Consider the Economic Situation We’re In

Some say another collapse is soon to come, others praise the approaching uptrend of commerce and opportunity, but the truth .. is about the situation we’re already in.

The United States Federal Reserve sets monetary policy for the nation. They have  had interest rates at 0% for many years. The Fed has also been dumping a ton of cash into the markets to create liquidity – but why?

When an economy is struggling, some economists believe that the best remedy is to create a credit-friendly economy. Within limits, credit creates opportunity and the interest creates profits. Those profits create more money and the cycle perpetuates – or so the fable goes.

What happens when no one can take on any more credit? What happens when 0% isn’t low enough? What happens when liquidity can’t propel an economy and another recession is due? Welcome to 2015 – and the federal reserve has nothing left to give.

It is possible that we are about to experience the depression that the Obama recession was intended to prevent.

What proof is there that such a calamity may strike? Well, there is financial news that the MSM doesn’t share with you:

There are more.. but Americans are being fed a steady diet of “everything’s getting better” to create a “happy place” so that U.S. citizens will take out more debt and buy more stuff – WHY???

If the American consumer shuts down – down goes the world. Without Americans buying semi-broken Chinese furniture and accessories from Wal-Mart – the Chinese would suffer.

If U.S. consumers no longer needed Levi jeans made in Mexico or fruit from Central America – those nations would suffer.

Trade deals we have negotiated and some under negotiation now seek to even the playing field – for those other nations. American will be lowered to the norm and they will be raised towards it. Bad for us, good for them.

It’s all about leveling the playing field – for them. At some point, isn’t access to the American market worth a premium?

What Obama and some before him have failed to understand is that America must negotiate trade from strength because we are strong. Once we stop acting that way, we will be as weak as nations we bargain with.

Before long, the U.S.A will be just as weak as those she bargains with – and now, the central bankers have no tools left to fix it.

Rich Mitchell

Rich Mitchell is the editor-in-chief of Conservative Daily News and the president of Bald Eagle Media, LLC. His posts may contain opinions that are his own and are not necessarily shared by Bald Eagle Media, CDN, staff or .. much of anyone else. Find him on twitter, facebook and GETTR

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