A fundamental expression in nature is a wave. The following image provides a simple expression of a measurable wave:
However, waves can also rotate as shown below:
Cycles are a reality of life and at the most fundamental level we observe expansion and contraction. Muscles are developed by expansion and contraction, stress and rest. Our sleep patterns are cycles to allow us to be restored on a daily basis. Economies work the same way. Men do not make perfect decisions on expanding their business. Some ideas simply fail. Financial capital is directed toward those ideas and pursuits and they don’t produce the expected fruit. Just as with a plant, you must prune away the unproductive branches for they are using resources the fruitful branches need. It is also true with a nation’s economy. Extended expansion needs an offsetting contraction. However, politicians in their quest for power try to keep the economy in an expansionary mode in order to get reelected. Since most citizens don’t understand the need for contraction, they oblige by reelecting the politician who promises them a rosy future.
As an entrepreneur for the past 27 years, I have grown accustomed to the cycle. There have been lean years and there have been exceptional years. Throughout those years, we have learned to live below our means. It is easy to live up to a higher income but it is brutal when you attempt to contract your family budget. However it can be done.
America has over-expanded for the last few decades and the piper wants to be paid. The only question will be how much economic carnage will occur. Historically, other economies crashed and burned after they attempted to do the same thing. The world did not end but there was extreme pain. This time looks no different. Those who have followed this blog have been encouraged to downsize their needs and budget, get out of debt, and minimize financial risk (if possible). Only Our Heavenly Father knows the timing when the unraveling will be in full swing. That is why I encourage readers to seek HIS Face. HE can and will guide each of us through the tumultuous times. Love and peace will sustain us individually as the contraction gets into full swing.