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  • Wendell Bravo god creation the wonders of the earth (3:16 god gave it begotten son that who ever believe in son of god jesus christ will have the everlasting life) game begin>>>>>>>the garden of eden the devil/satan/tabernacle union of sun and moon zeus (the woman)(strength)>>>>adan and eve/cain and abel<<<<<<<<<<<<<<got the game <<<<<<<<<<<<<21st century information technoly the future beyond this .amen.
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  • USA Datamonitor report (Graph and Pie chart)GDP Figures – Economic Times reportGDP Definition -
  • USA Datamonitor report (Graph and Pie chart)GDP Figures – Economic Times reporthttp://www.economist.com/blogs/freeexchange/2010/08/china_0GDP Definition -
  • Inflation rate:http://www.tradingeconomics.com/Economics/Inflation-CPI.aspx?Symbol=USD
  • http://useconomy.about.com/od/howtheeconomyworks/u/how-does-us-economy-work.htm (Definition)http://www.ustr.gov/webfm_send/1673 (Main focus)http://www.ustr.gov/about-us/press-office/press-releases/2010/march/kirk-comments-2010-trade-policy-agenda (Highlights)United States Trade Representative
  • http://usa.usembassy.de/economy-policy.htmhttp://useconomy.about.com/od/fiscalpolicy/p/deficit.htmhttp://useconomy.about.com/od/fiscalpolicy/p/Budget_Spending.htmhttp://useconomy.about.com/od/fiscalpolicy/p/Budget_Income.htmhttp://useconomy.about.com/od/fiscalpolicy/p/US_Debt.htm
  • http://usa.usembassy.de/economy-policy.htmLow interest rates , high money supply http://italy.usembassy.gov/pdf/other/RL30354.pdfhttp://www.tradingeconomics.com/Economics/Interest-Rate.aspx?Symbol=USD (Interest Rate chart)http://www.economicsjunkie.com/true-money-supply/ (Money supply chart)
  • During FY 2009, the federal government collected approximately $2.1 trillion in tax revenue. Primary receipt categories included individual income taxes (43%), Social Security/Social Insurance taxes (42%), and corporate taxes (7%).[6] Other types included excise, estate and gift taxes. Tax revenues have averaged approximately 18.3% of gross domestic product(GDP) over the past 40 years, generally ranging plus or minus 2% from that level.[7]Tax revenues are significantly affected by the economy. Recessions typically reduce government tax collections as economic activity slows. For example, during FY2009, the U.S. government collected about $400 billion less than FY2008. Individual income taxes declined 20%, while corporate taxes declined 50%. At 15% of GDP, the 2009 collections were the lowest level of the past 50 years.[8]http://en.wikipedia.org/wiki/United_States_federal_budget#Major_receipt_categories
  • During FY 2009, the federal government spent nearly $3.52 trillion on a budget or cash basis, up 18% versus FY2008 spend of $2.97 trillion. Primary expenditure categories (shown in the pie chart in the introduction above) include: Defense and Homeland Security ($782B or 23%), Social Security ($678B or 20%), and Medicare &amp; Medicaid ($676B or 19%). Expenditures are classified as mandatory, with payments required by specific laws, or discretionary, with payment amounts renewed annually as part of the budget process.[6]Over the past 40 years, mandatory spending for programs such as Medicare and Social Security has grown as a share of the budget, while defense grew around 9% per year excluding war costs and other discretionary categories have declined. Between 1966 and 2006, Medicare and Social Security grew from 16% of the budget to 40%. Discretionary outlays, which rely on annual appropriations for funding, accounted for 38.0% of total federal outlays in FY2008.http://en.wikipedia.org/wiki/United_States_federal_budget#Major_receipt_categories
  • http://en.wikipedia.org/wiki/Fiscal_policy_of_the_United_States (Eplanation)http://www.usgovernmentspending.com/downchart_gs.php?year=1960_2015&amp;view=1&amp;expand=&amp;units=b&amp;fy=fy11&amp;chart=G0-fed&amp;bar=1&amp;stack=1&amp;size=l&amp;title=&amp;state=US&amp;color=c&amp;local=s
  • http://en.wikipedia.org/wiki/Fiscal_policy_of_the_United_States
  • http://en.wikipedia.org/wiki/Fiscal_policy_of_the_United_States
  • http://www.usgovernmentspending.com/downchart_gs.php?year=1960_2015&amp;view=1&amp;expand=&amp;units=b&amp;fy=fy11&amp;chart=G0-fed&amp;bar=1&amp;stack=1&amp;size=l&amp;title=&amp;state=US&amp;color=c&amp;local=s
  • http://en.wikipedia.org/wiki/Government_debthttp://en.wikipedia.org/wiki/DeficitGross debt includes not only bonds and liabilities tobanks, but also liabilities to non-banks from promissorynotes, lease liabilities, liabilities arising from ABStransactions (capital marketliabilities), liabilitiesfromderivatives and cash collateral received for positive fairvalues of derivatives, as well as other interest-bearing(Social Security Trust Funds ) financial liabilities.
  • GDP is a measure of the total size and output of the economy. One measure of the debt burden is its size relative to GDP. In fiscal 2007, U.S. public debt was approximately $5 trillion (36.8 percent of GDP) and total debt was $9 trillion (65.5 percent of GDP.)[61] Public debt represents money owed to those holding government securities such as Treasury bills and bonds. Total debt includes intra-governmental debt, which includes amounts owed to the Social Security Trust Funds (about $2.2 trillion in FY 2007)[62] and Civil Service Retirement Funds. By August 2008, the total debt was $9.6 trillion.[63]Based on the 2010 U.S. budget, total national debt will nearly double in dollar terms between 2008 and 2015 and will grow to nearly 100% of GDP, versus a level of approximately 80% in early 2009.[64] Multiple government sources including the current and previous presidents, the GAO, Treasury Department, and CBO have said the U.S. is on an unsustainable fiscal path.[65] As the debt ratio increases, the exchange value of the dollar may fall. Paying back debt with cheaper currency could cause investors (including other governments) to demand higher interest rates if they anticipated further dollar depreciation. Paying higher interest rates could slow domestic U.S. growth.Higher debt increases interest payments on the debt, which already exceed $430 billion annually as discussed below, or about 15 cents of every tax dollar for 2008.[66] According to the CIA Factbook, only six other countries have debt to GDP ratios over 100% for 2008, the largest of which is Japan at 170%.[67]Further, a high public debt to GDP ratio may also slow economic growth. Economists Carmen Reinhart and Kenneth Rogoffcalculated that countries with public debt above 90 percent of GDP grow by an average of 1.3 percentage points per year slower than less debt-ridden countries. The public debt-to-GDP ratio in March 2010 is about 60 percent of GDP; CBO projects it will reach 90 percent around 2020 under policies in place in 2010. If growth slows, all of the economic challenges the U.S. faces will worsen.[68]Historical analysis of government spending or debt relative to GDP can be misleading, according to the GAO, CBO and Treasury Department. This is because demographic shifts and per-capita spending are causing Social Security and Medicare/Medicaid expenditures to grow significantly faster than GDP. If this trend continues, government simulations under various assumptions project mandatory spending for these programs will exceed taxes dedicated to these programs by more than $40 trillion over the next 75 years on a present value basis.[69]According to the GAO, this will double debt-to-GDP ratios by 2040 and double them again by 2060, reaching 600 percent by 2080.[70] A GAO simulation indicates that Social Security, Medicare, and Medicaid expenditures alone will exceed 20% of GDP by 2080, which is approximately the historical ratio of taxes collected by the federal government. In other words, these mandatory programs alone will take up all government revenues under this simulation.[69]
  • http://www.chinadaily.com.cn/bizchina/2010-03/01/content_9518437.htmIssue of Treasury BillsRaise taxes – to pay their billsPrint the money – as in the Weimar Republic in Germany after the World War IITo borrow money, govermentsSell off (Privatize) National assets such as telecommunications, water systems, rail or transportation systems or real estate.Raise taxes - The Govt should cut some spending and raise some revenue while avoiding extremes in either direction,Printing excess money – this leads to excess money chasing less goods which will ultimately leads to inflation.Repudiate the debt Reduce the spending on Medicare and Social Security.AsGovt.fundshigherandhigherdeficitsInterestratesstarttoriseIncasethisissubscribedbydomesPcpublicandinsuranceco’s/PensionFundssPllnotaproblemSell off (Privatize) National assets such as telecommunications, water systems, rail or transportation systems or real estateRepudiate the debt – as Russia did with $110 billion in 1917Resort the Plunder – by launching wars to acquire wealth to pay off their debts
  • http://www.chinadaily.com.cn/bizchina/2010-03/01/content_9518437.htmIssue of Treasury BillsRaise taxes – to pay their billsPrint the money – as in the Weimar Republic in Germany after the World War IIAsGovt.fundshigherandhigherdeficitsInterestratesstarttoriseIncasethisissubscribedbydomesPcpublicandinsuranceco’s/PensionFundssPllnotaproblemSell off (Privatize) National assets such as telecommunications, water systems, rail or transportation systems or real estateRepudiate the debt – as Russia did with $110 billion in 1917Resort the Plunder – by launching wars to acquire wealth to pay off their debts
  • With respect to entitlement spending, the nation must change course before the deficit and debt reachunprecedented heights. The Government must act to bring social insurance expenses and resources in balance.Delays will increase the magnitude of the reforms needed and will place more of the burden on future generations.There is no simple fix to the projected imbalance between social insurance expenditures and revenues. The preciseamount of the Government’s future financial responsibilities is far from certain, as they are based on many complexcalculations and assumptions. Nevertheless, the magnitude of these responsibilities and the pressing need to controltheir continued growth are evident.The Government has made and is expected to continue to make a vast commitment of financial resources toestablish and maintain stability in the credit markets. The Government expects that at least some of the financialassets acquired by the Government in its market stabilization efforts may eventually return full value to the taxpayerand possibly even earn a positive return on amounts spent as economic conditions improve. The Governmenthas been able to take these stabilization actions because of the deep, liquid market for Treasury securities. Theunsustainable growth in Social Security, Medicare, and Medicaid remains a long-term fiscal challenge to beaddressed once the current credit crisis has passed and overall economic conditions have improved.
  • http://www.chinadaily.com.cn/bizchina/2010-03/01/content_9518437.htmIssue of Treasury BillsRaise taxes – to pay their billsPrint the money – as in the Weimar Republic in Germany after the World War IIAsGovt.fundshigherandhigherdeficitsInterestratesstarttoriseIncasethisissubscribedbydomesPcpublicandinsuranceco’s/PensionFundssPllnotaproblemSell off (Privatize) National assets such as telecommunications, water systems, rail or transportation systems or real estateRepudiate the debt – as Russia did with $110 billion in 1917Resort the Plunder – by launching wars to acquire wealth to pay off their debts
  • http://marcfaberchannel.blogspot.com/2010/06/marc-faber-us-national-debt-is-already.html investment analyst and fund manger

Transcript

  • 1. `
    1
    USA
    DEFICIT
    TRADE DEFICIT
    FISCAL
    &
  • 2. 2
    Index
    1
    Overview of the US economy
    1
    2
    Trade Deficit
    3
    Budget Deficit
    4
    Conclusion
  • 3. 3
    Index
    INTRODUCTION
    1
    Overview of the US economy
    1
    2
    Trade Deficit
    3
    Budget Deficit
    4
    Conclusion
    5
  • 4. 4
    Overview
    TRADE POLICY
    GDP
    INFLATION
    FISCAL POLICY
    MONETARY POLICY
  • 5. 5
    GDP
    INFLATION
    TRADEPOLICY
    FISCAL POLICY
    MONETARY POLICY
    GDP
    • The current GDP of US is $14.2 trillion which is 22.9% of world GDP ($ 61.06 Trillion ) – for 2009
    • 6. Out of the $14 trillion, $10 trillion of US GDP is used for personal consumption
    • 7. USA is the World’s largest economy followed by China at $1.337 trillion, to Japan's $1.288 trillion 
    Composition of GDP from different sectors of the economy
  • 8. Inflation
    6
    INFLATION
    TRADEPOLICY
    FISCAL POLICY
    MONETARY POLICY
    GDP
    • Inflation is when the prices of most goods and services continue to creep upward. It is measured by the Consumer Price Index
    • 9. Inflation Rate in 2010 is 1.20%
    • 10. US is exporting inflation to the rest of the world , misusing their status as the reserve currency of the world
  • Trade Policy
    INFLATION
    TRADE POLICY
    FISCAL POLICY
    MONETARY POLICY
    GDP
    Trade policy affects the cost of imports and exports by regulating trade agreements with other countries.
    Critical creation of American exports and Support of new American jobs
    Main Focus
    2010 Trade Policy
    Sustainable economic growth
    • Support and strengthen a rules-based trading system
    • 11. Enforce American rights in the rules-based trading system
    • 12. Enhance U.S. growth, job creation and innovation
    • 13. Work to resolve outstanding issues with pending FTAs and build on existing agreements
    • 14. Facilitate progress on national energy and environmental goals
    • 15. Foster Stronger Partnerships with Developing and Poor Nations
    • 16. Reflect American values in trade policy
    Highlights Policy Agenda include key commitments to
    7
  • 17. Fiscal Policy
    8
    INFLATION
    TRADE POLICY
    FISCAL POLICY
    MONETARY POLICY
    GDP
    Fiscal Policy determines the appropriate level of taxes and spending in a country. The president and Congress adjust federal spending and taxes in the US.
    The US Debt is $13 trillion, largest in the world
    The U.S. Government's total revenue is estimated at $2.6 trillion for year 2011.
    For the year 2011, Federal spending is budgeted at $3.8 trillion.
    In FY 2011 the deficit is projected to be $1.26 trillion, the difference between $3.83 trillion in spending and $2.57 trillion in revenue.
    Although this deficit is huge, it is less than the $1.6 trillion deficit in FY 2010.
  • 18. Monetary Policy
    9
    INFLATION
    TRADE POLICY
    FISCAL POLICY
    MONETARY POLICY
    GDP
    The Federal Reserve manages the monetary policy i.e. the money supply and use of credit.
    The use of national currency as the global reserve currency leads to tension between the national monetary policy and the global monetary policy.
    Measure of monetary policy: Money supply Growth and Interest Rate
    True Money Supply (1959 – 2008)
    United States Interest Rates
  • 19. 10
    Index
    TRADE DEFICIT
    1
    Overview of the US economy
    1
    2
    Trade Deficit
    3
    Budget Deficit
    4
    Conclusion
    5
  • 20. Trade Deficit
    TRADE DEFICIT
    Imports
    Exports
    Causes :
    • Failed trade policy – Less production against high demand
    • 21. Instability of the government
    • 22. High prices of goods manufactured within the country
    Implication :
    • Unemployment
    • 23. The country starts depending on foreign sources
    • 24. Value of the currency might fall below equilibrium
  • US dollar Strengthened against other currencies
    Imports were almost free of cost.
    This increased the TRADE deficit
    After the collapse of Bretton woods, USA started misusing it’s status as a reserve currency and started printing notes
  • 25. The Current Scenario
    • Total Imports of $196 Billion and Total Exports of $153 Billion , leaving a deficit of $43 Billion
    • 26. In July10’, export of goods increased $2.8 billion to $107.7 billion and import of goods decreased $4.2 billion to $162 billion
    • 27. Trade deficit increased by $9.7 billion from June09’ to July10’
    • 28. Decrease occurred in import of consumer goods, automotive parts, capital goods and foods, feeds and beverages
    • 29. Increase occurred in exports of industrial supplies, capital goods and automotive engines and parts
  • China
    Canada
    Mexico
    Japan
    Germany
    Major Countries from which US is Importing
    • Office and automatic data processing machines
    • 30. Telecommunications
    • 31. Furniture
    19.3%
    • Petroleum
    • 32. Motor vehicles and parts
    • 33. Industrial machinery
    • 34. Timber, & Fertilizers
    14.24%
    11.12%
    6.14%
    4.3%
    • Civilian airplanes / helicopters
    • 37. Passenger automobiles
    • 38. Controllers & Processors
    • 39. Motor Vehicle Parts
    • 40. Cardiovascular medications
    • 41. Large & mid sized automobiles
  • 15
  • 42. Major Imports and exports of USA
    Top 5 IMPORTS
    • Crude Oil
    • 43. Pharmaceutical Preparations
    • 44. Household Goods
    • 45. Computer and Computer Accessories
    • 46. Apparels
    Top 5 EXPORTS
    • Semi Conductors
    • 47. Pharmaceutical Operations
    • 48. Industrial machines
    • 49. Civilian Aircrafts
    • 50. Telecommunication equipments
  • Service Trade Balance of USA Vs Other Countries
    Service Trade Balance : Export of services minus Import of Services
    US
    UK
    EA
    IND
    CHN
    BRA
    RUS
    JPN
  • 51. Goods Trade Balance of USA Vs Other Countries
    Trade Balance : Export of Goods minus Import of Goods
    CHN
    JPN
    BRA
    IND
    UK
    US
  • 52. 19
    Index
    FISCAL DEFICIT
    1
    Overview of the US economy
    1
    2
    Trade Deficit
    3
    Budget Deficit
    4
    Conclusion
    5
  • 53. 20
    Fiscal Policy
    PRIMARY DEFICIT
    Current Government spending
    Total current revenues from all taxes
    Government Spending
    TOTAL DEFICIT
    Total tax revenues
    Interest payments on debts
    GOVERNMENT DEBTS
    Budgetary deficits when accrued for a very long
  • 54. Revenue
    21
    NOTE:
    • Recession reduced government tax collection by $ 400 billion less than FY 2008
    • 55. Tax collection was 15% of GDP which was the lowest level in the past 50 years.
    • 56. Decline in Tax for Individual Tax ( by 20%) & Corporate Tax ( 50%)
  • Expenditure
    22
    & Homeland Security
    Social Security
    Medicare expenditures
    Military spending
    Interest expense
    NOTE:
    • Increase in Expenditure by 18% from FY 2008
  • Fiscal Deficit over a Period of 50 Years
    23
  • 57. History of Fiscal Deficit
    2005
    • In fiscal year 2005, the deficit began to shrink due to a sharp increase in tax revenue.
    • 58. Government spending in defense increased and a $1.35 trillion tax cut, the budget returned to a deficit basis free-falling from a $236 billion in 2000 to a $413 billion deficit in fiscal year 2004. 
    After September 11 attacks
    • The surplus nearly doubled to $125 billion, and then again in 2000 to $236 billion.
    1999
    • However, gross revenues exceeded expenditures and a surplus resulted in $69 billion.
    • 59. 1st Surplus since the collapse of the Breton woods
    1998 - 2001
    • This pattern broke from fiscal years1970 to 1997
    • 60. Federal budget deficit accelerated, topping out $290 billion in 1992.
    1970 - 1997
    • The budget for 20th century followed a pattern of deficits during wartime / economic crises and  surplus during peacetime economic expansion
    20th Century
  • 61. Explanation
    History of Fiscal Deficit
    2010
    • Fiscal deficit is $1.56trn.
    • 62. As a result of this, in fiscal year 2008, the deficit increased to $455 billion and will increase in years to come due to recession and high spending fiscal policy.
    2008
    • The economy entered into recession as a result of high oil and food prices, and a sustainable credit crisis leading to the bankruptcy.
    • 63. In an attempt to fix these economic problems, the United States federal government has passed a series of costly economic stimulus such as reduction in taxes and spending more on social security.
    2007-2008
    2007
    • The deficit was reduced to $161 billion and the budget appeared well on its way to balance once again.
    25
  • 64. Short Term Fiscal Deficit
    26
  • 65. Fiscal Deficit and Government Debt
    27
    BUDGET DEFICIT
    Occurs when an entity spends more money than it takes in.
    GOVERMENT DEBT
    Accumulated Governmental Deficit over several years is referred to as the Government Debt.
    NATIONAL DEBT
    GOVERMENT DEBT
    PUBLIC DEBT
    Money owed to those holding government securities +
    Intra-governmental debt
    OR
    GOVERMENT DEBT
    Considers all government liabilities, including future pension payments and payments for goods and services the government has contracted but not yet paid
  • 66. Total Debt Vs Debt Relative to GDP(%)
    28
    NOTE:
    • As the debt ratio increases exchange value of the dollar may fall
    • 67. Paying back debt with cheaper currency could cause investors to demand higher interest rates if they anticipated further dollar depreciation.
    • 68. Paying higher interest rates could slow domestic U.S. growth.
  • 29
    Balancing Fiscal Deficit
    Sell off (Privatize) National assets
    Issue of Treasury Bills
    Raise Taxes
    Methods of Balancing Fiscal Deficit
    Printing excess money
    Resort the Plunder – by launching wars to acquire wealth to pay off their debts
    Repudiate the debt
  • 69. 30
    Balancing Fiscal Deficit
    Issue of Treasury Bills/ Government Securities
    • U.S. Treasury securities are issued to finance the federal budget deficit. Of the public debt that is privately held, about half is held by foreigners
    • 70. China held $1.8 trillion in Treasury Bonds
    • 71. Print Money
    • 72. The Reduce spending on Medicare and Social Security
    • 73. Resort the Plunder – by launching wars to acquire wealth to pay off their debts
  • Preparing For Future
    31
    Delays will magnitude of reforms needed & will place burden on future generations
    The unsustainable growth in Social Security & Medicare remains a long-term fiscal challenge to be addressed
    The Government has to make a vast commitment of financial resources to
    establish & maintain stability in the credit markets
    The Government must act to bring social insurance expenses & resources in balance
    The nation must change course before the deficit & debt reach
    unprecedented heights.
  • 74. Balancing Fiscal Deficit
  • 75. 33
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