Global Economy… October 8, 2007

How we get these Future News Predictions


Unlike the past, the world is now one large economy. No more will one country dominate the direction of the world economy.  Consumption will drive the demand for all types of commodities. By commodities, we do not mean just resource commodities, but also food. Consumption will drive the economy, as well as limit the economy. For example, China will have a never ending thirst for oil. By contrast, the U.S. will have to conserve oil and gas. Increased worldwide demand will force prices up in the U.S. While China consumes more, the prices will be kept artificially low. The government will never let prices get in the way of growth. By controlling prices, China’s government will allow citizens to keep more of their income. This income will be used for investment in the Chinese infrastructure. 

Just as China will be the largest consumer of oil, they will also be the largest consumer of stocks. The government will encourage investment in Chinese companies by the average citizen, while the average U.S. citizen has no money to invest. Increased prices for everything will cripple the U.S. consumer. (NEWS proof)   The banks and financial institutions in the U.S. have yet to suffer entirely. Financial institutions will explain how they lost so much money. Increased domestic spending is what’s necessary to revive the United States infrastructure. The economy is crumbling slowly as the politicians are frozen. By not having a definite plan to revive the U.S. economy, it doesn’t matter who wins the next election. America will no longer find itself the world’s leader in quality lifestyle. This is a dichotomy in that consumption will enable China to grow, while consumption will ruin the U.S. economy.

QUESTION: How long will it take the banks to come clean and reveal their losses on mortgages, and how will it affect the U.S. economy?

ANSWER: (NEWS proof) Most of the financial institutions involved in bad mortgages have seen how bad the situation is for them, but it will take the next three months for them to admit it. The impact on the U.S. economy will be felt in many ways. One way the banks will recoup losses if through fees. Fees of all kinds will appear and credit card interest will exceed 30 percent. The more the U.S. consumer needs credit, the more it cost them, making the banks rich again.

QUESTION: We see the slow grind up in the U.S. stock market, which is counterintuitive to the state of the U.S. economy. How long will it take before the consumption will ruin the U.S. economy?

ANSWER: The country is divided into two levels. Those who can afford to invest and profit from market manipulation, and those who are forced to pay more to live each month. The wild consumption started 25 years ago. Big cars, big houses and big debt. The lifestyle came from a mentality that it would never slow down. When the reality sets in, the average American will be well below average.

QUESTION: How far is America into this at this point?

ANSWER: More than halfway. The problem is that nobody sees it as a problem yet. Until they have to choose whether to fill up their gas tanks or eat, will they understand the folly of consumption?

QUESTION: When do you see America emerging from this crisis?

ANSWER: It will take the vision of a true leader to get the people to change their mindsets. You will see this person emerge in 2012.

QUESTION: What does America need to focus on as their greatest opportunity during this period of decline?

ANSWER: Americans need to learn the lessons of frugality and conservation of all valuable things in order to get in touch with their inner selves to realize the meaning of why you are here. 


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