This will appear in the Bernice Banner, Bernice, Louisiana, USA the week of 6/22/2015.

Anticipation of the gallows is often worse than actually going to the gallows. The incessant wait for the inevitable, the thought of what to expect, the dread of the event often welcomes the final action. This dread is felt not only by the convicted but also by many witnessing the event. When the execution is over some witnesses are in sorrow, some are relieved and some find comfort but one thing is certain; life goes on. This story has bearing on other aspects in life that are not as tragic as and execution.
Today there are two economic decisions before us that are impacting the world and the dread of impending actions have consequences on world stock markets. One of these decisions is definitely going to happen and the other decision may be delayed but this delay in action will only delay the inevitable.
Several years ago the Unites States was in an economic down turn that many felt was about to lead America to the next great depression. One effort the Federal Government did was to lower the prime interest rate, the interest rate the federal government lends money to banks. This in effect, reduces the interest rate that a bank charges its customers for a loan. This will then lead to economic growth as businesses borrow more money to expand its’ business or provide an opportunity for new businesses to start. The Federal Banks known as the Federal Reserve, was to use two key indicators to identify when the Prime Rate will rise. One is the unemployment rate being at a much lower rate and the other is the inflation rate. The mere suggestion that the Prime Rate will rise sends shivers through Wall Street. The idea of a small rate hike terrifies those that think that artificial stimulation must be in place to grow our great country. The bottom line is that we are going to get a rate hike and it will probably be this year and it will not usher in the end of America’s economic future.
Instead of letting the dread of interest hikes rule the stock market, lets’ let the real economic condition of the United States drive our markets. Unemployment may be as low as 4% by year end. We are creating jobs at a good pace and many long term unemployed are finally finding employment. Our country is looking good and if the government unbridles the regulations it has imposed on us the thoroughbred will be released and America will explode. But, the one thing we must realize is that the rate will rise, accept it and let’s move on and forget the dread. On the opposite side of the interest increase debate is that we should see an increase in savings interest rates.
Greece is in a crisis also. It has become a country of entitlement programs and is funding much of these programs by borrowing from the European Union instead of using money from its’ own income to fund the programs. Eventually it has found it impossible to repay the money it has borrowed and still wants the European Union to support it with more loans. The European Union has put its’ foot down and wants Greece to make hard changes to its economy before it is bailed out again. Greece says “no” and the fear exists that it will not be able to pay its’ loan bills and thus in effect declare bankruptcy. The fear of this happening is gripping the financial world even though Greece is such a small player in world economics, the mere thought of a Greek default has sent chills throughout the stock markets of the world for a year. This is about to come to a head and the best thing will be to let the inevitable happen, clean up the mess following the Greek collapse and then discover that life goes on. The anticipation of the collapse is far worse than the actual collapse. Unfortunately the socialism that gripped Greece and the high regulations and social programs it implemented are quickly being adopted by our own country.
I recently heard a comment that embraces the past spirit of our great nation, “Do what’s right and except the consequences”.


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