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USA breaks it’s holiest taboo!

The USA and Barack Obama have ratified an agreement to raise the debt
limit as long as needed without any upper limit. This way, the USA is trying
to ensure it’s full liquidity. However there’s some stale taste with this as the
actual 16.4 trillion DS$ debt equals 100% of the annual US economic power!

So this might finally be the point of no return should the debt raise beyond a point where the USA could not serve their debt anymore. As you might have read in the past, the debt has been risen several times to avoid the US illiquidity. It worked out well using small steps to raise the debt level. However with this new ratification, the problem could end up in a fiscal disaster for the US government and finally for the US economy. All in all this could also raise a worldwide financial tremble again. If there’s a chance for another recession or financial crisis as we have witnessed it in 2008 is doubtful but you also cannot exclude it from the thoughts completely.

One thing is for sure. Raising the debt level again and again is not the ultimate answer to solve the fiscal problems, the USA actually has. It only allows them to evade them for some time until the hard truth comes back.

And what’s for the poor souls who live in the USA? They are once again facing another social cutoffs and tax raises. It’s the common result of doing debts and how to pay them back one time.

So how will the rating agencies act upon this final overhaul to buy more time for plans to evade the financial disaster? Will the USA finally loose their fine credibility of AAA or will they still be rated top despite the fact that their debts are over 100% of their economical power? Other countries like Italy, greece, Portugal, Spain have been massively rated down for having such high debts…

If the rating agencies are giving  out top credibility for the USA upon their over-100%-economic-power-debt while rating down Europe, these agaencies will loose much of their reputation and they won’t be considered independent any longer.

Whatever is coming on to us in the next three to 6 months, one thing is for sure: We’re facing hard times again. And the next question is: Will the economic misery finally ignite a third world war (one which isn’t fought with weapons bot more on the economic side?)

Although everyone is appeasing us that no such thing as economic war is possible, I personally think, we’re already inmidst of it if you check back on the last two years and all the events that affected almost every country on earth…

Frightening, isn’t it? Yeah! I am also having no good feeling about this…

As the economic weapons are once silenced, the only logical response could be real weapons… wouldn’t be the first time that such thing could happen.

February 6, 2013 Netspark - 1593 posts - Member since: May 9th, 2011 No Comments »

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