One of the Clinton/Gore campaign slogans in the 1992 presidential campaign was "It's the economy stupid". This catchphrase significantly contributed to the Clinton/Gore victory. President-Elect Obama is currently talking about stimulus packages to get us out of our current economic woes. He should also be talking about the U.S. savings rate. Taking a page from his Democratic predecessors, his motto should be: "It's the savings rate, stupid".

We proclaim that we are the only remaining Superpower. Just how Super are we? The United States is totally dependent upon foreign oil and foreign investment. Everyone is aware that we are importing millions of barrels of oil daily, and I believe coming to understand that it is a threat to national security. Yet, nobody is willing to address our core economic problem of daily importation of billions of dollars from foreigners to finance our consumption and superpower status. We are not only the biggest importer of oil but the largest debtor nation. The U.S. used to export oil and be the largest creditor nation. How did we let this happen?

The United States Government policies promoting consumption, borrowing, and speculation on stocks, housing, commodities, and credit instruments are to blame. These policies should be replaced with policies stimulating savings and long term investment that creates sustainable long term income. Changing these policies is the key to providing the capital necessary for investing in new technologies, building new and modernizing old U.S. manufacturing plants, rebuilding infrastructure, education, and and last but certainly not least, reducing debt. If President-Elect Obama is truly going to become the Messiah that some are prophesying, he has to have the courage to make the American people understand that they need to save more. He needs to get Congress to act and change our policies to encourage and reward personal savings.

It took an attack on Pearl Harbor to wake the nation up and get our national resources focused on defeating the evil powers threatening the world in the last century. With proper leadership, the American people can be educated and see that the current economic situation is an economic Pearl Harbor. The Germans and Japanese were developing atomic weapons and would have undoubtedly used them on us if we had not entered World War II when we did. The American people need to realize we need to win the economic war now. If we don't, the United States could see an economic Armageddon that will make this year's economic woes look like a minor skirmish.

Source: Dwight Kellams, CPA/PFS,CFP