A possible recession? By Jay Perry

Are we headed for a Recession? That is the question- well I dont know about anyone else but I havent seen anything getting any better. Inflation is up, our general economy is slowing down in many different ways, our debt is continuing to rise, and our interest rates are low and probably will not go any lower, and our dollar has been devaluing for 40 years. This is due to potentially putting our economy into a deflationary time period which is much more dangerous than an inflationary time period. So if Deflation is much more dangerous to our economy than Inflation, then we can expect interest rates to rise in the future. As interest rates go up Stocks, Bonds, Mutual funds and most security oriented investments in general will fall in value. The reason is due to the higher costs for borrowing, the higher the price of an item the lower volume a company is able to sell, the lower volume the less profitable a company is, which in turn reduces the stock price as they continue to miss estimates and become less and less profitable. Also tax rates go up which affects averyone and continues to give us less and less buying power with our money. Now can this potentially put us into a Depressionary time period. Absolutely, If you look in history no Debtor Economy, Society, or Country has ever survived. How is our country going to be different? These are some thoughts on the subject. The signs are in front of us. Anyone out there who doesnt have exit plans out of the market may want to think of some and plan to move out of the market sometime in the future.