The Daily Note - A Warning Shot

Was yesterday the first warning shot across the bow? It seems the market has been running full steam ahead regardless of the debts our leaders have piled on us. The word "recovery" has been and is the word everyone believed as it was whispered ever more loudly into the economy. As more believed it the more drove the market up. In reality the market eventually figures out that what is artificial is not real and cannot be sustained.

The word "recovery" is a confusing word because people inject into it, their own sense of feeling. It has several meanings pertaining to health and restoration of something lost. I will point to definition number 4 in this case, which is as follows: "restoration or return to any former and better state or condition". I think we can all agree on that, because we all wanted to have our former sense of prosperity and well being restored, but the definition also speaks to a better state of condition, which means improvement over what is or was.

Thinking that we can reclaim exactly what we had before the destruction or loss is a fallacy, as is the thought that everyone who had something before will again have something like it after. Natural disasters have proven many times that those who wait for someone to give them what they had will wait a lot longer that those who roll up their sleeves and get to work on cleaning up the mess. Recovery does not happen out of going back but it always happens out of going or looking forward. It is a creation out of the ashes of destruction.

In order for our economy to recover, what was and is needed is imagination, creation, innovation, and hard work often with no reward at first. Out of that work comes new ideas which fuel the creation of goods and services bringing fresh blood and outlook into lives as demanded by needs. But that is not what is happening.

From the start, this artificially inflated economy was inflated several times over. It was done to save face, gain capital, to keep power all under the false promise, that things can be let down easily. What happened instead is that people were given with one hand while being plotted against by the other. Being told that we are now doing well, is a lie. We may feel a little better, but we are not recovering while the government is dictating each move. When the government's only solutions is to pump money into the economy with one hand while plotting higher taxes on the other, it does not take a mathematical genius to figure out that the problem is being shifted downstream yet again.

Of course, our "do no wrong" government officials throw blame all over the place and strut themselves out to show how much they "care" while positioning themselves into further power. It is happening everywhere around the world today including the USA. Greece, Spain, Britain next where government solutions failed already, but there are many places where government takeovers are just beginning, USA being one. Unfortunate for most is that history has proven, over and over again, that when too much power is given to government they'll inevitably make it worse for the rest of us, because blame can fly all over the place but the sh*t lands on us.



Happy Trading, Living and Dodging
Anni





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