Which country has the world’s largest negative account balance?

The answer couldn’t be more obvious–U.S.A

http://investment-blog.net/us-is-the-biggest-debtor-and-its-recovery-in-this-recession-is-limited-by-its-debt/

Dollar

Yes, people that are unemployed need lots of help but, if the government comes to their rescue, it only speeds up the collapse of the dollar.

If you get $1,000 in unemployment benefits and bread is $500 a loaf, what have you gained? That is what we are facing if government doesn’t cut spending.

Those that are unemployed need to live on their savings. What? They don’t have savings?

Well, then borrow on your home’s equity. What? They don’t have any?

Well, then sell the 2nd car since one of the couple is laid off. What? They owe more than they can sell it for?

Well, I believe Congress will come up with another stimulus package and it won’t work either. Until consumers get the debt burden under control, there basically isn’t anything that will work. You have to clear the debt excess and that means cutting spending and paying down debt. That is exactly what makes recessions become depressions.

That saving destroys tax revenues and causes cities and states to have to cut spending which causes more layoffs and even more losses of tax revenues.

Infrastructure spending on our decaying infrastructure (not new infrastructure, so much) could put millions to work but, if they take their paychecks, now that they have had a good scare, and pay down debt, it won’t restore the economy for several quarters or years, possibly.

Then add that trying to do that will increase debt by trillions, (need $1.5 to $3 trillion to bring infrastructure just up to par), and you risk the U.S. being cut off from loans.

Add that as the global economy sputters, there is less to lend the U.S. Add that our current increase in debt this month is $300 billion and that pace would mean $600 billion for one month and $7.2 trillion if kept going for a year, and you see why many are reluctant to extend benefits to the unemployed.

Related Posts:

• The stimulus package doesn’t have two years to work. The dollar can’t last that long with this type of borrowing.
• The President was right that this is the result of decades of mistakes.
• How Fast is U.S Debt Increasing
• Caution: This is not going to “recover” like any recession you have lived through!
• How about no recovery for a decade?

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