My sense is that the mid-term elections did not change the status quo for America. Our Congress may be mostly under the control of the Republicans (going forward) but this is unlikely to change our situation in any meaningful way...so that progress, growth, and peace can emerge. More polarization, dysfunction, and confusion is what I witness going forward.
America has many problems which can not be solved with an election. The voters do not desire to force real change as of yet. Most voters do not witness a problem (as of yet). As long as money flows to the masses and our economy fails to collapse, all will stay the same (mostly). But forces are at work to change the status quo later this year and next. The status quo will eventually change!
The Biden administration has no real support from the majority of American's (37% approval). My sense is that the Republicans also are not supported by a majority. This means dysfunction on all the important issues of politics. Our Debt situation needs to be dealt with. Our deficit situation needs to be dealt with. Our illegal border situation needs to be dealt with. And our social issues (including inflation) have no consensus (solution). Dysfunction is the result.
As I write the Dow Stock Index is down some 500 points. Interest rates are slowing the housing sector fast. People are defaulting on car loans. Soon there will be massive defaults on mortgage debt. In the commercial sector, the derivative time bomb is on edge. Some $600 + trillion in derivative debt could crash in 2023. Commercial real estate has serious problems. Office vacancy rates are excessive. Affordability has declined!
The war situation over in the Ukraine has no positive solution emerging (as of today). Putin is disliked but he, nonetheless, continues to escalate the situation with missiles and drones. The Ukraine military is trying to take back territory (with some success). But there is no consensus on a solution to this war situation. Both Putin and Zelenskyy refuse to talk or negotiate.
Europe could be in recession by the end of 2022. The same for Asia and Latin America. America could follow in 2023. As I write the inflation rate in Great Britain is over 10%. Similar for most of Europe. Interest rates continue to go up even as the world economy slows. When will the crash arrive? My sense is that it can not be far off.
Recession will lead to a greater depression (eventually) as our economy has experienced a huge BUBBLE for over a decade. Asset prices are excessive. Stock prices are excessive. Government securities have no stability. Japan (a continuing buyer of Treasuries) is now selling. I expect China and Germany to follow in 2023. This means the American dollar will decline in value and possibly disappear as the world reserve currency. Will this cause a Reset in world finance? I would think so!
Does it sound like America, Europe, Asia, Africa, or Latin America will bail anyone out? When America falls (in 2023) all the houses of cards will fall. I don't like to announce this reality but the numbers and the politics produce this negativity. See: www.usdebtclock.org for further evidence of our situation. What is needed? What should we now pursue for our world?
My sense is that we need a NEW MODEL for politics, economics, and for our social enterprise. Capitalism is essentially over. Communism can not work for the world system. Dictatorship does not work. Democracy produces mob rule. Religion has no answers. Science has no answers. Is there another Source which could intervene? My sense is YES.
A spiritual Source could and will intervene (at some point) IMO. Man is not in control of the bigger picture. We do have a Creator who could intervene. My hope is that this will happen at some point. The Kingdom Age is determined to emerge in our future. When this happens solutions will develop. As of today, however, there is NO solution to the big issues of life. We need a Higher Power to intervene. That is my view. Think for yourself.
I am: Donald B. Swenson, Economist/Philosopher, donaldswenson.blogspot.com. Also, http://kingdomecon.wordpress.com.
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