Although the economy of the United States is the world's largest national economy, but the exploiting nature of the capitalist system of economy which being taken advantages of by politicians, landed the country's financial policies benefited the wealthiest Americans for decades.
Interestingly, the economy of US is in a strange situation of being both the world's greatest debtor and the issuer of the world's principal reserve currency. The implication of the scenario is that US is exploiting the wealth of other countries for its consumption.
For decade, the economics and politics are dictated by the US. The fall of the Soviet Union was the biggest debacle of the 20th century, and now the Money System of US is on the verge of collapse is the new destructive debacle.
Lehman Brothers Holdings Inc. filed the biggest bankruptcy in US history after Barclays plc declined to buy the whole of the investment bank and the failure of AIG, the world's largest insurer’s multi-billion-dollar loss jeopodized the US economy and triggered economic slump, the damages caused to the financial system are inestimable if AIG collapsed.
It was reported that the US government using US$85 billion federal loan to bailout AIG which faced three quarterly losses amounting to US$18.5 billion.
The business of AIG covered US$441 billion of fixed-income investments for banks and other parties, including US$57.8 billion in securities tied to sub-prime mortgages. It included almost every financial institution in the world and insured US$88 billion worth of assets including mortgages and corporate loans.
The out-of-scale boom-insider trading, accounting cover-ups and corporate scams to portray unrealistically high profits are believed to be the reasons indentified the causes of the US historical economic debacles.
Ironically, the US is absorbing about 80% of the net flow of international capital and the market is believed to be controlled by powerful person with money and maximizing profit is the ultimate aim. Today China, Middle Eastern oil magnates and other large investors from abroad are voicing that if US interest rates are keep on go down and measure to be taken to devalue the already-sliding dollar portfolios further, they will no longer support with their investments the bloated US trade and fiscal deficits.
The economy of the US is still the world's largest national economy with the gross domestic product (GDP) reported as $13.8 trillion in 2007. As of June 2008, the gross US external debt was over $13 trillion, thus without ability to borrow abroad; US practically cannot continue to consume $800 billion dollars more each year than the economy produces as well as carry out the role of internationally polis and conduct the claimed anti-terrorist wars.
The US dollar has lost 60% of its value during the current Bush administration. A few years ago the value of euro was 85 cents but today it worth $1.48. This is an enormous decline in the value of the US dollar and a huge drop in the value for those who hold the dollar.
The US economy succumbs to the pressure of balance-of-trade imbalances and money market fluctuations. It’s facing the worst financial crisis in decades and the stock market plunged up and down. The irony of course is the US had to put its financial house in order as well as to improve the trade imbalances.
Interestingly, the economy of US is in a strange situation of being both the world's greatest debtor and the issuer of the world's principal reserve currency. The implication of the scenario is that US is exploiting the wealth of other countries for its consumption.
For decade, the economics and politics are dictated by the US. The fall of the Soviet Union was the biggest debacle of the 20th century, and now the Money System of US is on the verge of collapse is the new destructive debacle.
Lehman Brothers Holdings Inc. filed the biggest bankruptcy in US history after Barclays plc declined to buy the whole of the investment bank and the failure of AIG, the world's largest insurer’s multi-billion-dollar loss jeopodized the US economy and triggered economic slump, the damages caused to the financial system are inestimable if AIG collapsed.It was reported that the US government using US$85 billion federal loan to bailout AIG which faced three quarterly losses amounting to US$18.5 billion.
The business of AIG covered US$441 billion of fixed-income investments for banks and other parties, including US$57.8 billion in securities tied to sub-prime mortgages. It included almost every financial institution in the world and insured US$88 billion worth of assets including mortgages and corporate loans.The out-of-scale boom-insider trading, accounting cover-ups and corporate scams to portray unrealistically high profits are believed to be the reasons indentified the causes of the US historical economic debacles.
Ironically, the US is absorbing about 80% of the net flow of international capital and the market is believed to be controlled by powerful person with money and maximizing profit is the ultimate aim. Today China, Middle Eastern oil magnates and other large investors from abroad are voicing that if US interest rates are keep on go down and measure to be taken to devalue the already-sliding dollar portfolios further, they will no longer support with their investments the bloated US trade and fiscal deficits.
The economy of the US is still the world's largest national economy with the gross domestic product (GDP) reported as $13.8 trillion in 2007. As of June 2008, the gross US external debt was over $13 trillion, thus without ability to borrow abroad; US practically cannot continue to consume $800 billion dollars more each year than the economy produces as well as carry out the role of internationally polis and conduct the claimed anti-terrorist wars.
The US dollar has lost 60% of its value during the current Bush administration. A few years ago the value of euro was 85 cents but today it worth $1.48. This is an enormous decline in the value of the US dollar and a huge drop in the value for those who hold the dollar.
The US economy succumbs to the pressure of balance-of-trade imbalances and money market fluctuations. It’s facing the worst financial crisis in decades and the stock market plunged up and down. The irony of course is the US had to put its financial house in order as well as to improve the trade imbalances.
GET EURO OR GOLD BUT NOT USD
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