It is difficult to convince someone especially they are very much influnced by the mass media.
Let me give you an anology:
US is laden with the following problems
- Over gearing i.e. too much debt
- Over consumptions i.e. more than what they earned with a view that their properties will make them good returns
- Sub prime mortgage bubble created due to artificial low interest rate as a result of government intervention
- CDOs, CLOs, MDS, CDS and other derivatives created arising from mortgages, credit cards and education loans
- Banking sectors collapse due to derivatives which are not disclosed in the accounts and become a time bom
What the US Government doing about it?
- Printing money i.e. encourage more spending and credit, which is the cause of the problems
- Putting good money into bad investments like buying toxic assets
- Force spending on alternate energy and infrastructure, which the intervention prevented good resources for other deserving sector and also the government is already broke and incurring more debt to finance all this spending will only deepen and lengthen the problem
What will happen next?
- longer recession and deepen recessions
- hyper inflation as can be seen now in the education, food and medical expenditure
- gold price will double or triple
- agricutural prices will go up the roof due to shortage of food (inventories is 50 years low)
- credit will collapse
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