Is US heading for a big crash in 2010 ?
The United Kingdom ruled over 30% of the globe spanning across continents for over 10 decades, and in some countries their dominance sustained for over 150 years. But that is history, and now the once dominant global force, is on the brink of collapse. The country has not been able to get out of the recession in spite of special pumping in or trillions of dollars of tax payers’ money.
And the sovereign rating agencies have already warned about the bulging borrowings of the country and have warned of a downgrading in the near future. And US is not far off, and it is also currently running on huge budget deficits which are being funded through expensive borrowing from overseas investors like China, India and Japan.
And with no recovery in the US unemployment scenario despite over a trillion dollars of stimulus spending, there are fears about an impending crisis in the US.
And if the US were to fail in the coming months, which looks reasonably possible, then that could be powerful enough to pull almost 70% of the global economy into recession. That is because US is the key export market for China, Japan, Korea, Australia and Middle East countries. Even the South American countries survive on their exports to US.
With slow withdrawal of the stimulus spending over the coming months, and with no revival in the housing sector, we can expect the US economy to spike down in the coming months. Only a miraculous economic bounce back due to aggressive consumer spending can save the world from a turbulent 2010.
