The future of the USA - 2012-2016: An insolvent and ungovernable United States http://www.leap2020.eu/GEAB-N-60-is...insolvent-and-ungovernable-country_a8481.html In this issue, our team therefore gives its anticipations regarding the future of the United States for the 2012-2016 period. We recall that since 2006 and the first GEAB issues, LEAP/E2020 described the global systemic crisis as a phenomenon characterizing the end of the world as we know it since 1945, marking the collapse of the American pillar on which this world order has rested for nearly seven decades. Since 2006, we had identified the period 2011-2013 as that during which the âDollar Wallâ on which the power of the United States sits would fall apart. Summer 2011, with the cut in the United Statesâ credit rating by S & P, marked an historic turning point and confirmed that the âimpossibleâ (27) was indeed in the process of coming true. Therefore today, it seems essential to provide our subscribers with a clear anticipatory vision of what awaits the âpillarâ of the world before the crisis at the point when the crisis moved into âtop gearâ in summer 2011 (28). Thus, according to LEAP/E2020, the 2012 election year, which opens against the backdrop of economic and social depression, complete paralysis of the federal system (29), strong rejection of the traditional two-party system and a growing questioning of the relevance of the Constitution, inaugurates a crucial period in the history of the United States. Over the next four years, the country will be subjected to political, economic, financial and social upheaval such as it has not known since the end of the Civil War which, by an accident of history, started exactly 150 years ago in 1861. During this period, the US will be simultaneously insolvent and ungovernable, turning that which was the âflagshipâ of the world in recent decades into a âdrunken boatâ. To make the complexity of the current process understandable, our team has chosen to organize its anticipations around three key areas: US institutional deadlock and the break-up of the traditional two-party system The unstoppable spiral of recession/depression/inflation The breakdown of the US socio-political fabric The unstoppable US economic spiral : recession/depression/inflation (extract) In fact, the United States ends 2011 in a state of weakness unmatched since the Civil War. They practice no significant leadership at international level. The confrontation between geopolitical blocs is sharpening and they find themselves confronted by almost all the worldâs major players: China, Russia, Brazil (and in general almost all of South America) and now Euroland (30). Meanwhile, they cannot control unemployment where the true rate stagnates at around 20% against the backdrop of an unabated and unprecedented reduction in the labour force (which has now fallen to its 2001 level (31)). Real estate, the foundation of US household wealth along with the stock market, continues to see prices drop year after year despite desperate attempts by the Fed (32) to facilitate lending to the economy through its zero interest rate policy. The stock market has resumed its downward path artificially interrupted by two Quantitative Easings in 2009 and 2010. US banks, whose balance sheets are much more heavily loaded with financial derivative products than their European counterparts (33), are dangerously approaching a new series of bankruptcies of which MF Global is a but a precursor, indicating the absence of procedural controls or alarms three years after the collapse of Wall Street in 2008 (34). Poverty is gradually increasing in the country every day, where one in six Americans now depend on food stamps (35) and one in five children has experienced periods of living on the streets (36). Public services (education, social, police, highways...) have been significantly reduced across the country to avoid city, county, or state bankruptcies. The success with which the revolt of the middle class and the young (TP and OWS) has met is explained by these objective developments. And the coming years will see these trends get worse. The weakness of the 2011 US economy and society is, paradoxically, the result of the ârescueâ attempts carried out in 2009/2010 (stimulus plans, QE ...) and the worsening of a pre-2008 ânormalâ situation. 2012 will mark the first year of deterioration from an already badly impaired situation (37). SMEs, households, local authorities (38), public services,... have no more âpaddingâ to soften the blow of the recession into which the country has fallen again (39). We anticipated that 2012 would see a 30% drop in the Dollar against major world currencies. In this economy, which imports the bulk of its consumer goods, this will result in a corresponding decrease in US household purchasing power against a backdrop of double-digit inflation. The TP and OWS have, therefore, a bright future ahead of them since the wrath of 2011 will become the rage in 2012/2013.