Not even Mike Rowe would want this dirty job. In fact, it is hard to even imagine anyone sane wanting to be President, right about now. These guys have fought for almost two years and have spent nearly a billion dollars to secure the position.

Now here is what they will inherit (for real). The facts are unfortunately the facts. With good luck, the best we can hope for is that the recession will end sometime late next year (and I am being very optimistic with this prediction). And on top of that, here are a few low-lights to consider:

• The government is expected to borrow a record $550 billion in the current quarter – $408 billion more than estimated three months ago. (Who is loaning money to us?)
• In the last quarter the government borrowed $530 billion. (Again, who is loaning money to us?)
• Total borrowing for this budget year, which began Oct. 1, 2008  is expected to be at $1.4 trillion, nearly double the previous record.
• 10% unemployment is likely.
• Mortgage defaults will continue apace and likely increase.
• The companies that issue and service credit cards are going to see increasing losses,
• Home loan mortgages and HELOCs will continue to default, in huge numbers, as both three (3) and five (5) year readjusting arms kick in with triggered increases as related to LIBOR and other indices.
• Commercial defaults will cascade, as the leveraged buys of the late 90’s and early 2000’s will collapse as tenants go belly-up.

Here are some possible ways the current fiscal nightmare will affect the major issues of the campaign (as played out, not on the campaign trail, but in the real world):

• Any tax issues will have to be decided first and foremost on providing relief to individuals. The public wants its share after underwriting all these corporate bailouts. And the public is the stimulus to any recovery hopes. After all, consumer spending represents more than 70% of our entire economy. With a lackluster housing market, and the rest of this mess, consumer spending is bound to fall like a rock;
• A lack of jobs will decrease illegal immigration (talk about self regulating an issue);
• For the first time, in quite some time, fiscal issues will be a factor in deciding whether to continue our foreign military expeditions. Perhaps a return of isolationism? HISTORICAL NOTE >> Remember George W. Bush (in his debates in 2000) was vehemently against Nation-Building. And now in 2008 we have wars going on simultaneously in both  Iraq and
  Afghanistan. Facts have a way of altering campaign visions, in a big way.
• Desperate companies will push the government to take over health-care costs, possibly resulting in some form of universal health insurance;
• Government will have to shrink in size. Period. With entitlements growing with the expanding baby boomer population (and with more people growing older and requiring more health care), how high will that number go? Right now we are at 65% of our total fiscal budget for entitlements (Social Security, Medicare and Medicaid .. the untouchables in the “locked box.” (See Ross Perot’s fascinating project, http://perotcharts.com/,  for all the gory details).
• Cutting – not reigning in – benefits and services is the only option available. And that will not be popular, at all!

Do I hear the winning demaning a recount? Be careful for what you ask for, Mr. President. The next four years will be a long slog, for sure!

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