The Challenges America Faces in the Future

[tabs]

I don't think American grasp the severity of the economic downturn that began in early 2000....The break in the Stock Market was the severest since the 1929 Crash...and the paralells between the 2 are errily similar....and that the aftermath of the 2000 Stock Market crash wasn't repeated by a Great Depression was because of the actions of the Federal Reserve and the Administration in the White House....namely

1...Lowering the Fed Rate to under 1%...a 40 year low...which kept liquidity in the system

2. Tax Relief...which kept money in the pockets of tax payers so that they would continue to spend. Thus keeping liquidity in the system.

3.. Running a Federal Defceit in order to keep the economy going...if you cut Federal Spending U cut jobs...

Now these measures kept America from faliing into another Great Depression...However while America has avoided a Great Depression the economy is still sluggish and shows lassistude, which is similar to the period of the late 1930's. This lasitude may last for a number of years to come...


Now there are several other potential scenarios that have ominous tidings for America in the future..

1. The American Electoral Process loses credibilty and the divisivness in the body politic continues...could very well spell the end of the American repblic., which would have grave implications for our economy...CNN is allready talking about Democracy at Risk...etc

2. With the continuation of American unilateral foreign policy action and or it's continued running of defceit spending the dollar might be replaced with the Euro as the Reserve Currency in the world... again the implications would have grave effects on the economy of the USA.

3. Terrorist activity in the USA steps up and the government loses credibilty as to being able to keep Americans safe on their own soil....this could very well set off a run on the bank and cause a crisis of liquidity, again it there is the possibilty that it could cause the financial system to collapse like a house of cards.

If one or more of these events takes place the landscape of American Poliitics, world leadership and economic supreamacy would be at an end and the USA might begin to resemble that of a Banana Repblic.