Tuesday, November 24, 2009

Economic Crisis in USA

Burgeoning budget deficits in USA are a catalyst for the demise of USA’s political hegemony in the world. Former New South Wales Treasury economist Robert Carling, currently a senior fellow at the free-market Centre for Independent Studies said that USA’s budget deficit was 10 percent of GDP for the last financial year.

Carling further added that, “The really scary figures are in their long-term projections and these are official projections by the Congressional Budget Office, which suggest that under realistic assumptions, they could be looking at a deficit of 15 per cent of GDP 25 years from now and 22 per cent of GDP in 2050 with a public debt burden as a multiple, several times of their gross domestic product.”

USA is living on borrowed time. Its demise is inevitable. The only thing it can decide to demise with owner or demise under immense burden of humiliation. If it decides to alter its policies then the people might forgive it for its draconian policies.