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How far from collapse is the US economy?
By Rose | January 22, 2008
Brendan asked:
With the recent news that the Australian, Japanese and European Central Banks have loaned the US Federal Reserve $100 Billion to provide liquidity in their economy; the fact that the US war in Iraq is costing $1 Billion per day; the collapse in house prices across the US; and the frightening news in some media that the US is now only able to afford to repay the interest on its loans (and not the principle); I am beginning to wonder how far away the US economy is from collapsing? I also wonder how should I be preparing for this collapse. I would love to hear your thoughts.
Gardener
With the recent news that the Australian, Japanese and European Central Banks have loaned the US Federal Reserve $100 Billion to provide liquidity in their economy; the fact that the US war in Iraq is costing $1 Billion per day; the collapse in house prices across the US; and the frightening news in some media that the US is now only able to afford to repay the interest on its loans (and not the principle); I am beginning to wonder how far away the US economy is from collapsing? I also wonder how should I be preparing for this collapse. I would love to hear your thoughts.
Gardener
Topics: US Economy | 3 Comments »
January 22nd, 2008 at 12:30 pm
I have always known that as per GOLD RESERVES in the world, the numbers were:
1) USA
2) Germany
3) France
4) Italy
so…. if that is true why worry. No collapse coming.
January 25th, 2008 at 5:00 pm
My first thought that your first premise, that foreign banks have loaned the Fed anything, is wrong. Please post links to articles if I am mistaken. Those banks, along with the Fed, injected funds into the money systems of their respective economies to provide each with liquidity.
January 28th, 2008 at 4:57 pm
Not even close. We have had our last 2 quarters of GDP on the positive side with the 3rd quarter not quite finished and will be positive. You have to have 2 straight quarters of GDP to be considered a recession!!! (Gross Domestic Product)