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The Main Woes in Our Economy
August 14, 2008
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-- What Has Happenned in 2008 YTD?
-- What Can You Personally Do About It?
-- I Am Searching for Truth or God
-- I Already Am a Christian -- Reprint Guidelines
Greetings! The U.S. economy and the European economies continue to have difficulties, because of normal cycles and part of history that we have seen occurring dating all the way back to the Israelites' economy. However, some of it, I believe, is caused by foolish government regulations, corporate decisions, and individuals making unwise financial choices. Right now, the major strains on the U.S. economy are the declining dollar, rising inflation, and interest rates. Because of this, I think the future of the U.S. economy remains uncertain, as it has always been. Commodities, which is probably the most important measure of inflation, remains elevated, especially when you look at oil, iron ore, and steel. |
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What Has Happenned in 2008 YTD? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Additionally, housing continues to be on the
decline in the U.S. New starts of homes are
at low levels and a record supply of new and
existing U.S. homes are currently for sale.
Then, as we look at the consumer (me and you) and what is happening to us, we are seeing layoffs, moderate wage increases, higher prices for gasoline and food, and higher costs of credit borrowings and home equity loans. Due to the decline in housing values, we are seeing less people going out there and taking out home equity loans. Overall, consumer confidence is at a very low level right now. One of the things that is disturbing to me is the increasing level of government involvement in our country and that is evident with the bailouts of Freddie Mae and Fannie Mac. In an ideal situation, at least in my opinion, the government would set interest rates at 4%, 5%, or 6% and leave it there, rather than lowering and raising and manipulating for the moment.
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What Can You Personally Do About It? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I am confident that another great thing for our
country would be to go ahead and make our
currency (the US dollar) backed by gold
again. The Swiss Franc is probably
considered the strongest currency in the
world, and it has been for the last five
decades, and I think the reason why is
because it is partially backed by gold.
Unfortunately, we continue to see people and
governments that habitually go into debt, to
have an inability to live within their means.
Our means are defined by the cash flow that
God gives us. If we want to have our means
increased, then we have to go out and make
more, not borrow more! And that is
something that is so very difficult for us to
grasp, and it is unfortunate, as we see our
economy unravel like this for so many
people. Furthermore, it's disappointing
because we never learn our lesson.
I encourage each of you to worry about your own economy and the economy of those individuals with whom you are close. By being out of debt, giving money away as God directs you, diversifying what you have 7 or even 8 ways, living below your means, and paying your taxes, then your own personal economy is intact and that is what God is holding us most accountable for when we stand before Him.
In The News "The S&P 500 was up +4.4% per year (total return) for the 3-years ending 6/30/08. Ten years ago, the S&P 500 was up +30.2% per year (total return) for the 3-years ending 6/30/98. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market." (source: BTN Research).
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I Am Searching for Truth or God ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
For those of you searching for God I
recommend you click here to listen to
this song.
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I Already Am a Christian ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Create In Me A Clean Heart
My prayer for you and myself is that Christ would create in us a clean heart!
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Reprint Guidelines ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Permission to reprint this article is
granted,
provided you email me where it is
being
reprinted,
the copyright is not removed, and the
following text
accompanies each article:Thomas Cloud, Jr. specializes in financial planning and investment management based on time-tested principles taught in the Bible. His Truly Diversified Portfolios® (TDP®) give his clients growth of the money that has been entrusted to their care with lowered risk. For a complimentary subscription to Thomas's monthly e- newsletter go to w ww.divers ifyyourassets.com. |
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Contact Information ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
phone:
800-917-5016
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