Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Another War Is Required to Burn $13 Trillion of U.S. National Debt

Politics / US Debt Jun 04, 2010 - 07:57 AM GMT

By: Pravda

Politics

Best Financial Markets Analysis ArticleThe national debt of the United States reached the record level of $13 trillion, which means that every US citizen owes the world $42,000. It seems that the US administration does not seem to care much about the fact. Barack Obama believes that it is the fault of the previous government. Obama stated during his speech at Pittsburg that his administration was not guilty of the enormous national debt. He said that he took office during the time of the crisis, when the economic recession in the country resulted in the creation of a huge hole of $3 trillion in the budget of the country.


Obama did not refer to George Bush personally, but said that the increase of the state debt was a consequence of the politics run by the administration of his predecessor. The amount of the national debt has increased by $4.9 trillion during eight years of Bush’s presidency.

US Treasury slips into the red announcing $13 trillion debt

However, in February 2010 Obama signed a document to increase the limit of the US national debt to $14.3 trillion (it was previously limited to $12.4 trillion).

Thirteen trillion dollars is obviously an enormous number. It can also be a critical number taking into consideration last year’s reports about the possible default of the United States. However, today investors and analysts stick to different opinions.

Alexander Razuvayev of Gallion Capital Investment Group (Moscow) believes that there are no real problems as far as the US national debt is concerned.

“As it was expected, the Americans have coped with the economic crisis successfully and much better than the Europeans. A possibility for any borrower to meet their obligations depends on the trust to their debts, on the refinancing opportunity. The USA does not have any problems with that and I believe that it won’t have such problems in the future. Many experts were saying during the crisis that the dollar would soon collapse. We do not hear anything like that today,” the expert said.

Anna Bodrova, an analyst with LiteForex also thinks that one should not be worried about the States and the future of the world economy.

“As experience shows, printing dollars is considered an easy matter in the United States. The volumes of “green assets” grow at an exponential rate. In light of this, any other country, but not the USA, would be on the brink of default,” she said.

Anna Bodrova also said that the US economy uses another reliable method to cope with such problems. The United States takes either physical or financial participation in military actions somewhere across the ocean.

It is not ruled out that the US will soon increase the defense spending to write off a big part of its debt,” the expert suggested.

One year ago, experts shared similar thoughts about the military solution for financial problems of the United States. They said that a war was highly profitable for the USA against the background of the nation’s enormous debt. A war burns excessive liquidity and obligations.

Indeed, the USA has been using military actions for its economic revival since the Great Depression of the 1930s. A war boosts the industrial development, gives more jobs to people, etc.

Experts believe that the war in Iraq was launched to postpone the American crisis, which started brewing in the USA at the end of 2000.

It is worthy of note that the GDP of the United States has grown by three percent during the first quarter of 2010. The world’s largest economy had been in a recession until the third quarter of 2009, but managed to demonstrate the growth of the GDP during the recent two quarters.

The deficit of the US federal budget in April 2010 made up $82.69 billion vs. $20.9 billion in April 2009. Ben Bernanke said in the beginning of April that the deficit of the budget threatened the economic recovery. It would be even helpful to simply discuss a plan about the reduction of the deficit, the official added.

The US debt will most likely grow, and Mr. Obama will happily push its limits again in a year.

Ekaterina Yevstigneyeva
Bigness

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Aye Claudius
04 Jun 10, 18:56
War Is Pease

Another war? Why not a public works project? Seems to me we could use some decent roads and rebuild the bridges for starters. Oh, and lots of lampposts for after the coming party. So we can see our way home, of course!


Post Comment

Only logged in users are allowed to post comments. Register/ Log in