Graduate level Economic question Assignment Example | Topics and Well Written Essays - 250 words

Graduate level Economic question - Assignment guinea pigThe outlook beyond 2012 is positive, where investments from the EU, Japan, China etc resume, and banking hubs like HK and Singapore resume expansion in developed economies.The deficit shall continue to increase for the foreseeable future. The government is create like never before to keep the impact from its citizens. Due to this huge unsupported cash in the economy, the result shall be a hyper-inflationary trend that shall evoke an even tighter control on spending from consumers. The result result be a sudden loss of the US dollars purchasing power, do other countries to exit long term treasury bonds to safer pastures (Williams 13). As soon as that happens, the bottom will fall out of the markets, as the others fear of American collapse will not fuel the support to the dollar, as the US shall have internally made its currency worthless. Federal reserve Policies will focus on a sustained purchase of gold to back the huge am ount of dollars not backed by any assets, thereby causing gold to soar, and therefore become unaffordable to America itself. The feds will have to raise interest rates to protect the dollar, causing a further slowdown in demand (Williams