such a large federal debt, forcing the government to take a large number of taxpayers' money to pay the interest on the debt. At the same time, excessive debt will damage USA fiscal credibility, that some investment to buy treasury bonds America lack of confidence. So, American government must improve the interest rates on Treasury bills, "rewards for bad behavior" principle to attract investors, paid to borrow. This will undoubtedly increase the capital cost, it is to raise interest rates, the borrowing costs higher, fledgling economic recovery asphyxia.
recently America economy increasing signs of a recovery. The first quarter of this year, American GDP fell 6.4%, the second quarter fell by only 1%. An economic crisis in the real estate market, also has bottomed signs, even in May according to the authoritative Schiller standard bushel Housing Index (Standard& Poor's/Case Shiller home priceindexes), house prices rose for the first time in three years. Wall Street stock market standard bushel 500 index from March lows, has risen by 48%, which shows the corporate and investor optimism. Also, American unemployment rate while the rising unemployment,http://www.ourfamilystories.com/ourfamily/stats/snapback-hats-outlet-30.html http://www.ourfamilystories.com/ourfamily/stats/snapback-hats-outlet-30.html, but growth is slowing down. Perhaps the unemployment rate will reach two figures, however, many people have found this phenomenon, even if there is only darkness before the dawn.
however, all this "situation" is how come? Largely derived from the federal government to stimulate the economy. The Nobel laureate Krugman recently in the "New York Times" column is called the big government rescuing the economy. Unfortunately, no free lunch in the world. The government's stimulus to borrow money. USA federal deficit this year is estimated to be $one trillion and eight hundred billion, total federal debt limit of $twelve trillion and one hundred billion set by Congress will soon be a breakthrough. According to the Congressional Budget Office estimates, American public debt will rise from 44% of GDP in 2008 to 87% in 2020.
recently, from the media, economists, until the government officials, people's views on the situation of the economy more and more optimistic. "The economy has bottomed out" argument can be heard without end. Also,http://www.signatureserve.com/images/cartoon-snapback-outlet-3.html http://www.signatureserve.com/images/cartoon-snapback-outlet-3.html, this is a global phenomenon. Not only in the Chinese people say, USA also everywhere they say. However, cool to have a look behind the optimism of reality, we can not help but to the future is full of prudence.
this recession is global, and the USA as the center. So far, America is still the world's largest economy, the first large consumers, creating the biggest demand. USA economy, still has a crucial impact on the China economy. So, have a look USA economic situation, it is very helpful to us for the future.
is just one of the Treasury empty. Now, America family assets has been back for twenty years, family debt rate is close to 130% of disposable income, still in the history of the highest >
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