How Much Did The Government Really Know Prior To The Economic Crash ?

Our brilliant leaders knew that a crisis was in our future, and behind closed doors, and never admitting to them, policies were in play to avert a complete meltdown years before we were told the economy was in trouble in 2008. Was anyone suspicious when the FED announced all of a sudden we were in trouble ? The Media ran it as far as they could, partially causing more panic than the announcement itself.

Our economy was hurtling towards disaster for years. The Fed Knew it, it was pretty much common sense for anyone that was interested in our countries economic health. The facts are that our inflation of costs were escalating much faster than the rest of the world. So a car made in detroit could be manufactured in Asia for pennies to the dollar.

This caused a disparity of economic balances that the FED could not control. Lowering borrowing rates barely slowed the disparity down. Tariffs slowed things down, World Trade slowed things down, but all these actions in the long run hurt us too. The normal street laymen could even see that the cost of housing in the United States could not keep rising forever. The salaries were such that eventually only the rich could afford a home.

This bubble was bound to burst, along with alot of other ones, and that would be heard around the world. Do you really think that the best minds in washington did not know this was coming ? A 600 pound gorilla cannot be told to eat less bananas, and the FED was as helpless to fix the mess we are in.

Controls were not in place by federal regulators to prevent the burst, and they still are not in place. Stop selling our jobs overseas, and bring back the ones that were. Sell fort knox and give the proceeds to every tax paying Legal American. WOW what a stimulus package that would be.

But we cannot hope for our government will do the right thing, we have to prepare for the worst, that they will repeat history and continue to repeat ignorance as lobbyists bribe officials into policy making decisions that cater to those who do not care about us.

The politics goes on , like it was, and we pay the price mostly helpless to do much else accept hold on the the white knuckle ride over the next 3 years. So lets focus instead on understanding what we can do individually to survive.

Business is the paramount of our financial backbone, and it is at the heart of the american entrepreneurial spirit. When they are healthy, they provide jobs, taxes, and it works like capitalism was designed to do. So making them healthy should be a number one goal of any administration.

Dropping the costs of business is a no brainer, but it is interwoven with so much politics that it will be years and many failures before they are forced to reform. So lets get to some attainable tactics that can get quicker results.

With the climbing costs if Business, it is getting very hard to be profitable. For eBay Stores the costs of Listings, eBays costs, and then PayPals cut has made it nearly impossible to make a profit in this current market. Finding low cost solutions is paramount to stay in the green.

As yet another Holiday season approaches, it is no different than the predecessors. Costs are Higher, the economy is still dropping, less people have jobs, and those that do have less money to spend. Do we see the prices dropping ? Do we see the Merchant fees going down ? Why are the costs of doing business going up while the economy shrinks, and what will be the result to you ?

A quick look into next year will help your strategies for this years holiday season. Because the tax revenues are going to be hard hit, you can expect taxes of all kinds to go up for 3 years. You can also expect that many more jobs and businesses will be gone.

You can expect many companies to increase their costs to stay in business, while lowering salaries and hence disposable consumer spending will decline for the next 3 years. Most of the merchants I know are already expecting this, having the CPAs plug numbers into spreadsheets to forecast the next 3 years is a scary reality for most.

Head in the sand ? Do not want to know what is coming ? What can we do about it anyway ? Unfortunately for many Bankruptcy options will be inevitable. They did not plan, and did not adopt survival tactics in a new age of business strategies.

While these out of business sales creates opportunity for those with quick cash, adopting scavenger techniques is not one to base your corporate health on. For the right future visions, one has to look back to the past to see how we got to where we are today.

When the World Wide Trade opened up, pressured by corporations getting lobbyists to bribe officials into opening up cheaper avenues of product acquisition with low costs labor costs, it seemed like the HOLY GRAIL. Share Holders were happy, now that they could get better returns, the government was happy with a greater base. And All was well for a while.

Then the affects of those actions have come back to haunt us. We lost jobs, many jobs, and those lost jobs lost tax revenue, the products we bought are health hazards and that costs us more. The Fed knew this would happen, and I believe they planned it. You see, our economy was in a closed shell, escalating higher every year, while the rest of the world was at a much slower pace. What our cars cost to make, another country could produce at half the price.

This disparity would eventually cause our country to economic death. So the World Trade comes to the rescue and allowed the US economic roller coaster to continue for a few more years. Strategy being that our US Dollar would infuse into world markets, and eventually those countries rate of inflation would eventually catch up with United States.

The key to this strategy working was time. Could the US economy survive the pounding, until the rest of the world economically caught up. The answer to that is yet to unfold, and I believe it to be well known within the next 3 years.

How can small business leverage enough to survive three more years of pain ? And How can you start today to get the same advantages as did our world trade policies provide us. Get back to our basic business practices is not easy when the distraction and hype of the economic state of affairs keep causing managerial knee jerk reactions.

Take a deep breath, and think it thru. Reduce costs ? yes ! leverage partners ? Yes ! but the one thing that history has just shown us is quite simply getting products at a low enough price in order to profit. If you cannot do that, your cost reductions and partner leveraging are futile efforts. So focus on that first, it is the most important strategy for any business.