America Is Out Of Control
Aug 6th, 2008 by Wealth Builder [This post is written and copyrighted by Wealth Building Lessons (http://www.wealthbuildinglessons.com).]
According to Jim Rogers, the increasing foreign debt of the United States has created fundamental problems for its economy and the US dollar will lose its position as the world’s reserve currency.
“The US dollar is and has always been the world’s reserve currency; that is in the process of changing.” Rogers said during a presentation at the IFSA annual conference at the Gold Coast on Wednesday.
“America is out of control,” he said. “The US is now the world’s largest creditor, having US $13 trillion in outstanding foreign debt.
But what is even worse is that our foreign debts are increasing at the rate of US $1 trillion every 15 months.”
Rogers believes China will become the world’s next dominating economy.
Another person who thinks that the US’s economy is on a brink of a financial meltdown is Addison Wiggin. He’s made a movie called I.O.U.S.A which hits theaters on the 21st August.
If you watch the movie on the 21st itself and send proof to Addison, he’ll send you a complimentary 1 year’s subscription to “The Strategic Investor” which is worth a lot more than the $10 you spend on the movie.
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8 Responses to “America Is Out Of Control”
No doubt RMB is on the rise and USD is on the decline in terms of status in the world. One key factor preventing RMB to gain worldwide acceptance is the government’s controlled exchange rate.
It is extremely unlikely the Chinese government will allow the exchange rate to move freely any time soon. Don’t see it happening in 5 years, may be even 10.
When J. Rogers says “is and has always been” he is not using the word “always” in its ordinary sense. Indeed, I’m not at all sure what he means by “always” in this context. Presumably when he says “has always been” he means “has always been… except for back before it was,” which, in general, is not thought of as meaning the same thing as “has always been.”
I had the same clip on my blog, I’m interested in seeing the movie
Can America simply choose to not repay the debt in exchange for say world wide policing services?
America shouldn’t and couldn’t afford to be the world policemen. And those holding the debt are investors, both domestic and foreign. All they care is their money is safe. If there’s even a hint that they will not be repaid, no one will buy the US government bonds/notes. How do the US government finance their 500bn annual budget deficit?
Hi there,
Thought it would be interesting to give you some insight from an Australian perspective.
We have had a lot of issues in our own economy due to the issues in the US, to the point that our retirement funds and more have lost billions due to risky investment options that the US have created and put forward to the world, based on a ridiculous incentive of greed and ROI.
If we learn anything from this global meltdown it should be that we need more responsible measures in place for the US Economy, as it doesn’t only affect the US - it takes down the whole world with it.
Feel free to drop me a comment at my blog.
http://www.savingsguide.com.au
Well it didn’t take long to realize that the bailout will do nothing to satisfy the debt in anyway. Now the IMF says it will consider bailing out the Argentenian currency.
How do you say IMF…..American tax payer!
Great post!
I watched the movie and it scared the bejeezus out of me. I don’t see how things can be rectified as the government spends more and more money that it doesn’t have.