1 post tagged “us”
Believe it or not, the United States is in a relatively good economic state right now. When the rest of the global economy improves, that's when things may start to get really bad for America.
It is ironic that while the fundamental and increasingly desperate state of US finances, debt burden, and economic growth prospects would suggest a collapse in the US dollar, and the US' ability to borrow, quite the opposite has happened. The dollar has remained strong. And the US has had no trouble borrowing unprecedented amounts and at exceptionally low interest rates. In a panic, everything is relative, and while bad, everyone else seems worse off. So there is a flight to the safety of the US dollar, and the one last apparent bastion of security, US Treasury Bills (lending to the US government). But expect another irony: when things start to look better around the world, investors will have less fear and more alternatives. The dollar will collapse and US interest rates will have strong upward pressure.
