I believe debt is the big problem. Too much debt can easily get us into trouble, be it personal, business or government. The U.S. govt. was able to borrow in the past at a rate that seemed to be a bit irresponsible, but the last year’s rate is downright scary! I hope we have not borrowed past the point of no return.

The Fed will let the Dollar to be devalued so we can pay foreign investors off with cheaper Dollars. They say they won’t, but they do nothing to keep it from falling.

The manufacturing graph is a tell tale sign as is part time employment. As we become more and more of a consumer driven economy and less of a manufacturing one. It is harder to pull ourselves out of a recession since we now make less stuff. And much of that stuff is to expensive in the world. We become less and less competitive in the world. A cheap Dollar helps exports but causes imported energy to cost more. Trade deficit increased last month with higher crude prices on a weaker Dollar.

If you want to see some interesting charts, check out this article I posted today that my brother wrote on his economic views. I hope he is wrong but there are some really negative looking numbers. http://64.26.31.193:83/blog/wp-admin/post.php?action=edit&post=725
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