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Thoughts and perspectives

by Jack Schroeder
| February 18, 2010 11:00 PM

A couple of catchy phrases came to my attention this week, so I'll comment on each one of them as it relates to the condition of the economy. First, 'It's Greek to me'...'The buck stops here'...' You Gotta keep in it for the long haul'...The jig is up'...'Taxation without representation is tyranny'...'There's light at the end of the tunnel'.

If you're not familiar with the monetary crisis that has started in Athens, you should be, but the crisis could expand to Ireland, Spain, Great Britain and even here in the United States. Greece's debt is nearly 13 percent of its gross domestic product, and the other countries are about at the same level. The United States ratio is at 11.2 percent and the world is going to have to swallow some debt medicine to return the currencies to 'normal'.

I'm not going to discuss the dollar situation here. Frankly, the dollar strengthens when the Euro declines and this situation is with us at this juncture. Bottom line is that there is too much debt out there and we are looking in this country to increase it. It shouldn't be Greek to you, but apparently, the message is not clear.

'The buck stops here' is a very appropriate phrase at this point. There are no more bucks. Our bucks disappear faster than we earn them, so how long does that last? Confidentially, not much longer. The debt and dollar bubble, along with the foreclosure, housing, unemployment and banking bubble are all lining up for a big bang. Don't listen to the rhetoric that the economy is on the upswing and the recession is over, it's all a myth and 'the buck' literally has ground to a halt. Theoretically, 'the jig is up'. We are about out of time. That second recession, that I talked about last year could be right around the corner.

Following the thinking about staying in it for the long haul, I heard that in 1985, and stayed long enough to realize that the 'long haul' can't happen. Frankly, in my opinion, unless we make major changes in the way we run our economy, staying in it 'For the long haul' is a Wall Street myth that has very little merit. Check your 401K, retirement account and your newest CD rate for verification.

'Taxation without representation is tryanny'. Frankly, taxation WITH representation is worse. As I wrote in previous articles, the debt is so high and soaring, where do you think the money is going to come from to pay down the debt. Taxes....taxes....taxes. More taxes mean less money to spend, means less consumption, additional jobs going by the wayside, housing slipping further...yes, we are not at the bottom of the housing situation. I suggested in the past few weeks and as early as last May that China would not continue to fund our out-of-control spending, and it was reported this week that China has 'unloaded' some of our notes to Japan.

So, is there a light at the end of the tunnel? My seminar for next Thursday is filled. I have several spots open on Wednesday evening and have scheduled an additional seminar for the following Thursday, March 4. Call the 888 number on this page to reserve space. The light at the end of the tunnel is yours to see. Protect your assets and take control of your retirement. Create your own bailout and don't let anyone steal your retirement. See you next week.

Jack Schroeder is a licensed insurance agent in Idaho and Washington. Seminar information is in an ad on this page. He can also be reached in Post Falls at 773-2507