The Economic Forecast is Grim, But Has Glimmers of Hope: The Next Seven Years

2010 – The world has come to a dead halt. Conditions will be similar to that of the depression of the late 1920’s and early 1930’s.

2011 – A sad continuation of a dreary 2010, however things are starting to look up.

2012 – Elections will be strained, as the world looks to a new world leader to pull out of the muck Bush has messed up the world with, but the fate of the worldwide economy will here depend on the people.

2013 – This is almost entirely dependent on the know-how of the president. Although no major changes, however minor or life altering can really take effect until about late 2013 and early 2014.

2014 – Again the fate of the economy rests upon the shoulders of the president at the time, along with the people. As long as the president does not make the historically proven mistake… FDR during the Great Depression helped us get out of it by developing the WPA, employing thousands, and recirculating money through massive government spending, relying on the future surplus to make up for the temporary deficit. When things began to look up, his Republican colleagues suggested to decrease government spending. In response, the economy re-doubled downwards and unemployment spiked yet again. He ignored them for the rest of the depression, which ended ultimately with WWII.

2015 – The horrible storm of strain and hard times appears to be clearing – but are those clouds in the distance predictable? – Presidential cause.

Because the US is such a factor in almost everyone’s daily life, this means that the world should brace itself for a severe depression.

2012 and 2014 – Here I state that the fate will depend on the people. By this, I mean that it will depend on the individual more than the corporations. The times will be hard and money will be stretched more thin than paper, but should the average consumer spend more, or at least comparably to the times, it will allow the forecast to be much less bleak. This is possible because of a strange fact about the Stock Market. The way it works is, if there is a substantial amount of money being spent, the NYSE assumes that they can spend it, assuming that they have more, assumes that they can then use that other money. There is a lot of assumption, but it has not failed since it was created. It is fueled by, however the illusion is made, consumer confidence. Create this illusion, and everything clears up extremely quickly.

To look at it frankly, it is too late to change the outcome until about late 2010 or so. The US is like a wagon rolling down a hill, carrying its passengers the world economy and the other countries. It has been pushed off of the top of the hill, and it is now steadily gaining momentum. At this point, all we can really do in the next couple of years is steer to avoid trees and boulders.

Although this is something quite major, there is nothing you can really change except realizing the upcoming storm and boarding up your windows, stocking up, and holding out. Keep your savings, don’t splurge quite so much, but when the double-digit endyear numbers roll around, don’t be liberal, but roll back the curtain. Give the economy a tease of what has been during the good times and show them the world will live through it because every individual still has something – themselves.