Politicians have mastered the art of denial. Why make a decision now that would cause constituents pain and cost votes when you can just ignore the issue by “kicking the can down the road”. Just let somebody else worry about the people long after your gone just like they’re doing in the state of California and the European PIIGS (Portugal, Italy, Ireland, Greece and Spain). After all, you just need to ask a simple question, “How’s that working for them?”

I don’t think anyone would argue that the economies in California and the countries listed above aren’t in deep trouble. The European economy has even been considered the “Canary in the Coalmine” for the future of the U.S. economy. In a coalmine, when the oxygen is cut off, the Canary stops chirping because it’s dead! In Europe, when the money stops flowing, the economy dies. If the European economy dies, the U.S. economy is just as likely to die.

Let’s get back to the politicians in California, Europe and the United States. If you ignore the problem and “kick the can down the road” long enough, eventually the road comes to a dead end. Welcome to the “dead end” for Western economies. The problem has been ignored for so long now, there’s no way to avoid pain. We now have the following options:

1. Fall off the “financial cliff” – Politicians can continue to disagree and face the devastating impact of severe spending cuts and the expiration of tax cuts that will significantly raise the tax liability of every American,

Or

1. Politicians can suck it up, put their big-boy underpants on, and address the problem head-on, thus avoiding falling off the “Fiscal Cliff”. How can this be accomplished? Quite simply, by raising taxes and reducing spending. (This sounds a lot like option A above.)

Or

1. Try to “kick the can” even further down the road, even though there is no more road. In this case, we have an even more fearful day of reckoning ahead. What does all this mean? What happens when you come to a dead-end and hit a wall? It’s painful! Western economies can expect lots of pain for years to come, perhaps even decades.

Any way you look at it, it’s time to face the music. Things are likely to get even worse before they get better, perhaps for a long time to come. Sellers may want to consider the consequences of “kicking the can down the road” and what the future holds for the U.S. Economy before they “kick the can down the road” by avoiding a sale now in the hopes that things will get better. They may be taking on more risk then they even bargained for.

Note: Don’t blame the politicians. You and I elected them and put up with the nonsense