The United States is currently struggling due to a severe economic slowdown. The profits of many corporations have been badly hit and their levels are on the decreasing trend. The growth rate of jobs is not showing any promising figures. The jobs due to the internet are also fast diminishing. Despite the monetary stimulus of trillions of dollars that have been poured into the fragile U.S. economy by the Federal Reserve, the expected results have not been reflected in the state of the financial system; leaving a taste of bitterness in the minds of the U.S. citizens.
With the number of underemployed people in America continuing to remain at fifteen percent, it is an upsetting fact that about forty four million U.S. citizens have to avail the ‘Food Stamps’ Program, or the Supplemental Nutrition Assistance Program (SNAP) that aids lower income groups to buy food at subsidized rates.
As regards the housing sector, the home foreclosure rates are fast declining. There has been a considerable decline in the mortgage rates. In effect, the number of prospective buyers of homes has increased substantially. There are almost five million cases of home mortgages that are in the process of foreclosures or whose payments have been defaulted. In addition, some home owners have been left with properties that have been so severely devalued, that if they sold them today, the money received would not be sufficient enough to even pay off their debts! On the other hand, sales of new homes have plummeted to record exceedingly low figures since 1963! The resale of homes in the U.S. too is not showing any promising results. Consequently, recuperation in the housing sector may take an inestimable period.
This year, The U.S. official national debt may cross the $20 trillion figure, with the exclusion of off-balance-sheet items like old age security, Medicare and other government promises to its citizens. If the unfunded liabilities and entitlement to the citizens are added to these, one could unofficially arrive at a figure of $100 trillion; which is 150% of the Gross Domestic Profit! Now add about trillions of dollars that the politicians have appended to the government spending. Lastly, include about $1 trillion that have affected the American banks by the European debt crisis. All these are indications of worse things to follow in the U. S.economy.
Mexico,India and China are leading the chart of the world manufacturing industries. In 2004, the interest rates were slashed down in the U.S.That was the time when the greater part of the borrowing was done to invest in real estates. Naturally, that gave rise to inflation. The increase in the prices of many commodities has been on the rise since that time. The prices of precious metals like gold and silver too are escalating. The U.S. dollar is fast losing value with the fluctuations in the stock market. Despite the money printing strategies of the government, the U.S. does not have enough financial resources to see through the next recession. As a consequence, it looks like the U.S. economy is going to be hit very badly with its revival road seeming a long way ahead!