4 Dreadful Signs of America's Economic Collapse

Author’s Bio: Sophie Kinsella is a contributory guest columnist for various websites and communities including Oak View Law Group and CMFA . She has completed her Graduation in Finance and is currently working with an Investment company located in California. She has written articles on topics like bankruptcy, investment opportunities, and many more.

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Sophie Kinsella — Activist Post

America is suffering from a huge economic depression, but average people are under the notion that America’s economy will soon recover from this deluge. However, the reality seems to be quite different than what is anticipated. This article will get you through a reality check and help you to understand that American economy will not end with a bang but with a whimper. The following points will unravel some dreadful signs about America’s economic depression.

1. 120 million Americans live at the edge of the poverty line, and they possess less than 1% of the entire nation’s wealth. Among these 120 million people, most are African-American and Hispanic according to the statistical research. These people are forced to take out loans in order to meet their basic requirements. They even take mortgage loans that they fail to afford and end up defaulting.

2. If you do extensive research, then you might find that close to 360,000 mortgages have been scheduled to “reset” in the entire nation. The average monthly payment will be increased by $1,000 due to the reset schedule. Near about 35-50% of the US dollar will be deflating. Therefore, this might make it unaffordable for the people to pay off. Consequently, this might even crush the housing market.

3. The current official unemployment rate in America is near about 9.9%. However, the rate has recently increased to 22%, but it has not been disclosed by the government till now.

4. According to the USDebtClock.org, the U.S national debt has exceeded $14 trillion. Within 5 years the debt amount of $5.7 trillion has increased by $2 trillion. It is quite intimidating that 6 months back the national debt was $12 trillion and within a short span it has increased by $2 trillion more! With the growing number of people falling in debt the debt clock speeds up.

Therefore, the economic condition of America seems to be getting closer to doomsday. People should acknowledge this fact and try to be proactive while dealing with their personal financial situation as it has an impact on the global economy.