By Andrew Moran at Economic Collapse News
The year is winding down, and what a year it was: the Federal Reserve decided to end quantitative easing, the United States national debt is closing on $18 trillion, the Republicans regained the Senate, precious metals had another weak year and the administration’s foreign policy continues to be militant.
What about next year? What do we have to look forward to once we ring in 2015? Many people expect the U.S. economy to improve, especially with the GOP back in control of the House and Senate – we’ve seen this narrative before and it isn’t pretty. Economists expect the Federal Reserve to raise rates, but the central bank doesn’t seem too enthusiastic. President Obama and his cohorts believe Obamacare will be even better next year.
Let the champagne flow from the heavens and allow parties to engulf the streets. Well, not really.
In other words, it’s still the status quo and the establishment is running roughshod on the Land of the Free. What can we really anticipate to transpire and unfold in 2015? Here are five things to watch out for next year:
Fed Balks at Rate Hike
A majority of economists say the Fed will likely raise the key benchmark interest rates from near zero in the middle of 2015. Although Fed Chair Janet Yellen has hinted at this, there are still signals that the central bank isn’t exactly keen on doing so because of a difficult labor market and supposed inflation targets below the two percent number. The Fed will probably balk and delay another rate hike akin to what has been the trend since the economic collapse.
GOP Won’t Do Much
The Republican faithful placidly believe in the party that reneges on its promises. With the GOP back in charge of Congress, the party’s avid supporters say the country can get turned around and the nation can repeal Obamacare, reign in spending and transform Washington into a corruption-free zone. Unfortunately, the Republicans won’t accomplish much next year or in 2016. Instead, it will be more of the same: debt ceiling debates that end in increasing the debt, more approval of spying and war measures and only slightly modifying the Affordable Care Act (ACA).
Stock Market Declines
2015 will be the first year in a long time where the stock market doesn’t receive a monthly injection of cheap money and stimulus, though it still does have a record low interest rate to relish in. With that being said, financial institutions are already predicting a less than stellar performance on Wall Street next year. We’re constantly informed of a bullish market, but traders are pontificating one word: caution. It makes sense: the fundamentals of the economy are not sound.
Higher Price Inflation
The Paul Krugmans of the world will dismiss any data suggesting rising price inflation. Unfortunately, this is happening, and has been going on for several years. With the $4 trillion gradually seeping into the economy, greater price inflation will take place and consumers will suffer from a weak dollar and a higher cost of living. This year was a pretty bad year for prices of goods and services so just imagine what will happen next year.
A Part-time Jobs Nation
The trend of the U.S. transforming into a part-time jobs nation will persist. Indeed, tens of thousands of jobs will likely be created in the new year, a substantial percentage of them will be part-time, low-paying and in the service sector, much like what has been occurring in the last few years. With Obamacare in full effect, businesses will reduce the amount of hours they offer their staff, which will lead to workers being employed by multiple companies to make ends meet.
Some may hope for a grand year, but it likely won’t happen. This decade will be known as the “lost decade” similar to what the 1990s were for Japan. People are in astronomical debt, job prospects are bleak, the political system is corrupt and the overall situation of the U.S. isn’t something to be adulated.