August 25, 09 (Hamsayeh.Net) - Western financial agencies' report on US debt over the next decade paints a bleak picture. According to some budget updates released by the White House on Tuesday, the United States will incur a massive 9 billion dollars deficit in the next 10 years.
The latest report adds another 2 trillion dollars to earlier forecasts by financial agencies making the current recession totally unprecedented in the world history since the great depression of the 30s.
The US is hoping there would be an economic turn around by the end of this year. However officials are always unable to explain as to how this turn around should come about without increasing the current productivity level and curbing unemployment. Their logic seems to be based on some extraterrestrials factors beyond comprehension by average academics.
Financial forecasters conclude that the US trade deficit will increase at around 2 trillion dollars every year even despite the economic turnaround. The Obama administration has been injecting nearly 1 trillion dollars into the financial sectors beginning this year to simply keep its economy from collapsing.
Many countries around the world are also worried at the sorry state of the US economy. China, which is the largest holder of US treasury bonds, has expressed strong concerns about the US debts. Financial think - tanks in the US are afraid that China would start exchanging its dollar holdings into other valuable currencies thus exacerbating the situation further.