Friday, February 8, 2019

The US national debt

The US economy is one of the most diversified national economies in the world and has held leads in the global economy for the past 100 years. However, since the early 2000s, as a result of the crises and growth of developing countries, its influence in the global economy has not decreased much.

The country's GDP for 2010 amounted to $ 14.72 trillion, and in 2011 an increase of about 2% is expected. The US national debt to residents and foreign countries, by 2011 is $ 14.1 trillion.

In January of this year, the US Treasury of the country reported that the US national debt reached a historic high of $ 14 trillion. According to forecasts, by 2015 it will reach approximately 19.6 trillion dollars.

The US government can not spend more than the upper limit of the total amount of its possible debt, which is set by Congress - currently, the ceiling is 14.3 trillion dollars. But this does not prevent senators from passing laws that increase government spending and reduce taxation, which is implicit but leads to the fact that the federal government is getting deeper into debt. The government has already raised the issue of increasing this bar, but politicians have failed to agree.

This inability to reach an agreement extremely negatively affects both the economic situation in the country and the image of politicians and the United States itself in the eyes of world investors. So, S & P has already lowered the outlook on the country's rating, warning that it will deprive America of a higher rating if its politicians cannot solve the problems of public debt.