Economy of the United States
The economy of the United States is the world’s largest national economy and the world’s second largest overall economy, the GDP of the EU being approximately $2 trillion larger. Its nominal GDP was estimated to be $15.8 trillion in 2012 , approximately a quarter of nominal global GDP. Its GDP at purchasing power parity is the largest in the world, approximately a fifth of global GDP at purchasing power parity. The U.S. is one of the world’s wealthiest nations, with abundant natural resources, a well-developed infrastructure, and high productivity. It has the world’s sixth-highest per capita GDP (PPP).The U.S. is the world’s third-largest producer of oil and second-largest producer of natural gas. It is the largest trading nation in the world. Its four largest export trading partners are as of 2011: Canada, China, Mexico and Japan.
NIALL FERGUSON: US UNFUNDED LIABILITIES TOP $238 TRILLION!!
In an excellent economic lecture series presented by the BBC, economic historian (& author of the recent Newsweek piece Hit the Road Barack) Niall Ferguson states that the total US unfunded liabilities is a mind-blowing $238 TRILLION– over 16 times the total US debt claimed by the Treasury Department of $16 trillion!!
Can you say QE to INFINITY….AND BEYOND!!! ? There is simply no other viable solution.Ferguson’s full lectures can be downloaded here:
The rapidly rising quantity of these bonds certainly implies a growing charge on those in employment, now and in the future, since – even if the current low rates of interest enjoyed by the biggest sovereign borrowers persist – the amount of money needed to service the debt must inexorably rise.
But the official debts in the form of bonds do not include the often far larger unfunded liabilities of welfare schemes like – to give the biggest American schemes – Medicare, Medicaid and Social Security.
The most recent estimate for the difference between the net present value of federal government liabilities and the net present value of future federal revenues is $200 trillion, nearly thirteen times the debt as stated by the U.S. Treasury.
Notice that these figures, too, are incomplete, since they omit the unfunded liabilities of state and local governments, which are estimated to be around $38 trillion.
Federal deficit tops $1 trillion for fourth year
WASHINGTON (AP) — The federal budget deficit has topped $1 trillion for a fourth straight year. But a modest improvement in economic growth helped narrow the gap by $207 billion compared with last year.
The Treasury Department said Friday that the deficit for the 2012 budget year totaled $1.1 trillion. Tax revenue rose 6.4% from last year to more than $2.4 trillion, helping contain the deficit.
U.S. Deficit Increased to $1.3T in Fiscal 2011