America has a very big problem, due to the financial analysts who calculate and report the US Governments debt. They only look at parts of the fiscal equation before rendering their reports. They only factor in debt where the US borrowed money. In essence where the Federal Government has sold Treasury Bonds. Financial analysts don't factor in other important government debt or obligations. Such as $6 trillion in loan obligations from Fanny Mae and Freddie Mac, which are guaranteed by the Government. Or over $1 trillion in student loans that again are guaranteed by the Federal Government. The US is required to pay on these loans in the case of default.
The reality right now is that more and more student loans and home mortgages are being defaulted on every day. But none of this debt is included in the national debt or GDP numbers. Next in line comes Social Security and Medicare obligations which also are not factored in. This is real debt that amounts to an additional $3 trillion plus dollars. Then as a nation no one factors in the debt created from the individual states that the Government is obligated to pay for. If these real numbers were actually included to determine the true US Debt and GDP numbers, then the United States would actually be in worse fiscal shape than Greece. Currently Greece is the highest indebted country within the euro zone.
What is currently happening today due to the weakness in the euro, its giving strength to the dollar under the wrong conditions. People in masses are dumping the euro and buying dollars as a safe haven asset. This allows the interest rates to be very low for the US Government to borrow more money. This creates an illusion that the US economy is in better fiscal condition than the other economies in Europe. The massive problems in Europe are currently mainstream. This is what everyone is looking at and paying more attention too.
Unfortunately this also diverts attention from the United States making it appear America is in a much better financial situation. It is only a matter of time before the real truth is apparent. The US dollar is still the worlds reserve currency, being used and traded daily in many countries. Once the house of cards that America is currently building itself upon comes crashing down, it will destroy the dollar and not only take the United States out but many other economies with it.
Gold and silver are currently still trading at enormous discounts. It's an exceptional time and opportunity currently to invest in these safe haven assets. Once the European and American economies collapse, very few hard assets will remain that will hold their true value. Investing in physical gold and silver today will insure your financial future tomorrow and beyond.
Tom Genot -
For information, news, articles and videos to invest in gold and silver and where the best places are to buy it. You will also find information for preparing and protecting you, your family and your assets from the pending economic crises and destruction of the US. Dollar. Author Tom Genot provides information and resources helpful to everyone. Insure your prepared beforehand, check us out at www.coinbullion.net.
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Tom Genot
Economics Article FeedFind More ArticlesSearchSimilar ArticlesWill the Euro Currency Bloc Fail?The Gig Is Up, Over And Done2011 Economic Forecast-Part 1: The World Forecast From a US PerspectiveRecent ArticlesUsing The Yield Curve Data To Predict GDP GrowthUnited States Economy Becoming More Like Germany in the Near Future?What Is Quantitative Easing and Does It Work?Student Loans Leading To More BankruptciesThe Four Economic SeasonsUS Economic Trends for 2012How to Compete With a Computer in Economic AnalysisGlobal Economic Trends for 2012The Risks of Being a LenderBaby-Boom BombSubmitted On January 20, 2012. Viewed 7 times. Word count: 473.MLA Style Citation:Genot, Tom".".20 Jan. 2012EzineArticles.com.14 Feb. 2012
Genot, T. (2012, January 20). . Retrieved February 14, 2012, from http://ezinearticles.com/?Sovereign-Debt-Problems---United-States-Or-Europe,-Who-Is-Worse-Off?&id=6829833Chicago Style Citation:
Genot, Tom "." EzineArticles.com. http://ezinearticles.com/?Sovereign-Debt-Problems---United-States-Or-Europe,-Who-Is-Worse-Off?&id=6829833
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