Repost-Economic Collapse Could Be In The Near Future

I decided to reprint this posting I made back in November of 2007. I just shake my head when politicians say that they did not see this current economic mess on the horizon.


Wednesday, November 7, 2007
Economic Collapse Could Be In The Near Future
U.S. reliance on credit will have a devastating effect on the economic stability of the U.S. Dollar, resulting in critical damage to the U.S. economy. A return to the days of high inflation and recessions not seen since the mid 1970's is impending. Loss of faith in the Dollar by the economies of the world will hasten the devastation.

China holds a vast amount of investment in the U.S. Dollar. There are signs that the Chinese are quietly dumping the Dollar in favor of the Euro and other world currencies that offer more stability. Unfortunately this can hasten the decline of the Dollar, resulting in high inflation and a catastrophic recession.

The "out of control spending" by both government and consumers, utilizing credit, is what is bringing us to this economic collapse.

Is there anything that can help stave off this impending crisis? That is doubtful, but we can start to lessen the length of this severe economic crunch.

The way to do this is by:

1. Tightening consumer credit (Which will surely hasten a recession, but could be a short lived one).

2. Cut government services, reducing the deficit spending (the government's version of using the credit card). Decrease the tax burden to offset the cut in services and help stimulate the economy (the trickiest part of the equation).

3. Paying back the money borrowed for generations of deficit spending.

4. Push forth a comprehensive energy package and implementing the policies immediately (akin to a national war footing, reminiscent of World War ll). This will include Nuclear and alternative fuel development and implementation. This should also include a Presidential Executive Order opening up petroleum exploration and drilling in the Arctic National Wildlife Refuge, offshore drilling and increased use of the vast amount of coal reserves, building an abundance of coal fired electrical generating and coal gasification plants as a stop gap measure while new Nuclear Power plants come on line (many will argue that the funds will not be available for these endeavors. I say they must be available to remain a dominant economic force for the future).

The above mentioned items are highly possible. The only thing that is lacking is the American "Can Do" spirit that made our country great and the willingness to sacrifice for our children's future and their children's future.

UPDATE: In recent days, the news services have been reporting a divide within OPEC. Some members are pushing for an agreement to get away from the U.S. Dollar. The U.S. dollar has been the main currency for purchasing petroleum. Shifting away from dollars to other currencies will further weaken the U.S. economy.
at 5:26 PM Posted by Scott Leikam 1 comments Links to this post
Labels: Depression, Economics, Recession