We are far from out of the recession unfortunately

Trying my best to stay afloat.

-Ryan

First, populations of the great consuming nations are aging. As people age we tend to spend less. We keep the car and the appliances a few years longer. We trade down or shut down parts of the house that are no longer in use.

Additionally, the debt burdens (taxes and personal debt) is significantly higher and income significantly lower of the generations following the Boomers.

The economies of the great consuming nations are contracting and will continue to contract simply because fewer people earning fewer dollars spend less.

Secondly, our business and economic models are all based on the inaccurate assumption of scarcity. Recessions don’t occur because of a scarcity of goods and services. Recessions are the result of a vast abundance of goods and services for which there are no buyers.

Third is that power is no longer vested in the nation state but to corporations absent any loyalty to any flag, save their own. We are in fact, regressing to a form of feudalism known as corporatism. Think of this as the Golden Rule, He who has the gold, rules. Nation-states are broke or bankrupt. Successful corporations are self-financing and as a result self-sustaining.

As a direct result of this power shift, economic policy of nation-states is designed to benefit the largest economic interests as opposed to the People’s interest.

Perhaps the best recent real world example is health care reform (HCR). By now most employees have received notice of this year’s increase in health insurance premiums and copays. These increases were negotiated by your employer and your health insurance provider.

Neither you or anybody representing your interest was anywhere near the room when the deal was cut and YOUR money was spent. According to Senator Dodd, HCR, such as it is, is now officially on hold. Speaker Pelosi announced Friday that she doesn’t have the votes to pass the watered down Senate bill.

For those reasons, the economy is contracting due to demographics, inaccurate assumptions in economic modeling and the power shift from nation-state to corporate governance; this recession will not end in the lifetimes of the Boomer Generation.

Frankly, I see it getting worse before it gets worse.

Everything else, from the Energy Crisis now in it’s 37th year, to currency devaluation to the credit crunch is merely a symptom of one of the above primary causes.

That my friends is an anecdotal narrative. I’m quite able to back it up if challenged.