Is The U.S. Economy Turning Around?

Currently, it is on life support. Without the massive government spending the U.S. might be in a Depression. But with that spending is the economy turning around?

Spending on stimulus and bailouts, weapons and wars has flooded America [and the rest of the world] with cheap dollars. But as a result, U.S. Gross Domestic Product [GDP] rose last quarter 2.8%,* and is expected to rise to as much as 4% this quarter.

In addition, many companies have sold off their inventories and have begun limited production, most of them using temporary workers. But there is little confidence of a turnaround and temporary workers are quick and easy to layoff.

Housing prices have also risen recently among the lower priced homes. But eliminate the government provided lowest interest rates in 50 years, easy qualifier, low down payment loans and tax breaks to many buyers and that market will sink fast.

If you want the truth of the economy, look around you. Many people can't find jobs, home foreclosures are rising, vacant stores and offices are common, as restaurants, hotels and other businesses offer big discounts and stores slash prices trying to lure shoppers. The stimulus isn't working.

And to stimulate this economy, the government is borrowing huge sums of money and has no idea how it will ever pay it back. And when interest rates rise, as they ultimately will, even the payments on the debt will be staggering.

This is a time not only to save your money but to help others in need. Whatever you can spare, please contribute it. Together we will confront this horrific economy and work our way through it, much as people did in the Great Depression.

Dick

*This week the U.S. government revised that number down to 2.2%. Originally it had claimed the economy had risen 3.5% in the 3rd quarter.