One can’t help but watch the actions of the Federal Reserve, Treasury Department, the FASB, the Congress, etc…and wonder what new crises for which we are being set up. In the near term greater inflation and higher interest rates seem likely. But in the long run are we not simply setting ourselves up for a larger bubble that will inevitably burst? The Fed continues to press the ‘Easy’ monetary button relentlessly. The Congress and the Executive Branch do not seem to have found a matter unworthy of greater expenditure. Our national debt increases by the trillion within a week. Our government’s deficit moves towards 10% of our national income.
The FASB changes accounting rules meant to provide a more accurate view of a company’s true financial position to the users of their financial statements. Since that was inconvenient for those who made poor business decisions, the rule has been relaxed.
One cannot help but wonder when the true day of reckoning will occur. In a capitalist economy (or at least an economy which is purportedly capitalistic) those companies unable to stay in business will shutter their doors. In the US economy, those companies are put on life support by the powers that be in DC. Your Suburban’s warranty will be serviced by Uncle Sam.
Anyways, this doesn’t even consider the looming mess that is the social entitlement programs.
So the buck is inflated some more and rolled on down the road, while we wait to capitalize on the next bubble.
Hiring the right accountant When I meet a business owner operating at a successful $10 million in revenue, they often mention, “My CPA”… I immediately know that CEO/Entrepreneur is referring to their Tax CPA. That is because one thing that all Entrepreneurs have in common is that they must file a tax return. So, from