Our US in Budget Crisis: Breakdown of the Global Economic, Financial, and Monetary System.

Welcome to the United States of Austerity: At the end of summer 2010, most experts believed first, that the debate on the US budget deficit would remain a mere subject of theoretical discussion within the Beltway, and second, that it was unthinkable to imagine the United States engaging in a policy of austerity, because it was sufficient for the Fed to continue to print dollars. Yet, as everyone has been able to see for several weeks, Spring 2011 really did bring austerity to the United States, a first since the Second World War and setting up a global system based on the ability of the US engine to always generate more wealth. At this stage, LEAP/E2020 can confirm that the next stage of the crisis will really be the "Very Serious Breakdown of the world economic, financial and monetary system" and that this historic failure will occur in autumn 2008 for what it really was: a simple detonator. The crisis in Japan, the Chinese decisions and the debt crisis in Europe will certainly play a role in this historic breakdown. On the other hand, we consider that the issue of government debt of countries on Euroland's periphery is no longer the dominant European risk factor here, but it is the United Kingdom which will find itself in the position of the "sick man of Europe". The Eurozone has in fact established, and keeps improving all the monitoring systems needed to address these problems.

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