Closer to economic doomsday..?

Closer to economic doomsday..?

By Anupam Sharma, Gulf Daily News, May 27, 2009


It's no secret that we're all feeling some sort of hit from the economy. These are painful and unforgiving times pertaining to our ability to save money or even manage paying bills.

Soaring fuel prices during the past eight years served as the first domino in a domino effect that reached all areas of an economy. It caused the rapid increase of prices for just about everything from groceries to building materials. Everything we touch on a daily basis was on a truck at one time or another. This includes our food, everything needed to build our home, the clothes on our body, our vehicle and much more. Without trucks this world would come to a catastrophic stop.

Independent truck drivers are forced to park or sell off their expensive investments because the fuel to run them is just too expensive to keep up with. Each owner-operator is considered a business. Thus, it means that fuel prices are the direct reason for certain businesses being forced to shut down.

In America, numerous large corporations are laying off large numbers of employees. Many other smaller establishments have actually gone out of business. Every time this happens a part of financial America dies forever, and of course, the world experiences a trickle-down effect. These occurrences are not isolated; they are spreading like a virus. Dubai, considered as a barometer of the Middle East has also shown some signs of desperation.

With each of these occurrences, the rate of unemployment increases and at the same time reduces the amount of jobs available. People who have jobs must do everything they can to keep their job, because if you lose it, it could be gone for a long time if not for good. Looking for a second job is becoming increasingly difficult because of the ever-increasing amount of people becoming unemployed. Every time a large corporation lays-off hundreds or even thousands of people, these ratios tip even farther towards hardship.

I've heard people are using credit cards to pay some monthly bills. Although it sounds like a good idea at the time of desperation, it is not the answer at all. This is simply moving numbers around (robbing Peter to pay Paul). Using a credit card to pay a monthly bill doesn't actually clear you of that payment. Sure, you paid one bill by doing this, but now the amount of that bill is on your credit card plus interest. You didn't gain anything at all, the fact is you lost. These are ideal times to put the credit cards aside unless you are in a situation comfortable enough to maintain the commitment involved without worsening your finances.

Bailouts are something I strongly question. Let's look at the all money the US government is throwing around:

The 9/11 caused the US government to shell out large amounts of money. The hurricanes that hit America caused them to shell out more money. The expense of wars the US is (directly and indirectly) involved in is still costing unthinkable amounts of money.

Banks, the automotive industry and many more are turning to the government to receive bailouts. We're talking about financial figures that are absolutely astronomical. Their government is spending money like a teenager with a credit card.

Keep in mind this is a country with debt before all this started happening. Where is all this money coming from? Are they printing money that means nothing in financial value? It used to be that for every dollar in circulation, there was gold in storage to back up the value of that American dollar. Does this even hold true anymore?

In conclusion, the global village feels the impact of every tremor moving a step closer to economic doomsday!