Friday, July 29, 2011

The Planned Recession


Financial experts are predicting a recession in 2013 based upon decisions which have already been made. In a sense, it's a recession which has been pre-scheduled.

This analysis is based on the following events:

1 - Tax rates go up when the so-called Bush tax rates expire in 2013.

2 - Tax rates go up higher as allowable deductions are trimmed back.

3 - Tax rates go up even higher as the government health care plan kicks in.

4 - Increasing business regulations and an anti-business press continue to stifle job creation and growth in the US.

5 - And if all this happens in the face of an unresolved debt crisis, it could knock the US down a few pegs in the world economy.

In other words, we're going to be hurting in a big way soon because of our flirtation with a planned economy. It reminds one of the plot in Orwell's Animal Farm, doesn't it?

If these signposts materialize as assumed, one should adjust their personal portfolios appropriately.

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