In times of economic downturn, such as the 2008 financial crisis or the pandemic lockdown, the government enacts expansionary fiscal and monetary policy to “stimulate” the economy and create jobs. These policies also create inflation and many economists argue that the growth is illusory. The pandemic-related spending and stimulus caused inflation  to reach 9.1% in June 2022.

Over the past decades, the Chinese economy has been growing, at breakneck speed, largely fueled by tremendous export volumes, massive debt, and over-reliance on the real-estate sector. Now, manufacturing is suffering under ongoing coronavirus lockdowns, energy shortages, and supply-chain disruptions. The debt bubble seems about to burst, and the real-estate industry will be the first casualty, with ripples eventually being felt throughout China and the rest of the world.

Even with widespread testing, until a vaccine is available, there are entire industries that will have less than half the pre-virus business: airlines, hotels, cruise ships, theme parks, and sports, to name a few, as well as myriad other businesses supporting or related to these industries. In addition, more than a few large retail department and specialty store chains will probably not make it. No need to list names, but they are the obvious weak ones prior to COVID-19.

Ah, Washington. The good news is that our national leaders saved our butts (for the moment) from bottoming out off the “fiscal cliff.” The bad news is: Watch your head—it’ll soon come crunching up against another unnecessary “debt ceiling” crisis. The most important Good vs. Bad News about the New Year’s Day cliff dive is that the Ugly—the prospect that Congress’ failure to raise the debt ceiling could actually cause the United States to default on its international debts with genuine economic consequences—is now put off, but only until March.

Will the U.S. economy go over the “fiscal cliff” after New Years Day? If so, what will that mean to the country’s most financially vulnerable people? Former White House economic advisor Jared Bernstein of the Center on Budget and Policy Priorities (CBPP) told reporters on a national telephone briefing Thursday, organized by New America Media and CBPP, that he believes Democrats and Republicans will take the budget negotiations to and possibly over the cliff’s edge. 

It is inflection point in the arc of history because an African-American president was re-elected even though unemployment was at nearly 8 percent, and Republicans threw absolutely everything at him it was possible to throw, from "You lie!" to their vow to make him "a one-term president," to driving the nation to the brink of financial insolvency rather than negotiating in good faith over the national debt. 

In the highly charged, relentlessly partisan political climate of today, one only worsened by the ongoing presidential campaign, it is sometimes easy to forget that Romney isn’t exactly the Republican base’s favorite son.  Indeed, in their fervent desire to defeat President Obama, the dislike and distinct distrust that many on the far right have for Governor Romney has been effectively swept under the proverbial rug. If, however, Romney is successful in his quest for the presidency, this unity on the right will likely prove transient.

The killing of U.S. Ambassador Christopher Stevens in Benghazi, Libya, on the anniversary of September 11 should provoke a similar examination of the Obama presidency. Here was a quintessential ambassador – an Arabic speaker, popular among ordinary Libyans, who had worked with the revolutionaries to overthrow Muammar Gaddafi – killed in the line of duty.  It was a colossal failure, marking a nadir in a presidency that boasted a break with Bush-era unilateralism and a promise to “commit ourselves to an effort – a sustained effort – to find common ground” with the Muslim world. 

Obama has tried to be consistent with his all-of-the-above approach [to energy]…[which] puts a big emphasis on renewables, and Romney has been all over the place on this issue... At least you know what you are getting with Obama. You have no idea what you are getting with Romney. (But) the environmental movement is going to have to push Obama the day after the election.