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

Graduate level Economic question - Assignment ExampleThe outlook beyond 2012 is positive, where investments from the EU, Japan, chinaware etc resume, and banking hubs like HK and Singapore resume expansion in developed economies.The deficit shall continue to increase for the predictable future. The government is printing like never before to keep the impact from its citizens. Due to this extensive baseless cash in the economy, the result shall be a hyper-inflationary trend that shall fuel an even tighter control on spending from consumers. The result will be a sudden loss of the US dollars purchasing power, causing 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 official reserve Policies will focus on a sustained purchase of gold to b ack the huge amount of dollars not backed by any assets, thereby causing gold to soar, and therefore have unaffordable to America itself. The feds will have to raise interest rates to protect the dollar, causing a promote slowdown in demand (Williams