The United States is headed for a recession during President Barack Obama’s second term, renowned financial guru Steve Forbes predicted Wednesday.
"We won’t get a depression, thankfully. This is still a very resilient economy, but we will have a recession," Forbes, chairman and editor-in-chief of Forbes Media, told Newsmax.TV in an exclusive interview.
"Raising taxes on capital, raising taxes on small businesses, which we will likely get now, particularly since the Republicans did so badly in the Senate races, that is going to pose a real burden.
"We have Europe doing the same thing: piling on new taxes, Japan piling on new taxes. The Federal Reserve is going to continue to undermine the dollar, which is going to hurt small and medium-size business. It’s going to be very tough sledding next year."
Watch our exclusive interview. Story continues below.
So, basically, spend only what you need to spend and nothing more. Save your money as it will not buy as much anyway. And for all those that mistakenly think they will see a difference in the paycheck due to the taxes raised on the wealthy, that, apparently is not the case as for at least 2013 they will see no changes at all in their take home pay. Why don't they open their eyes and look at the reality of what is happening? Oh well, one of the words I really don't care for but one of the lines from Forest Gump that I loved was "stupid is as stupid does" and as a result of all of this "life is like a box of chocolates, you never know what you will get", and with this president we have some idea but never cease to be amazed at what he sends our way.
Actually the best course of action for someone who has the funds now would be to stock up on non perishable basic items like pet food, paper products, canned/boxed food, cleaning products, batteries, and the like that have a reasonably long shelf life.
John, I would agree with you. Anything non-perishable. You can get the 5 gal. buckets with lids with seals to store things like flour, powedered milk, sugar, oatmeal, and even dry pasta and powdered eggs and potatoes. If you know of a few other families that are interested in this, go together and buy in bulk and divide the items among you and save even more money. But yes, time to do this. Be careful, as they are watching for people that do this and some stores will even report it. But if you go to some of the grocery warehouses it is not a problem. I did this while raising my children and it did save lots of money. But yes, would not hurt to buy the sales and stockpile items.
Historically, when Americans feel uncertainty they stop spending. When they stop spending we have a recession. That, and the real estate market, are two recession producing facts. This trickles down to high unemployment and more government handouts.
It was projected there would be a recession and many are stating severe austerity will only make it worse; it should be balanced. Severe austerity is not the answer.
I am NOT listening solely to Fox anymore, they are biased like the rest of the stations.
They don't present the entire truth either.
Of course when the Feds are upping the tax ante on almost everyone and Dear Leader is promising more plus the effects of ObamaCare on employment is still murky as are the cuts in Defense spending, those issues will depress economic activity even more. Oops, I forgot, Plastic Pelosi says unemployment compensation is an "economic stimulus" and a dollar spent there creates almost a dollar and a half of economic activity. Apparently Defense spending on durable goods and troop support doesn't generate any multiplier, just a drag. Of course we all know how much of an "expert" Pelosi is on economics like Dear Leader and alleged "economists" of the "progressive" mindset.
Sheila, you can watch whatever media outlets you find interesting. If you think the rest of us, as republicans, only watch Fox News you've been reading too many left wing articles.
No one is advocating for severe austerity. You do know what "stop pending" means to the average American don't you? That means they don't shop and then they don't go to the malls, put off replacing appliances, tires, etc Tthey are not putting their money in circulation and it impacts all businesses. They also SAVE money and that takes their money out of circulation and they stop charging and that impacts the bank who issued the credit card. They don't buy new cars keeping the older car....it goes on and on and on.
There's no such thing "as should be balanced" when Americans are faced with uncertainty. They will do what is best for them in order to feel safe by having cash on hand. We've seen this happen many times in our country. We'll see it again.
This post was modified from its original form on 06 Jan, 9:08
Well said Diane and no, Sheila, I have not listened to Fox in over a year. I have found other sources for information including the ".gov" sites where I can read the actual legislation, etc. And as for "severe austerity", I know that if there is a recession I am not going to spend much, only what is necessary. That is human nature to protect one's self. I am going to make sure that I buy wisely, too. Further, any "balance" has to come about with the government providing a means to accomplish this; cut taxes and cut spending; that is balance.
Further, anyone that thinks that taxes to the middle class are going to be lower due to the Obama/McConnell/Biden plan, you are delusional as the facts speak otherwise. The most severely hit will be the middle class. So if they are smart, they will start to save and stop unnecessary spending to protect what income is left to them.
I believe you are still struggling between what you have been led to believe from the liberal agenda for so many years and how that translates into the currect situation, as if you think spending money during a recession is "balancing" I have trouble seeing this as anything but a liberal concept.