Tuesday, May 26, 2009

USA in the terminal decline

The only business doing very well in USA is printing industry because it is too busy printing dollars to finance exuberant budget deficit. There is no end in sight. However, one thing is very clear that USA and the West will no longer dominate the world economy.

The budget deficit ($13 trillion) is almost 90 per cent of national income. The Dallas Federal Reserve estimated that unfunded liabilities for retirement and health-care are more than $99 trillion or 700 per cent of national income of USA.

It is clear that USA under the leadership of Obama is opting for a shallow response to a severe economic dilemma. The end result is terminal decline of USA.