Quote:
Originally Posted by kane
Right now the debt is about 99% of the GDP. During the depression it was at about 120%. So I think we have a little ways to go before we implode, but it could happen. If we stay as we are going I would say we could have another major recession or even depression within about 10-15 years.
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The wage structure in China continues to increase. It's nearly $5.00 an hour now,so their grand plan to build their economy on the backs of american jobs has worked. That being said, I have read in a lot of places where the average wage in China will catch up to the minimum wage in the US by 2016. When that happens the Chinese won't need the US market and the money that the US owes them won't be the bartering chip it is today.
If spending isn't dramatically cut, and if the government doesn't find ways to generate more income a real bankruptcy will probably happen much sooner than 10-15 years.