US debt hits US$15 trillion

do not believe that there is cause for concern here so far.
However, in the future America and all the other financial markets could face a new crisis, similar to the one that happened last summer. You may recall that at that time the disagreement between the White House and the Congress on whether to raise or not the state debt limit resulted in panic at stock exchanges and in lowering the US credit rating by Standard and Poor’s.
Barack Obama’s critics in the US and opponents of America’s global economic leadership have got a new reason to be overjoyed. The US state debt has reached the frightening sum of US$15 trillion.
The latest report of the Ministry of Finance contains this exact sum. In the last three years of Barack Obama’s presidency, state debt has grown by 1,5 times and this is not to the president’s advantage. However, this is only Obama’s concern. Markets are too busy with other things, Vladimir Svinarenko, an analyst of the Solid investment and financial company says.
“Markets are focused on European problems and European state debt so far. In this connection, the aggravation of the situation on the American bond market will draw the speculators’ attention to American problems. The headache over the state debt ceiling in the US is only beginning and we are sure to see a lot of discussions and debates on this subject. The US is unlikely to stay within the forecast limit of state debt.”
Experts say that by the end of the year US state debt will reach the size of the GDP, which is estimated to be US$15,3 trillion at present. It is worth mentioning that according to EU standards, which the US so ardently criticises, state debt should not exceed 60 percent of the GDP.
However, investors hope that the Democrats and Republicans in Congress will manage to compile a plan for lowering the level of state debt, says analyst Anton Zakharov from PromSvyazBank.
“According to the latest comments made by representatives of both the Republican and Democratic Parties, they will manage to reach a consensus. So hopefully we won’t witness a situation similar to the one in August when the debates on raising the state debt ceiling made the S&P ratings agency lower the US credit rating.
On the other hand, we should not rule out a negative scenario of developments. As the year is approaching its end, there can be some negative information which may provoke the markets to fall.” – The Voice of Russia.