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WHATS WITH THE "US ECONOMY WILL DIE IN 5 YEARS" BU





Thamerwaste
Can someone please tell me what all these rumours are and if they are true and if yes why???

Is it the war in Iraq or Afganistan??

And why the US of all places are they not meant to be the richest country in the world and if not WHO???

I would appreciate posting in this forum and telling me the answers to my questions???

Smile
crdowner
I have no idea where you heard or read such a rumor. The US economy will not "die". It is definitely going through a rough time currently but it will recover. The US economy, like most economies, goes through ups and downs. The US economy typically does worse during an election year which we are in.

In my opinion, President Bush and his administration have not helped our economy. We currently have two BIG issues. The first one has started correcting itself. Banks and other lenders were giving too many people more credit than those people could afford. Many people blame the lenders but I put much of the responsibility on the borrowers. People should know what they can afford before signing a loan contract. Much of the problem was also caused by greed - from lenders and borrowers. Many lenders purchased home to fix them up and sell them again. When homes did not sell as quickly as desired, these folks had loans they could not pay.

I think gasoline prices are our current. I know that many people around the world pay more for gas but we are trying to adjust to a huge price change from even a year ago. The cost of gas has also caused MANY other prices to rise. Since most products use gasonline for transportation, everything is going up.

I hate to give Bush credit for anything but the high prices of gasoline have forced Americans to become more conscious of "green" issues.
Aiz
I second crdowner, an economy would not "die," sure yeah, we are in a recession, but it's not like it's the end of the world. I doubt it would turn into something like what the US experienced in the beginning of the 30s.

But actually, about what crdowner said about the bank and loans, I have to say I disagree to a point. Right now we have a consumer led recession. Basically, money spent by people make up a huge part of the GDP, and with the loss of consumer confidence, people spend less (the largest example would be houses. the real estate market started it's downward fall last year or so, and it's not getting better last I checked), which is bad news for the economy.

The government was actually tried to GET people to take out loans to make purchases with the lowering of interest rates. But it wasn't doing much good. (The government only has limited power when it comes to correcting the economy.)

The gas issue *sighs* I don't hold too much hope in that issue. =/ I'm more worried about when they'd come out with a complete alternative to our current transportation tools...
pikachu25
Is it the war in Iraq or Afganistan??

Both its all over the Middle East
thadnation
yes it will actually. you see, the mayans predicted an end to the world in 2011 or 2012. if the us goes down, much of the world will too. i hope this helps!
deanhills
I think the US is consuming much more than it is producing. Especially in that what really matters. I.e. 2006 stats (US Energy Info - see link below) says US consumption of oil was 20.59 million barrels of oil a day. The US was the top consumer of oil in the world with the second top consumer being China at less than half of that 7.27 million barrels of oil a day.

The US produced 8.37 million barrels of oil a day in 2006, so had to import roughly 12 million barrels of oil a day. China in comparison produced 3.84 million barrels of oil a day, and only needed to import 3.35 million barrels of oil per day.

Russia produced 9.67 million barrels of oil per day and only consumed 3.10 million barrels of oil per day, so was a net exporter of 6.57 million barrels of oil.

Canada is also a ranking oil producer at 3.29 million barrels of oil a day (in 2006). It consumed 2.2 million barrels of oil a day and was a net exporter of 1.07 million barrels of oil a day.

Think that gives a revealing picture of where the problems really are and why for example the Canadian dollar has strengthened as well. The United States needs to decrease its consumption of energy and get more oil. Think Bush has been working very hard on trying to get more oil if you look at the World News for the last few years. But I think it is as simple as the oil picture of the world. US citizens will need to buckle up as if you have a look at the stats a number of oil producing companies, who are importers of oil, are exporting oil to the US as well. US is very vulnerable. Especially at the very high oil price of the current moment.

This is the link for the statistics:

http://tonto.eia.doe.gov/country/index.cfm
Tutor
It's said that US economy will fall in 5 years and it's very realistic approximation.

Today US leans on the debts they get from the Middle East. Every year the budget dives something around minus 400 billion $, and they get the missing money free from the Oil-producers. But mostly US is still alive because of the fact that oil can only be bought with dollars.
That's right, no matter whether France, China or El Salvador buys the oil. They all have to have dollars when they do so. So the whole world is buying dollars so they can buy oil.

Saddam Hussein was the first one who got the oil-stock turned to euros. You know, the currency of European Union. He bought billions of euros and said that he will only associate in €uros. And look what happened to him. Suprisingly after the "liberation of Iraq", US pushed their will through and now oil can again be bought only with dollars.

But US' problems are not finished. Iran has demanded that the oil-stock should be turned to euro-based stock again. So, has the Iran been in the headlines recently? Oh that's right, mr. Bush has made aggressive comments about Iran and has launched an anti-Iran program. Again suprisingly, it all began just after Iran had made its demands.

But this time looks like Euro is not going down. Dollar is unstable and going its worst period ever. So the oil-countries are turning on the side of strong euro, which is rising currency in the whole world. And if the whole world stop buying dollars, US will go crashing down.
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