how long until the US economy crashes?

Question

the only thing that prevented this thing from happening is the fact that the dollar is the worlds reserve currency. but for how long. OPEC countries are already considering switching to euros because with the current system there making less money. this will trigger a chain reaction. what's the point in having dollars if you cant buy oil with them. trillions of dollars will be sent back to the US, the government wont be able to pay and the economy will go into depression. how long before this happens?

Answer 1

Good question. The Treasury's assets have been raided and given to the super-rich via tax cuts. The US Government has borrowed heavily by selling treasury bonds to China and other countries -- money that will have to be paid back via exports of goods and services, not (as in previous decades) by taxing and redistributing money domestically.

A recession is overdue, and it, or worse, could be brought about by a collapse in house prices, by a realization abroad that they are holding overvalued dollars, or by something offshore, perhaps in Britain when people realize North Sea Oil is running out. Or by frustration over the increasing costs of war in Iraq and Afghanistan. Or by oil prices, and a refusal by the US to do anything about conservation and economization of energy use.

Nobody can say WHEN it will happen. These things, almost by definition, come as surprises.

The USA remains rich in resources and in agriculture -- although the latter is stupidly subsidized, resulting in cheap US crops putting Mexican farmers out of business and leading farm workers to try to migrate North to the USA. Bad weather, shortage of water, a dust bowl -- these could set off a recession. As could high interest rates, raised to keep the dollar from collapsing.

Inevitably there will be depreciation of the dollar, inflation in the USA, a revaluation of asssets, especially real estate. Bad news ahead, but I can't say when. As always, it will be the middle classes who will pay the price. Did you see the article in today's New York Times? #1 on its list of 25 most e-mailed, right now.

Answer 2

They wont do that, and the economy will not crash. The USA has too much history to let that happen. OPEC will maintain dollar as currency because its the most accepted on the planet. GIve it time, about 2 years (when bush leaves) and you will probably see the dollar higher then the Euro again.

The Depression wont happen again because we know how to prevent it. It should have happened on Sept 11 if we were unprepared.

Answer 3

5....4....3...

Yeah, I remember when I got dollars for my birthday, I switched them immediately to Euroes (they were worth more at the time)... And now look at them? They've PLUMMETED in value. Poor grandfather who kept part of his inheritance in dollars.

Well, USA is already doing a lot of stuff to keep the dollar artificially strong. A lot of the "Foreign Aid" you give, are like vouchers that entitle developing countries to buy things off you, but you can't buy from anyplace else.

Answer 4

To be honest with you, my opinion is that nothing surprises me right now as long as Bush is President. As long as it lines his pockets, this country can go bankrupt as far as he is concerned. I know many people are tired of hearing about Hurricane Katrina and the war on Iraq but look at it this way ; War on Iraq is we blow the shet out of them and then less than a week later, Bush gives them $10 billion to rebuild just so we got something to blow up again. Hurricane Katrina, well, piss on the survivors, we will get to them whenever our economy gets better.
Sounds more to me like Iraq lines Bush's pockets with a kiockback on oil profits since the US has to (as Bush says) purchase oil from Iraq. I am not a Hurricane victim but, I had some of them come stay in my home in Kansas who to this day has never recieved a dime for their losses. Seems sad to me how Bush thinks more about other countries more than he does the one he resides in and let alone is SUPPOSED to run.
This is what America pays tax for, to have a President that wants to sit back, watch the Americans die out so he can fill this country with all these forniegers for other countries.
Yes, us as Americans are allowing our Country's economy fall to the bottom. C'mon Americans. what the hell is wrong with you all ? Stand up and speak and quit cowarding down from the President. What is he going to do ? He is only human like you, the only difference is, he is stealing from you and you let him get away with it !! That is what is wrong with our economy !!

Answer 5

Well, when Iran turns off the gas supply and destroys oil traffic in the region.....due to America and the Wests inability to negotiate with common sense and to let them have nuclear technology for their own purposes (like most other countries do)...i would say quite quickly.

Answer 6

impacts to the financial equipment have already began. All scheduled commute has already been canceled. So now all of those airline seats are available. additionally all those lodge rooms that would desire to have been occupied would be available. All of those eating places might have much less of a wait. all the apartment vehicle businesses might have further automobiles available. and the lint is going on...

Answer 7

According to stat INDIA will be third largest economy in 2045,but right it is on 8th position.after 2045 ther may be a chance that $ fall on back face.

Answer 8

you can never know have much time US has... but it's sitting on a virtual economy, so it will happen suddenly I guess

Answer 9

I don't know that this will happen but if it does, we'll recover. We have before.
hahaha - sorry this isn't the answer you're looking for, is it?

Answer 10

I dont think you will see it in your life time.