The Adventures of Charlie Champion

The seeds of economic misdirection which we are  continuing to plant, are sure to blossom into jungles of new problems around the World.

Shrinking consumer spending and a contraction of  worldwide trade has caused developing hardships throughout the third world countries.

Throughout China, India, and South America, employment, and a steadily rising standard of living, has been been severely reversed by the deepening recession.

With worldwide demand for oil shrinking, there has been a marked reduction in oil and gas exploration, and a steady decline in refining capacity as old plants succumb to an ageing infrastructure.

This reduced availability will become a serious drag on any future economic recovery, as the cost of energy rises in response to supply & demand.

Decades of industrial manufacturing pollution throughout Asia and the developing countries, has resulted in ever shrinking supplies of fresh water and clean food. This is a serious threat to an increasing younger and now unemployed population.

In the United States, the collapse of the credit markets, has rippled through out the eonomy.

While there is money to lend, the requirements for lending have tightened dramatically from the norm of the past 20-30 years. Auto loans and mortgages are increasingly difficult to obtain,, and the cost of credit cards has become almost usurious.

Small business loans , the lifeblood of our economy, have  become problematic, requiring excessive paperwork and extensive accounting  and personal guarantees.

The contracting economy and the shrinking credit is having a snowball effect. People are frightened by the ongoing job loss, and consequently they spend less, borrow less, and become much more practical non frills consumers.

The suburbal lifestyle will become the casualty, as the mobile ,credit fueled economy disappears.

Shopping malls are already echo chambers, and increasingly ,empty store fronts are  a sign of economic pain.

Americans are buying fewer new cars, choosing to maintain their older models for an additional year or two, rather than incur additional payment obligations.

Commercial suburban real estate is the next default disaster approaching, as the suburban lifestyle  disappears.

The very rich and the poor appear to be a polarizing economic trend with the middle class becoming an extinct vestige of American lore.

The stimulus of building new roads and bridges will become unproductive, because we will be too poor to travel.

Not a Pretty Picture.

More later

This entry was posted on Thursday, May 21st, 2009 at 9:56 pm and is filed under Current Events, Financial News, New Articles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.