Reply #76: Hmm... [View All]

[Johonny]

That the United States trade policy was massive devaluation of the American dollar to boost foreign trade (which judging by the record trade debt didn't work). The United States has been driving up a massive home debt by cutting taxes, increasing spending and having a flat economy (which help stimulate the economy into stagnation). The United States dropped interest rates to all time lows to encourage it's citizens to spend. (Which worked Americans drove the home market to record profits and prices at the same time encouraging Americans to take on amazing levels of personal debt. Debt which many will never payoff in their life time.)

Given that I would say any recession in the next 4 years could pretty much finish off the US economy. As it is runaway inflation is the key word for Bush II.