Economy Issues

Many people have come to the conclusion that seeing these presumably intactable situations, the day of reckoning will come up. Our economic situation has become like a bomb that will explode if we stop moving ahead and it will also explode if we run out of recourses for controlling it, either way it will have the same outcome. The immense national and deficit debts keep occurring because, if by any chance they ended, the economy of the United States could not resist the shock. But if they were to proceed, the American economy will eventually end up in an inflationary currency meltdown or a deflationary bankruptcy. As a federal reserve chairman once mentioned in a congressional testimony that these trends cannot extend forever.

Although the recurrent warnings are being mentioned, none of these trends give us a clue that they are reversing. It actually shows the exact contrary, it seems that they are seemingly getting worse exponentially, very similar to a nuclear chain reaction. Instead if doing something to change this situation, the tactics have been changed by politicians. Presently, propaganda and even disinformation are being used with the intention of making it seem that these dilemmas are non-exsistent. A presidential candidate, during the 1992 campaign resembled the situation to a crazy aunt locked up in an attic – the aunt that the neighborhood knows about but that nobody in her family wants to admit to the fact that she’s there.

For example, we have the government deficit, from 1999 through 2001, the federal government surprisingly ran a budget surplus for the first time in decades. Receipts gave outlays by roughly one hundred and two hundred billion dollars per year. That was pretty good news to the vast majority of Americans, and the Bill Clinton administration received the development as a new government financial era. The Clinton administration failed to make emphasis that this feat was not accomplished by spending reduction or that management was better, although this is what was implied, but by asking the Social Security to lend them hundreds of billions from their funds. By the end of the fiscal year of 1997, the accumulated federal debt – what was actually lent to the government to stay operating – stood at five thousand, four hundred-thirteen trillion dollars. And that amount of handling of the fiscal sites hadn’t ended with the Clinton administration years.

By the end of fiscal year 2001, in the George W. Bush now managing the federal government, the national debt came in at five thousand, eight hundred-seven trillion dollars. During those three years, the government had actually increased with nearly four hundred billion dollars to the debt while while saying falsely that the surplus was about the same figure – a miscalculated amount showing just how far the government is going to go to not tell the truth about the facts from the people of the United States, none of the political parties asked about these figures until the media began to make a topic of it for the 2004 election year – a presentation, if it were not called a compliance, then at least a benign neglect. We are once again reminded of the crazy aunt in the attic. In the pragmatic world of international finance, however, these trends have given us enough insight to cause us to have a considerable concern.