Food prices: Corn, Wheat and soy are at all time highs. Most food products depend on these, as well as oil. Oil is also on its way up (depending on what happens in Saudi Arabia, tomorrow, it may go up considerably more). All of these issues are global, and not just USA and middle man related specifically.
I agree with those who feel that we are in a plateau area--where we may see some recovery, but will not see the growth which was have seen over all in the years after WWII. Also I agree USA no longer holds the same place in the world it once held. The dynamic economies in the last year were China and Brazil; not the USA.
I cringe when I see people borrowing to buy a boat. (or any other recreational toy). I worry that the younger folks do not understand what it takes to live in retirement. People used to think that you could live on less than half than when you worked. That is just not true--and in reality, at 3% inflation, your buying power in 30 years is reduced by 60%! So you have to save for income at least equal to your last job. That is not easy. Social security is a miminal amount of income. Another issue we have not really faced is the cost of medical care of the elderly. It has to change. Where we are today is not sustainable.
My mother in law died at age 93 a little over a year ago. When she retired at 60 (She was blind), she had minimal expenses, a good pension, SS, as well as owning her home. By the time she passed on, she no longer had enough income to live on, the savings were gone--we were happy to pay for her retirement home, and at the end to have her live with us, and have hospice. But will your children be able to afford to take care of you in old age? Certainly what is happening with governments can be reflective of our own personal finances.
I agree with those who feel that we are in a plateau area--where we may see some recovery, but will not see the growth which was have seen over all in the years after WWII. Also I agree USA no longer holds the same place in the world it once held. The dynamic economies in the last year were China and Brazil; not the USA.
I cringe when I see people borrowing to buy a boat. (or any other recreational toy). I worry that the younger folks do not understand what it takes to live in retirement. People used to think that you could live on less than half than when you worked. That is just not true--and in reality, at 3% inflation, your buying power in 30 years is reduced by 60%! So you have to save for income at least equal to your last job. That is not easy. Social security is a miminal amount of income. Another issue we have not really faced is the cost of medical care of the elderly. It has to change. Where we are today is not sustainable.
My mother in law died at age 93 a little over a year ago. When she retired at 60 (She was blind), she had minimal expenses, a good pension, SS, as well as owning her home. By the time she passed on, she no longer had enough income to live on, the savings were gone--we were happy to pay for her retirement home, and at the end to have her live with us, and have hospice. But will your children be able to afford to take care of you in old age? Certainly what is happening with governments can be reflective of our own personal finances.