Is the American economy slowing down and heading for a major crisis?

Question

I read about the sub prime crisis, the falling value of dollar, countries pegging their currencies to Euro,a possible oil exchange in Iran...

1.Is the American economy slowing down?

2.Is it headed for a major crisis?

3.Whats are the reasons for the above?

4.Can it recover?how long will it take it?

5.What will America's role be in the world in 10-15 years?

Answer 1

1. No. It has slowed somewhat due to the rise in fuel and the alleged 'housing' crisis, but it's still steady. Statistically, things are already beginning to turn around from the sluggishness of the past year.

2. No. And anyone who say 'yes' doesn't have any idea what a crisis is. My dad lived through the Depression, one of the most horrible economic situations this nation ever had. Other then the four years of the Jimmy Carter presidency, this nation has never experienced anything like that. People who are young today should ask those alive back then was economic struggle was really all about.

3. The price of oil and its affect on the rest of the economy is the major issue we face today. That can be blamed on three things: speculation in the trading market (which has artificially raised the future cost of crude), high demand in China and India, and the refusal of America to just go and get the crude to which we have access in Alaska, the Gulf, the Pacific, the Atlantic and in shale deposits on the continent.

The housing 'crisis' was solely caused by disfunctional mortgage lenders, speculation in mortgage investments and the conning of people into buying more home than they could afford, while financing them with adjustable rate mortgages, and overbuilding by speculating developers. The artificial rise in home prices was fueled by these three things, and now that prices have come back down to more realistic levels, people are left holding the bag. This was caused by stupidity and criminality more than anything else.

4. the American economy is very strong and already recovering from all of the above. Our unemployment rate is still below 6%, the dollar is rising against against foreign currencies, interest rates are still reasonably low, and goods and services can still be had for decent prices if you know where to shop. Gas is coming down and should continue to fall, especially once we begin drilling for our own.

5. America has and always will be one of the most powerful nations on Earth. The will of the people will keep us strong, because we don't back down from anything. Our form of economy and government, while sometimes flawed, is still light years better than any alternative. Making predictions is impossible: we may be better or worse. but we'll never be down for the count. Ever. That's why people from around the world still yearn to come here. There's more opportunity here than anywhere in the world.

I don't listen to the whiners and complainers. That's one reason I'm so positive about my country.

Answer 2

The government has gotten so huge that it sucks to much out of the economy. Like any socialist country, America will fail economically. If we continue on our present course, America will be an over populated third world country in 15 years.  

Answer 3

It will come to a grinding halt soon, and will even go in reverse for some time! What goes up must come down! People think the market can climb forever! Dream on and try to leave some for others! Within the next 15 years you will see drastic measures taken, which means great wars to no avail! It will only drain the already strained system, it will bring about an end that should have happen generations ago!

Answer 4

Well, It depends on the people.We are doing it to ourselves!.  Jobs are being lost because of the cost of everything.  Imports are selling it cheaper, so because it is cheaper we run to buy it and the money goes out of our country.  So we raise the taxes on the Big companies HERE in United States because they make big money and your taxes also get raised too!, to get more money back into the Government pot to run the country. Big business ends up laying off the people because they after awhile can't afford it, and sometimes close down.  There goes your job and we still run out for the lower price and buy the cheaper item, imports!.  Example: You work for GM, they give you a discount to buy their product, which also gives you a place to go to work and they pay you, and you go a buy a import car, because it's cheaper!  We do it to our selves.  

Answer 5

That's too many questions to answer in a short paragraph.  

But I think that the Euro Zone is going to have plenty of its own problems.  Which means that the Euro is not a safe haven from the Dollar.  Perhaps the only way to protect your purchasing power is to put your money into gold.

The government can print paper money at will.  And this is true for any currency, including the Euro and the Dollar.

Too much lending and too much spending is the  reason for the current economic problems.  When lenders have lent out so much money that the borrowers can't repay.  Then you've got a credit crisis like the current one.

And it's not just the private lenders and borrowers who are in trouble.  The US government is borrowing huge amounts of money every year and spends far beyond its means, mainly on the military.  And most European governments are also borrowing huge amounts of money and making promises to pay a lot more for their generous social programs and the exorbitant salaries of government employees.

There is a simple solution to all of this for any country.  Cut back on the borrowing.  And cut back on the spending.  Pay off your debts.  And live within your means.  

The sooner this happens, the easier it will be to get back to normal economic activity and to normal live for everyone.

Answer 6

It has slowed down and continues to do so. It is already in a crisis that will get worse before it gets better. The reasons are that fuel prices have gone up and everything else has gone up because of it. Also, too many houses have been built and not enough people qualified to buy them. It will take another 2 years for housing to start increasing again. As for fuel, that depends on how much drilling for our own oil we start doing. Americans have business ventures all over the world, and that is our role.  

Answer 7

Yes its sluggish.I believe the crisis is here,inflation and jobs aren't long lasting or reliable.Many jobs are outsourced.Raising cost of housing.

Recovering? I doubt it.Us is probably grown to much and is no longer the most powerful,richest nation.The future looks very bleak.

Answer 8

like any empire,it rises and falls,and must be re-built...