If The Global Debt Bubble Bursts, What Will Happen?

[Roparadise]

It was mentioned several times...

I posted that to go along with the picture,to show how much money can be made there compared to China or India.

 

[Monrox]

Nobody is overlooking it, at least not the people who have an idea about this stuff. But they don't consider it: the thing is that percentages can mean anything when taken out of context. For example if Japan was making 50 billion and is now making 45 billion, that's minus 10%.

If Russia was making 100 000 and is now making a million that's 900% growth. But they will need to keep this up for probably decades before they reach the same level of infrastructure and personal wealth (as Japan).

A simpler example is when my aunt gave me $100 for my 10th birthday. My wealth grew by an infinity as I had $0 before the event. MS took a hit that year and shrunk by 5% or so. Guess who's still a lot richer

Why is everyone over looking the Russian Federation when it comes to growth?

 

[businessbira]

When the bubble will burst your dollars will be worth sheet.

 

[Roparadise]

Nobody is overlooking it, at least not the people who have an idea about this stuff. But they don't consider it: the thing is that percentages can mean anything when taken out of context. For example if Japan was making 50 billion and is now making 45 billion, that's minus 10%.

If Russia was making 100 000 and is now making a million that's 900% growth. But they will need to keep this up for probably decades before they reach the same level of infrastructure and personal wealth (as Japan).

A simpler example is when my aunt gave me $100 for my 10th birthday. My wealth grew by an infinity as I had $0 before the event. MS took a hit that year and shrunk by 5% or so. Guess who's still a lot richer

But most American businessmen are more interested in China,when Russia is both experiencing growth and it is also a tax haven to do international business from.

Even if most of your business came from China, Russia is a better place to register/reside for tax reasons.

 

[hardybents]

I just bought Rosetta Stone to learn to speak Chinese in 3 weeks. When they take the US over, I want to be on their good side.

 

[leonidt]

But most American businessmen are more interested in China..

Russian labor is expensive compared to Chinese labor.

 

[tj0575]

I agree with Clade. First of all, I dont think the debt bubble will burst. The USA will be fine. The media wants you to think the world is going to blow up because, well, it makes good news and people will watch.

Absolutely right. Alot of this is media hype to keep the public in a state of constant fear and panic.

 

[GreenGoblin]

Stop believing the News LMAO! this isn't rocket science, the USA are the biggest consumers in the world everything is imported or "made in china" we are the crack heads of the world, or the root consumers if you will. China needs the USA to consume whatever there making so as I said nothing will happen life will go on, can you imagine if the USA said ok were not importing anything else into the USA from china, you know what will happen? china & the USA will be in a f^%$% up situation.

 

[Roparadise]

Stop believing the News LMAO! this isn't rocket science, the USA are the biggest consumers in the world everything is imported or "made in china" we are the crack heads of the world, or the root consumers if you will. China needs the USA to consume whatever there making so as I said nothing will happen life will go on, can you imagine if the USA said ok were not importing anything else into the USA from china, you know what will happen? china & the USA will be in a f^%$% up situation.

Most people fail to realize that the u.s. is a service based economy now,not a manufacturing one like china is. stop importing things from china and everything will become to expensive in the u.s.

Technically the EU is a bigger economy,but because the member nations have more power then the member states of the u.s. its not counted by most people.

 

[TheMatrix]

I think then India would truly be developed nation (not because of what India will do, but because the definition of "developed" would change)

 

[Roparadise]

is there a way for the public to create a currency based on precious metals,that can be accepted everywhere? i think currency is to important to be controlled by those who have political agendas.

it cant just be gold and silver.Rhodium,platinum,copper and nickle needs to be part of the system

 

[MarkAffi]

What people seem to fail to think about with the "debt problem" is how the GOP is handling it. The U.S. is in a rude awakening if we allow ourselves to believe this is just another "cut-n-paste" scenario like any other recession/depression before. The real problem here is the top 2% of the country. And by top, I simply mean in earnings; definitely not top in terms of standards of morality or humanity. The big CEO's keep profiting, but those profits are not trickling down. It's greed and aristocracy at its worst. The money's there. They just do not want anyone else to have it. Company profits are going UP but the employment rates are still going DOWN. We don't have a DEBT problem. We have a PEOPLE problem.

Here's what will really happen. China, Russia, etc. will have nothing to do with our economy fixing itself. We will. It's going to end in democratic warfare on the GOP. An all out uprising by the ways the representatives, themselves, use and take for granted. Civil liberty allows citizen arrests. What'll happen when the entire congress is placed under citizen's arrest? That's the REAL question.

 

[madoctopus]

The modern economy is based on debt and credit. There is no actual money. Just credits. That being said, everybody fights for actual resources not money.

If however want to understand how these things work, read Confessions of an economic Hit Man by John Perkins

 

[dvdgangster]

America consumes alot but produces nothing, how hard do you think it is for the chinese to start consuming? alot easier than getting the US to produce...

What will happen is WW3, look what happened when the last great global superpower(United Kingdom) fell apart, WW1 then WW2..You can already see the US trying to dominate oil supplies into china, the only reason they are in libya is because of the ties they had with china...You cant be invading countries like they are with expecting a severe reaction...we are going to see the GREAT WAR in our life time

 

[dynasty814]

America has dropped from AAA to AA+

 

[turbopugsleylx]

Read "Rich dad's guide to investing in Gold and Silver" firstly....

Secondly subscribe to the National Inflation Associations newsletter as well as Mike Maloney's newsletter.

And Thirdly realize that every fiat currency in history eventually goes back to it's original inherent value....which is ZERO....when it does you better have some Gold, and silver stocked up or you may not be able to buy even the most basic of necessities....

Study what happened in the Weimar Republic(Germany) and Zimbabwe and it will give you a taste of where the US is headed...both of them printed money exponentially independent of any thing of inherent value (gold or silver) and by the beginning of WW2 people had to bring wheel barrows full of these bills just to buy bread.

When the Gold : Dow Ratio nears to 1:1 then it is time to get out of precious metals and reinvest in whichever asset is undervalued at the time (which will LIKELY be stocks and real estate)....right now the Gold : Dow is like 6:1 (and decreasing from 43:1 in 2000 which indicated overvalued stocks and undervalued precious metals).....You can do the same thing with the Mean House Price Index and Gold ratio to determine where we are in the overvalued/undervalued pendulum and when to invest when it comes to real estate....

But ultimately store your money in stuff that has inherent value like precious metals....because once our lovely socialistic constitution shredding president gets done we may have our credit ratings dropped even further and the US lose it's status as the worlds reserve currency...which has already started to happen with countries not accepting US dollars for payment of any debt.

READ "RICH DAD'S GUIDE TO INVESTING IN GOLD AND SILVER" (this is just history repeating itself...these events have played out with dozens and dozens of fiat currencies in the past)

 

[leonidt]

I prefer silver over gold. Silver is not only a precious metal but also a major industrial commodity.

Real estate will always have inherent physical value: people need a place to live. Go look at any "housing wanted" section on craigslist right now and you already see people offering just about any kind of service or labor in exchange for a place to live. Living space can be bartered easily for anything you want.

 

[transam7410]

do you know how many americans have arsenals of guns and ammunition. china will not take over us.

 

[Roparadise]

do you know how many americans have arsenals of guns and ammunition. china will not take over us.

They have no intention to,they are probably 1,000,000x more likely to just forgive the debt.

 

[fred7]

Nothing will be happen. And if you see that Russia or China or even India are increasing rapidly just go and buy their companies stock or start business there. No need to worry about the economy. You worry about your family economy first