American debt crisis and the future of the U.S. economy

Abdel Moneim Ali, Dr.

	American debt crisis and the future of the U.S. economy
Iraqi Journal For Economic Sciences
Article 1, Volume 0, Issue 30, 2017, Pages 1-4
Author
Dr. Abdel Moneim Ali
Abstract
The financial strength of America, which is not matched by the financial strength of any other country, and give the dollar and the privileged position as the first reference currency in the world, hide structural problems lies in the debt and the decline of manufacturing, and the loss of competitiveness and social inequality, and an unprecedented step by the agency Standard & Poor's rating credit, on Friday, 5 8 2011 marked reduction of the debt of the U.S. (AAA) to (AA +) a serious warning to Washington. Has lost the United States for the first Merhej in its history classification (AAA) has enjoyed since 1941, and in spite of the agreement, which recently announced to raise the ceiling on debt of $ (14.3) trillion dollars to avoid financial distress, which raises the further slowdown in the U.S. economy. And thus reflect the depth of the U.S. debt crisis that hit the U.S. economy, which erupted after the budget deficit to pay the debt, forcing the administration to resort to the request to increase the ceiling, progress in addressing the crisis, rather than a strategy to address them. This situation reflects the low structural depth of the crisis for the U.S. economy that threatens to collapse sooner or later it became economical parasite, feeding on loans and public debt. And because it is an economy based on his philosophy on the basis of consumption and welfare, it is the most important core functions outside the contexts of economic, occupied by the laws of capitalist economy, is to preserve the social cohesion of American society is composed of a broad spectrum of assets and races, which put pressure on decision makers the U.S. to move in a hurry to search formula for immediate treatment, outside the context of the mechanisms of economic theory, because any shock against the U.S. economy of welfare is a time bomb to blow up the real conflict between the components of American society.

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