- B- business: Clearly we have reached a point in our history of great uncertainty. This wreaks havoc on business leadership. Taxes, new regulation by the Federal Government, and states looking for more money creates an undertow that shakes the foundation. Businesses are shedding jobs and holding cash. This is problem #1. Government must step back and provide business leaders with certainty for planning.
- I- inflation: Watch the inflation rate. Inflation makes your money worth less today than it was yesterday. Driven either by the fact that the world doesn't want our currency or that there are better alternatives. Inflation comes when you have too many dollars chasing too few goods. Take a look at Germany in the 1930s or Brazil in the 1990s to know what hyper-inflation can do. The Federal Reserve is going to need to raise interest rates. This attracts the dollars of foreign investors to long term investments and not goods.. Plan ahead, it's coming. Take a look at food prices!
- G- government: Look out for well meaning bureaucrats. These are the guys who believe they are smarter than and able to control the global economy. New tax rates, and new ways to 'borrow' your money and re-distribute could signal future doom. Overspending, overreaching and under achieving are all concerns we must have because of the power we have vested in the government. Stop the spending, reduce regulation so we can be competitive, remember we are an exceptional nation.
Most of all get involved. Learn about the economy, know the difference between economic models. Choose a side based on knowledge not based on the opinions of others.
Alea Jacta Est
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