Self debt puts US in vicious circle
The problem with the economy began some time ago and has advanced along with the technology. The United States in its openness and the ideology of fair trade and fair work often prevents you from ending up compete in the world. A strong U.S. economy means that companies are expanding resulting in job creation. Today, the American people are not spending because many do not work, and those who work are spending less, probably due to the possibility of losing their jobs. The current unemployment rate is 9.4%, the reduction from 9.8% in December 2010. Before the recession, unemployment was around 4.2%. Despite the decline in unemployment rate, the recent reduction occurred because people became discouraged and stopped looking for work.
The U.S. economy is the largest economy in the world with one of the highest GDP per capita. If the last update of the U.S. economy is to be believed, it seems to be the case that some slowdown in the economy seems to take place. We see a lot of new economic data, but how the American people really know what the heck does that mean? Some of it sounds really good that makes everyone happy, and helps to ensure the consumer confidence a bit, and less-than-savvy investors, but it is real.
The U.S. government and Fed are pumping air in leaky tires. Unless the leak is fixed, it can be pumped for years, but the ring – our economy – remains unchanged.
U.S. authorities are treating the economy as if it were a permanent entity, to which government spending can be added, creating growth. However, the economy and the wealth that goes with it, are not tied to the country and its people. Because the U.S. business and political leaders have chosen to practice “open border” policy of wealth and economic activity has been flowing out for two decades. As a result, many “American” companies have more interest abroad than they have here. They are investing and creating jobs, where their interests are. U.S. President Barack Obama faces a difficult challenge to revive the U.S. economy. You cannot hide from the fact that a growing number of Americans are filing for bankruptcy everyday. The Fed has surpassed China as the leading holder of U.S. Treasury securities:
What does this mean? This means that the U.S. is essentially borrowing from itself and really borrowing a lot. Not really a good idea to borrow from yourself when you’re broke.
Therefore, to conclude with a corrupt system in place, it is difficult for Obama to revive the U.S. economy. He can be a good man, but not strong enough to fight the ultra-rich who manipulate the government and the economy. In such a world, you must help instead of waiting for the government to help.