Monday, July 11, 2011

The factors That May Lead USA to A Failed State

  The following factors may cause the super power of the present world to get deprived of its influence and power.
   Internal Debits:-
    The Internal debts of the USA have reached to the  tune of $ 14.32 trillions, that equals to its total GDP. In this way USA is the most debited country of the world.  After it comes Japan that has $ 10.0 trillion as loans. It means USA government spends more that its revenues. Now Obama government is trying to extend the limit of internal loans to $16.0 trillion.  other countries including Pakistan have no limit for the loans. While, in the USA congress fixes the limit. Therefore, negotiations are underway between the government party ( Democratic Party) and the opposition party ( Republican Party). Problem is now that congress has to extend the internal debits limit by August 02, otherwise American government will get defaulted.  This way the "honor" will go to the Obama government in the United State's history. Government is trying to get out of this critical situation, and it is hoped that congress will extend the limit of internal loans. It is worth mentioning that total debts of the USA are $ 114.32 trillion, out of which $100.0 trillion the amount that American government has to spend on social security on  all the costs. The fact is USA is the highest debitful country in the world, is not it a symbol of fall of the state. In the total internal loans , $ 4.5 trillion are the loans from China, Japan, Britain, Persian Gulf States, Brazil and Russia. To day the condition of USA is that if US government spends one dollar for its expenditure there are 42 cents of loans. It means that government is  running  through loans. Therefore,  the conditions of roads, bridges, airports, and infrastructure comprising of schools is in worst condition due to lack of funds.   .      
   Some economists say that though the internal loans are too much but USA economy is not in danger. American government can return loans by issueing notes. But it is obvious that inflation rate would jump up and other countries may not take risks of buying American bonds, neither would invest in government projects. Question arises how did the loans increase? The internal debts during 1980 were $909 billion, that rose to $ 5.7 trillion during 2000, and during Bush government (2001-2008) it reached to $ 10.7 trillion and now Obama government increased it as high as $14.32 trillion. .

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