The American Insolvency

This has been building for a long time. More and more you find references to the this issue in the mainstream press. I expect within 1-3 years the US dollar will commence an extended decline in value, however as this article suggests with currencies, swings in sentiment really can be dramatic.

A collapse in the US dollar will be a collapse in US power and influence and accordingly the influence and stability of the Western world. The economic consequences of the global financial crisis will seem mild in comparison to the collapse of the world's reserve currency. In the US the effect will be as severe as the Great Depression - although the US appears almost half way there now.

The real question is where will China land? Stable and assertive? Chaotic and dissolute? Or perhaps, an expansionist police state where miltary conflict is used to maintain public morale and order?

I sincerely wish the green shoots optimists were right. If the US was solvent they probably would be.