I'll tell you the problem and why I'm behind GOP efforts to address a reckless fiscal policy that has our country on the path to slow growth, rising unemployment, which will reduce income for all Americans.
Right now, the country is spending more than it makes. Our debt has exceeded our GDP for the first time since WWII.
While disputed by free-spending left wingers, numerous studies point to a direct relationship
between high government debt levels and slower economic growth.
A slowdown in economic growth may not sound like a big deal, but over time
it means that Americans in the coming decades will be a lot poorer than they
would have been.
According to this analysis, the average American worker will give up $12,000
over the next two decades by just a 1% decline in GDP.
http://reason.com/archives/2013/10/11/the-morning-after-americas-debt-binge
The country needs to take some stiff medicine now, including major cuts to
entitlement programs, raising the retirement age and making stiff cuts to other
government spending. The pain should be shared with all to protect future generations.
Corporations do this all the time to weather cyclical downturns and avoid bankruptcy.
As for my investment decision making, I've been lightening up holdings and increasing
cash accounts. Market 50%, Matress 50%. I still believe equity markets are FED driven,
and the central bank shows few signs of turning off the free Money spigot.
I say poor fiscal policy and poor monetary policy. Surging debt load and nonstop money
being printed spells trouble ahead. When China starts demanding more interest to buy our debt,
the huge downward spiral begins.
