subject: The United States This Fiscal Year, Another New Decade Is Immune Deficit Swelling [print this page] 1 Obama released a new fiscal year budget report, again highlighting the United States faced serious financial problems. The White House said its fiscal year 2010, the U.S. government's budget deficit will reach 1.6 trillion U.S. dollars, a new record high. Huge deficit the White House may introduce further measures bound to stimulate the economy and stimulating employment, hands and feet, and may put pressure on the dollar in the long run.
High deficit this fiscal year The White House announced Monday that began last Oct. 1 of the 2010 fiscal year, the U.S. government's budget deficit will reach 1.6 trillion U.S. dollars, beyond the Congress expected, but also a record high. U.S. budget deficit in fiscal year 2010, the proportion of GDP, also reached a record 10.6%.
U.S. Congressional Budget Office last week announced fiscal year 2010 budget deficit of 1.3 trillion dollars, or about 9.2% of GDP. In the year ended 30 September 2009 fiscal year, the U.S. budget deficit reached 1.4 trillion U.S. dollars, accounting for the proportion of GDP reached a record 9.9%.
White House also announced that the total budget for fiscal year 2011 will be 3.8 trillion U.S. dollars, and that year's budget deficit will fall to 1.3 trillion U.S. dollars, accounting for the proportion of GDP fell to 8.3%. The White House said the fiscal year 2014, this proportion will fall to 3.9%. To the end of Obama's current term, the budget deficit-GDP ratio will not fall below its original target of 3% level set, but will achieve existence at the time Obama became the goal of halving the deficit.
According to the latest budget report to the 2014 fiscal year, the U.S. budget deficit is expected to fall to 706 billion U.S. dollars. Will be followed by further increases in fiscal year 2020 reached 1.003 trillion U.S. dollars.
The deficit remained high, the Obama administration's excuse was that he took from the Bush administration, "succession" of the 1.3 trillion deficit. In addition, the White House to extend some tax cuts the Bush administration launched the initiatives scheduled for the end.
The next ten years is immune, "swelling"
Analysts pointed out that the latest Budget, further highlights the Obama administration facing a "double dilemma": on the one hand, governments need to consider further stimulate the economy and bring down the unemployment rate up to 10%; but at the same time, Government can not ignore the continued expansion of the exponential growth of debt. Bloomberg yesterday's data showed the U.S. gross national debt approaching 13 trillion U.S. dollars have been.
The United States this year will be the Congress in November mid-term elections, the Republicans are trying to put pressure on the fiscal deficit on the issue of the Democratic Party. Forced by external pressure, the White House last Saturday announced a number of items that contains a list of proposed budget adjustments, allegedly expected to help save 20 billion U.S. dollars this year.
Obama recently also proposed to freeze in the next three years, about one-sixth of the federal budget spending to reassure voters worried about the deficit more show strong. It is estimated that after adjustment for inflation, the proposal would reduce government expenditure in the next decade 250 billion U.S. dollars. However, the outside do not think these measures will have any real effect, many experts agree that the next decade, the U.S. budget deficit will still be high.
Financial crisis threatening the United States?
Former Fed Chairman Alan Greenspan recently warned that the U.S. never as now have to face such a major "financial crisis." He believes that the next 10 years the U.S. issuer's ability to finance fiasco.
Greenspan said the U.S. government debt expansion may lead to higher interest rates, which led to a growing deficit in the vicious cycle of the black hole. He also supported the Congress on the establishment of an inter-party Special Committee to manage the government deficit issues.
Investment bank Morgan Stanley believes that the debt problem of Greece is just a warning in the future there will be more developed economies than emerging countries financial problems can arise. In the major economies is expected to more expansionary fiscal policy could increase the financial burden.
The United States This Fiscal Year, Another New Decade Is Immune Deficit Swelling
