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Economic Turmoil – Why?

Posted on Thursday, December 9, 2021
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by AMAC, Robert B. Charles
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economy

When will this turmoil stop? When national leaders are elected, they appreciate that we appreciate stability, work, freedom, and control over our own decisions and destiny.

Economists are great at predicting the past, not so the future. We just got a terrible jobs report, worst all year – yet unemployment remains mysteriously low. Economists thought jobs would be higher. Likewise, we have exploding inflation, energy to everything. Then we also have Omicron. What does it all mean? Where is the turmoil coming from, where does it lead, and when does it end?

Here are some thoughts. Economists, like the rest of us, like predictability. Except for speculators, who like volatility, most of us – consumers, families, retirees, businesses, investors, financiers, and producers prefer predictability. But we do not have it. Why not?

Unpacking, here are the answers.

First, where is the turmoil coming from? Latest jobs report showed just 200,000 jobs created, far removed from economists’ higher predictions. Why did that happen?

The biggest reason is the uncertainty created by the US government. Ironically, the government is supposed to stabilize and reassure, not spur doubt. Yet, the government is creating doubt.

At a time when businesses large and small need running room to recover from the original COVID hit, the federal government has put a federal vaccination mandate in place – across all states and sectors.

The mandate flies in the face of constitutional law – which multiple courts are ruling and triggered unnecessary pullback on investment, hiring, and recovery. Instead of confidence, it spurred resentment, resignations, premature retirements, difficulties in recruiting, and retarded growth.

Add to this hyping of the Omicron variant on COVID. That scared people. The government could have tamped down fears, as clinic data suggest this variant is milder, but they did not do that.

They did the reverse. They put mass travel and commercial restrictions in place, depressing international trade, disrupted stumbling supply chains, caused markets to shiver, fall. That seems unnecessary.

Why else were the jobs report dismal? Because federal spending is out of control, Biden and Congress are stuck on full throttle, at a time when few have extra money, inflation and energy shortages threaten individual solvency, and what is being legislated – and spent on – is often unnecessary.

So, businesses – with 60 to 80 percent small, state by state – are not in a position to risk hiring, especially when consumers are doubtful and pinched, investments costs rising, fear for the future widening.

Second, where does this lead? The answer to this one is harder. If the “Build Back Better” overspending bill, which concentrates more power in the federal government, fails – there is slower spending. If a yearlong continuing resolution – or level appropriations pass – that offers a breather.

But if the Democrat-led Congress and White House stay on a spending spree, inflation will keep rising, triggering increased interest rates, which again slows growth – even if it trims inflation in coming years.

If any major world shock – to energy, national security, global stability, health, or some other major input to economic growth – is hit, there is little margin for recovery, which means a chance of recession.

All this is happening against the backdrop of a nearly$30-trillion-dollar national debt, rising fears – fanned by national leaders and media – over a new COVID variant, and a coming political year.

So, with a return to basic economic sanity, a sense that revenues and spending must balance, understanding that higher taxes do not work in a struggling economy, where job growth is tenuous, labor market shrinking, and federal mandates growing, there would be hope.

Average Americans do understand basic economics since they must make ends meet, work, plan, and so appreciate stability and predictability, as much as any sensible national economic thinker. But if Democrats keep spending and a handful of Republicans go along, the impact will be more uncertain.

Finally, when does it end? If you read big fat economic textbooks or Harvard Business School case studies, they might point you to business cycles, historical trends and make a prediction. But fat books often get it wrong.

When will this turmoil stop? When national leaders are elected, they appreciate that we appreciate stability, work, freedom, and control over our own decisions and destiny. That could be sooner or later, but with the flood of Democrats retiring, economic tremors afoot, 2022 looks increasingly the answer.

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Martin Plecki
Martin Plecki
2 years ago

Is this article perfectly correct? Probably not. Is it pretty close. Yes. Which points the finger at Democrats in charge. They have no solutions that really help people. All I see them doing is creating policies to subjugate US citizens and spend money to buy votes.

Eddie Van Halen
Eddie Van Halen
2 years ago

Martin – I agree with your posting. One more “log on the fire” –
The ( D ) communists have only 4 main tenets –
TAX
SPEND
LIE
CONTROL ( of every aspect in our lives )

ops
ops
2 years ago

Democrats are not problem solvers, but problem creators to increase the size of Government and to beat the American people into submission as with Covid mandates etc.All about Government control from cradle to grave!

Stephen Russell
Stephen Russell
2 years ago

Its from: Inflation, supply chain, spending BUT DemsDO Zero for ALL

SusanC
SusanC
2 years ago

I just read an article featuring an Irish economist. She posited the question “when will the pandemic end?” Then she answered it with this. It will end when the digital currency system is in place. That answers the question of why the governments of the world are insisting everyone on the planet get vaccinated. They will convert the vaccine passport into a digital currency wallet. At that point they own us. She suggested the only way to keep this from happening is to continue to resist.
Just something to ponder, but you have to admit, it makes sense.

Rodney Ernst
Rodney Ernst
2 years ago

Agree with all answers I see. But now we have the mid-terms next. Then 2024. We all need to stop electing the same goons back in just because they may be friends, scratch my back, I’ll scratch yours. The Democrats love this mess as a smoke screen to sneak in some form of legislation to voting. Another rigged set up is coming. Be vigilant.

Mary
Mary
2 years ago

This is a big shock..the moment that Communist limp feeble geezer set foot in the White House, our problems began again after we had finally rid ourselves of that Communist pompous bull **it artist who was in from 2008-2016. We as true Non-Communist American Patriots were finally seeing a change for the better from 2016-2020 with President Trump.

Fasten your seatbelts true Patriots, we are in for another meltdown and to the Non-Patriots in this country, do us a favor and get the hell out!

Go Brandon! MAGA!

gin
gin
2 years ago

Read chapter four of David Jeremiah’s book, where do we go from here. It will answer the questions about where the world is headed financially. God is the only one who can save us. But many will keep thinking some human can do it and that’s when the antichrist comes on the scene. To avoid that awful time, ask Christ Jesus to save you from your sin. He wants to, but you have to ask. So many predictions are coming true that the time to the tribulation looks very short.

David Barksdale
David Barksdale
2 years ago

We The True American People are being Lied to and Lead Down The New Radicalized Far Left Demoncrat Socialist Path to Destruction, Every Passing Day !!!!! There seems to be no Appropriate Aggressive Push Back Against what is Happening every single day !!! With now three (3) years left there is No Doubt Our True America Will Cease To Exist !!!!
Wake Up America, We Are In Very, Very Serious, Grave and Dire Danger “Form Within” and From China, OBiden’s Ally !!!!!!

Enuf Said
Enuf Said
2 years ago

Look at it this way– as LONG as Buck Fiden and the Dim Wits continue down their chosen path– American people will NOT have the excuse to forget. The mid terms will probably be MORE important than the 2024 election– Why– because control of the House and Senate will already be determined after mid terms. In reality, I believe the Repugs will REGAIN both chambers–if ONLY one– then let it be the Senate, as that is where the Supreme court nominees are CHOSEN. ALL laws can be determined to be unconstitutional by the NINE ROBES.

RBart
RBart
2 years ago

Can you make sense of what is right of the picture and left of the ads in blue? Quality control AMAC

Becky
Becky
2 years ago

The government is deliberately, with forethought, foreplanning, and MALICE causing every bit of this instability.
They must collapse our government to go to Global Communism.
A whole lot of politicians deserve hanging, firing squads, and deportation to Communist countries WITHOUT any assets.
Those get returned to our Treasury.

Bill
Bill
2 years ago

It’s all about socialist democrat control along with the republican swamp agreeing with them.

Tim Toroian
Tim Toroian
2 years ago

You can’t declare martial law if there is no chaos. That’s how they will suspend the constitution and attempt to confiscate firearms.

Roger Davis
Roger Davis
2 years ago

Have you read Revelations recently? I just finished it again and now a CEO of Gab has predicted that Christians will not be able to open a new bank account or travel etc. And Newsum now wants to use state funds to provide travel and housing for those from other states to get an abortion here. Read Psalm 2 where first God laughs then gets angry. I can’t leave California so will keep praying for revivals which could change things. Also, as COVID was mentioned in this article it was reported that out of almost 800,000 deaths claimed to be from COVID-19 only a little over 600 of those were under the age of 17. And heart problems have been reported for those under 30 who received the Pfizer or Moderna vaccines. Hydroxychloroquine and Ivermectin seem to have helped some people who were infected with COVID but the FDA would not approve of these drugs for that purpose. The FDA did approve of the drug Remdesivir in 2020 but did not consult with a group of doctors first as has been the case for other new drugs. Some doctors questioned the quick approval of that drug. So what is going on here?

Hal
Hal
2 years ago

I can explain the economic turmoil in just a few words >>>> Joe Biden, Chuck Shumer, Nancy Pilos, Camel Hairs, Democrat Party, George Soros. A bunch more might fit well, but geez … my fingers would tire typing them out.

Dave Vigna
Dave Vigna
2 years ago

Good article. I would add that most of the turmoil would not have been possible if we had a federal government that did not have the power to cause it. We can put the federal government back in its limited authority box with a Convention of States. conventionofstates.com

Hal
Hal
2 years ago

Economic turmoil? Why? Joe Hidin’ Biden are overspending grossly and that means “high rates of inflation in the future … very high rates.” If you are stretching to get by economically in your personal finances, this crazy spending by the Biden Bozos is going to make it much, much worse, especially for low income people. And this just hastens the trend to creating a real Communistic rule for the Democrap Party to RULE the Nation. If the citizenry doesn’t wake up to what is going on post haste, we will slouch in to a Communistic form of governance that will be difficult to recover from.

BAE
BAE
2 years ago

Because of j. biden. The economic turmoil will never stop as long as the uninformed silly democrats terrible administration and its out of touch leader are in charge. Scary!!!

Barb304
Barb304
2 years ago

I pray God blesses us and carries us through these triulations as unscathed as possibly. GOD BLESS AMERICA

Hal
Hal
2 years ago

Economic Turmoil?….Why? Who would have ever guessed it? ANSWER: JOE HIDIN’ BIDEN & THE DEMOCRAP NITWITS PELOSI, SCHUMER, AOC, CAMELHAIRS, …… ET. AL.

Helena, Montana / November 3, 2020: Woman election official directing voter where to park and vote, man in vehicle holding ballot, voting from car outside polling station, poll worker
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