Since April 2010, the Pew Fiscal Analysis Initiative has published several reports explaining the medium-and long-term fiscal challenges facing the federal government. With stagnating economic conditions and the passage of new legislation, especially the Budget Control Act of 2011, the outlook for the deficit and debt has changed considerably over the past six months.
Click here to see the rest; PEW
From the Chinese Ministry of Commerce
On October 11, the U.S. Senate passed the “2011 Oversight Reform Act of currency exchange rate,” Shen Danyang, a spokesman for the Ministry of Commerce has issued a statement that the recovery in the global economy facing a severe test of the critical moment, the U.S. Senate to force through legislation to promote trade partner currencies, is tantamount to upgrading the wrong signal on protectionism. This is a serious violation of international rules, and not only threatens the stable development of Sino-US economic and trade relations, but also with other countries to jointly cope with challenges, runs counter to efforts to oppose trade protectionism, China is firmly opposed.
Shen Danyang stressed that China has always maintained need for the two sides to strengthen communication, and to take common positive measures to develop Sino-US economic and trade cooperation. Once the motion is formally made into law, it will inevitably lead to serious damage to China-US economic and trade relations. China hopes that the U.S. after a rational and objective treatment of the exchange rate, makes the right choice.
A succinct way of looking at the US’s financial position:
US
Tax Revenue: $2,170,000,000,000
Federal Budget: $3,820,000,000,000
New Debt: $1,650,000,000,000
National Debt: $14,271,000,000,000
Recent Budget Cut: $38,500,000,000
Now
remove 8 zeros and pretend it is a household budget:
Annual
family income: $21,700
Money the family spent: $38,200
New debt on the credit card: $16,500
Outstanding balance on the credit card: $142,710
Total budget cuts: $385
