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> Collapse of U.S. Economy Imminent

22 January 2006, 06:19

First off....the debt ceiling will be raised, so that point is less than moot. Next, even with this, theres a finite limit as to how much debt a nation can incur without consequence. The world economy is nothing more than a ponzi scheme. Everybodys happy so long as the interest is paid. A collapse occurs when people demand the principle back. In terms of the U.S. debt, once we encounter difficulty selling our ’new debt’ to foreign holdings, it amounts to the same thing as ’unable to continue to service’ or ’a depression’. However, a few things to bear in mind. 1. A devalued dollar helps devalue the debt. 2 . Foreign holdings do not want a dollar collapse as they have a bunch of them. 3. The Fed has begun, more apparently than ever, to ’shield’ the true worth of a dollar by clandestine actions. So whats gonna happen? I suppose at some point Israel will bomb Iraqi Nuke development sites. The U.S. will intervene depending on Iraq’s response. Possibly the Oil Bourse will be hit as well. The dollar will begin to slide but not catastrophically. The U.S. will use this heightened animosity to station troops along the Iraq/Iran border in perpetuity. There will not be another major terrorist strike on U.S. soil. Not needed. There are two things wrong with this world view. 1. War is profitable for some but leads to a nations economic decline. Read that ’short term OK long term bad’ 2. The U.S. produces less and less of the things that the world needs ie energy food and hard products. If we DID war wouldnt be that bad for us. People would continue to buy stuff from us that got blowed up. But we dont.
Bottom line....The U.S. is definitely courting disaster with a notion that ’strong arming’ smaller nations will benefit us in the long run. It wont, what it does instead is over extend our resources to the point of collapse. I think most people understand this either objectively or intuitively.