The American economy is starting its implosion. Here are the details:
1. GDP is declining.
2. Velocity of money is declining even as money supply grows.
3. Government spending is declining.
4. Real estate is imploding from the higher interest rates.
5. Refinancing is down some 70%.
6. Mortgage rates at 5.75% (average). Affordability now a problem!
7. Stock market is volatile and could decline precipitously.
8. Home sales declining as inventories are growing.
9. Dollar value is increasing causing defaults within emerging nations (Argentina, Turkey, Vietnam, Brazil, etc.).
10. War situation in Ukraine will keep oil/gas prices up for now.
Conclusion: America's economy is starting to implode and this will lead to a huge economic depression by the end of 2022. The coming election situation in November could reveal the sentiment of American voters. My sense is that Biden and his Deep State is in serious trouble. But Trump's clan is also in trouble. This means Mob Rule for America and a deep depression on the horizon.
What is the current situation in the Ukraine War:
1. Biden and his policies are subsidizing the coffers of Ukraine so that the war can continue. Biden sends more war materials to Ukraine and his policies lead to the deaths of thousands of innocent Ukrainians.
2. Zelensky will accept the money (as of now) from the West and allow his citizens to DIE in the thousands.
3. Putin is willing to compromise but Biden/Zelensky will not accept Russia's security interests.
4. This means more WAR in the Ukraine with DEATHS growing for all sides. Shame on our decision-makers.
5. The Ukraine War is destined to lead to WW III at some point. Death is the mantra of the WEST (for now).
6. Russia is willing to compromise but the West and Zelensky refuse to accept Russian security interests and/or the progress (plan) of Russia to annex the Southern/Eastern portions of historical Ukraine.
7. The end result is more WAR, DEATH, DESTRUCTION. A nuclear outcome can be expected if this mindset of the West and the East continues.
Conclusion: As I write this missive Zelensky says he will reclaim all the territory lost to Russia. This means more war and more deaths. Russia will elevate its military program as Zelensky and his military do likewise. Russia can not back down and they have the military power to destroy Ukraine if they choose this option. Biden and Zelensky will discover this reality if current trends continue.
That is my viewpoint as of today. The American economy is heading for an implosion before the end of 2022. The Ukraine War is heading for a nuclear end-point as the mindset of both sides refuses COMPROMISE. Could all this change in the near future? This is possible! I HOPE for compromise!
I am: Donald B. Swenson, Economist/Philosopher, donaldswenson.blogspot.com and http://kingdomecon.wordpress.com.
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