The US is screwed. I watched a documentary by the CBC on it a few years ago. Essentially the US owes several countries trillions of dollars. Owing China over 2-trillion alone. The documentary said what will happen to the US is similiar to what happened to Germany leading into WWII.
The US currency will become worthless, Americans will be burning it to keep warm. The rest of the world will also see massive collapse because many of the worlds corporations purchase in american currency. The whole market is always compared to the american dollar. When ever their have been hard times in the past companies always buy american currency because its always deemed as strong and stable.
However when America goes down, which it will very shortly it will mean more jobs then every for America. America will go from consumer driven economy to producer driven economy. The US dollar will become so cheap that other countries will start switching from developing countries to the US. It will be cheaper to manufacture things in the US then many other countries. So all those factories in China will move over to the US. Instead of made in China labels you'll see made in the USA.
This is a big problem for my country (Canada) because over 70% of our exports are to the US. The documentary said however that Canada is growing trade partnerships with other countries and if the US collapses we would be hit initially however we would be able to increase trade with other countries to compensate and keep our dollar from collapsing with the US.
In the end its not about if the US will collapse its about when, and how countries reliant on the US will adjust and survive!
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
