Tuesday, July 19, 2011
USA Owes Trillions Of Dollars To Other Countries
The America has total debt of $114.32 trillion, and out of this $100 trillion are to be spent in all costs at social security in near future. If social security expenses are deducted then $14.32 trillion is not an ordinary amount of debts. Does not it indicate that fall of USA's economy is near? Out of this internal debt USA owes $4.5 trillion to Japan, China, Britain, Gulf States, Brazil and Russia. Today the situation is that American government if spends one dollar for its own expenses , 42 cents are those of loan. It means that American government spends whatever its expenses are out of loans. Therefore, the roads, bridges, airports, and infrastructure of schools is in worst condition due to lack of funds.
Some experts are of the view that though internal debts have huge volume but it is not so dangerous , government can print new notes but others do not agree , it will increase inflation rate and the goodwill of the government will be affected negatively.The bonds issued by the USA would not be purchased by other countries or people. Neither they will invest in the government sector that will have bad impact on the economy.
The question is that how level of debts reached to sky touching level? The internal debt of the government during 1980 was $ 909 billion, that reached to $5.7 trillion in 2000, while during the Bush era (2001-2008),it reached to $10.7 trillion and now Obama administration took it to $14.32 trillion.