George W. Bush's policy takes the USA to financial collapse

[lovuian]

http://english.pravda.ru/opinion/feedback/23-05-2006/80796-debt-0

On Wednesday 17 May the Dow Jones plunged 214 points to 11,206 - its worst point drop since March 2003. The downward trend started a week ago and is a warning sign of troubles ahead. This sudden drop has come as a complete surprise to the unfortunate small investors and speculators. The so called “experts” point at the sudden threat of inflation as the main cause of the recent reversals in the markets.





What is actually surprising is the surprise of the “experts”. A cursory look at the United States’ finances will reveal the amount of pressure that its economy is under.

When Bush became president in 2001, the United States’ public debt was 5.8 trillion dollars. Today the public debt stands at 8.3 trillion dollars. Of this over $2.2 trillion dollars are held by foreigners. United States has a GDP of 12.4 trillion dollars. This gives U.S. a Debt/GDP ratio of 66%, placing it in 35th place (out of 113) on the ranking of the Debtor Nations. The current account deficit of over 7 per cent has long passed its danger levels of 4-5 per cent. In 2005 the U.S. government paid $325 billion dollars only in interest payments alone.

Then there are the future obligations such as Medicare, Social Security and government pensions. These obligations amount to $54 trillion dollars. This huge problem worried the former Federal Reserve Chairman Alan Greenspan. He told congress: “As a nation, we may have already made promises to coming generations of retirees that we will be unable to fulfil”.

One would think that this amount of debt would worry the president and the congress. But apparently it does not. United States’ Congress recently (March 2006) voted to increase the Federal debt limit to 9 trillion dollars. Any other nation in similar circumstances would have had to approach IMF for help. IMF would then have forced that nation to cut spending and devalue its currency. But U.S. does not need to do this. U.S. can just print some more dollars. But how long can this continue before the world loose faith in the greenback, sending it crashing to unimaginable levels.

more...

These men should all be shot as traitors to this country...

[SeveneightyWhoa]

1. Pravda.. LOL..

Might as well post a link to a FOX story. :think:

[Blackthorn]

4. So what, pray tell, is exactly wrong with the article? n/t

[SeveneightyWhoa]

Honestly, I didn't read it.

I try to avoid untrustworthy news sites, whether it's Fox or Pravda.

[wake.up.america]

6. I don't believe everything I read in Pravda, but then Pravda is not the ..

Pravda of the Communist regime.

С огромным приветом!!!

[Blackthorn]

12. I didn't realise Pravda was untrustworthy...

I mean, they've got that story pretty well dead on. They've got at least one right.

[MadMaddie]

2. No one could have predicted this would happen!!

:sarcasm:

“experts” point at the sudden threat of inflation

[crizzo5137]

3. :) n/p

[mikelewis]

5. This is exactly what we did to the Soviets in the 80's...

...locked em up in a dead-end war and then drove their economy to ruin. Sometimes I wonder if this is a tit-for-tat from ghosts of the Soviets or if Bush is deliberately crashing America so his Corporate buddies can rule the world. Either way, looks like the bad guys are going to win.

[lutefisk]

11. Bush is the right man for the job!

That is if the job "is deliberately crashing America." Just put Junior in the WH and he'll do the rest. Give him good advice or give him bad advice- it doesn't matter. He'll fuck it up like everything else he's attempted. Sometimes I wonder if he's even in on the whole criminal enterprise that has taken over our country. He might just get his speaking lines and directions and honestly think he's doing what a President is supposed to do.

[Nikki Stone1]

7. We're being completely drained economically

God help us.

[lovuian]

14. What I'm surprised is the Economists are not in a uproar

there are economists phd's all over this country and wheres the outrage... it shows me that academics are afraid to speak out ... because this is truly WRONG!!!

[Nikki Stone1]

17. Me, too. It's like they've been clamped down on

Even this new guy in charge of the Federal Reserve is towing the party line

[ToolTex]

8. We shouldn't be a bit surprised when insane leaders, lead insanely.

I watched a documentary on the career of Joseph Goebbels, the NAZI Propaganda minister on PBS last evening. An often used bit of his drivel was, "We will stay the course." Wonder where I've heard that recently? Rove must have been reading Dr. Goebbels' diaries, which were extensive, apparently. But right up to a few days before the Russians entered Berlin and Goebbels killed his own children and then himself, he was spouting his, "Stay the course," propaganda.

We shouldn't be a bit surprised when insane leaders, lead insanely.

[NYC]

9. I didn't know Goebbels was saying "stay the course."

Thanks.

Welcome to DU. :hi:

[cliss]

10. Now there's a true statement.

A while back, it occurred to me that the people in the White House will NEVER give up. NEVER. They will never change their plans, nothing will ever steer them away from their goal.

Which is world domination.

Even if the entire world is in flames around them, they will never back down. They just see us as pesky mosquitoes which should be sprayed with Raid.

I'm not sure if everybody realizes how fanatical they really are.

[Random_Australian]

13. *ahem* just checking that this was not a big suprise.

[Toots]

15. This gives U.S. a Debt/GDP ratio of 66%,

That is considerbly higher than California's was when they recalled Davis for fiscal malfeasance. Why are Republicans so quiet now?

[Xenotime]

16. They economy is in the tank....

This is the beginning of dark times from which we will never recover.

[Roland99]

18. If only the US media would report on the shambles that is our economy.