Is it true that the U.S is going broke and thats why their raising the prices on so many things?

Question

Is it true that the U.S is going broke and thats why their raising the prices on so many things?

Answer 1

no, the price of things is going up because of the leader pf the us.

Answer 2

Yes actually, the fall in the dollar is in many cases one of the prime reasons why prices are starting to shoot up (for instance, a barrel of oil priced in Euros doesn't look quite as bad as US$).

Morey nailed it in the head quite well.  For some more backrounder info on how the modern US economy is working I  suggest reading this article and some more that it links to http://firedoglake.com/2008/03/29/how-fr...

Answer 3

the prices are going up cuz of the gas going up.

Answer 4

They cannot force you to spend your money.  

Many individual states are pretty broke right now..

But the rise in prices is largely because of the mismanagement in US Business.  Many businesses will go under because they over extended themselves.  Lots of people are going to be looking for work,  Without supply, demand will go down, prices will go up because there won't be a lot of goods as available as they have been.  Oil prices will continue to rise, we will be paying between 4 and 6 dollars a gallon (which is still less than many pay in Europe) for gas by the end of the summer.  We are about to join the REAL world market.

We will have to start being self disciplined agained.  And some of us have never known what that is like.  It is saying, no, I cannot go crusing this weekend.  No I can't afford to take the kids to the beach, or the mall, or to Disneyland.  It is about learning that you cannot live on credit and you cannot always have everything you want.  

People are going to learn about what is important.  And many  many of us are going to be without health care of anykind here shortly.

Answer 5

No,no,no.

The prices are goign up because there is no more food for anyone!!!

THATS WHY!!!!!

ITS RARE TO FIND FOOD!

Answer 6

Yes and No.

Here's the economy in a nutshell.  For 100 years since the industrial revolution, america has been a producer and built a tremendous pile of wealth.  In the 80's and 90's, production capacity decreased, but the US was still king of the information age, and still created some wealth.

For the last 10 years or so, the US has been spending the wealth created over the last 100 years, and is no longer much of a producer.  We have huge budget deficits and trade deficits, and extending credit is becoming our most significant industry.  

Because of the two aforementioned deficits, the value of the dollar is waning, and therefore all products produced outside the US (i.e., like oil), will continue to become more expensive.

We're not destined to be a 3rd world country any time soon, but America's hegemony of the economic world has been rushed to a quick end by the policies of the current administration.  Our military hegemony will soon follow as there will be no money to support it.

Answer 7

Not sure but I feel that if we stop spending money helping out other countries that hate us, call in some of the debts others owe us so we can pay our own debts, things might pick up a bit here.  We need our money here, now, not going out to others.