Will it happen? Part 2

The Dollar may fall this March

America's foreign debt currently standing at $8,184 trillion will hit the debt ceiling as early as February-March 2006

The United States is heading to financial crisis at top speed. That is correct, America will default on its foreign debt sooner or later if the actual trends remain unchanged. Consequently, the whole dollar-based world (including savings in U.S. currency) may crumble. In actuality, the public have grown tired of numerous forecasts regarding an imminent collapse of the U.S. economy. The picture looks pretty grim this time around. Several factors will have an extremely detrimental effect on the dollar, according to U.S. Secretary of the Treasury John Snow who forwarded a letter full of ominous predictions to 21 members of U.S. Congress. The letter was made public after the markets had been closed for Christmas and New Year's holidays - a rather appropriate precautionary move in terms of the international foreign exchange market, which is extremely sensitive to any sound produced by U.S. bureaucrats. In his letter, Snow predicts a crisis in February this year. Citing U.S. government forecasts, Snow believes that America's foreign debt currently standing at $8,184 trillion will hit the debt ceiling as early as February-March 2006. For decades the White House has been borrowing money to cover expenditures that exceeded the real economic growth rates. As a result, the U.S. public debt currently totals to $8.1 trillion, a huge figure compared to the U.S. GDP that is slightly above $11 trillion.

U.S. Congress sets a debt ceiling which U.S. government must not exceed in borrowing. Exceeding the ceiling brings about the so-called technical default i.e. U.S. fails to pay its foreign debt in full at the right time. However, the government has been continuously raising the foreign debt limits over the last 50 years.

Read the whole thing...

I don't know about February - March, but anyone with some basic financial sense and a grasp of history knows something bad is coming our way if (when) this keeps up.