Raise the debt ceiling .. Step in the march of the dollar's decline
Reduced the agency''''Standard & Poor's, last week the credit rating of the United States. This precedent. For more information, that agency famous for the impact of the credit rating of the States. The case continued volatility and instability in global financial markets. The markets have seen sharp declines at the end of last week, due to the debt crisis in the euro area, and the slow recovery in the U.S. economy and the EU.
When exposed the U.S. economy, for the disorder, we do not only expect more problems and risks. This was the suspension of Russian Prime Minister Putin to reach Congress and the White House a week before an agreement to raise the U.S. Federal debt ceiling.
Provides the U.S. Constitution authorizes Congress alone borrowing authority for the Government of the United States. The debt ceiling is about 14,300 billion dollars, and allowed the federal government to borrow U.S. $ 2,100 bn. It was decided to work reductions in the expenses of the federal budget the same size, in the next ten years. It was decided to study tax reforms allow the achievement of additional revenue.
But what the nature of American religion? Go long, and focus on the issue of converting copper into gold. I mean cheap paper to paper money is precious.
About half of U.S. public debt owned by the source or the Federal Reserve. Fed fund a large part of the federal budget deficit, to issue more money. Of course, cost money to produce these low cost.
Deficit financed by issuing more money, sometimes through the so-called quantitative easing. A euphemism for a monetary policy based on increasing the money supply by buying the central bank (money that has the right to release any industry), government bonds from banks. Consideration could be given to quantitative easing as an electronic image of the printing of money.
When the government borrows to pay off outstanding debts, the process is not sustainable indefinitely. Even the government out of this mess, would either have to increase taxes and the like, or earn more money by imposing prices on goods and services were free, or cut spending or sell some assets or exchange of debt securities issued more money from the currency.
I said before converting copper into gold. What is meant?
During his campaign, Obama gave the U.S. president promised to rebuild the U.S. economy. The question was how? Answers convert copper into gold. Policy during the course of the past of the mandate of the President.
Adopted the growth of the U.S. economy for many years on the expansion of the Americans to borrow, because the nominal and real wages have not risen as the economy keep pace with the prosperity of those years, and so it was borrowing the most important factor in the growth of consumer-level, and of course consumption is about two-thirds of GDP.
The growth of debt has exceeded income growth, as consumers no longer have an opportunity to more Americans in debt. What is the benefit to reduce the interest rate, if people can borrow more to buy more goods and services?
The answer is that it is not required to buy more, but the survival of what was.
U.S. politicians in skirmishes on the problem of raising the debt ceiling in light of current economic conditions, attraction of Democrats and Republicans in the most appropriate solution. Ancients want to increase taxes, and the latter see spending cuts, and they had what they wanted in a deal raising the debt ceiling.
For many years adopted the U.S. government on foreigners to finance budget deficits, and focused the Chinese and Japanese and the Gulf States. Those countries have a trade surplus in its dealings with America, and re-use of a large part of the surplus to buy U.S. government securities, especially Treasury bills.
How long will the situation like this?
Will not continue indefinitely.
What did you do America? Print more money, or more precisely, the creation of (industry) more money.
It seems that the reserve is made very large quantities of money, but at a cost (production) is very low. This reminds us of the story of converting copper into gold, if that is possible.
You know the story? Common in the old workers that the chemistry (chemical) are trying to convert copper into gold, fraud, deception, and for this campus scholars of chemistry in their time (try to convert copper into gold), Imam Ibn Taymiyyah in his fatwas under the door of calculation:''It is these'' chemical''who cheat the money and jewels and perfume and so they make gold or silver, and the creatures of minerals, plants and animals is Mekdorh to the children of Adam that Asnauha, but they are like for fraud. This fact Chemistry''.
Many believe that the financial crisis and its worked and is working to reduce America's influence, but others believe that America plays its game to take advantage of the crisis, or it may make the crisis is said to benefit from them.
The crisis has creators. Leaders (parties and non-parties) want access to power or to cling to, or polish their image in front of people. They know that people look to the government is also considering the child to his father. They want to achieve their goals, they can not satisfy people without including neither urgent, even if bad consequences later. People do not want to hear what bad consequences later.
Increase the U.S. debt ceiling has given strong signals on the issue or point of many people strongly believe in: the dollar is no longer deserves to be the world's reserve currency. A lot of talk about alternative or other reserve currency. The fact that there is no currency is eligible for this position in our time, but many predict that China's currency to be so after years or less abounded.
Reduced the agency''''Standard & Poor's, last week the credit rating of the United States. This precedent. For more information, that agency famous for the impact of the credit rating of the States. The case continued volatility and instability in global financial markets. The markets have seen sharp declines at the end of last week, due to the debt crisis in the euro area, and the slow recovery in the U.S. economy and the EU.
When exposed the U.S. economy, for the disorder, we do not only expect more problems and risks. This was the suspension of Russian Prime Minister Putin to reach Congress and the White House a week before an agreement to raise the U.S. Federal debt ceiling.
Provides the U.S. Constitution authorizes Congress alone borrowing authority for the Government of the United States. The debt ceiling is about 14,300 billion dollars, and allowed the federal government to borrow U.S. $ 2,100 bn. It was decided to work reductions in the expenses of the federal budget the same size, in the next ten years. It was decided to study tax reforms allow the achievement of additional revenue.
But what the nature of American religion? Go long, and focus on the issue of converting copper into gold. I mean cheap paper to paper money is precious.
About half of U.S. public debt owned by the source or the Federal Reserve. Fed fund a large part of the federal budget deficit, to issue more money. Of course, cost money to produce these low cost.
Deficit financed by issuing more money, sometimes through the so-called quantitative easing. A euphemism for a monetary policy based on increasing the money supply by buying the central bank (money that has the right to release any industry), government bonds from banks. Consideration could be given to quantitative easing as an electronic image of the printing of money.
When the government borrows to pay off outstanding debts, the process is not sustainable indefinitely. Even the government out of this mess, would either have to increase taxes and the like, or earn more money by imposing prices on goods and services were free, or cut spending or sell some assets or exchange of debt securities issued more money from the currency.
I said before converting copper into gold. What is meant?
During his campaign, Obama gave the U.S. president promised to rebuild the U.S. economy. The question was how? Answers convert copper into gold. Policy during the course of the past of the mandate of the President.
Adopted the growth of the U.S. economy for many years on the expansion of the Americans to borrow, because the nominal and real wages have not risen as the economy keep pace with the prosperity of those years, and so it was borrowing the most important factor in the growth of consumer-level, and of course consumption is about two-thirds of GDP.
The growth of debt has exceeded income growth, as consumers no longer have an opportunity to more Americans in debt. What is the benefit to reduce the interest rate, if people can borrow more to buy more goods and services?
The answer is that it is not required to buy more, but the survival of what was.
U.S. politicians in skirmishes on the problem of raising the debt ceiling in light of current economic conditions, attraction of Democrats and Republicans in the most appropriate solution. Ancients want to increase taxes, and the latter see spending cuts, and they had what they wanted in a deal raising the debt ceiling.
For many years adopted the U.S. government on foreigners to finance budget deficits, and focused the Chinese and Japanese and the Gulf States. Those countries have a trade surplus in its dealings with America, and re-use of a large part of the surplus to buy U.S. government securities, especially Treasury bills.
How long will the situation like this?
Will not continue indefinitely.
What did you do America? Print more money, or more precisely, the creation of (industry) more money.
It seems that the reserve is made very large quantities of money, but at a cost (production) is very low. This reminds us of the story of converting copper into gold, if that is possible.
You know the story? Common in the old workers that the chemistry (chemical) are trying to convert copper into gold, fraud, deception, and for this campus scholars of chemistry in their time (try to convert copper into gold), Imam Ibn Taymiyyah in his fatwas under the door of calculation:''It is these'' chemical''who cheat the money and jewels and perfume and so they make gold or silver, and the creatures of minerals, plants and animals is Mekdorh to the children of Adam that Asnauha, but they are like for fraud. This fact Chemistry''.
Many believe that the financial crisis and its worked and is working to reduce America's influence, but others believe that America plays its game to take advantage of the crisis, or it may make the crisis is said to benefit from them.
The crisis has creators. Leaders (parties and non-parties) want access to power or to cling to, or polish their image in front of people. They know that people look to the government is also considering the child to his father. They want to achieve their goals, they can not satisfy people without including neither urgent, even if bad consequences later. People do not want to hear what bad consequences later.
Increase the U.S. debt ceiling has given strong signals on the issue or point of many people strongly believe in: the dollar is no longer deserves to be the world's reserve currency. A lot of talk about alternative or other reserve currency. The fact that there is no currency is eligible for this position in our time, but many predict that China's currency to be so after years or less abounded.
