Originally Posted by
Eric the Green
Sequester is having an effect in slowing down the recovery. I expect, overall, that the weak recovery will continue. Later in the decade new green and tech industries will stimulate the economy, and increasing Democratic power will reduce austerity. I still expect some stresses late in the decade because most of the underlying structural problems will remain in place, so the economy will remain vulnerable to down cycles.
Labor costs will be rising everywhere in the 2nd/3rd world. Over the long-term that will mean higher prices in America, but this will be gradual. It's possible inflation could return due to this, and that's when the US debt will start to hurt us because of rising interest rates. Only government reform can deal with this situation, by reducing the current hogging of money and gambling by the rich, and dealing with the structural problems in the economy like poor education and automation.
But I doubt boom times and growth will ever return. We need to adjust our lifestyles and expectations accordingly. The silver lining to that is that inflation and interest rates should remain fairly low if growth remains low.
Intervention by the US in another hot spot, probably Syria, is likely in 2013-2014. It will be small scale and limited. Look for a fairly-benevolent start to it this July. Another major war or several of them will break out in Dec.2020. The US will not be involved until at least 2025.
I think it will take longer, unfortunately. It's possible we could see the end of duopoly by the time the Crisis ends. That does not mean a new party will actually take power. It could be a coalition. But I think Democrats increasing in power in the next few election cycles will generally be a good thing. Democrats are more amenable than Republicans to pressure from below. It's pressure from the people that will be where change has to come.