China's Collapse Only A Matter Of Time?Posted By Doug Matulis |
Darian Rachal said:
I ran across this article on 'Real Clear World'. I thought it was interesting.
http://fullcomment.nationalpost.com/2011/01/22/lawrence-solomon-china%E2%80%99s-fall/
Really, its about America's collapse only being a matter of time. No nation has survived the path that the USA is on. That being, out of control spending, barrowing to pay for the debt, and then uncontrolled print of dollars to pay the interest on the debt. America is the only country in the world that can do this because the dollar is the current world reserve currency. International trade is done using the dollar, other nations must convert to the dollar to buy oil on the world market, etc... Our current economic policies are so devalueing the dollar that eventually the rest of the world will stop buying dollars and our credit rating will continue to drop. There is already a push to by many foreign nations like China, Iran, Russia, UK, France, etc... to change the world reserve currency or create a new one entirely. If this happens, our nation will collapse and in flation will soar to unbelieveable amounts annually to the point where gas will be $10+ per gallon, milk will be $20 per gallon, etc... This has happened to other nations in Europe in the past, and is happening in some EU countries now and could eventually (within months to a couple of years) here. Anybody who can think there way out of a box knows that what is happening in America today can't continue. Debt is out of control and even taxing over 90% of our income will not cover the interest on the debt owed to foreign nations. If anyone gets tired to America, all they have to do is start calling our debts and it will be the end of America as we know it.
Can the world economy survive without America, some say no and the whole world will collapse. I say it can survive after some initial pain and a recovery after a few years and whats left of America we will be reduced a third world like nation or worse. Either way, I think it may be too late for America unless we really get serious about cutting spending and borrowing. The pain of that will be much less then the pain of collapse.