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21 Dec, 2015 11:24

US economic bubble could soon burst – Trump

US economic bubble could soon burst – Trump

Republican presidential frontrunner Donald Trump predicts tough times ahead for the US economy. If something bad were to happen, better it happen during the Obama administration, than the next one, according to Trump.

"Remember the word bubble? You heard it here first," Trump told a 1,200 crowd in Iowa on Saturday.

"I don't want to sound rude, but I hope if it explodes, it's going to be now, rather than two months into another administration," he added.

The presidential hopeful blasted federal monetary policy and the estimated $21 trillion federal debt in 2019.

“Now we’ve got to really be smart because we don’t have money anymore,” Trump said. “You know we’re a poor nation. We’re a debtor nation and we could be on a bubble and that bubbles going to crash and it’s not going to be a pretty picture.”

With more than $18 trillion in debt, the United States is by far the biggest debtor in the world, almost double number two on the list the UK. In 2004, the federal debt was $7.3 trillion. The debt per taxpayer has increased from $72,051 to $154,161 today.

The US debt-to-GDP ratio is more than 100 percent, which means American debt is more than it produces. The country’s debt-to-GDP ratio in 1980 was only 35.4 percent. In order to decrease the debt, the US government could increase the future tax burden, making the country’s middle class shrink.

In October, it was revealed that the US middle class, long considered as a role model of prosperity and a driver of the economy, was for the first time been overtaken by China, according to the 2015 Credit Suisse Global Wealth Report.