There are people who have started to fear that the US economy might be collapsing this year. However, there are those that say that this is not even possible in real life. This has actually become a national debate and it seems that two sides have been formed.
On one side we have the economists such as Arthur Laffer who strongly believe that the economy is going to collapse this year. Arthur is a famous economist who invented the Laffer curve. Ronald Regan followed his advice and this model when he wanted to save the economy from the disastrous polices that where implemented by Jimmy Carter.
Laffer actually made some right predictions back in the 1970s when he said back then that the salvation will be in cutting federal taxes and also in diminishing the government spending. And by following his advice the American economy managed to recover and do well until the Clinton administration. Another accurate prediction made by Laffer was the fact that the treasury will receive higher revenues despite all the drastic tax cuts. Studying the American finance these days he says that the economy is sitting just above a great depression. And this is actually very true if you come to think about the rising pressure on the interest rates and the inflation.
But there are also those that don't think that anything can actually happen to the American economy for a very long time. The unemployment rate has decreased since last year when it was 9,6% to 9% this year making it actually possible to believe that the American economy is recovering. The ones that actually own most of the American debt are the Chinese Banks. So, in case something went wrong and the US would find it impossible to pay, then the banks would have greatly to suffer. And no one would like that to happen, right?
American officials have even received warnings from their Chinese counterparts advising them to "clean up their act" in order to start saving some more money. If the worst case scenario comes to life and the American economy falls, then Wall Street would also crash and so would every business in the US. But not only the businesses on the American soil would be affected but also those outside the country such as Europe or other places around the globe. The best strategy these days is to sit tight and see what happens. Also, if you have some savings then this is the time to start buying gold!
On one side we have the economists such as Arthur Laffer who strongly believe that the economy is going to collapse this year. Arthur is a famous economist who invented the Laffer curve. Ronald Regan followed his advice and this model when he wanted to save the economy from the disastrous polices that where implemented by Jimmy Carter.
Laffer actually made some right predictions back in the 1970s when he said back then that the salvation will be in cutting federal taxes and also in diminishing the government spending. And by following his advice the American economy managed to recover and do well until the Clinton administration. Another accurate prediction made by Laffer was the fact that the treasury will receive higher revenues despite all the drastic tax cuts. Studying the American finance these days he says that the economy is sitting just above a great depression. And this is actually very true if you come to think about the rising pressure on the interest rates and the inflation.
But there are also those that don't think that anything can actually happen to the American economy for a very long time. The unemployment rate has decreased since last year when it was 9,6% to 9% this year making it actually possible to believe that the American economy is recovering. The ones that actually own most of the American debt are the Chinese Banks. So, in case something went wrong and the US would find it impossible to pay, then the banks would have greatly to suffer. And no one would like that to happen, right?
American officials have even received warnings from their Chinese counterparts advising them to "clean up their act" in order to start saving some more money. If the worst case scenario comes to life and the American economy falls, then Wall Street would also crash and so would every business in the US. But not only the businesses on the American soil would be affected but also those outside the country such as Europe or other places around the globe. The best strategy these days is to sit tight and see what happens. Also, if you have some savings then this is the time to start buying gold!
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