Financial Doomsday for USA?

Promoting Entrepreneurial Revolution

In this controversial Video, Weiss, a financial advisory company downgraded US debt ahead of Fitch.  Now Weiss has a sterling record of predicting financial development well ahead of others like the collapse of the savings and loan industry, the 2008 crisis.  Now it is predicting that US financial doomsday is now forthcoming.

Those are the results of mistakes of US policy makers especially US govt moneymen.

l.  The US debt is staggering.  US official debt is at $14.2 trillion;  the total debt could be over $l20 trillion because of unfunded veterans and SSS pensions (the US govt borrowed/failed to fund these items?)

2.  The printing of too much money.  For the  Y2K scare, the FED printed $40 billion, for the 9/11 $70 Billion and everytime that amount is printed there are protests because the US Dollar value would be thrashed.  And yet, after Bear Stearns, 2008, the FED printed $l.6 trillion dollars, and that does not add value to the dollar strength and stability.

3.  The US government, on account of assistance to the troubled financial companies acquired deficit 1 more than $l trillion.  The deficit was originally at $200 billion which doubled (or tripled) and again tripled.

4.  More and more Americans are unemployed;  there are l4 million  (it is officially at 10% (but those in the know say it is at 20% and it takes much longer to find job.

When would the doomsday come?

US debt to foreign countries is at $4.2 trillion mostly from China and Japan.  US borrows 50% of what it is spends (US employs l/2 of the total labor force in the US) 

The bad day starts when the lenders say NO MAS, NYET to loan applications of the US govt.  We can no longer support your deficit spending.

Please note that the lenders would stop lending because of huge losses on the holdings due to dollar depreciation.

It the lenders stop, the US govt would be forced to live within its means and will do any or all of the following:

l.  Stop paying its obligation;

2.  Cant provide the usual services as police, rescue, health, etc.

3.  May pry into private assets and savings.

4.   Food supply and fuel will come in short supply?

What are the warning signs?

l.  Chinese lenders lost $200 billion on past loans to US

2.  Chinese bank officials warn that they would lose another $576 billion if they hold on their current holding of US debts.

3.  Mexico,Thailand, and Russia bought gold instead of US treasuries as their reserves (this accounts for rise in gold prices)

What are the scenarios?

l.  Would it be similar to Russia's collapse in l990 when banks closed, crimes were rampant, the govt had to confiscate the deposits of private citizens?  Interest rates rose 200%.  Could this happen in US

2.  Would the current riots in Greece, Ireland, Spain be the same as in US?

3.  Or that in Brazil there was hyper inflation.


Questions:

l.  Are the Americans prepared?

2.  Would the scenario just described happen in US?

3.  How could Americans prepare themselves?  Which banks are weak and likely to disappear with your savings (Weiss lists them down)

4.  Will these developments, this doomsday affect PHL, or Fil-Ams relatives?

5.  Are the American public leaders aware of this?  Are they preparing for this?

6.  How about PHL public officials?  Are they aware of this danger?

American Financial Doomsday?