Many Americans are totally unaware how dependent their standard of living has become, to the global role of the United States dollar (USD). The petrodollar system, has supported the United States (U.S.) currency in the world economy, since the early 1970’s. The premiere reserve position the American dollar has held for over forty years, has become largely dependent on the international trade in crude oil. The petrodollar system of rules, has allowed the United States government and Americans to live far beyond […]
Collapse of The Superpower
Federal Reserve Bank Of The United States: The Lion In Winter
The Federal Reserve Bank of the United States which is the American equivalent of a central bank, has been the major driver of artificial economic growth not only at home but around the globe. The historic low interest rates that have been in place since 2008, have created a distortion in the domestic economy that in turn has created bubbles in certain sectors. The same can be said internationally where the overabundance of American dollars has had a similar effect in various […]
Investors In The United States: More Businesses Are Now Closing Than Are Opening
Investors will find that in the United States businesses are not being created as fast as they are now closing. This phenomena is a first for the American economy since the Carter era in the late 1970s. The rate of failure is not really the issue as much as the lack of business creation. A study by the Brooking Institution has been looking at the rate of business creation and destruction since 1978. It indicates that the American economy is much less […]
Investors Should Prepare For The Upcoming Crash In The American Stock Market
Investors can expect an end to the bull market of the American Stock Market as the Federal Reserve Bank of the United States (Central Bank) tapers the quantitative easing policy in place since the last economic and financial crisis in 2008. At the peak of the program the Federal Reserve ( the Fed ) was stimulating the economy with a monthly $85 billion USD (United States Dollar) purchase of American Treasury Notes and Mortgage Backed Securities. The winding down of the quantitative […]
How Will Investors Be Impacted By The Bankruptcy Of The United States
Investors have become increasingly apprehensive about the solvency of the United States and it’s government. There is also progressive concern among investors globally about the stability and long term viability of the American dollar. As the national debt approaches $18 trillion USD (United States Dollar) the nation has now accumulated more indebtedness than the entire economy produces in a given year. When a country owes more than the Gross Domestic Product (GDP) it should be a cause for alarm. If one would […]
How Politics In The United States Is Effecting Investment
International investors are becoming increasingly apprehensive on the economy of the United States. The government of the United States continues to enact policies that have a negative impact on business and investment. Rates of poverty are rising and the average standard of living for the past few years, has been declining. The latest news this week was the contraction of the economy for the first quarter in the United States by 2.9%. Labor participation rates have declined to rates last seen in […]
The Collapse Of The International Superpower
As many investors already know a massive shift in world economic power is definitely taking place. As always political and military reality must eventually follow suit. Americans for years now continue to believe that the United States is somehow exempt from the natural historical process that takes place when a nation loses sound monetary and fiscal policy. It is true that the United States is a unique superpower with attributes that has allowed it to continue in the role it established for […]