I read this quote today "We have become a nation that is precariously living on the financial edge." It is from an article on how most of us here in the U.S. are living paycheck to paycheck and have little or no reserves. Why? First, there has been no real recovery from the great recession. For most, salaries have not increased and for many, they have decreased. Second, the cost of everything has gone up. It is true that the official measure of inflation has remained low, but that has not been the reality for most Americans. With food prices rising, gasoline prices rising, health insurance and costs rising, most Americans have less and less money to put into reserve and to spend.
Our economy is based on spending. If spending diminishes, then our economy will contract. We are in no position for another recession. Another recession might very well break the back of our economy and cause untold misery and suffering. Even our government is in no position to deal with a recession. At all levels, borrowing is at it's highest level and reserves are nearly depleted. We have created the perfect economic storm which will wreck havoc on us all. It's not a matter of if, it is a matter of when.
What do you think?