The financial experts in the US have been conducting meetings over the last few months regarding the current political, economic and the moral crisis that seems to be unfurling under our noses, although only in bits and parts. After they analyzed the present situation of the US, they’re of the opinion that the Americans will experience a massive shift in the world order. Although all the activities and the events in the US economy point towards this collapse, the American consumers admit to themselves. The US economy is doomed to bankruptcy and therefore there is a tough time awaiting the Americans who are entirely dependent on the US economy in different ways.
Facts and Visions:
1. According to recent reports, Europe is on the threshold of a huge economic change and this may also lead to a complete collapse of the Soviet Union. Nevertheless, there’s no chance for the Americans to rejoice as they’re destroying themselves from inside and the entire world knows of it. There are reports that suggest that the US national debt has crossed a staggering $15 trillion and is also growing at $4 billion per day. There are people who don’t know the worth of $1trillion and such people are contributing to this doom of the US national economy.
2. Since George Washington’s reign in the year 1789 to the end of Ronald Reagan’s administration in 1989, America accumulated only $2.3trillion debt. In a contrast to that, since Obama took charge of the American government, in a period of about 42 months, we’ve racked up an additional debt of $5trillion and these comparison figures show a mind-blowing fact about the reign of different Presidents and the lawmaking rules they adopted.
3. The national debt that we owe isn’t a line of free money that we don’t have to pay back. We have to pay these funds back but how would we do this? Will increasing taxes and massive cut in spending help us repay the money? Experts say that taxing the rich 100% won’t be enough to cover the enormous debt amount that we owe. This is purely a mathematical matter and therefore the concern should be ‘when’ and not ‘if’. The politicians are actually not bothered about how the nation will perform in the long run; all they care about is getting re-elected in the next elections. It has been estimated by few analysts that if Obama is re-elected, his administrative policies will increase the national debt to $25 trillion by the end of 2016. Even if the number doesn’t match, analysts believe that his policies will certainly increase the national debt massively.
4. The US economy is actually sitting on the top of a bankrupt government. Yes, you’ve read it right and the only thing that the US can do at its best is to borrow money from the Federal Reserve, thereby let loosing more dollars in the US economy and this will inevitably cause inflation. The confidence on the US dollar is also waning day by day. As no one else wants to buy US debt, the Fed is taking the initiative to buy US debt in order to keep the interest rates low.
All the above mentioned facts are more than enough to prove the exit of the world’s biggest power and that too due to its own follies and mistakes. The US economy is just taking baby steps to delay the inevitable, which is certainly bankruptcy.
This article has been written by Samon Bagons. He’s associated with various reputed websites and his articles are widely read and sought after. He mostly writes on debt and the various happenings around it. He is associated with oak view law group