Ten reasons why the US economy will not collapse

Recently, some Americans have predicted the economic prospects of the United States. Although the US economy has experienced a recovery, it is still plagued by unemployment, weak housing market, shrinking family property, and insufficient consumer confidence. Even some prophets believe that the US economy will be in 2014. Crash, and like the Great Depression of the 1930s, many banks were closed, stock markets fell, and the US had huge fiscal deficits, corporate consumption fell, and some bubble-filled real estate and stock markets would impact the entire banking system and even cause the US economy to collapse. . The author of this article believes that the US economy will not collapse.

In 2014, the US economic recovery is still slow, but the US economy is expected to reach the best since 2007. The stock market has a record of innovation. Housing prices are moving in the right direction, and GDP growth is at 2-3%. Although investors sell gold due to falling gold prices.

Author Kimberly Amadeo believes that the US economy will continue to recover and the dollar will not collapse for ten reasons:

First, US debt is now high, but US debt is different from Greece and will not cause the dollar to collapse.

Second, in the United States, debt accounts for a high proportion of GDP, but the US economy is still operating and will not face economic collapse.

Third, President Obama will not let the US economy collapse.

Fourth, the United States will not default on its debt.

Fifth, China does not sell dollar assets.

Sixth, the renminbi and the yen will not cause the dollar to collapse.

Seventh, the dollar is slowly falling, but it will not collapse.

Eighth, the dollar is still a global currency.

Ninth, the Fed’s quantitative easing policy will not lead to high inflation.

Tenth, the United States will adopt various monetary or fiscal measures to prevent the collapse of the US economy.

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First, US companies have about $6 trillion in capital, accounting for 38% of US GDP. Although the company's current investment is less than before the financial crisis, the US economy will continue to grow and the US economy will not collapse.

Second, the purchase of QE by Fed bonds led to inflation, trying to make up for the withdrawal of company funds. Now that funds are beginning to return to the market, the Fed has begun to withdraw from QE.

Third, emerging markets such as Brazil will lead the global economy, but the US is still in the lead.

Fourth, the world's base currency is still the US dollar.

Fifth, the United States or China, the first priority is to still have a better quality of life for its own people.

Sixth, urbanization has made great progress in technology and manufacturing, commodity costs have risen, and some asset bubbles have emerged.

Seventh, gold is still an investment, but the global currency is extremely unstable and there is geopolitical risk.

Eighth, Bernanke printed a large amount of dollars into the bank. If the extra money is used for consumer spending, the interest rate may rise soon, and it may lead to debt default.

Ninth, Obama tightened lending, which made bubble reduction increase stability.

Tenth, increase debt to get rid of debt, the Fed will always get rid of debt.

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