The US economy in the abyss

While the world looks fascinatedly at the Greek debt drama, develops – widely unnoticed – a lot of bigger finance debacle in the USA. This has the potential to tear the whole world economy with in a big crisis. Still exists the possibility to prevent the worst by iron saving, however, the time window is very small in which the renovation of the US public finances can be got going.

The last Thursday president Barack Obama tried by intensive consultations with leading politician of the democrats and Republicans to break through the shutdown during the negotiations about the huge savings package. With this historically unique measure about 4000 milliard US dollars should be saved in the next decade. While democrats want to achieve this aim above all by tax rises, the Republicans place rather on drastic shortenings of the state issues.

Should it come to no arrangement, the insolvency threatens the USA from the beginning of August. At this time the debt limit will be reached probably at the rate of the 14,300 milliard US dollars whose excess is forbidden legally. Then this debt height would correspond 10% of the home gross national product. With it the USA lie not far away from Greece which has to register a deficit of 13.6%.

A (passing) solution could also show an other increase of the debt limit. Should no measures be took, however and therefore state issues from the beginning of the next month any more completely cannot be performed, a finance disaster threatens. The dollar would experience a course fall in magnitude known never up to now, the courses of American state loans would extremely break, the interest upwards shoot up and the rating of the USA at junk level sink.