Bangalore: Before President Bush lays down office, he is bent upon seeing that America goes bankrupt. The heat is mounting but the zionist controllers of America are not worried because before the US goes bust, they have decided to shift their money to Asia.
New York: December’s figures indicate that foreign investment is drying up and the world is no longer eager to purchase America’s lavish debt. The only thing the Federal Reserve can do is raise interest rates to attract foreign capital or let the dollar fall in value. The problem, of course, is that if the Fed raises rates, the real estate market will collapse even faster which will strangle consumer spending and shrivel GDP.
“The US economy is in danger of a recession that will prove unusually long and severe. By any measure it is in far worse shape than in 2001-02 and the unraveling of the housing bubble is clearly at hand. It seems that the continuous buoyancy of the financial markets is again deluding many people about the gravity of the economic situation.”—Dr. Kurt Richebacher. www.ichblog.ew/content/view/653/1/)
This week’s data on the sagging real estate market leaves no doubt that the housing bubble is quickly crashing to earth and that hard times are on the way. “The slump in home prices from the end of 2005 to the end of 2006 was the biggest year over year drop since the National Association of Realtors started keeping track in 1982.” (New York Times)
To read the annual Economic Report of the President, one would think the whopping U.S. current- account deficit is no more than a minor bookkeeping entry of little importance to the future of the US economy. Yes, in the fourth quarter of 2005 the current-account deficit jumped to 7 percent of gross domestic product because of a surge in oil imports, though it came down a bit last year, says the 2007 report released by the president’s Council of Economic Advisers on Feb. 12. And what did that mean? Apparently not very much. “Current-account deficits mean that domestic investment continues to exceed domestic saving, with foreigners financing the gap between the two,” the report explains. Harvard University economist Kenneth Rogoff, who is also a former chief economist of the International Monetary Fund, says he believes the current-account deficit is worth a good deal more comment than that. For one thing, it could lead to a plunge in the dollar, he warned recently. “Many people have been asking why the dollar hasn’t crashed yet,” Rogoff said in a commentary posted Feb. 7 on a Web site of the U.K. newspaper, the Guardian. “Will the United States ever face a bill for the string of massive trade deficits that it has been running for more than a decade? Including interest payments on past deficits, the tab for 2006 alone was over $800 billion dollars — roughly 6.5 percent of U., S. gross national product,” he said.
