Business

Living on debt
by Milota Sidorova

US citizens live with an average $42,000 GDP per capita, so literally they should be the richest people in the world. But if we go deeper, we will find out they are living in the country burried in debt for several next generations. So far we've heard their deficit extended $1.000 trillion and the sum was declared by two independent organizations – Congres budget organization projected that the debt would increase to $1.342 trillion this year and just slightly up was the White House projection. In any case, this was not good news for markets, since non-partisan CBO projected US would slip into another crisis round. According to it, most of it came from 2009 $ 800 bill! ion rescue package for banks and another financial institutions. The unemployment one of key factors for markets is supposed to stay high, not to decline below 9 percent in 2011 and fluctuate around 6.7 percent in 2012-2014. Certainly it won't reach pre-crisis 2008 5 percent. According White House 2012 would bring 8.1 percent.And while it is a fact that the unemployment will be a healing in long term, it will certainly hurt Democrats in next regional and presidential elections. Although the country is sinking in debts backed by China, both parties keep going on blaming the opposite side. According Democrats, previous government was responsible for the situation leading into crisis and from then on they were just blocking any kind of fiscal reform that should improve small businesses and regional unemployment. Republicans keep talking about “right” direction for the country, but this all may slid back into political hustling with no results.The fact is, Americans! are living on debt and despite being the biggest world econom! y, the t ruth is they are not far away from falling back to economic, politic and social misery.

related story (sgx18041): http://www.france24.com/en/20100819-congress-budget-agency-s...

by Milota Sidorova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

posted by Blog TechSource @ 12:14 AM