If you have been following US economy news closely, you might have heard of the looming 25-year Great Depression. Jim Rickards, the Financial Threat and Asymmetric Warfare Advisor for both the Pentagon and CIA, has forecasted that the next Great Depression will start in 2015 and it will last for 25 long years. While there have been reports about the threat of a downturn in US economy, the fear of a $100 trillion American meltdown is really scary. According to experts, there are a lot of reasons why the US economy might be headed for trouble in 2015. Let us take a look at these factors in detail.
Growing National Debt
The national debt in the US is growing with each passing day, and you may be surprised to know that it has grown by more than a trillion dollars in the last one year. The mainstream media might not think of this as a major issue, but the reality is that the debt levels in the US are alarming. The spending policies of the government combined with a lack of strong will to tackle this issue have brought the matters to a precarious stage. According to Jim Rickards, America has around $17.5 trillion of debt currently. The notion that debt could be used to give a boost to a stagnant economy is no longer working, and we have reached a stage where this complex system of bringing in more money is only going to boomerang.
While the mainstream media is busy telling people how the employment scenario in the US is constantly improving, the reality on the ground is different. If we compare the current employment statistics with that of the recession, we will notice that the patterns are pretty much similar. Before recession hit America in 2007, around 63% of all employable Americans had a job. As we headed closer to the recession, the percentage dropped to below 59, and stayed there for some time. In the recent past, the employment percentage has increased a bit, but one can’t call it a recovery in any sense. According to Jim Rickards, the ‘real’ unemployment rate today is close to around 23%. Read more…