Hi there all interested in the fiscal cliff,
The subject is of great interest to me, though I am a Swede and not American.
I have gone through a lot of financial data from the World Bank to try to figure out what is wrong with the world’s health concerning economics. My findings are devastating for the United States.
1. United States has had a trade deficit to the rest of the World during the last 32 years with US$ 8.8 trillion and last year it was US$ 650 billion. This makes that the United States has had the largest trade deficit in the World without comparison. Export has been 10.6 % and Import 14.0 % of GDP the last 32 years.
2. United States has had a very large budget deficit during the last 12 years, this year almost 10 % of GDP which makes the Total Central Government debt close to US$ 16 trillion, which makes the Central Government of the United States the biggest borrower in the World without comparison.
3. The private sector in the United States has borrowed heavily and has now a debt of close to twice GDP or US$ 29 trillion.
4. The biggest lenders to the gigantic borrowing the United States has had, has to be the countries with the biggest trade surpluses such as China, Russian Federation, Japan, Germany and Saudi Arabia, countries that has not always been the best friends of the United States.
5. The US$ has been the only international currency all countries has trusted. For ten years ago the United States GDP was 34 % of the World and 2011 it was down to 24 % of the Worlds GDP. This “Trust” is now on a very shaky ground since the two parties in the congress cannot agree to the income and expense of the Government. The United States cannot continue to have a budget deficit of 10 % of GDP and the United States cannot continue to have a trade deficit of more than 3 % of GDP.
6. If the Congress continues to diminish the “Trust” the World has for the US$ there could be a run from the US$. This “Trust” can also be lost if the big lenders will find out that the “Emperor is naked”.
7. How the President and the Congress of the United States is dealing with the “Fiscal Cliff” is a concern for the entire world. The “Fiscal Cliff” can become a “Financial Cliff” for the whole World. Austerity will evidently cause atrocities to many. I hope the Congress and the President will come to a solution and save the United States from the “Fiscal Cliff” and the whole World from the “Financial Cliff”.
Best whishes
Christer Huseryd
The subject is of great interest to me, though I am a Swede and not American.
I have gone through a lot of financial data from the World Bank to try to figure out what is wrong with the world’s health concerning economics. My findings are devastating for the United States.
1. United States has had a trade deficit to the rest of the World during the last 32 years with US$ 8.8 trillion and last year it was US$ 650 billion. This makes that the United States has had the largest trade deficit in the World without comparison. Export has been 10.6 % and Import 14.0 % of GDP the last 32 years.
2. United States has had a very large budget deficit during the last 12 years, this year almost 10 % of GDP which makes the Total Central Government debt close to US$ 16 trillion, which makes the Central Government of the United States the biggest borrower in the World without comparison.
3. The private sector in the United States has borrowed heavily and has now a debt of close to twice GDP or US$ 29 trillion.
4. The biggest lenders to the gigantic borrowing the United States has had, has to be the countries with the biggest trade surpluses such as China, Russian Federation, Japan, Germany and Saudi Arabia, countries that has not always been the best friends of the United States.
5. The US$ has been the only international currency all countries has trusted. For ten years ago the United States GDP was 34 % of the World and 2011 it was down to 24 % of the Worlds GDP. This “Trust” is now on a very shaky ground since the two parties in the congress cannot agree to the income and expense of the Government. The United States cannot continue to have a budget deficit of 10 % of GDP and the United States cannot continue to have a trade deficit of more than 3 % of GDP.
6. If the Congress continues to diminish the “Trust” the World has for the US$ there could be a run from the US$. This “Trust” can also be lost if the big lenders will find out that the “Emperor is naked”.
7. How the President and the Congress of the United States is dealing with the “Fiscal Cliff” is a concern for the entire world. The “Fiscal Cliff” can become a “Financial Cliff” for the whole World. Austerity will evidently cause atrocities to many. I hope the Congress and the President will come to a solution and save the United States from the “Fiscal Cliff” and the whole World from the “Financial Cliff”.
Best whishes
Christer Huseryd