When you look at the water in the ocean to go swimming it looks peaceful but when you get into the water there is an undertow that pulls you out can even drown you.
Why do I state this, to me it’s a metaphor of what’s happening with the economics of the United States and especially the stock market.
At the present time things seem good, even though in the past several days the US stock market has fallen.
The UNITED STATES in its wisdom (stupidity) is laying off government staff thinking that it will reduce the debt. Looks good on paper unfortunately in real life it’s a disaster. Why do I say that? You taking money away from the people who buy stocks and goods and services. Less money in circulation at a time when the consumer is having trouble to pay its bills. What do you think is going to happen if the government workers can’t pay their bills. Will they stop buying because they have to conserve their money and those in the stock market have to sell. Do you think that maybe the stock market will go down? Do you think that maybe buying of goods and services will go down? Do you think That the lack ofbuying of goods and services by ex government employees will be hurt the economy? Do you think that maybe non-government employment will go down for the lack of purchasing by ex- government employees?
Is it possible that that we in the UNITED STATES face a 10 to 20% unemployment rate?
Is it possible that there will be a major shortfall of tax revenues making the American deficit will get even worse then it is right now?
Do you think maybe laying off government employees is a very slippery slope?
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