Is a major economic downturn immanent?

Answer 1

In America, at least, I believe so. The fiscal policies of the present government (cutting the tax base while raising spending to unprecedented levels) could have disastrous effects on the United States financially. In addition, Americans are the most indebted people in the world due to a culture of must-have-it-now. If the United States becomes unable to meet its debt obligation, it will have to start printing more money, sending it into a tailspin of inflation and sharp rises in interest rates putting the screw even tighter on heavily indebted Americans. Some people would beocme unable to pay their debts and declare bankruptcy. Companies to whom they own money (Banks, etc...) would feel the shock. Interest rates could rise, putting even more pressure on the government, etc... The problem is once this kind of problem starts, it tends to be come a vicious circle.
Europe, Japan, Canada, Mexico, Australia would all feel the shock, since the U.S. economy is so huge and the U.S. is such a big importer, but I believe most of them would recover quicker than the U.S. because these countries have solved their debt problem. Canada would also be in big trouble because of its geographic location, although it can always start building a bigger merchant navy and increase trade across the oceans.
China and India would then take over as the world's economic powers. The European Union would recover from the initial shock and remain a major player, if not a dominant one. Russia may even make a come-back in such a scenario.
I sincerelly hope what I'm predicting here doesn't happen, as it would mean a lot of suffering for people in and out of the U.S., but I find the situation alarming, especially since politicians of all stripes refuse to adress issue, because solving the U.S.' solvency problems would require doing unpopular things, and they would all rather leave that to the guy that will hold office after they're gone.

Answer 2

America 's biggest problem is it's massive trade deficit.

China is on the rise economically speaking and is now the 4th biggest economy in the world today, the rest of the world no longer relies on the American consumer markets to sell their products. Look at the amount of trade deals being signed by European, Africa and South American countries with China.

Thousands of companies are flocking to China on a daily basis due to the low labour costs and very favourable tax incentives offered to foreign companies.

The top four economic powers in the next 20 years are likely to be China, India, Russia and Brazil in that order.

Answer 3

Good time to shift your investments into precious metals, gold and silver bullion, per se. Literally shift your money, the dollar is valueless by definition, it is backed by nothing. Just an IOU from the government. The housing bubble busted. The dollar value is manipulated, anyone with a right mind has to wonder why suddenly gas prices are decreasing. It is for political reasons, and I assure you right after the election or by January.. gas prices will rise again. They can't keep printing money freely, without a major economic downturn becoming imminent.

Answer 4

Yes unfortunately I think so because the country just cannot sustain this momentum with all the debt the govt. has and personal debt is at a dangerous all time high and I feel the stock market is about due to self correct plus you usually see down turns when gold and silver goes sky high

Answer 5

Yes, the economy runs in cycles. It has its ups and downs. And believe me, politicians pay attention to this. Tis best to be in office on the upswing than the down. If your in office during an upswing, you'll get the credit (even though the economy wont see the effects of your presidency till years after you've left office). If your in office during a downturn, you'll get the blame (even though, it is the repercussions of the reign of one of your predecessors or just they cycle of the things).

Answer 6

No. Not at this time.
Everything seems moving in the right direction and it's going up anyway. Don't worry.
We are all fine and economic upswing is evident with mega economies like China & India looking quite bullish.

Answer 7

Eminent? I've been thinking that would happen for 35 years now...before the DJA hit 500! Yes, 500! It hasn't happened, in fact, things only got better. So any advice from me would be incorrect because thinking it and feeling it does not compute. It makes absolutely no sense...to me still.

Answer 8

i'm 40 9 and that i've got labored considering i became 14 -- i became laid off for 3 months at present and finally went lower back to artwork (at a place a kinfolk member works and it became out nicely -- thank goodness) - i'm in Florida and there are a TON of human beings laid off here.......particular, we are actual heading into worry.

Answer 9

Ok I'm not a conspiousy theorist and I didn't buy into all that Y2K crap. But I just took all the money I was gonna put into the stock market, and put it into the European Union markets instead. Something just tells me America's gonna take a huge hit.

Answer 10

yes in the western world. not in China and India next world Economic powerhouses.