I have been reading a little bit about business, the economy and the workings of Wall St and I would have to say I am a little upset about it. Some things are done each and every day in this world that are just plain wrong. Wall St and Federal Reserve practices may just bring about total economic collapse, and nobody, especially the US government think anything's amiss.
In my reading, I have seen numerous comments from economists that foresee troubling times ahead for the US and Europe. Soon we will see a period of deflation where the housing market as well as the stock market devalue by as much as 30% followed by a severe lack of trust in government Bonds and T-Bills. All activity dies as investors stay away in droves. Commodities will then take a sudden surge in price and finally, hyperinflation kills the currency. What a future.
There is a not so new indicator that shows accurately what a country's overall economic health is. This is information that would be really valuable to help you see how traditional corporate business and government practices kill any long term stability and growth. The Debt to GDP ratio is a great way to instantly determine a countries financial stability. For instance, Japan has been suffering from flesh eating disease for over a decade with 200% Debt to GDP ratio. They need some solution fast because resources dont last forever. Italy with 121% Debt to GDP ratio is doing a slooow spiral into oblivion. And then you have the US with a 98% ratio, the interest on the massive debt the US must pay is really scary. By 2012 , they will hit 110% Debt to GDP ratio and start a process that will assuredly end in severe hyperinflation and turn the once all powerful US dollar into Monopoly money.
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