Carter Redux And Then Some

Like every one else I have political views and generally I try not to make my political views a business issue. I certainly have no intention of turning this into a political blog. So why am I bringing this up? I bring this up and I'm posting this to my blog because I heard a statistic last night that absolutely has me frightened over the future of business in the United States.

Remember the general funk that enveloped the country during the reign of Jimmy Carter. The was double digit inflation and double digit interest rates. There was no consumer spending because no one knew if they were going to be employed the next day. Many economists will tell you that America was on the ropes because Mr. Carter expanded the money supply by 13% in order to pay for his version of "spread the wealth".

So a 13% increase in the money supply to feed run away government spending produced 18%+ interest rates. So that was a long time ago, why, you might ask, am I just getting around to complaining about it today. Barrak Obama has increased the money supply 120% in just 10 months. As of COB today the interest rates haven't followed the expanded money supply but only because of smoke and mirrors.

Look at the state of business. The government has seized many of the larger banks, the public ownes two of the big three American auto makers, and the government is trying to grab another 20% of the economy through the health care fiasco. If you use credit cards you know that lenders are raising the rate now because Congress is going to cap them in the next couple of months in order to continue shielding you from the reality of the situation.

How will your business fare if the money supply dries up and interest rates exceed 20%? Will you be able to afford investment in facilities, equipment or people? Will your customers still buy from you when they can't access capital? Will the unemployed riot in the streets? Will it take a bucket of dollars to buy a loaf of bread? Will China move to foreclose on debt that could only be paid with over inflated dollars? Will you have a business to pass on to family or shareholders?

This is the most corrupt, deceitful political administration in US history. There is no more room to hide, face the facts. If you are where you are because of the free enterprise system it's time that we all stood up and defended it.