Friday, May 22, 2009

Future of American Economy: Not So Good

There has been a huge amount of news coming out about different aspects of the American economy and its important to tie the various bits of information together so that we can get a good picture of what is going on for the American economy.

It has been recently reported that unemployment is on the rise in 44 states and is expected to peak over 10% according to the Congressional Budget Office (CBO). For those of you who do have jobs, you might be disappointed to learn that the US Dollar is decreasing in value in comparison to other currencies. This means that inflation is around the corner.

We all know that the U.S. national debt is increasing exponentially under the Obama administration but as a result of all this borrowing and spending, America is on the verge of losing its AAA credit rating and that stocks are moving on a downward trend after learning that the government faces higher interest rates to finance the various bailout plans and spending sprees. A possibility of losing the AAA credit rating is a very serious matter and is the kind of news that shouldn't be ignored.

Rush Limbaugh makes a good observation about America's future financial crisis by pointing out that if you want to see what the economic future of America will look like, take a look at California and the current economic mess it is in. Despite how you feel about Rush Limbaugh, he does have a very compelling point.

Of course, U.S. Federal Reserve Chairman Ben Bernanke recently said the future of the U.S. economy will be fine.

Somehow, I don't believe him.

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