Tuesday, 20 December 2016

How likely is a bankruptcy of America? (Part 2)

Inside America there are political forces who are concerned about the growth of public debt not less than external lenders. The Republicans in the Parliament actively impeded increase government debt ceiling in 2013. In result the annual budget for the next year was not accepted, there wasn't enough money to pay for the work of government departments, after which the government virtually stopped its work for 16 days. Situation was close to default, and just one day before its announcement Republicans surrendered their positions, the ceiling of external loans was removed and other than that it's been declared a moratorium on the upper limit of public debt until March 2017. It may be noted that since 2013 the rate of growth of public debt have increased, and as already mentioned, new records were set.
On what this money is spent? The biggest part of expenditure in the budget - it is a social and health insurance. These costs exceed those large objects such as security and defense all together. They consume a large part of the tax, but, despite this, the money is still not enough, and the government has to borrow more. In fact, the quality of social security and health insurance are far from ideal, and yet the funding of their budjets suffer gradual depletion. Judging by this picture, we can say that the money simply dissolve.


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