The gov't is getting in debt with China, big debt. And we know USA is in a win or win situation with Iraq. USA loose the war, and they wont be able to redeem the over 1 trillion dollars invested because they wont be able to take over the oil. Bush has just cut the funds on national protection against terror by over 50%.
What the h*ll is going on? How price is going down, dollar is going down, China economy growing, USA economic decreasing. This has not been projected 10 years ago.
What is your opinion about it?
2007-12-01 13:51:42 · 7 answers · asked by geeks_gadgets 2 in Politics & Government ➔ Government
Yes it is. The Real Estate market has collapsed. This will start as the ripple from this huge industry is felt across all connected markets. The debt with China has nothing to do with it. China will never collect. It would immediate cause a depression in both countries as Chinese investors go bankrupt from this loss of projected income from the USA not paying, and in the USA because the value of the dollar suddenly reached 0.
The second depression is coming. It is only a matter of time. It is likely not a direct result of the War in Iraq or taxes. It is most likely an effect of the industrial vacuum in Asia and the shifting of manufacturing jobs to Asia... due to lower labor costs. It will eventually balance out, but there will be a huge crash when Americans find they can no longer support themselves on their lavish lifestyles.
2007-12-01 14:19:36 · answer #1 · answered by baddius 3 · 0⤊ 0⤋
For the last couple of years, I've felt that we now live in a world economy that has benefitted tremendously by the purchasing power of the U S. As such, every important currency should and I think will help to support the dollar -- except China which is, as ever, inscrutable. U S politicians keep pressing for China to re-evaluate their currency, which would make the U S manufacturer more competitive. (And the U S consumer poorer) so guess whose side our pols are on. What you predict is unthinkable to the world, so the worst I see is gradual inflation (loss of value of $) Invest in exporters and global co.s. Also, with a falling $, much foreign currency will be converted back to $s to buy American real estate and existing businesses.
2007-12-01 14:14:14 · answer #2 · answered by te144 7 · 0⤊ 0⤋
No - but then there always are a lot of doom & gloom prophesies springing up from the left - especially right before an election . We'll be fine if we all turn off our TV's more often .
2007-12-01 14:21:02 · answer #3 · answered by missmayzie 7 · 0⤊ 0⤋
Sure, if we elect a spend spend, increase taxes goverment. Where is this depession you talk about.? If government would get their hands out of my pocket, and quit giving it to non-citizens and bums, I would be even better off. Just because we owe money to China, doesn't mean we have to pay them back. Can you name more than a tiny handful of counties that have ever payed back our loans to them? No, but they work overtime undermining our policies and taking billions more in aid.
2007-12-01 14:13:19 · answer #4 · answered by Anonymous · 1⤊ 1⤋
Good video on the situation, includes Ben Bernanke, overseas borrowing, Ron Paul, and hard hitting questions like yours.
http://www.youtube.com/watch?v=xTBrJNipytg
And a more recent video,
http://www.youtube.com/watch?v=yAwvlDJgJbM
2007-12-01 14:12:49 · answer #5 · answered by Anonymous · 0⤊ 1⤋
The value of the dollar always depreciates in boom times, but appreciates when we enter a recession.
2007-12-01 14:25:02 · answer #6 · answered by Bibs 7 · 0⤊ 1⤋
Yes! It is going to be much worse! Even Alan Greespan agrees with this view.
2007-12-01 14:01:30 · answer #7 · answered by Paul K 3 · 0⤊ 1⤋
Man it looks like it.
2007-12-01 14:32:08 · answer #8 · answered by bittywrap 3 · 0⤊ 0⤋