contribute to Social Security, provide health Insurance or Retirement benefits or buy Worker’s Comp Insurance, pay property tax or state taxes etc, etc, etc. ( so why is SS under funded? Alternatively, 15% of Americans without Health insurance?)

Outsourcing not only takes American jobs but also provides American dollars to foreign companies that can now buy the same companies that they were contracting with.


While leads me to the next topic. And who can blame America‘s Corporations, of all the countries in the world we rank 133rd least friendly tax wise country in which to do business. In other words, there are 132 nations in this world with a better business tax structure than the United States. The United States is not the most business friendly nation in the world in which to do business. Not only do we compete with other countries, our states compete among themselves to lure business to their state from another state. Offering large tax insensitive to companies at the taxpayer’s expense. The cities in states they leave behind are left with rusting plants, unused schools, foreclosed homes, high unemployment, uninsured families and more welfare for the local taxpayer to pick up. It would be nice if the corporate tax structure were level from state to state. It is too much to hope that they would ever be equal nation to nation.





We are creating our own competitors. Boeing is joint venturing with China to build aircraft. One of the nation’s greatest exporters and great defense companies need I say more. IBM is has sold their PC division to the Chinese. Dirt Devil the little red vacuums so popular was once a great little company that employed several hundred people in the Cleveland area. That is until that outsourced the assembly of their vacuums Now the outsource assembler owns Dirt Devil. Not only will they continue to take American jobs but also they will soon own the same companies that once contracted with to make the American company’s product. Soon China, India, Taiwan Korea etc will be our major competitors on the world market and because of their low wages taxes etc they will win and the American worker will pay the price. In addition, America’s wealth will erode, nations true wealth lies in ability to create good that humankind needs. That is what makes the dollar a desirable currency. However, have you noticed the dollar continues to decline in value on the world market? We once were the breadbasket for the world; today we import more food than we export. We once had the greatest auto industry in the world. Now over 35% of all autos sold in the US are foreign owned companies. Those Americans fortunate enough to hold onto good paying jobs will end up paying more to support those of us unable to support ourselves making your beds and flipping your burgers.



Now remember I talked about Hyper Inflation as these nations continue to develop their industrial capacity, the competition for the raw commodities will grow greater and greater, pushing the cost of the materials needed to fuel our remaining industries higher and higher. Thus forcing these same companies to move to those countries with the lowest wages to stay profitable. As this process unfolds, we will be forced to buy more and more imports thus continuing to increase the trade deficit and reducing the value of the dollar.

There are many events that are coming together, that will challenge our future.

The retirement of 73 million baby boomers

Peak Oil

Mortgage Meltdown

Unemployment

War

Illegal Immigration

Drug wars

Social Security

National Debt

Health Care

Overflowing prisons

Crumbling Understructure



What we need to do

The future does not have to be as gloomy as I have described above. We can have a very bright future. Imagine a place where hi speed trains crisscross the nation moving people at 200 mph. Where electric cars fill the highways and air is clean and free of pollution.

Where power is generated by the wind and solar panels on homes, and offices, and coal burns clean and can be used to generate all the energy we need to heat our homes and factories. Where good paying jobs are plentiful in the alternative energy field and rebuilding our nations understructure. Where schools are graduating, Engineers, Doctors, Scientist, Programmers, and all kinds of technicians to support new industries and research .

However, it will require leadership, the kind of leadership that this nation as not seen for years. Not just in the White House, but also in the Senate, and the House of Representatives as well. In city council’s, county governments and state houses, everywhere. No matter who we elect as our next President, he can’t do it alone. He will need wisdom, foresight, and the support of the American people.

I have made my list of things to do: make your own and add to it if you think, I have missed something.


1. I am tired of hearing that the IMMIGRATION LAWS are broken. They are NOT BROKEN; they are just not being enforced. We have laws to allow immigrants into this country to work, use them. If you tell a lie long, enough it becomes the truth.

2. Its time for us to get on the fast track to energy independence. Renew tax credits for home solar systems, and energy updates of any kind. We give tax breaks for the oil companies, why not the citizens of this nation.


3. Mandate higher mileage requirements for our autos. Europe all ready gets better mileage than congress has mandated for 2015 requirements. Europe averages 42 mpg now.

4. Increase, funding for research in the all fields of alternative energy. By Massive amounts. We spend more in 40 hours in Iraq than we spent in all of 2007 on energy research.


5. Stop all Pork Barrel spending. Do not allow earmarks to any bill that requires funding without at least 3 days prior to voting on it, thus allowing a complete review by all elected officials and the office of the budget. Never allow earmarks added to bills that don’t have anything to do with the primary purpose of the bill to be voted on.

6. Hold any employer responsible for the medical bills resulting from the employ of illegal aliens using hospitals. Other companies have to provide medical insurance for their employees. We should not have to subsidize these employers of illegal aliens.

7. Corporations are not people, the Supreme Court need to review that fact. And not allow corporations to donate anymore than an individual person can to a candidate.

8. All campaign funds must be raised within the state, district, city in which he/she is running to represent. The Office of president the only exception.

9. Close the boarder, what ever it takes.

10. No federal funds to any government ,state, county or city that does not enforce federal laws.

11. make a concentrated effort similar to the 1960’s to increase the number of engineers and scientist in our nations schools.

12. Do not allow anyone other than natural citizens to work in our most secure scientific labs.

13. Do Not vote for anyone that has served more than two terms. Pay the congress and senate minimal wage. And see how long they would “serve” their nation.

14. Require a balanced budget.

15. Stop being the worlds policeman. Mind our own business. Look at all the money we would save.

16. Mandate that English is the national language, and require it in all schools, immerse our children in English. Abraham Lincoln once said a house divided could not stand. He was talking about the Northern states and the Southern states, but the same holds true for language, and nation of multiple languages is in danger of collapse.

17. Let’s get our own nations problems fixed and debts paid first, before we start spending more money on trying to fix other nations problems.



Well you can see where this is going. So add your suggestions and carry on.

Start now, writing your congressman, senator, and letting them know how you feel. Take back our government to the people of this nation. Keep track of what your city council is doing, your county government , and make sure you vote for honest people of principle. Above all, Be Active, VOTE





By Robert T Hayes