Saleh Al-Sultan
Such days, the Senate rejected the American project to raise the debt ceiling. In case of failure to reach agreement on raising the debt ceiling by tomorrow, the Treasury will not be able to meet their financial obligations.
Attraction between U.S. politicians is not without guile. Vglah right-wing of the Republican Party want to overthrow President Barack Obama. And the Republican Party seems willing to assist the president in his ordeal. The American people seem desperate of times during Obama launched his campaign in 2008, could not achieve.
Has dealt with most U.S. newspapers in recent days that the debt crisis hitting the United States currency and analysis. There is a kind of consensus on the crisis has become severe and began to engage in a cycle of destruction, and she started to leave the repercussions on the American people directly, with the continued low rate of growth of GDP.
And the return to the question what it means raising the roof? What does it mean a lack of agreement on the lift?
Raising the ceiling means pumping massive amounts of dollars to what can be called quantitative easing 3. This will translate into a wave of inflation. And the absence of agreement means endangering the global economy into recession.
It is known that the U.S. budget deficit significantly over many years, funded from abroad and inside the issuance of bonds. And creditors agree to buy bonds based on the international market confidence in the durability and reliability of the U.S. economy.
It is estimated that the U.S. government spends $ 200 billion per month more than its revenues. The debt is currently about 14.5 trillion dollars. The latest estimates showed that the institution of the computer industry giant Apple and software have more financial liquidity of the U.S. government.
The levels of U.S. government debt is relatively reasonable not more than half of total GDP by years ago. But America's military adventures and increased spending in other areas, coupled with a tax cut increased the public debt to record levels is critical. Beginning in 2008, in the state of U.S. President George W. Bush, the balance of debt nearly ten trillion dollars. And increased debt increased significantly during the global financial crisis.
Congress sets a ceiling for borrowing from the U.S. government. The debt now reached to the ceiling that has already been decided by Congress before the past few months (about 14.5 trillion dollars).
Just think that the United States will not be able to service its debt will be difficult not only America, but the entire world. To the weight and the weight of the U.S. economy and the status of the dollar. All this is well known to people. Most rich countries such as China and some European countries and the Gulf States invested in the President of the U.S. Treasury bonds.
If the problem persisted, the U.S. debt ceiling without a short term solution (either tomorrow or beyond it), you would credit rating agencies to reduce the solvency of the U.S. government and the degree of classification, and that the consequences of severe damage in the short and medium term on the U.S. economy and the global economy.
Will force the U.S. government to pay the expenses of the cash flow channel only. That is, they will not pay some dues, including dues, insurance and social security. It is very likely to close some branches of government, America, and to refrain from paying some or all of the debt to be paid when due for payment. And may decide to separate the large numbers of staff.
Government will decide the priorities for payment. And interest rates will rise significantly.
The story of setting priorities is a matter very difficult. There will, no doubt, the victims of the so-called policy priorities.
Such days, the Senate rejected the American project to raise the debt ceiling. In case of failure to reach agreement on raising the debt ceiling by tomorrow, the Treasury will not be able to meet their financial obligations.
Attraction between U.S. politicians is not without guile. Vglah right-wing of the Republican Party want to overthrow President Barack Obama. And the Republican Party seems willing to assist the president in his ordeal. The American people seem desperate of times during Obama launched his campaign in 2008, could not achieve.
Has dealt with most U.S. newspapers in recent days that the debt crisis hitting the United States currency and analysis. There is a kind of consensus on the crisis has become severe and began to engage in a cycle of destruction, and she started to leave the repercussions on the American people directly, with the continued low rate of growth of GDP.
And the return to the question what it means raising the roof? What does it mean a lack of agreement on the lift?
Raising the ceiling means pumping massive amounts of dollars to what can be called quantitative easing 3. This will translate into a wave of inflation. And the absence of agreement means endangering the global economy into recession.
It is known that the U.S. budget deficit significantly over many years, funded from abroad and inside the issuance of bonds. And creditors agree to buy bonds based on the international market confidence in the durability and reliability of the U.S. economy.
It is estimated that the U.S. government spends $ 200 billion per month more than its revenues. The debt is currently about 14.5 trillion dollars. The latest estimates showed that the institution of the computer industry giant Apple and software have more financial liquidity of the U.S. government.
The levels of U.S. government debt is relatively reasonable not more than half of total GDP by years ago. But America's military adventures and increased spending in other areas, coupled with a tax cut increased the public debt to record levels is critical. Beginning in 2008, in the state of U.S. President George W. Bush, the balance of debt nearly ten trillion dollars. And increased debt increased significantly during the global financial crisis.
Congress sets a ceiling for borrowing from the U.S. government. The debt now reached to the ceiling that has already been decided by Congress before the past few months (about 14.5 trillion dollars).
Just think that the United States will not be able to service its debt will be difficult not only America, but the entire world. To the weight and the weight of the U.S. economy and the status of the dollar. All this is well known to people. Most rich countries such as China and some European countries and the Gulf States invested in the President of the U.S. Treasury bonds.
If the problem persisted, the U.S. debt ceiling without a short term solution (either tomorrow or beyond it), you would credit rating agencies to reduce the solvency of the U.S. government and the degree of classification, and that the consequences of severe damage in the short and medium term on the U.S. economy and the global economy.
Will force the U.S. government to pay the expenses of the cash flow channel only. That is, they will not pay some dues, including dues, insurance and social security. It is very likely to close some branches of government, America, and to refrain from paying some or all of the debt to be paid when due for payment. And may decide to separate the large numbers of staff.
Government will decide the priorities for payment. And interest rates will rise significantly.
The story of setting priorities is a matter very difficult. There will, no doubt, the victims of the so-called policy priorities.
