Fri Nov 25, 2016 10:43AM
This file photo taken on January 30, 2011 shows US currency viewed in Manassas, Virgina. (Photo by AFP)
This file photo taken on January 30, 2011 shows US currency viewed in Manassas, Virgina. (Photo by AFP)

Many economic crises are preceded by an asset bubble, and the US has one brewing: and its one that equates to a financial crisis and that is debt. From the US student loans, to auto-loans, even to toxic mortgages, the banks are again at the forefront of the possible crash.

In 2008, it was housing prices. In 2001, it was high-tech stock market prices. In 1929, it was the stock market in general. It's usually accompanied by a feeling that "everyone" is getting rich beyond their wildest dreams by investing in this asset class. You will also see lots of advertisements for this asset class. You might even feel like you are being left out. And, this is true for some time leading up to the crash?

The incoming US president will have a lot on his hands to make sure that there is growth in the US economy. The recorded GDP for the year 2016 has averaged a meager 2%, which is not a sign that the US economy is doing as great as the media is claiming. Donald Trump has promised it would increase US GDP growth to up to 4%, even 6%.

In his first video message, he stated that he would withdraw the US from TPP, would invest in the shale oil and gas industry to make the US energy independent, and would reduce US legislation to add almost $2 trillion to the US economy.

It remains to be seen how he will deal with China, in which he said he would slap a 40% tariff in order to bring back jobs to the US.