Knoles sees 1946 as a year of crisis. Demobilization in the United States will be slow. Housing will be a major issue. The production of dairy foods will be slow in returning to normal. Prices will go up, general business prosperity will produce a high national income, and a balanced federal budget may be possible. Internationally, World War II will be slow to wind down. Without a peace meeting to resolve issues left by the war, we are groping through a maze of regional problems. Europe's industry is crippled by war, Russia's influence will be strengthened, and we can hope for peace in China soon.