Friday, November 4, 2011

U.S. public debt is approaching the point of no return

According to latest estimates, the U.S. economy will grow this year by 3.0% versus 2.4% of European countries. However, the dangerous level of debt that has the largest economy in the world can derail economic recovery. The previous forecast for U.S. growth was around 2.5%. But the new stimulus plan of $ 900,000 million enables additional jumped half a percentage point.

Is it reasonable to borrow 6% of GDP gain of just 0.5 percent? As shown, the multipliers are not working in the economy and this shows that the weaknesses are deep and proximity to the circle of accretion, or point of no return, it is becoming clearer. The U.S. fiscal deficit exceeded 10% and public debt on top arrive in March allowed by Congress: $ 14.3 billion, matching the country's GDP. The plot takes the period 1940-2010 and note the sharp increase in debt from the 80's. Read more....

1 comment:

  1. This demography out a additional mortgage to pay off your acclaim agenda debts!

    Debt Management


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