WHAT IS AHEAD OF US OUT THERE?

Kermit C. Moss

                      Mercy me, sakes alive, and carrot coffee! What lies ahead of us out there?

A headline in the Wall Street Journal of September 20, 2007, reads “World economy in Flux As America Downshifts”! It reads, in part, “After 16 years during which the U. S. mainly borrowed and bought, while much of the rest of the world lent and sold, the global economy appears to be undergoing a major shift”. The Economist of September 15, 2007 had these interesting and disturbing remarks, about our Federal Reserve system taking steps to control market reaction, “Start with financial markets. Lowering the benchmark price of money will make other assets more attractive. It will counter investor’s risk-aversion by reducing the odds of a truly nasty economic meltdown”.

Of what would this nasty economic meltdown consist? At this keyboard it would mean a general and longtime decline in prices, with those doing the buying, whether business purchasing agents or housewives, would wait as long as possible to buy, knowing that at the end of the wait, prices would be lower. Then the producers, having on hand more goods than they can sell, will lay off employees, giving them less power to purchase and consume, and thus the downturn feeds on itself! This, as it did in the great depression of the 1930s, it may last for several years.

          Back then, people were prepared for adversity, but not now! If this happens, heaven help us!

Kermit C. Moss
PO Box 1136
Monticello, AR 71657

PH 870-367-2486 - office
870-367-7034 - home

September 23rd, 2007