January 4, 2011 SouthAmerica: My crystal ball still is very foggy these days, and I would be lying to you if I told you that I understand how it works the new economic system adopted by the United States in 2008. It is very hard to make any intelligent predictions when today we have a new economic system adopted here in the United States based on stock market manipulations, massive U.S. government intervention and nationalization of major sectors of the US economy. It does not matter how bad things turn out inside the US economy in 2011, including a collapsing muni bond market, widespread unemployment, exploding foreclosure market, declining property values, and in 2011 the new Republican governors are going to cut the budget of their states to the bone in a major effort to speed up the implosion of the US economy into a black hole. But in 2011 the US economy depends more than anything else on the new creative and innovative actions by Ben Bernanke and the Federal Reserve. There's no limit to their creativity regarding all kinds of US government intervention and manipulation of the markets. The mainstream media keeps hyping how the US economy is recovering, but in the real world that is pure BS and nothing else. The reality is the US economy has been down the toilet, and it will get even worse in 2011. In 2011 we also can look forward to a proliferation of tariffs, quotas, exchange control, and the next level of the current "Currency Wars". Anyway, there is only one thing to look forward in 2011 that will provide great entertainment to all of us, and we are going to have great time when we watch the new megahit on C-SPAN: âThe Ron Paul and Ben Bernanke Showâ Regarding my long term forecast: the years 2008 to 2015 it could be the equivalent to the US economy to the period late 1980's to early 1990's represented to the Soviet Union = the end of the road. The implosion of the US economy could take even a little longer, because of the status of the US dollar as the major foreign reserve currency. It's just a matter of time for the global financial markets to grasp the new realities regarding the future of the US economy â then we will have the final meltdown of the US dollar and the end of an international monetary system based on the US dollar. Anyway, today when I think about the state of the US economy the first thought that comes to mind is an imploding Soviet Union, and its economic system. .