Late in the third quarter of 2548 the book was published too. This book has been tremendous, even referring to "The Eco-Snow Mist," a thumbs up as one of the 10 books to read, but above all for the year 2548-2549. Some media referred to this book. The book's most alarming to Washington!
Why?
The book is called Empire of Debt: The Rise Of An Epic Financial Crisis by Bill Bonner, president and CEO of Sun, Gore's camp, a publication of the largest in the world, and Addison wig eat editorial director. newspaper, The Daily Reckoning.
370 pages of thick books, both view the other side of the world's largest economy. Many garden books. Books that came out before and come out at about the same
They remind the reader that the American people. The U.S. is a wealthy country, the images seen. A true picture of this country from the world's largest creditor. A debtor to incur debt in the world already. They predict the end (again) of dollars are going to come. They are awaiting destruction. In the foreground.
From the year 2548 the Empire of Debt has been used several times. One of them is Mike Hewitt Senate under Republican Party. His analysis, published in www.goldnews.com. The important question that "The U.S. owes much. And I owe. "
The current national debt of the United States, commonly known as technical terminology that The public debt. Which is funded by the federal government. A summary of every country around the world. On government debt means that all taxpayers should bear the burden of debt too.
The first type of debt the U.S. government's debt. Through the issuance of bills and government bonds. Sold through the open market. Or direct sales to the U.S. Federal Reserve, which until July 17 the past. This chunk of debt is approximately $ 8.887 trillion.
Next to the central government debt is the debt of state governments. And a number of local government. The value of the debt until the end of 2549 it was more than $ 2 trillion.
Is interesting. Hewitt was talking about. "Off-budget debt," or off-balance sheet, which the government will have to pay in the future. Ranging from central government. Medical benefits. And Social Security. If you include the debt. Into the budget. The total public debt will rise to 59.1 billion U.S. dollars, or 403% of the gross domestic product (GDP).
This means that Americans (tax) on average, it must bear the burden of debt is estimated at $ 516,348 per household.
But in real life. American households already have their own debt. Approximately 112,043 dollars at the average household income of the loan. Car loans, credit cards and other debts.
Once the U.S. owes the question is, who is a creditor of the public debt. Hewitt has claimed that the data from two major sources of the Ministry of Finance. And central banks. By a number of months in December 2549.
Interestingly, the creditors of the U.S. public debt is divided into three groups include The central bank holdings of U.S. debt was $ 3.779 trillion or 44% of the total public debt, domestic debt by 32%, or 2.796 trillion. Foreign debt and 24%, or 2.105 trillion.
The first group of the Central Bank if it is a debt we have to call this behavior that the left pocket, right pocket between the government and the central bank, the loan process easy for the government to spend a billion dollars. The total amount of bonds that will be donated to the Federal debt. Which is equal to the U.S. Federal Reserve can print new money out of a billion dollars. With the government to another. Federal law to lend to the government in a way, this was no more than a billion dollars.
Hewitt said. The expansion of credit resulting from direct lending to the government of the U.S. Federal Reserve in Washington. The dollar value of the current system is reduced when the value of the dollar decline. Prices will rise.
Impact on people's purchasing power was reduced. Because in their shopping dollars less than in the past.
Debt in foreign hands, it was found that 64% are in the possession of various central banks. The rest belongs to. Private investors. The U.S. debt until the end of 2549, which, in the form of bonds and into foreign hands, it was found that U.S. government bonds accounted for in official foreign exchange reserves of China reached 33%, while in Japan, accounting for 68% of official reserves.
Was unexpected. The U.S. public debt is in foreign ownership. Is larger than the current value of the dollar in nearly three times the statistics of the U.S. Federal Reserve showed that the amount of money (dollars) in the system, valued at 7.55 trillion U.S. dollars only.
In addition to public debt. The U.S. also has other debts. The other two options to consider include: household debt. And private sector debt.
U.S. household debt has increased nearly 50% from the year 2544, up from 7.66 trillion to 12.82 trillion in the year 2549 a major cause of household debt rising rapidly, distantly derived from the belief that housing debt. Or a contract for mortgage loan. Related to housing has increased 83% from the year 2544.
Indebtedness of these are used as warning signs by Scholars throughout. And often mention that the real estate bubble. Beginning in 2544 because of several reasons that the housing loans which in a speculative manner, rather than the physical. Even the lower and middle class Americans also participated.
Incentives for American debt levels are very low interest rate loans. The lowest in 40 years, plus a package of the financial institutions to carry out such loans, declining interest rates are adjustable. And check the credit history and other discounts. This is the motivation for the debt despite the housing price soaring up quickly during that time, nearly 100% American to me than the debt to buy a house is expensive, very expensive to obtain.
The logic behind the behavior of U.S. debt in the expectation that House prices will rise again. And they can sell them to buyers who purchase a house party. (Easily) at a price that is higher than ever.
But the situation reversed. Interest of the United States moved quickly to deal with inflation, which erupted from the exorbitantly high oil prices. On a rising trend in interest over and climbed up until close to 6% of property price growth is slowing down rapidly, and deluxe.
The mortgage debt can not bear the debt burden of loan installments and interest continue to rise rapidly.
The result was a hiss into the property market 99 companies that lend to residential customers lower credit standards. Or a history of bad loans (subprime loan) for the protection of bankruptcy. Nor does it have to let them into the hands of business owners, new And currently home to more than 1.4 million units in the process of being seized for public auction.
Such a situation has drawn the U.S. economic crisis and the collapse of the sub-prime loan industry to another. And escalate as the credit crisis, almost the whole system.
These situations are to be submitted to the U.S. again. After the terrorist attacks of the Twin Towers World Trade Center to create a feeling about this once. Severe enough to sink a U.S. recession to a certain range. Prior to the policy interest rate to stimulate the economy moving again.
It is not surprising that one pole of a nationwide poll, economists will have to conclude that. They are mostly seen as the U.S. debt crisis is now a threat to the primacy of economic growth. The concern about terrorism to lose.
Fear began to clear up. Especially when the impact of the global credit crisis are affecting more and more money. Some compare the situation of liquidity that might be most severe. Since the economic downturn around the world during the 1930s.
The Sub-Prime crisis and the economy is the gradual erosion. Real estate, construction, retail, utilities and even banks are not in the network. When the economy is down. Part relating to the economy would be affected.
Access to Joseph Parker, president of Deutsche Bank. Germany's biggest bank. One of them. He gave a newspaper interview he wanted to remove the column by warning that the world economy will be affected by the credit crisis, Sub Prime necessarily Since the credit crisis will impact domestic consumption, particularly of American consumers.
Not only this. Movie Maker is also looking at banks and institutional investors who have been affected by the Sub-Prime crisis. He said many of them are facing the risk of violence. Than small businesses and their ability to bear those risks.
You the reader know whether or not the conclusion of the Empire of Debt that is predicted. The aftermath of the American tradition of ignoring the good practice of economic freedom. Personal freedom. And monetary and fiscal discipline. With the economy in the hands of the government. The budget deficit is endless. Rely on excessive consumption.
That could lead to changes in "The economic power of the United States" in the coming years. This inevitably will affect the lives of all Americans.
Perhaps when that time arrives. Americans are not likely to lead to consumer debt in a way that a long time ago. It is difficult to conduct than the U.S. can maintain the wealth around the clock. Evidence that the public debt, the private sector. And household debt. Rising non-stop
No comments:
Post a Comment