The USA is a long-standing debtor, and every second its debt is increasing by $13,194.
Total amount of the US state debt has reached a fantastic record figure – more than $7,000 trillion by February 19. This happened for the first time in the US history. The debt of 7,034,062,581.81 (at 5 pm MSK, February 19) is equal to 2/3 of US GDP.
The USA returned to the sad time of budget deficit 1.5 years ago. 2002 financial year finished on September 30 with $159 billion budget deficit. The deficit was increasing fast, and by the end of 2004 financial year will exceed $0.5 trillion. Washington needs money for military.
Recent time seemed to be a dream. When US 42nd President William Jefferson Clinton’s term expired, George Walker Bush inherited substantial financial reserve. 3.5 years ago budget surplus was at the record sum of $236.9 billion, and economists predicted the finance of the USA will remain in similar good condition until 2010. US State Treasury was thinking of purchasing the state debt.
All happened differently. US political tradition is: when Democrats rule, budget deficit reduces, when Republicans are in power, the deficit increases.
One can say the USA was not in luck. The unlucky thing was that in 2000 former US Vice President, Democrat Albert Gore lost about 1,000 votes in Florida to George Bush which determined the results of presidential elections. Exchange market fall which happened during the rule of President Clinton followed with economic recession hit the biggest economy in the world. Then the unexampled terrorist attacks on 9/11 in 2001 and two victorious military campaigns in Afganistan and Iraq demanded extra budget spending.
As a result, in October 2002 famous “Debt Clock” in New York started counting the US state debt again. The clock was cut off in September 2000 whet Clinton administration was maintaining positive balance of state budget and decreased the debt. After two years of the clock idle, a 13-digit number appeared on the giant indicator board and it was constantly increasing. Every day the US state dеbt increased by 1.77 billion dollars, and is current sum means that every US citizen owes $23,980.88 to domestic and foreign creditors.
The massive digital clock was set in 1989 on the intersection of 6th Avenue and 42nd Street. The clock’s author – New York developer Seymour Derst - spends $2,000 a month to attract the attention of Americans to the state debt issue. Yet, his expenses seem not to achieve his purpose. However, George Bush running for presidency again, promises to cut the budget deficit from the current five percent to the more acceptable figure of two percent. However, the price of the promises made before elections is low.
Financial markets analyst