James McKee

US Government Avoids Shutdown Again



Posted: Sunday, March 13, 2011

by James McKee
http://www.forex.tradingcharts.com

The United States national debt is continuing to mount despite growing austerity measures including deep, sweeping budget cuts and an end to many social programs.  There have been massive protests in places like Wisconsin where the austerity measures are actually impacting state employment and the budgets therein.  State workers all over the state of Wisconsin can now have their pay and benefits reduced without negotiation.  This type of constant stress will have a negative impact upon the infrastructure of many cities due to a lack of quality output from employees, resulting in slower response time of police and fire departments.

The United States continues to attempt to spend its way out of debt and this is resulting in a growing concern that they will never be able to pay off their creditors.  Countries such as China are growing increasingly impatient with the United States, and this is important because if China called in their debt than the USD would fall through the floor alongside the US economy.  The United States national debt is fast approaching 20% of the total yearly GDP, the time for drastic action is approaching in the United States as it is throughout the Western world.

The Republicans are for extreme budget cuts and the outright closure of a large number of social programs while Democrats wish to preserve these institutions and improve the economy.  While both sides seem to have plausible plans the recent extreme financial downfalls seen in America have brought about a new sense of urgency.  There is just not enough money in circulation to cover the amount of debt America is going into.  This means that if the United States does not begin to enact real and deep changes to the budget on all fronts in order to cope with the mounting debt than the USD is in serious trouble.  Betting against the US dollar on the forex exchange has become a very reliable move again.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
This Article has been viewed 162 times. (Not updated in real-time.)
No comments yet.
We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.