US at the brink of bunkruptcy!

By Henry O. Aldana

Translated by Google.

The Unites States is in the verge of a bankruptcy, this country is so indebted that it won’t be able to  repay its debts. This recession will not be an ordinary one, it already is an extraordinary recession – another Great Depression, and no additional government stimulus could stop it. The “Baby boomers” generation is over, they are spending less.    They are not buying houses, cars or other major expenses. They are in an austerity mode. Every forty years we have seen major economic fluctuations, in the stock, in the real estate market; this is a natural cycle. The second factor affecting the economy is that banks are collapsing, the banks health continues to deteriorate and cline as they were somehow responsible for creating the housing crisis. Two weeks ago, banks reported that five million homes are in the process of foreclosure; this is an indication that the real property and the entire real estate market will continue in the downturn mode. The third reason for this economic crisis is that immigration has almost has almost stop, the U.S. has been in a campaign against immigration for almost a decade and closed the borders-not the book store– but the south of the border.  The political process to produce a comprehensive immigration reform has not work, but what the people who are representing us in congress do not understand how immigration plays a monumental role in economic development.  They need to see the bid picture.

The U.S. is the world’s largest debtor in history. U.S. has does not have a surplus, in contrast, its external debt is 14 trillion  and 55% of our debt is owed to countries like China, Japan and Saudi Arabia. Sooner or later they will stop acquiring more debt and we will not be able to pay them back. One of the biggest challenges of the economy is inflation, but when all businesses and individuals cannot pay their debts to banks, banks will have to cancel all these bad debts and this will create deflation. Deflation destroys credit, destroys the money supply, and makes money worth less.  and when mony is worth less, there is less money to repay debt, and when you can not repay debt, its time for file for bankruptcy.

The good thing about bankruptcy is that it eliminates all bad debts and cleans the path for new opportunities so that we can start again. The same happened after the great depression of 1932; it eliminated debt, inefficient business, created new technologies and new opportunities for innovative minds.

What should you to survive the last stage of the cycle.  For businesses this is no time for expansion, it is time to remain as constant as possible. If you have a business, reduce costs wherever possible. Do not make goals for growth; refocus your goals on only things that make you money in the short term, your objective shall be  just to survive.  If possible cut your prices, as long as you make a profit, to overcome competition and come out ahead at the end of the depression. Prepare for the worse “The Great Depression.” If you are employed, it is not time to change jobs, or pursue a new career, stay employed in the same job. Last week, the August unemployment card was reveled and it pictured a grim reality our unemployment rose to (9.9%), it reflected a big drop compared to July.  Unemployment will continue to rise to more than 15%, the worst we’ve seen in 80 years. Keep your job, help your boss, be loyal to the company, work more efficiently, contribute to new ideas, and become indispensable to your boss. After the tide goes recedes, you will be still standing.

This is the 3rd of a four article series.

www.aldanas.com

301 SECRETOS PARA PAGAR MENOS IMPUESTOS
LIBRO GRATIS
Respetamos Su Privacidad

Deja un comentario