I have much work to do, and promise to keep this short. I did not support Barack Obama, and did not want to see him win this election (although my support for McCain faded greatly as the need to pander clouded any real message he might have had). Perhaps I’m too cynical, but Obama’s idealism worries me, and there is no time to waste. The only thing to do now is hope that this talk of change has substance, because we need it.

Where to start? We are facing the most complex economic problems this country has seen in a long time. Fiscally, on both a personal and national level, we are a mess. Foreign policy has become complicated by numerous entanglements and the rise of previously dormant nations. Will he be able to recognize the magnitude of these problems, and create action that will lead to positive solutions? I want to hope that his relative youth, as well as a sense of accountability to his children, will make that a “yes.”
There are numerous problems, but I believe real change must begin with shoring up our own house.

Government spending, and debt, must be brought under control. Credit default swaps on “risk-free” government debt are trading over 40 basis points for an instrument yielding less than 4%. Swap spreads have actually been negative on occasion. None of this suggests the US is still perceived to be a AAA/Aaa credit.
This is to say nothing about the unfunded liabilities on the public balance sheet, or the tenuous monetary situation we find ourselves in, perched between deflation and hyperinflation. Paul Volcker for Treasury Secretary, anyone?

One particular line caught my attention - Obama promised he would be honest with the public about the situation we’re facing. My silent prayer is that the political capital Obama will have from a friendly Congress during his honeymoon will actually result in tangible change, even if it’s “just” a wake-up call. Americans have been sleeping through the few they’ve had, and we have to start somewhere.

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