As the personal indebtedness increases, historically low interest rates have enticed American consumers to continue on their spending sprees and let their signature do the paying. Yet while Americans have signed on the dotted lines of home and car loans as well as countless credit card slips, the American economy as a whole is beginning to slip into trouble with the threat of foreign investors no longer sufficiently strengthening the dollar.
Perhaps heaviest on the minds of economists who have their fingers firmly on the pulse of the American people is the skyrocketing credit card indebtedness that robs consumers of their savings, thus taking away their ability to ride out an economic downturn. This in turn will lead to a floundering housing market, financially maxed out consumers, and a tanking economy that is no longer supported by spend-happy customers.
Perhaps hardest hit are retirees who find that their indebtedness forbids a life of leisure in the golden years. Adding to this problem are the deceptively inflated home prices that give many a homeowner the false security of living in a steadily appreciating investment when in fact many have refinanced their debts to take out cash so often that precious little of their equity remains.
Of course, the biggest wildcard in the equation of fiscal consequences is China with its generation of a trade deficit while at the same time holding several investments in the United States. Gradually America's opens itself up to the reliance of China's goodwill since with a few chosen financial tactics it could very well overturn the entire US economy.
Political Polling Websites: State Polls and State Matchups. Article Source: http://EzineArticles.com/?expert=Eshwarya_Patel |
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