USA TODAY

United States economy will bounce back in the next half of the year and I guess right after they have elect a new president everything will be back to normal. Confidence among investors will be freshen up as new faces will come to power. It will be even more stronger as the “Bush dilemma” will be forgotten among others. Their strenght will even become double if Mr Obama comes to power. A new face in the American political ground. The country itself will have a new picture. A new hero. A new role model. A new revolution.

A new Image. A new America many would have think. A better America. What would it benefit to the world? A fresh start? Maybe or Why not. As I mention earlier, investors will come back to the New ‘old’ World. What benefits would it have towards the invested countries. Countries like vietnam, Thailand, India and many of the growing countries. Will they pull of the plug to return to the States. Just like what they did during 1997? Why not. Many things need to be adjusted to the economy of the states. Less soldiers will be needed in the mid east. They already started to pull out some of the recruits. They will leave the veterans there. Who needs them in the States? They are too “specialised” in the killing business. They will always be in the middle east to teach people how to do what they do. The American way of police-ing.

Interest rates start to come down earlier this month. From 5.55 (FROM THE FEDS-WHICH IS QUITE HIGH) to around 3.5% is an early sign to encourage people to come to the land of opportunity back. I guess it will come down even more in the future. With oil prices are screaming to the top. They really need to do something about it rather than changing the price to euro, which will create more volatility or risk towards their economy. Eventhough the euro look more stable than the USD now.

No wonder that the Asian stock market went down by 3% the other day. It is most probably because the interest rate of the FED came down. Less expensive to borrow that is one thing. But the other thing is future income. Low interest, low volatility. Low volatility equals to lower future returns. Even the coupon value will come down to anyone that lent their money to the Feds. What if countries that has a huge amount of USD deposits in their banks? Value will go down as well. Unlike what they predicted.

Many people are also praying for the US economy to go down as they hope for higher interest from the FED so that they can earn higher interest while saving money in their banks. Higher return. But the risk will always be the same especially when you save your money at a bank. The money will always be there. The value will of course change but the risk of having lower value is unlikely as long as they won’t do business like the president of zimbabwe.

To conclude from what I have been talking about. The bottom line is that the US economy will bounce back in the near future. A new face will come in to the oval room. Its either a lady or a new face will come in to increase people confidence about the yanks. No matter what the people who ran this show is not stupid. They even know that they need a new plan to move foward or to grow. They will do almost anything. No matter what, a black guy, a woman , you name it. They even willing to sell the country to be more powerful.