American Economy and Consumer Global Impact

I have been observing very cautiously about the American lifestyle, businesses, people, consumers and its global impact.

I believe along with all others..Change is here... From Presidents to the American consumer...No where in the World there is so much wastage of resources. Start from Garbage to Oil - biggest consumer of the World is America and no doubt that America is the biggest economy of the World for the same reason. American consumer consumes about $9.1 trillion dollars every year and total world's GDP is about $44 trillion. India + China together consumes 1.3 trillion dollars every year and has total 25% of the population and American's population is just 1/3 of only India. So just imagine if the american consumer is changing and consuming less and less day by day, what is going to happen?...No doubt this is going to be devastating to overall Global economy. But here is the American who is taking over the debt on debt and trying to fuel the economy from the Banks and now that is trickle down economy that Obama criticized all over his 21 months of campaign now he is the first in line to bailout all the industries of America, from Banking, Real estate, Auto and soon and slowly even porn, hollywood will be in line because when there is a free money is ditributed who doesn't want it?. I'm being bit sarcastic here but the truth is that business rely on the consumers to make money and if American Consumer is rethinking how to lead their lifestyle that $9 trillion will be shrinking and $44 trillion GDP will keep rising since money is being printed by American Govt. and soon it will devalue the dollar. At this time its so foggy people are not able to see even 12 inch front of them in terms of Economy so for Americans - money closer to them seems safe rather than investing in other countries and other contries think that dollar (USA govt.) is the safest bet in the volatile market...and hence dollar is high...

I envision that American economy will dip a bit but will eventually will bounce back in the future; One way of looking is that its beneficial to have such a dip where people realize the importance of wealth and feel happy that they are priviledged until now, it is difficult to go through this cycle but seems necessary... If you see economy and creation of wealth is just a "mindset". A confident consumer will spend the money that is earned, that money will benefit the businesses, businesses study the consumers and invest into the business to make more money and consumers like to avail and use it as earliest opportunity. Innovation is fueled at this stage that brings job growth that provides money to "potential consumers" and this cycle continues... but when the "consumer mindset" changes, this is a vicious cycle where everyone starts loosing from consumers to business... compared to above example where everyone feels wealth and priviledged.

Happy New Year 2009

Wish you a Very Happy, Prosperous, Healthy, Wealthy and Safe New Year 2009.

One more year has passed and yes! the fact is that we all grew an year older and gained some wisdom and knowledge. I hope everyone of us enjoyed every moment of passed year because the those moments are NEVER to come back again in our lifetime. We are on the one way journey of life so enjoy every moment of the life has to offer...

Year 2008 was a historic year in many ways and it will be written on BLACK, BOLD letters in history book so lets keep that to historians but few things that come to my mind are ....

• Financial market crashed, DOW index is down 34% - worst since great depression in 1929
• Housing Bubble - prices are in free fall most of the nations
  
• Recession year where most of us lost significant wealth in the stock market - loss of 6 years of profit so in terms of wealth we stand on the same place where we started 6 years ago..i.e 2002.
  
• Commodity prices raised record high ($147 oil) and now it stands at $38 in 6 months - can you believe that? This means that some greedy people are manipulating the system and we poor bystanders who are feeling the heat...
  
• US Presidential election, OBAMA is elected.
• Terror attack in Mumbai that again reminded that India needs to tighten the security belt
• many more .. TV channels will recap for us ....
  

But the best part of humans is the tenacity, resiliency and as a whole Globe we recover stronger and bolder, yes! some territories of this Globe are taking longer than others but do not forget there is HOPE and we all live by it.

I think all the above events that happened in 2008 reminds me that we no longer live in the physical boundaries of one Country but we are GLOBEZEN. Everyone is connected and we all are linked in some shape or form, it may be Global Warming, Economy.

I visited places (east of this Globe to West, North) and observe so much similarities in the people, we may have difference in materialist things, lifestyles in everyone's life but the basics fundamentals of everyone's life is very very similar so basically brain may differ the heart is very very similar but difficult part is that the door to heart will only open when it comes to fundamentals - bit more complex to put details in here. So at the end we all have moments when we are struggling to overcome own problems and on the other hand moments of joy, pleasure, happiness. The simple equation of successful life for me (believe me, I understand how complex the life is.... )

Successful Life = happy moments > Sad Moments

I wish that everyone of you out there having a successful life and enjoying...