Saturday, July 10, 2010
Ferguson: American Collapse within 2 Years!
The collapse of the American empire is happen. At this point, it's just a matter of time. I've been saying this for awhile. Gerald Celente, Ron Paul and Peter Schiff have all warned us that the debt and reckless spending was going to change American life. All of these men successful predicted the economic collapse of 2008. Now, we can add Niall Ferguson to the list of intelligent minds who see an economic collapse in this nation's near future.
“I think this is a problem that is going to go live really soon,” Ferguson said. “In that sense, I mean within the next two years. Because the whole thing, fiscally and other ways, is very near the edge of chaos. And we’ve seen already in Greece what happens when the bond market loses faith in your fiscal policy.”
Ferguson believes that empires are subjected to quick collapses. This only happens so quickly that many of its citizens are taken by surprise and let in vulnerable situations. Ferguson said that the tipping point is when an empire's debt surpasses its military cost. This leads to a sharp collapse.
“By combating our crisis of private debt with an extraordinary expansion of public debt, we inevitably are going to reduce the resources available for national security in the years ahead...Because as a debt grows, so the interest payments you have to make on it grow, even if interest rates stay low. And on current projections, the federal debt is going to be absorbing around 20 percent — a fifth of all the taxes you pay — within just a few years."