Showing posts with label national debt. Show all posts
Showing posts with label national debt. Show all posts

Monday, December 10, 2012

Investopedia: How Debt Limits A Country's Options

Debt is an evergreen topic in financial writing, whether it involves the perks and perils of individual consumer debt, corporate debt or national debt. While the national debt of the United States has never really ever slipped out of the national dialogue, events over the past decade have intensified the discussion.

Tax cuts, spending on multiple wars and a major recession induced by the collapse of the housing market have combined to spike the U.S. debt burden, while sovereign debt issues have all but blown up the economies of Southern Europe (not to mention the banks, insurance companies and other investors who bought that debt). What's more, debt has started to increasingly factor into bilateral and multilateral political squabbles. While debt is fundamentally necessary to the operation of a national government, it is increasingly clear that debt can be limiting and dangerous.

Please read more here:
http://www.investopedia.com/articles/economics/12/debt-limits-country-options.asp

Tuesday, October 26, 2010

FinancialEdge: 10 Reasons To Fear The U.S. Economy

Halloween is a time for the sort of fear we all enjoy - cheesy horror movies, clever costumes and a general appreciation for the macabre and creepy. Far less enjoyable, though, is thinking about some of the reasons investors may have for fearing the U.S. economy. Unlike ghosts and goblins, some of these fears may prove to be very real and offer more than just a friendly little tingle up the spine.


1. Crumbling Infrastructure
While the U.S. government has handed out plenty of money over the past three years, relatively little of it has made its way towards bridges, roads, schools and hospitals. That is unfortunate, as the U.S. went through a building boom in the 1950s and 1960s and is now badly in need of repair and expansion. Infrastructure underpins economic growth. Without better public facilities, there will be a long-term drag on economic productivity.  

2. High Debt
Of all the problems in the United States, large budget deficits and a growing debt burden are probably the best-known. Public debt is at about $13.6 trillion in the United States, or roughly 94% of annual GDP. That puts the country in uncomfortable company with the likes of Japan, Italy, Greece and Portugal.

Please click the link below for the full story:
http://financialedge.investopedia.com/financial-edge/1010/10-Reasons-To-Fear-The-U.S.-Economy.aspx