What is the attraction in one of the US cities? The debts of this country can be viewed online when visiting the center of New York. Back in 2008, the obligations of this state became so great that the dollar sign in front of the amount had to be replaced by the number “1”, and the company operating this board suggested inserting a couple more small windows for the numbers so that the account could be brought to a quadrillion.
More than GDP
The United States, whose debts have now reached $ 17 trillion, which is more than 100% of GDP, are gaining an increase of $ 4 billion daily, or $ 2 million every minute. At the same time, the obligations of Freddy Mack, Fany Mack, etc., which in themselves amount to $ 6.4 trillion, are not included in the amount. Thus, the total amount of debt will be close to 23.4 trillion dollars.
How can this large amount be distributed among US households? Debts of such a volume in a uniform situation would give about 125 thousand dollars for each family. It is believed that over the years of Obama’s rule, public debt grew by 61%, while the country's GDP grew by only 4.26%. On average, it turns out that one dollar spent in the United States accounts for about 41 cents of debt. Analysts believe that this ratio is not the limit, and by 2019 the payment of interest on obligations and payments to the population will occupy 92 cents per dollar of state revenue, and by 2050 the country's debts will be about 400% of GDP.
Who should the US do?
How is US public debt distributed in 2013, and why has the country still not announced a default? Judging by the data provided by the International Monetary Fund, about half of the issued obligations (47%) were purchased by the US government and the Federal Reserve in the form of investments in funds (social insurance , etc.). It turns out that in this part the country owes to itself, and payments with interest are returned back. In addition, about 22 percent of the obligations were bought by central banks of different (most likely loyal) countries, and they will not be in a hurry to present them for early repayment. In contrast to the Greek public debt, where up to 65% of the liabilities were purchased by non-residents, in the USA the share of such creditors is about 9%.
Ratings do not suffer
Gos. US debt (2013), despite its gigantic proportions with respect to GDP, did not affect the ratings assigned by international agencies. It is believed that the US government is free from restrictions on the upper limit of state obligations, therefore, the country still has a credit rating of "AAA". However, it is becoming increasingly difficult for the government to borrow, ensure the work of the relevant state bodies, and pay certain amounts to pension and other funds.
The USA, whose debts are so large, however, are not cutting their military programs too much (for this purpose, about 431 billion dollars were spent in 2013). Significant expense items also include programs for the development of medicine, social benefits, and retirement benefits. In addition, numerous events outside the country are funded. So, it is known that about 5 billion dollars were allocated for the establishment of democracy in Ukraine.