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The next bubble will burst…

…or let’s say, 10 bitter facts, why the U.S. economy is still in big trouble. The U.S.
economy is by far more in debt as most of the people want to believe. Unemployment
is above 20% when you bring in the long-term unemployed. Myret Zaki has stated 10
facts that proove to her that the worst is yet to come.

Fact 1: The model of net growth is no longer actual

Today, many people are dependent from food stamps and publicly offered soups. They say that every sixth American is dependent of these and over 12 million people will loose their homes until 2013 as they are no longer able to serve the mortgage payments.

20 % unemployed people, included are these who do no longer search for work as they don’t feel so or gave up theirselves, are external from the Consumation and Saving-society.

Peter Schiff, economic consultant of Bill Clinton estimated an inflation of 10% during the real estate and technology bubble, and not only 3.6% as oficially stated.

Result: More and more people are likely to run into poverty. They will no longer be able to consume as they are in immense debt. Consumation as economic driving power is no longer actual!


Fact 2: The actual rating is still too high

USA have been rated down from AAA to AA+
This means that the country should be able to pay back it’s debts one day. Economists believe that the USA will not be able to do likewise!
Based on the 30 year calculation of the Dollar’s inflation, your obligation will ony be valued at 30% of it’s original value.

This means that thirty-years-based obligations are interested with 3.4%, ten-years-based obligations are interested 2%

If you countermeasure that with an inflation of 3.6% in the ideal case, you still pay premium for almost invaluable onligation papers!

Result: The loss risk is currently highest with US obligations!


Fact 3: No interest bonus for savers!

The Federal bank has stated that the interest rate for saving accounts is 0%. This will hold up until 2013 and will be probably longer.
So where’s the interst of people to save their money on bank accounts if there’s no bonus at all…


Fact 4: The Dollar will weaken!

Due to the extreme flooding with new Dollars, the currency itself will lose more and more value against other currencies and thus, the currency will also loose value against goods.


Fact 5: The predicted big bang!

The FED may be able to manipulate the interest rates yet they are unable to have an influence on the bonusses of the obligations. So when China and other crediting countries are no longer willing to accept the low interest rates, the USA may no longer be able to sell their obligations. Yet the rise of only one percent will cost the USA antoher 140 billion US-Dollars. Lots of money to finance an interest rate change. Too much if you consider the current financial situation of the USA. This will furthermore lower the fine credit history of the USA. A doom loop starts to spin faster and faster…

Myret Zaki is citing Marc Faber, autor of the Gloom, Boom and Doom report:

US obligations are the empty-sales of today

Result: This is one of the main facts for another big economic crash


Fact 6: Gold will stay a secure investition!

Yet with all the ups and downs, Gold will still remain a secure investition. One reason is that the USA are flooding the market with Dollars which results in a lower value of the Dollar itself (inflation). Also interest rates will stay at an all-time-low. In the early 80’s, the USA have risen the interest rates to astronomical heights to put the Dollar on Deflation and with it the deflation of the Gold price as well. Today, the USA are no longer able to serve high interest rates as their budget simply does not allow this!


Fact 7: Debts have risen again!

Although the plans of the U.S. government were to lower the debts, even the consumation loans of private persons have risen again!


Fact 8: The accumulation of debt will rise above the GDP rate!

At the end of the fiscal year of 2011, the accumulated debt rate will rise above the Gross Domestic Product rate. While in Europe, many governments have put up and actitivated plans to bring up their budgets to code, the U.S. congress still is very silent and has not presented many good plans to bring up their budget to code.


Fact 9: The truth about speculations.

Speculatiove empty-sales have risen to a new record level. Most of all, US and GB hedge funds have wagered against Greece and later on against satellite countries of the whole EU. Germany and France wanted to prohibit empty-sales in all industrial countries but especially USA and Great Britan were against this prohibition. In Great Britain thre quarters of all european hedge funds are situated. In the opinion of Zaki, the countries with the greatest debts (Japan, USA, GB) are currently fighting an economic war against the europpean continent.


Fact 10: China will either winn or loose the most!

The chinese federal bank holds 3.2 trillion Dollars, most of this sum actually in Dollar. China has big interest in replacing the Dollar by the Yuan. in ten years, this might be possible, as Zaki stated. based upon forecasts of the International Monetary Funds, the chinese GDP will raise above the GDP of the USA in 2016. Since 2007, the annual increase of the chinese GDP was 46% while the GDP of the USA has risen only by 1% per year. After 100 years, the USA may loose their pole position as economic power.

September 12, 2011 Netspark - 1593 posts - Member since: May 9th, 2011 No Comments »

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