SamuelRSmith said:
However, this is discussing future debt. Libellule seems to be of the impression that the USA won't be able to deal with its current debt, I do not believe this to be the case. Future debt is a completely different beast, and the USA won't be able to fund deficit spending as easily, which is why the USA will start more severe cuts. |
I also doubt about it, I read about it some time ago sadly can't give you a answer to your question the stuff I read was about creating an 'new currency' or replace it with gold;..
The debt habit will be still their though
In presenting his long-term plan for closing the federal budget shortfall, Obama set a target of reducing the annual U.S. deficit to 2.5 percent of gross domestic product by 2015, compared with 10.9 percent of GDP projected for this year. He reiterated his support for overhauling the tax code to lower rates while closing loopholes and ending some breaks to increase revenue.
^And that in my opinion is the best case scenario but I wonder how USA is going to do that especially thx to the measures that other countries took..
An example is Germany, they expect a massive growth of the economy, the unemployment is decreasing fast and is in fact it is lower than it ever was in the last 20 years? All of this thx to strict measures.. Unemployed for more than 3 months? Sorry now the state will only give you 300 Euro to survive, dropping the loans of workers (working full time for only 800-1000 Euro).. I don't see USA taking this kind of strict measures while taking notice Germany was not hit that hard like USA was with the financial crisis. It makes me wonder if Obama's plan took notice of the measures other countries took.......Because the Purchasing power of Germany took a hit and the measures will increase the import from Germany but the export to Germany will decrease.....And then we are not talking yet about the investors who think Germany is now a place to go...And some will probably invest in Germany while they wanted to invest in USA first;..