There are many views on why the governments did not apparently foresee the economic downturn that has hit the world so harshly during 2008. The question remains however… who, if anyone, predicted it?
One view is that Nathan Lewis did in fact predict the sub-prime crash, as illustrated in his book Gold (the Once & Future Money). Even if Nathan Lewis had predicted the sub-prime crash, it may be a significant jump to say that by predicting the sub-prime crash he had predicted the complete collapse of the banking infrastructure around the world. Indeed the problems of an Empire such as the United States, are also covered in the book Empire of Debt.
It is often quoted that by Great Britain getting into significant debt with the USA after the Second World War this initiated the collapse of the British Empire. The reason for this is that the USA forced the British to withdraw from the Suez Canal, since the other option was that the USA would apparently call on their debt (which would in effect bankrupt Great Britain).
I am sure that the USA today are highly concerned that China may start calling on the USA debt. If so, how much leverage would this really give China over the USA.
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