Friday, July 3, 2009

Trade deficit between the US and China

Trying to figure out this stock market is very hard to do with so many different views out there to try to sift through and come up with your own view. If I had to list 5 major issues facing the US economy over the next few years I would have to these 5 (which I don't have in my head yet but will by the end of this blog) things need to be addressed...

1.Trade deficit with China is not sustainable and the US needs to get its manufacturing base back which would create jobs here in the US and we need to consciously try to buy American whenever possible.
2.The Great Unwinding of credit: the consumer is hurting bad.I am glad that the savings rates have gone up as I feel that people are unwinding there debt but it's going to be a long haul as it has been years of an economy built on credit....now that the credit is gone its going to be a while before we recover.
3.Unemployment: When you add this into the picture it just makes it that much harder to unwind the debt of America's middle class.
4.Healthcare: I believe that a huge percentage of bankruptsies (around 60%) are due to medical bills and a huge percentage of these people had a policy but was not enough to stop the financial ruin.We need major reform in this area as the current system is unsustainable.
5.Political : We need campaign finance reform...the current system of a congress controlled by the Wealthy lobbying efforts of big corporations cannot be let to continue on like this....they corrupt politicians who end up supporting things that are not in our best interest but in the interest of campaign contributions and efforts to help them get re-elected.

2 comments:

  1. Did you ever read Crashproof by Peter Schiff? It talks about the trade deficit, great reaD AND REALLY SCARY STUFF

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  2. I am not a big fan of Peter Schiff....he was right about the recession and gold but going forward I do not share is negative views

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