The problem of American debt

The problem of American debt - o The problem of American...

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o The problem of American debt - unsustainable The federal deficit and total debt Federal debt – the money us government owes for its expenditures Half of debt is public debt China is the largest holder in American treasury bills US has to borrow money to pay interest on borrowed money The trade deficit Consumer debt Credit cards, car loans Mortage debt – helped produce the current financial crisis US debt clock and total debt as % of GDP Total debt load is about 350% of the GDP its never been higher The richest generation in world history, the baby boom generation Short term origins of the crisis 2001-2007 o Bush tax cuts Fiscal policy – gov tax and spending policy Monetary policy – regulating money supply Series of very large tax cuts bc budget was in surplus so he thought tax payers were paying too much Bubble – rapid increase in prices that is not based in any real change in that asset Bush tax cuts ended the budget surplus and pushed federal budget back
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This note was uploaded on 11/27/2011 for the course HIST 128 taught by Professor Nelson during the Fall '08 term at UNC.

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The problem of American debt - o The problem of American...

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