The Future Of The U.s. Economy

894 Words Jun 16th, 2016 4 Pages
The Future of the U.S. Economy

What lies ahead for the U.S. economy is uncertain and is leaving the minds of people in dismay as to how will they survive in their near future. The U.S. has not had a positive balance of trade since 1976. That means since 1976 other countries have been exporting goods and services to us and we have been exporting our currency to them in return. This trade-off has actually been mutually beneficial (to an extent). The U.S. dollar has helped other countries stabilize their own monetary regimes, and has given them a powerful medium of exchange. In the U.S. the currencies backed by the dollar or triangulating trade through the dollar tend to require large dollar reserves, which increases demand for our export. When a nation’s debt exceeds its ability to repay even the interest, it can be assumed that the currency will collapse. The greater the level of debt, the more dramatic the inflation must be to counter it. The more dramatic the inflation, the greater the danger that hyperinflation will take place. As the US dollar is a fiat currency and is on the ropes, the US will experience a currency emergency at the street level that will be unprecedented. Your life savings could be reduced to nothing almost overnight. Inflation is a fact of life. However, the thing governments have traditionally done when they simply can’t pay their debts is print more money. The problem with this is the further you expand the money supply, the less the money you…

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