Teeka Tiwari: Train Wreck: 5 Reasons the U.S. May Be the Next Greece

From Teeka Tiwari,

In Summary,

Topic focus on the warning signs for the market for the forming of US debt crisis.

Anticipating if the goverment did not cut their spendings ,
- but rather increases rate of Interest in the Treasuries and
- increase Taxes
in order to fund their programs. US debts will snowball to an extremes highs.

Warning sign #1
if Rates of T-bill rising above the Corporate Rate Bond. Emerging 2 ter of debt market.
i.e 2 yrs government debt yield > 2yrs coporate yield.

Warning sign #2
if US government is powerless & repeating it's trick of ,
spending more -> print more paper money -> raise Taxes , or tax more.

Warning sign #2a
if US taxes go higher n higher. (est. peak at 2040 if trend continues)

Warning sign #2b
if defense, federal spending in infrastructure, Entitlement programs (social security , domestic spending) are growing larger
and cash flow remains flatline or negative.

Warning sign#3
if Chinese & Japanese not buying US debts (US treasuries) .
or if US treasuries no longer receive good credit rating.
or if US$ status duo as global reserve currency is considering being displaced.

Preparation ahead of crisis:
-prepare strategies for different scenario to happen.
-watch sign posts.
-Action on your strategy plans.

doing that we have the advantages of
-reduce risk exposure
-to hedge the situation and earn quick profit.
-to predict cash flow
-secure retirement or investment fund.