What Affects The Market?

Major factors that can have a huge economic impact, short-term and long-term, are the implementation of government policies, along with the actions of the Federal Reserve. Naturally, there are many elements, main and minor, that will impact an economy. It might be a natural disaster, a war, trade policies, unemployment, availability of natural resources, and so on.

Economic philosophies

The two major schools of thought are the Keynesian philosophy, plus the Austrian philosophy. Keynesian's think that economic intervention, for instance expanding the supply of cash, and lowering interest rates, will support smooth out the volatility of no cost markets. Austrian's believe the no cost marketplace will need to be allowed to right itself, and weed out the excess that has failed. They also think in sound funds, limited government, low taxes, and individual responsibility. Economic freedom, or the lack of, is what genuinely affects the economy.

History tells us what works

The nineteenth and early twentieth century produced the greatest growth of productive capacity, and living standards the world has ever identified. The United States was at the center of this awesome time of accurate totally free marketplace capitalism. The catalyst for all this success was individual rights, and limited government. Unfortunately, we're currently performing the exact opposite of this prosperous formula.

Why our existing economy just isn't performing well

As of this writing in June of 2011, the United States has fiscally dug itself a hole the size of the Grand Canyon. The national debt is soaring, enormous amounts of money have been printed out of thin air, the Fed Funds rate has been near zero, for well over two years. All of this has caused the U.S. Dollar to lose an amazing amount of it is buying power, which directly translates into inflation. Over a lot of decades, heavy regulations, along with high taxation, also have been significant destructive forces. These unnecessary restrictions on true capitalism is what affects the economy big time.

One thing to consider

Back in 1913 the Federal Reserve came into being, and designed a Ponzi scheme for the dollar. Today's U.S. Dollars are nothing but creations of an electronic printing press.

They're instantly produced at the government's demand. They are backed by nothing at all. In fact, it is not even a U.S. Dollar. It really is a Federal Reserve Note, masquerading, illegally, as a U.S. Dollar.

These Federal Reserve Notes are given to the government in exchange for an interest-bearing government bond. Guess what? The primary indicates to pay for the interest on these bonds would be to borrow extra, and far more bank notes. This will be the vicious cycle the United States is presently in. It ultimately ends with the complete destruction of the currency, and also the bankruptcy of the nation.

Kennedy connection

In 1963, President John Fitzgerald Kennedy tried to end this madness, concerning the Federal Reserve. This is really one thing to take into consideration. It is amazing what all affects the economy. The Kennedy assassination may possibly well have affected it one of the most, and changed history in a way very couple of folks have an understanding of.