Saturday, March 21, 2009

Options for a failed U.S. Economy

A recent Pravda article spells it out:

1. The United States is the largest borrower in the world, the US national debt now exceeding 11 trillion dollars, and continuing to avalanche.

2. With the government taking on the debts of corporations, the corporate debt crisis has thus become the American governmental debt crisis.

3. According to experts, there is high probability of default on US treasury bonds. Some project that the USA has already started on a plan to refuse the dollar in order to avoid debt payments.

4. One analyst concludes that a US default is likely, only after the world finds an alternative to the US dollar. The dollar’s immediate collapse is unacceptable simply because 63 percent of world reserves are saved in dollars, and that would result in a global economic collapse.

5. Analyst Dmitry Abzalov believes that the current situation with the US national debt may end with a new war. The war will destroy excessive liquidity and the current debt. A war boosts the nation’s industry, with recovery based on defense orders.

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