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This is my effort to share my thoughts with readers about concerns facing our country today.  I believe there is a good chance my grandchildren may be the first generation in the history of this great country not to have a better standard of living than their parents. If so, our generation is to blame. The clock is running out for damage control. .

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Borrowing 2 Trillion Dollars

This country needs to borrow $2 trillion dollars to fund the spending on the books for 2009. Can we do that?

China, our big lender, is opting out. That leaves the Middle East. Their opinion of our credit worthiness is waning. That taps out our options. If the treasury buys debt by printing money, as they have been doing lately, what does that do to the economy and the dollar? If our debtors begin cashing in their dollars, what does that do to our need to borrow?

The only real solution is to raise the interest rates to attract borrowers. That is already happening. Recent treasury auctions have shown the public will not buy any more notes at rock bottom interest. Suddenly, the new fear in Washington is inflation. 

Most of us have thought that the reckless spending would create problems down the road, but these recent events show it is presenting problems already. 

Unemployment figures this week will show the current number to be 8.9%. This is without the Chrysler and GM numbers soon to hit. They and their fallout could move this to over 9.0% by next month. 

Suddenly, financial wizards are recommending we buy Asian stocks. Is a fundamental shift in global economic power underway? It seems to be a trend.

 President Obama made a comment that Wall Street may no longer by the engine that drives the economy in this country. I presume he intends to make Washington the engine to replace Wall Street. 

Is it no wonder that China no longer wants to be a lender? In short order we have destroyed the investment banking business, the auto industry and many of our biggest banks. The insurance industry is in trouble.

Looming is the commercial mortgage problem. And, a possible credit card problem. A big red flag rarely mentioned is the FHA. For the past few years this agency that insures 100% of the mortgages they underwrite is behaving like Freddie and Fannie behaved. Suddenly, they are showing alarming numbers of mortgage defaults. With a 3% down payment, they took on more than their share of sub prime mortgages. Government pension funds are in trouble.

Finding this $2 trillion is becoming a big problem. One that will have a big impact on the economy in 2009. 

Where are all the economists in this country? Are they being muffled by the media. Like MSNBC which has now lost 50% share. Is anyone in this country really watching the store, or is just the Chinese who get it straight?        

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