While researching renewable energy and the SMART GRID I ran head on into the topic of the day and it has many roots to research. CAP AND TRADE and CORPORATE DELEVERAGING, two topics I ran into which will effect everything including the SMART GRID to feeding our families. I do not know how well informed some of our readers are about current topics. I am sure most of you are well informed but just in case some of you are missing the biggest topics that shape our lives in the coming years I suggest you catch up on your reading. These topics and information below go way beyond what stock or stocks we should invest in. It is the big picture and I base my perceptions of the future on a lot of my research.
I see nothing good at all coming from this cap and trade bill. I also see a dangerous move in wrecking our current health care system for a National one where big brother runs it. We have some huge problems and I think we are going down the wrong road to fix them. This will effect our markets in a negative way and in a big way.
I found this article I wanted to share with you. It describes what we are facing in our corporate world for years to come. We are faced with this unwinding of debt for years maybe decades to come. All the while we will face as well higher taxes to pay for the many programs that this administration is trying to pass. Cap and trade is one example that just passed the house today. If this becomes law it will be passed onto to us in higher energy costs, call it a tax increase because we the tax payer will pay for it.
A national health care system will be yet another burden that will hinder our existing health care and will make it worse than it is now. We are becoming more socialized and this will only cost us more money for less service. We are about to get a health care system that does now work if it falls under the control of the U.S. government.
Back to the other problem. What is corporate deleveraging and what does it mean for our country?
Everywhere we look these days we see one major theme, more big government. Government is getting more into every aspect of our lives and if you think this is good wait for several more years. People who voted for more government are about to get what they voted for. More taxes and less money to spend.
Corporate deleveraging is just one more problem that will hinder any hopes of a recovery.
Above is a link you might want to check out.
Above is a book you might want to check out.
It is a national best seller for a reason.
I have veered away from renewable energy research just a bit because for now a bit of it is tied to cap and trade.
The hit to GDP is the real threat in this bill. The whole point of cap and trade is to hike the price of electricity and gas so that Americans will use less. These higher prices will show up not just in electricity bills or at the gas station but in every manufactured good, from food to cars. Consumers will cut back on spending, which in turn will cut back on production, which results in fewer jobs created or higher unemployment. Some companies will instead move their operations overseas, with the same result.
When the Heritage Foundation did its analysis of Waxman-Markey, it broadly compared the economy with and without the carbon tax. Under this more comprehensive scenario, it found Waxman-Markey would cost the economy $161 billion in 2020, which is $1,870 for a family of four. As the bill's restrictions kick in, that number rises to $6,800 for a family of four by 2035.
CAP AND TRADE BILL ARTICLE FROM THE WALL STREET JOURNAL
Every day I try to find something positive to make me feel good about our future. Every time I look I find more that is going to hurt our country. I find more bad than good. I do not search for the bad, it's just there. The more I look the more I find our government in everything and the more I turn bearish because our government is our biggest enemy to free market growth.
WAKE UP AND READ THIS LINE BELOW, YOU WILL NOT BELIEVE IT.
Even as Democrats have promised that this cap-and-trade legislation won't pinch wallets, behind the scenes they've acknowledged the energy price tsunami that is coming. During the brief few days in which the bill was debated in the House Energy Committee, Republicans offered three amendments: one to suspend the program if gas hit $5 a gallon; one to suspend the program if electricity prices rose 10% over 2009; and one to suspend the program if unemployment rates hit 15%. Democrats defeated all of them.
That passage was taken from the Wall Street Journal article above.
We are headed down the wrong road with this Democratic leadership, big time.
Boy oh boy we are in for some tough times and sky high taxes and less growth.
The hand writing is all over the wall.
These subject matters, these facts above are what keeps me bearish on our economy.
I do not like what I see coming from Washington at all.
It scares the hell out of me actually that more Ameircans are NOT involved any more than they are and are NOT informed enough to make a difference.
God help us, we are in deep trouble with some serious problems that will effect us all for years to come if they are not handled properly.
The question is will our country survive as we know it with these enormous challenges and huge tax burdens on the way?
V.
