Senator Judd Gregg warns of a coming financial meltdown of the U.S. economy. He expects this crisis to hit in 5 to 7 years. The signs are all there. Since Obama took office, the dollar index has plunged 17%.
Several countries including China and Russia are calling for an alternative currency. Dominique Strauss-Kahn, the head of the International Monetary Fund, believes in time that an international currency will replace the U.S. dollar.
The world is apprehensive about the fiscal policies of the democrats. The stimulus package, along with bailouts of businesses, and attempted take over of the health care industry has raised eyebrows from those who buy America's debt.
Fannie Mae and Freddie Mac have received $111 billion in bailouts. That number is expected to increase to $188 billion by the fall of 2011. These two G.S.E.'s own or guarantee 31 million home loans worth $5.5 trillion. Freddie Mac revealed that 4% of their loans are 3 months past due, and could go into foreclosure. Fannie Mae is requesting an additional $15 billion, after reporting losses of $74 billion last year.
The U.S. dollar has been a refuge of certainty for the whole world. It was regarded as a safe investment. It looks like those days are coming to pass. Now will the world believe that the United States is too big to fail? Don't hold your breath.
source:
http://moneynews.com/StreetTalk/davidson-dollar-markets-aftershock/2010/02/25/id/350964?s=al&promo_code=9809-1
http://moneynews.com/StreetTalk/US-US-IMF-Reserve/2010/02/26/id/351082
http://moneynews.com/Headline/US-Earns-Fannie-Mae/2010/02/26/id/351102
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