Bankruptcy of America – The Next 5 Years

This is the third part of a four part series reviewing a financial seminar I attended put on by Jerry Robinson (his website is www.jrmi.org). So far we have covered his five dangerous economic trends (part 1), Mr. Robinson’s thoughts on the current state of the economy (part II), and now we will look at his predictions for the next five years. If you recall his views on America’s current economic state, you will remember it was pretty gloomy – well the future doesn’t look much better!

• Continued bailouts of American Industry and Financial Institutions (forming a shadow socialism of the economy).
• Real Estate, both commercial and residential prices will continue to deflate
• Deflation (happening now) will give way to hyperinflation
• American dollar will begin to lose status as the global currency
• Federal government will lose its AAA credit rating – which will increase the cost to borrow
• Interest rates will climb into double digits

Sounds down right cheery doesn’t it? One statistic he gave was that in 1980 America was the greatest creditor nation – by 2009 we had become the greatest debtor nation.

So if  his predictions come true, there will be some bumps in the road for the U.S. economically. We don’t have to despair – but we do need to plan. Tomorrow I will share his ideas for a personal game plan for tough economic times.