The most obvious sign is the trade deficit. The latest figures are, of course, for 2006, and according to the U.S. Census Bureau, Foreign Trade Division, the trade deficit is about ¾ trillion dollars. Let me explain this: in the year 2006, the USA has spent 758,522,000,000 dollars more than it earned. This means, not only the citizens live on credit, but the country, too. Many house owners have learned in the last moths how risky credits can be. This also means that every day, more than $2bn in credit have to be given to th US.
But who is paying for it ? Partly countries like Japan and China, who have more than 1 trillion dollars in their reserve. But there are other reasons why the US is running out of money: Since taking office in 2000, the Bush Administration has the super-rich tax cuts worth $555bn, and the Pentagon is a great spender. The budget for this year is over $500bn, and the occupation of Iraq alone has cost about $500bn. And the dollar is losing value against other important currencies like the Euro, which will make imports even more expensive.
The US exported goods for $1,445bn, but imported goods for $2,204bn – the greatest part of the balance. The US trade deficit stayed at a “tolerable” height of about $100bn – until 1997. From 1998, it began to grow, as you can see in this graph from wikipedia
The American Economy is Sick
The most obvious sign is the trade deficit. The latest figures are, of course, for 2006, and according to the U.S. Census Bureau, Foreign Trade Division, the trade deficit is about ¾ trillion dollars. Let me explain this: in the year 2006, the USA has spent 758,522,000,000 dollars more than it earned. This means, not only the citizens live on credit, but the country, too. Many house owners have learned in the last moths how risky credits can be. This also means that every day, more than $2bn in credit have to be given to th US.
But who is paying for it ? Partly countries like Japan and China, who have more than 1 trillion dollars in their reserve. But there are other reasons why the US is running out of money: Since taking office in 2000, the Bush Administration has the super-rich tax cuts worth $555bn, and the Pentagon is a great spender. The budget for this year is over $500bn, and the occupation of Iraq alone has cost about $500bn. And the dollar is losing value against other important currencies like the Euro, which will make imports even more expensive.
The US exported goods for $1,445bn, but imported goods for $2,204bn – the greatest part of the balance. The US trade deficit stayed at a “tolerable” height of about $100bn – until 1997. From 1998, it began to grow, as you can see in this graph from wikipedia