This war has been expensive. We’ve almost doubled our national debt in just 7 years. Our economy is on the verge of collapse. The dollar is in free-fall. Our own banking industry is tapped out. Banks are building up capital to pay for the bad loans they’ve already made, so they can’t loan it. What happens if our government has a bond auction and nobody wants to buy them? Everybody says that we’ve borrowed this much before, to finance the second world war. It’s true. Sorta. During WW II the government ran up a huge amount of debt, but it had a population with enough cash available to absorb all of the debt. Our economy had annual growth rates of 25% in 1941 and 28% in 1942. Incomes were rising fast. By today’s standards, taxes were practically non-existent. People were saving huge chunks of their income. Compare that with today, when most of us are so deep in debt that 10% of us are missing house payments, so we don’t have that mad cash lying around this time.
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We as Americans don’t often realize that we don’t own our country. It’s only a matter of time before other countries force the US into collapse. They are no longer dealing with US banks and US dollars. Banks are running out of money which has made getting a loan damn impossible for many qualified people. Jobs are hard to get these days even for very educated and experienced people. I say we all need to get ready because the collapse is going to happen soon (this year).
Yes, it is very sad that we have been so poorly led for so long. It is largely our own fault by the way that we did not protest the Republican practices sooner. We were all busily ignoring the impending oil crisis while driving around in enormous vehicles that made absolutely no sense, extending our credit, assuming bad loans- THIS IS ALL A WELL ORCHESTRATED FRAUD PERPETRATED BY THE REPUBLICAN EVIL THAT HAS DOMINATED OUR GOVERNMENT! I thought this way 20 years ago if not sooner and I’m not even all that clever at economic skull *******. I mean when is america going to wake up? Now we are reduced to OIL JUNKY status. Well, guess what- this could all have been avoided.—–I cannot accept the notion that we are fated to failure;that is the way out for the weak minded.
The U.S. economy will be fine.
No more wars
If you have the ability to “print” money they you can pay back all debts up to the point that they won’t accept the currency. They can always buy up properties and assets too.
I’m thinking that retail is being hit hard, and later there will be vacancies in commercial properties. The weak businesses will close first which will be better for the other businesses so they can survive. America will start to export or manufacture more goods to other countries and there will be job creation there, but I’m just worry about the timing of it. If the transition is not smooth enough it will be a big problem. There will definately be more crime.
With the Global Poverty Act food inflation will be even worse in the future. I think the middle class will be shrink and poverty will increase.
Interest rates were left too low too long and we still haven’t felt the full effects of the economic washout. We aren’t like Japan, they had a lot of savings, and the are still very prosperous. We won’t be in the same boat.
When we do raise interest rates and the dollar will strengthens will get deflationary spiral?
A financial meltdown.And that is going to take place one way or another in less than 2 years.
Likely much sooner.http://www.financialsense.com/editorials/droke/2008/0519.html