November 27th, 2007

Ars Technia just posted an article titled ‘Amid gloom and doom, US tops list of world’s most competitive economies. I feel that, even if this is true, we’re still headed for a pretty bad recession in the next 12-24 months. We are in way over our heads debt-wise, and the cost of real goods such as gasoline and food have been increasing at a rate way beyond that of wages. Consumer spending will take a huge hit in the next year as money gets tighter, and from there it’s only a matter of time before the bottom falls out.

So, enjoy the good news. I have a feeling we’re not going to get a whole lot more of it any time soon in the economics department. We’ve been running our entire government operation on credit for far too long, and much like American consumers, there will come a time where we have to pay for poor fiscal decisions. Despite our competitiveness, I think the doom and gloom will come to the forefront again quite soon.

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