U.S. economy heading straight for the cliff

[gambit]

Pakistan is heading towards being a failed state and people are worrying about the US economy to escape.

 

[Kyusuibu Honbu]

Pakistan is heading towards being a failed state and people are worrying about the US economy to escape.

In one word : schadenfreude!

 

[Ulysses]

Pakistan's economy is already down a deep cliff.

On the daily bases we distribute AID throughout the whole world and people seem not to care.... in fact we are the most generous and always donate the most money to poor nations that are in need. It's funny how Pakistan loves to write bad things about us on the daily bases even tho Pakistan cannot control there own land plus it's Pakistan that likes to play games and hide terrorist.

 

[unicorn]

Pakistan is heading towards being a failed state and people are worrying about the US economy to escape.

We have given thousand of sacrifices for your country and for your safety in your stupid war on terror and yet you think like this.You have back stabbed us in the past and you are doing it again.No wonder it is in your blood.

 

[Wright]

We have given thousand of sacrifices for your country and for your safety in your stupid war on terror and yet you think like this.You have back stabbed us in the past and you are doing it again.No wonder it is in your blood.

I would assume it reasonable for th US to doubt your commitment after Bin Laden was found living in a luxury mansion in a military town, wouldn't you agree?

At the end of the day however US citizens can roam their markets without fear of being blown to bits, your unfortunately can't.

 

[BigDaddyWatch]

The US economy is heading for a cliff. You remenber back in 2008 in the wake of the Lehman Brothers collapse there was a raft of measures taken that was supposed to be of "emergency" and "temporary" of nature like QE, 0% interest rate, FED holding more than a trillion dollars of mortgage backed securities and government guaranteeing of bank assets and transactions. Well after almost 4 years those have now become permanent features of the US economy. That has a catastrophic effect on the economy as it has destroyed the savings of the Americans through negative interest rate which means if you put money into a savings account you actually loose money due to the fact that inflation is higher than interest you recieve from the banks. And it has made money so cheap that it's virtuelly free for the major banks. That in turn has lead to massive misallocation of resources in the US financial system. Last year 61% of all US government bonds are being bought by the FED and the banks that includes 91% of the 20 to 30 years bonds. The US is affectively printing money to pay the bills. But the 0% interest rate policy maybe good for the big banks under government guarantee and are able to recieve free money from the FED, but it has a catastrophic effect on the smaller banks in America who don't have access to free money from the FED. Banks make 30% of their profits from what they have on their balance sheet like deposits and loans and since interest rates are at zero it means those assets on their balance sheet are no longer performing and is leading to enormous losses for them. That's why there are more than 400 bank failures in the US since the 2008 Lehman Brothers collapse. Over the passed 4 years for every 1 dollar of GDP growth the US has to get into 5 dollars of debt and the national debt is now at almost 15,8 trillion dollars and about 104% of GDP and still growing. And if you look where that money has gone to it's even more disparaging. That money has gone to bailing out of failed enterprises, welfare, war, military expansion and import and consumption of foreign made goods that the US cannot afford. The US after getting in to almost 6 trillion dollars of debt has absolutely nothing to show for it. Today America's economy is kept standing due to 0% interest rate, printing of trillions of dollars out of thin air with QE and trillions of government deficit spending. If you take those away then the US economy will fall of a cliff, fall into a ravine but if the US keeps it's current course that will only make the cliff and ravine they will eventually fall into much deeper.