2 Issues with The United States Financial Crisis

Hello,

It sees the United States has been experiencing financial illness for years, some may even say decades.

In what ways? What indications could there be of United States financial crisis?

Here are 2 indications of a possible US financial crisis:

1) National Debt

The US national debt has been insatiable since at least the 1980s. Since the 1980s the United States has been digging deeper into debt – increasing by over 14 times since 1980.

The US national debt (money-out) is exceeding $ 14t and US gross domestic product or GDP (money-in) appears to feebly be inching beyond the national debt.

Thus, according to available data, US money-out is equal to over 90% of US money-in.

What could this mean for me and my financial stability?

The United States, for example, may have to drastically – raise taxes, cut spending, increasing its citizen's working hours, and create currency (inflation). It seems that regardless of one's position on the planet, simply due to the US market share, the United States financial crisis could have a significant role in exacerbating the GFC (the global financial crisis).

2) Intra-national Debt (Unfunded Liabilities)

What are unfunded liabilities?

Unfunded liabilities are financial promises the US is making to its people in the form of forecasts of social security, medicare, medicaid, railroad retirement funds, and other forms of government-provided financial support.

What could be a major issue with these promises?

Simply put, these promises – liabilities – are unfunded liabilities because (1) they must be paid and (2) they are unfunded – meaning, at present, there may not be nearly enough money to cover these promises; therefore, millions of Americans could be facing a bludgeoning surprise to the extent that they are depending on social security, medicare, and other forms of government-provided financial support to actually support them.

Currently, Feb 2011, US unfunded liabilities are standing tall at a height of anywhere from $ 30t – $ 110t; and again, US money-in (GDP) is standing around $ 14t.

There are numerous reports on the precise figures and even government agencies that appear to be calculating conflicting numbers; furthermore, it appears that unless the United States drastically raises taxes, doubles income (GDP) every year for decades, creates currency, or finds another river of vast revenue – it seems the majority of US unfunded liabilities will remain unfunded – leaving millions of Americans unfunded as well.

Surprise? Shock? Crisis? Maybe?

Here are 2 indications of a possible US financial crisis: (1) National Debt and (2) Unfunded Liabilities.

What does this mean for me and my financial stability, regardless of where I am living or conducting my business?

How is my personal and business debt management? As macro-financial, so micro-financial? As above, so below? If so, to what extent?

On behalf of The Global FC Zone,

Crisis to Profit.

Roth



Source by Roth E Barrons


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