Wednesday, 2 October 2013

America bankrupt

The US government does not have money to spend. In fact, if America does not increase its spending limit, all the programmes functioning under the government would have to be closed down. But this has happened before because America has faced a tough situation 17 years ago. Bear in mind that The U.S. has not had a trade surplus in 37 years.

The problem is the government requires a budget to pay for services and that has to be agreed by the senate [parliament].

It is one of those numbers that is so unbelievable you have to actually think about it for a while... Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt. And that's not counting any additional deficit spending, which is estimated to be around $1.5 trillion. Put the two numbers together. Then ask yourself, how in the world can the Treasury borrow $3.5 trillion in only one year? That's an amount equal to nearly 30% of our entire GDP. And we're the world's biggest economy. Where will the money come from?

But it is not about numbers, it is about a group of republicans who are miffed at losing a vote earlier on America's health bill and they are having a tantrum, surely the American people can see their politicians for what they are and will respond accordingly at the next election.

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