Is the American economy about to collapse ?

Question

The US debt is staggering

The US dollar is falling

IInvestors are running

Oil is going up and there is more talk about the US dollar being dumped as the petro dollar in favour of the more stable and less debt ridden Euro

The US has made enemies in the oil producer/export market -

Troops are stretched thin in an endless unpopular war that is costing friends and money

How much longer will the US be able to borrow against the interest payments for war ?

Answer 1

Yes, both Goldman Sachs and Merrill Lynch are now predicting that we will be in a full blown recession soon.
The fact is that America has been running on debt for almost 3 decades and the bill is finally coming due. You cannot fuel demand with debt forever. Wages are going to have to start rising again or we will never dig ourselves out of this hole.

Answer 2

The US debt is manageable, a lower dollar means a lower trade surplus and a more robust industrial sector, investment in US interests is at an all time high (especially by the Chinese), which currency oil is traded in is immaterial, oil producers cannot afford not to sell to the world's largest economy and largest oil user, the military is being enlarged (finally!) to reverse the damage done by the Clinton war on the military plus, stretched or not, the US military is the only one in the world with global reach, the military budget was 3% of the GDP prior to the war and 4% now - it was 8% during the Reagan administration, 9% during the kennedy administration, 12% during the Eisenhower administration, and well over 50% during WWII. Iraq is a sideshow that is easily afforded. Experts in the field forecast the US to still be the number one economy in 2020 with India second, China third, and the EU fourth.

Not only no but hell no!

Answer 3

its bad and if bush was not gone next yr it might however there are signs of hope. The recent nia bascially ties his hand from attacking iran and that has stabilized oil prices even dreoppd them abit also the dolar is now worth slightly more then its canadian counter part. If the republicans posibly with the help of Nader are able to steal a third election then we will turn into a third world country but i think that the gap will be so wide that no amount of cheating will close it. And like mr Clinton fixed daddy Bush's ruined economy mrs clinton will fix baby bush's. Although my choice to do the repairs would be kucininich or obama i presume cliton will get it and thats fine

Answer 4

we are headed for severe stagflation. As of now, the actual unemployment fee is such as that of the great melancholy. i'm waiting. i'm purely getting extra waiting with time. I easily have stunning investments that would stand the two deflation and inflation. i'd provide you concepts even nevertheless it fairly is extra effective to maintain them secret. i will a minimum of inform you silver is your terrific guess now. Gold is high quality yet stands the threat of being confiscated (that has got here approximately interior the U. S. previously). My popular investment is creative and neglected and that i choose it stored that way.

Answer 5

i think something bad's finally going to happen. especially with all this commotion in the lending market. lenders are finally facing consequences (i think these lenders will only get a slap on the wrist, as long as they keep the appropriate bellies full)

commercials all look the same, with the same stupid fake tones in their voices

upper class - middle class gap is growing.. it cant grow forever. maybe we can come up with a 4th class... something like filthy-upper, or the platinum .01%

people are allowed to be too wealthy, i think. How can you say one person deserves billions of dollars, while one person deserves 12k a year, and has to rent till they die? the government seems just another stock

Answer 6

No. A falling US dollar will attract more foreign investment to the States, plus it will make US goods more affordable in third world countries making the US market more accessible to the world markets.

Answer 7

absolutely- the world economy maybe on the verge of a 1930s type crash. As well as all of what you describe, the whole derivative market situation which nobody is being told about is in a mess globally. most of the world's major banks are now effectively insolvent. the only thing left now is the sound of a loud crash.

Answer 8

So what?
1) GDP is higher now than ever during the Clinton years.
2) The unemployment rate is lower now (4.43%) than at any time in the previous 130 years.
3) Interest rates are falling and there is far more housing available than people to buy it.
Add to that the fact that we could supply ourselves with oil for the next 45 years if we could get the imbeciles in Congress to allow us to drill our own in AnWar and off our coasts. Instead, we allow others to drill off ours and Mexico's coast and do nothing, whilst bitching about the fact that Europe is going to put us out of business. Nonsense arguments that have no basis in fact.
If the idiots in Congress would stop spending billions upon billions on the United Nations, AIDS in Africa, and foreign aid to countries that **** and moan about us (but take our money) we'd pay off the national debt in 2 years, but liberals will never allow it.

Answer 9

The housing market bubble collapsed, thus causing the ripples on our economy. The trade deficit is due to Clinton brainless child NAFTA. I would suggest keeping Bushes tax cuts in place except for the oil company's. I say tax the hell out of them and buy a hybrid.

Answer 10

Let's not become Chickens-Little and sound the alarm that it's 1929 all over again. Some adjustments are obviously necessary, but this isn't some Doomsday scenario

Just as we resolved the junk bond crisis of 1987, the S&L crisis of 1990 and the bursting of the tech bubble in 2001, this too shall pass

Oh, and war expenditures amount to less than 0.5 percent of GDP.