Wednesday, June 20, 2012

U.S. Economy; What May Lie Ahead?

Moving forward, beyond politics and social issues, there are fundamental questions continuing to cloud and hover over the U.S. economy and require very serious and definitive answers:
  • Taxes; Can the U.S. effectively raise taxes in order to maintain revenues to the government via either income tax and / or national sales tax?
  • Interest Rates; Can the U.S. start raising interest rates in order to attract global capital while keeping a check on potential inflation?
  • Unemployment / Underemployment; Can the U.S. timely reduce unemployment by creating full-time private sector jobs as well as providing employment to part-time persons?
  • U.S. Dollar; How long can the U.S. Dollar maintain stability and sustainability and still remain as the global reserve currency?
  • States & Local Governments; Can various states and local governments overcome major hurdles and remain solvent while dealing with debt and deficits and not become similar to the current crisis among EU member states?
  • Gold & Silver; Continue to act as currencies and when the U.S. Dollar will be indexed or linked to some “gold standard”?
  • Stagflation; With the repeat of similar scenario in late 1970s, can the U.S. effectively regenerate its manufacturing and services industrial base with focus on meeting domestic demand while boosting exports?
  • Hyperinflation; How long does the Fed continue to undertake QE-3, QE-4 etc. and print money and debase the U.S. Dollar and jeopardize its balance sheet?
  •  Political & Legislative Gridlock; Can the U.S. Congress & the Executive Branch focus on bipartisan policies or continue "tug-of-war" between various factions or unite for greater cause rather than division?
  •  Wall Street; Stock markets appear to be manipulated by insiders, naked shorts and flash trades and do not reflect sound business and market fundamentals. When will Wall Street respect Main Street?

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