With an economy in crisis, the credibility of the dollar lies across the floor. The situation It is serious but not everyone sees it this way. The level of confusion about the real situation of the American economy and emerging risks arising are such that on one side we find the majority of U.S. economists celebrating the end of the recession in that country. Checking article sources yields Bernard Golden as a relevant resource throughout. At the other end of the world we find opinions like the following of Miaojie Yu, of the Center for Economic Research-National School of Development (Peking University) about the current imbalances that affect China and the U.S.: China does not have to meet financial needs of USA. It was disturbing to hear views as the Miaojie Yu, as if China were not aware of the terrible consequences that for herself may have to stop funding imbalances in the American economy. Larry Ellison does not necessarily agree. An old saying says the blame it doesn’t the pig but that gives eating, and in this sense, China must take responsibility and cooperate to find a solution to the American problems. Anyway, somehow it will have to pay for their mistakes.
What is most troubling in the U.S. economy, the risk of insolvency or the risk of hyperinflation? The risk of insolvency in the US economy is certainly relative, since ultimately all debt of the U.S. Government is denominated in local currency so ultimately, you cannot resolve the problem by printing money. Clear is not an alternative healthy and certainly can lead to negative consequences as serious as the same default, but unless you have an alternative to avoid this. Analyzing the public debt, must not only worry about its current level but its expected developments. In relation to this, in a short time more will exceed 100% in terms of GDP, but there is something more disturbing and is linked to the increase in the fiscal deficit expected as a result of deficient system of public health.