U.S. debt crisis

US DEBT ISSUE

By HARSH PATHAK[34]

US Debit Issue

History of US

Current position of US

Causes of the US debit issue

Impact of the debit issue

Future stratergies

HISTORY

USA has been a strong economy.

The long term credit rating of USA was AAA.

What is the debt ceiling?

When there is a budget deficit , the only way that the shortfall can be paid off is by issuing of debt instruments. Under the federal law of US, the amount that the govt. can borrow is limited by the debt ceiling, which can only be increased with a vote by congress.

CURRENT POSITION OF US

Do you think it is a one day activity?

It took US more than 30 years to be at this position.

CAUSES OF THE DEBT CRISIS

WAR AGAINT DIFFERENT COUNTRIES

BAIL OUT BY US ECONOMY

COLLAGE BUBBLE

SUB - PRIME ISSUE

RECESSION (2008)

WAR AGAINST DIFFERENT COUNTRIES

US HAS GONE FOR WAR AGAINT IRAQ

US HAS GONE FOR WAR AGAINT AFGHANISTAN

US HAS ALSO SUPPORTED MANY WAR AGAINST IRAN,LIBYA AND MANY MORE

BAIL OUT BY US ECONOMY

SOME RECENT BAILOUTS

REAL POSITION

COLLAGE BUBBLE

SUB PRIME ISSUE

RECESSION

Impact Of Debt Crisis

Impact Of Debt CrisisWorld

• Adversely affecting the countries relying on exports to US

• Increase in Gold price• Fluctuations in stock Market

India• Increase in Unemployment• Loss by exporters-software• Fluctuations in stock market

Future strategies

Expenses cutting down No tax increase Decrease in military

expenses Reconstructing the

economy Increase in employment Cutting down the inflation