For some time now, I have been seriously worried that the American economy is headed for a collapse similar to the Depression of the 30s.
I’m particularly worried about the national debt. It has to be paid back, but it keeps growing higher and higher.
Fortunately, I know a couple of people who are very well versed to answer my question, “Is the American economy going to collapse? If I buy collector gold coins, a sliver of bullion, or collector coins of any type, the BEST I can expect is face value. No one is going to carry a price guide around and say, “Look, the 1844 dime is worth $20!!!” It will be worth a dime – at best.”
A family member is a high-ranking officer at one of our major banks. She answered, “I don’t believe the American economy will collapse. Over the next few years, it may remain slow to grow and expand (similar to Japan) – but no collapse.”
One of our sons is directly involved in world developments. He replied, ” The US economy is actually on the best footing it has been in many years. With domestic energy production at all time highs, our trade imbalance will continue to improve over time. With cheaper domestic energy, we’ve already seen a surge in industrial production that we haven’t seen in decades. New “additive production” technologies (like 3D printing) also contribute to the repatriation of manufacturing. And we still have the world’s strongest financial services sector, the world’s strongest technology services sector and of course, our entertainment industry which is the marvel of the modern age. Our demographics are also very encouraging (compared to Europe, Japan and China). With strong immigration rates and birth rates slightly above replacement level, we don’t need to fear the near one-to-one ratio that other countries will be facing. Sure, we all know things will be a little tough when the boomers are all retired and they’re being supported primarily by one of the smallest generations of the 20th century (gen “X”). But the next generation (gen “Y” or the “millenials”) were an even larger generation than the boomers. And most of the problems with the boomers retiring can be solved by simple structural tweaks to government entitlement programs.
“Which leads me to the one thing that still scares me. And that’s politicians. As they’ve demonstrated many times in the last three years, they have the ability to shave whole percentage points off our countries GDP simply by their crazy shenanigans. If their is one consistent threat to the economic well-being of the US economy, and the world economy, it’s our politicians. They also tend to over exaggerate the perils of our present condition and future prospects for their own, selfish political gain. Don’t believe everything you hear from them. Their agenda is to wreck our economy and scare the heck out of us to make us think that we need them to fix our problems (that they have created). Don’t buy into their game and don’t spread their lies and half-truths. We’d all be better off without them! 🙂
“Don’t worry about your deposits. It would take a complete failure of our entire monograph system for FDIC to not insure your deposits.”