Rick Lowe
If you had any doubts before, read this tale about Japan…
Hat tip to JD for sending this along.
Urgent Lessons from Japan
by Martin D. Weiss, Ph.d. for Money & Markets.
Imagine a world where the economy never emerges from recession.
Imagine a time and place in which economists talk first of a double-dip recession, then about a triple-dip recession … and ultimately admit the dire reality of a long, multi-decade depression.
Imagine chronically high unemployment, overwhelming government indebtedness, shrinking population, spreading poverty — even growing rates of homelessness among college graduates.
Think about a 20-year period in which stock investors continually lose fortunes and retirees get nearly zero income on their savings, with no end in sight.
Read the rest here…
This reads like a road map for the United States and the Bahamas, a path leading to economic decline and even self-destruction..
As the Obama administration continues to use massive amounts of debt to fund its failed stimulus policies, deficits are increasing at unacceptable rates and the dollar continues to decline in the world currency markets.. This is nothing more that the self-destructive course pursued by the Japanese over the last twenty years which has led to high unemployment and no real economic growth as China now has move ahead of the once proud Japanese..
Obamanomics is rapidly bring the United State to its knees as unemployment increases and massive spending has lead to possible stagflation..
What does this mean for the Bahamas.. For starters as the saying goes “so goes the United Stated, so goes the Bahamas”.. For the Bahamas to follow the same economic policies as the United State is a folly and the faith of our economy will be the same as that of the United States.. Starting in January 2011, American citizens will be subjected to the highest tax increases in the country’s history.. Discretionary purchasing power and income will decline sharply and unemployment will stay high..
Money once used for vacations to the Bahamas, will now be used for non-discretionary spending such as food, rent and the basics of life.. This is what is happening today in Japan.. With about ninety percent of our tourist coming to the Bahamas from the United States, our economic outlook is grim at best..
No wonder we do not see tourists from Japan as we use to see many years ago.. With one of the largest Japanese travel agencies leaving the Bahamas two years ago, their Japanese clients have given up our tourist product.. Now it is becoming apparent that the Japanese can not afford the high expense of an extended vacation to our shores..
The real question for Bahamanian tourist will the Americans be next?? Now is time for the government and the people of the Bahamas to recognize that the vast changes which are taking place today throughout the world can have dramatic impacts on our standard of living as well as our economic future..