US Economy On The Brink Of Serious Depression?

According to chief economists, the American economy is so close to serious depression. See what people in authority have been saying about the US economy:

"The consequences for the US economy of doing nothing could be severe." - Alan Greenspan.

"The world is set to jump off the top of a waterfall without knowing how deep the water is below." - Kenneth Rogoff, IMF (International Monetary Fund) Head of Economic Research.

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Top Ten Reasons Why the US Economy Will Go Into Serious Depression:

#1. The United States government is currently running a budget deficit of $1.8 billion/day. Too much deficit will create a weaker American dollar and cripple the US economy.

#2. The US National Debt is $8 trillion+. It has to be paid back eventually by raising taxes.

#3. Oil prices is $60+ per crude barrel, there is a shortage of oil refineries and demand is growing due to more SUVs/trucks.

#4. China's economy is now bigger than the United States and China is now the centre of the global economy.

#5. China's trade exports out-matches the United States (ie. they can build cars/trucks/SUVs for half the price).

#6. English is no longer the international business language. Mandarin Chinese is now more important.

#7. Global warming is causing the US Wheat Belt to turn into desert.

#8. US universities aren't creating enough graduates to compete on the global market. Tuition is too expensive and there isn't enough university professors.

#9. The babyboomers are retiring, creating a shortage of skilled workers.

#10. George W. Bush failed Economics 101.

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"There's a 75% chance that the US will experience a currency crisis within five years." - Paul Volcker, Chairman of the US Federal Reserve.

"There's nobody home on economic policy in America right now. Its an accident waiting to happen." - Stephen Roach, Chief Economist, Morgan Stanley.

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The Remedy:

How do you fix an economy once its gone into a depression? How do you prevent the current economy from going into a depression?

#1. Stop running a fiscal deficit. Balance the books as much as possible.

#2. Place trade quotas on Chinese goods in order to prevent "flooding of the market" or place trade tariffs on Chinese/Asian goods in order to raise extra money to pay off the National Debt.

#3. Invest in renewable energy sources. Long-term gain for a short-term investment.

#4. Invest in hydrogen-fuel cell technology in order to bring the cost down so its cheaper than oil/gasoline. Gasoline prices are the biggest problem facing the United States economy. A cheaper alternative is needed. Buying gasoline from overseas is basically draining money from the American economy and shipping it to other countries, making oil-tycoons rich and the American public poor.

#5. Build more greenhouses in urban centres. Provides reliable cheaper/fresher food to a growing population and reduces our dependency on risky farming businesses. If every grocery store built a greenhouse on their rooftop, they could hire a greenhouse technician to grow most of the vegetable food they need and buy less food from distributors.

#6. Make Chinese (for Beginners) mandatory in highschools. It is now the language of business. Our people must become competitive if they are to survive in the global economy.

#7. Reduce tuition rates, train more university professors and build more universities. Our students need to be more competitive. Complacency will lead to financial ruin.

#8. Place a cap on credit card companies. Many Americans are in debt because they maxed out their credit cards on frivolous spending of things they don't need.

#9. Increase immigration (especially of skilled workers) to make up for babyboomers who are retiring.

#10. Elect a president who is fiscally responsible.

Story contributed by Lilith-Ezine: Read More