Friday, July 8, 2011

Since this blog has no particular focus, I am going to shake things up and talk about the rather dull topic of....


Money. Jobs. Debt Ceilings. You've heard it, or rather, you've tried to ignore it. There is an approaching deadline in August that is the equivalent for the US of the "due date" on your own Visa card bill. The date by which, if you don't pay, you will enter the "default". Your interest rates will go up. You will incur additional fees. The credit gurus will see you as a risk and from here on out, every time you try to finance a car or house or education, it will cost you more and it will come from less reputable people.

Our government has reached that place. We can't pay our bills anymore. And we've got 3 weeks to figure it out. If this were my house - it is time to:

1. Cancel the cable
2. Cut the cell coverage
3. Go thru the old jewelry
4. Sell a car
5. Eat beans and rice
6. Consider a smaller house
7. Look for another job

Just some of Mara's ideas for the inside the beltway crowd.

Moreover, this morning, the most recent job report confirmed what a lot of employees who work for private companies know - there are no jobs. Companies are not hiring, and I hate to be Debbie Downer, but layoffs are coming (next week in the case of my own personal employer). I believe that a lot of companies have tightened the belt. They've tried to make small and effective changes (like swapping out your daily doughnut for a egg white omelet) and while those changes have had an impact it isn't enough fast enough. The problem remains that no money is being made. There is no business. More cuts have to take place. And that means, people. That means jobs. That means more unemployment, less growth and ramifications across the spectrum of the US economy.

Tough love people. We can't continue to think that the US Government is making it easier or better or is going to provide for us. They just can't do it anymore. It is time for the restrictions that are preventing businesses to do business be lifted, cut discretionary spending and realize that retirement is something that you are not entitled to and that it is only going to happen if you save for it.

I stand down.

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