Are We There Yet?

We must all recognize the question.  It is usually associated with long—in the mind of the questioner—car trips.  The question might result from boredom, but we would like to think that it is asked because the person wants to arrive at their destination, be it The Magic Kingdom, or grandma’s house.

In this case, the query is in regards to the true end of the financial mess we’ve been in for the past decade.  I know there are some who will dispute the timeframe, but the housing crisis that triggered the meltdown in 2008 really started much earlier than that. And other than the Dot Com boom and bust of the late 90s and early 2000s, I date the present troubles to around the 911 attacks.

This is really the third in a series of columns dealing with the sad state of our economy.  The first two, The Precious Penny and Nickeled and Dimed to Death, dealt mainly with the perception we have of product pricing and the incremental creep of those prices.  This one will deal with how we can determine that the hurting is finally over—or if we can ever get to that state again.

I must first confess to you that I have been extremely fortunate in that my nest egg was not halved or even reduced during the last ten years.  Call it dumb luck or good planning, but my assets actually grew or stayed about even.  That is no reason for me to brag, and I really do sympathize with those who have lost their homes, their retirement or their jobs.

I had no job to lose since I’m retired and have been since 1995, but I certainly do have a three-tiered program that I draw on for daily living expenses.  My modest town home has no mortgage and we own both of our cars, so I don’t have any short- or long-term debt.

I am, in the words of my favorite financial wizard, Bob Brinker, in a state of critical mass. (If you don’t understand any of the above then read the book I sent you last year)

Now I’m going to give you another saying that I believe fits the current scenario: it goes “Necessity is the mother of all invention.”  One way or another, the present people in Washington are intent on creating a need for a new energy source, and what better way to do that than to raise the price of our current fuels—petroleum, coal, nuclear and yes, even electricity.  When the price gets high enough people will welcome alternative energy, and especially renewable, green energy.

The historical fact that most of the new age energy sources have proved to be too costly and ineffective doesn’t deter the elite in their quest to save the earth.  The Solyndra, Ener1 and Chevy Volt debacles, paid for by our tax dollars, are more proof that we have a long way to go. “No, we aren’t there yet!”

If we aren’t even close to a breakthrough in renewable energy, then the next question is, “How long will we continue to artificially create the need?”

It is my opinion that the answer to that question lies in the outcome of the voting this November.  If we re-elect the same folks who are bent on forcing alternative energy on us regardless of the cost or the results, then we will be treated to at least four more years of being nickeled and dimed to death through the inevitable process of incrementalism.

Now for the good news… As I explained earlier, I have made it to my golden years with a pretty good next egg. Despite what happens in November and beyond, I don’t believe I will have to suffer too long. I have enough assets to see my wife and myself through at least the next 5 to 10 years if we last that long. Under Obamacare, I suspect I won’t be around after my next medical emergency because the Independent Payment Advisory Board (That’s the group that Sarah Palin called the Death Panel) will rule that treatment isn’t cost effective for someone my age.

The news might not be so rosy for you if you are under 60-years-old.  That is all the more reason to get informed and vote intelligently in November.