Economic Hardship Looms as 5 Unavoidable Events Converge
America is in deep trouble. Dead broke in fact. If America were
a listed company, the plug would have been pulled long ago. The
receivers would have checked out the books, pronounced the
company dead and called time.
Like a family whose expenditures exceed income and then makes up
the difference by borrowing on credit cards, the US government`s
own deficit spending is largely financed by Asian central banks,
notably China and Japan.
Did you know that just twenty years ago America was the largest
creditor nation the world had ever known? Now it lays claim to
being the largest ever debtor nation. After years of spending
like a drunken sailor, America`s net foreign debt now approaches
a staggering three trillion dollars.
Under the Bush administration the deterioration has been
particularly rapid. Soaring government expenditures, greatly
boosted by the Iraq war, tax give-aways, homeland security, all
further undermine the financial well-being of the country.
Now you won`t hear much talk of this from government spokesman,
nor from much of the sold-out mainstream press and business
media. You certainly won`t hear it from the hucksters on Wall
Street. To listen to them you would be forgiven for believing
all is hunky-dory. They have managed to stage a mock recovery in
the stock market and even pulled the dollar back a tad from
recent heavy falls.
But, believe me, this is a smokescreen, a scam, much like the
tale of the emperor`s clothes. A great nation brought to its
knees while its politicians look on, seemingly helpless.
Alas, it gets worse. You see, five separate events are gathering
strength and, like a perfect storm, will soon converge, causing
massive economic turmoil. All of which leads inexorably to a
major economic downturn.
EVENT #1 - The "Twin Deficits" - the US Trade and Federal
Budgets - spin mind-numbingly out of control and long-ago
surpassed all records. To finance these deficits, the government
relentlessly continues borrowing. Throughout history all great
empires have collapsed, not at the hands of their enemies, but
from within. They all went broke. It appears a tall task for
America to avoid a similar fate.
EVENT #2 - A Dollar Collapse. Desperate for money the
government turns to the printing press. The dollar bills get
churned out, inflation takes hold, interest rates soar. No
longer do the financial markets dissect the weekly money- supply
figures. But the foreigners do. You can bet your boots alarm
bells are ringing. They will stop lending, they will stop
investing in US assets. Its been dropping for three years now.
It will continue. The dollar is doomed.
EVENT #3 - Housing Bubble Finally Bursts. For some years easy
money brought a runaway jump in prices to near ludicrous levels.
But times-they-are-a-changing. Mortgage arrears grow, as do
foreclosures. Across the nation prices are weakening. Higher
interest rates bring increased mortgage repayments, causing
further foreclosures. Prices decline more, bringing with it the
dreaded "mortgage deficit" - the mortgage exceeds the house
values. This brings on more home sales. And so it continues ...
EVENT #4 - Job Losses Pile Up. As our glorious "Captains of
Industry" close or down-size plants throughout America, lured by
slave labor in China, massive lay-offs ensue. The government
loudly boasts new jobs are being found. Yeah, right. A once
well-paid factory job replaced with a low-paid job at a Walmart
store near you or at Pizza Hut. Economists call this the
"employment gap" and results in less disposable income. In turn
company profits decline, more lay-offs ... an endless cycle.
EVENT #5 - Stock Market Crash! Despite the best efforts of Wall
Street`s finest to persuade you otherwise, the stock market is
in trouble, there is no way back. With all the other events in
play the market is poised to collapse. We shall be witnessing
the mother of all crashes.
So what in the blazes can you do to protect yourself? In the
second part of this article, I recommend five steps you should
follow. In the meantime I would like to very briefly share one
thought with you that will be greatly expanded upon in the next
article:
Vitally, get a second income. Work for yourself. If your job
disappears at least you have a safety net. If this means working
all the spare time given you, tough! What you do is your
decision. Just make sure you are equipped to make it successful.
The favored way must be to start an online business, probably
the cheapest and simplest way to go. Check out
http://www.techno-twerp.com but do something. Get online and get
your second income started right now!