AMERICAN DEBTS ARE THE BIG THREAT TO THE ECONOMY OF WORLD

AMERICAN DEBTS ARE THE BIG THREAT TO THE ECONOMY OF WORLD

American debt

During last decade American economy has to face the recessions of the century. Two year ago in last recession the unemployment in American and in allied countries becomes the real cause of worry for rulers of the countries. The after effects of that recession appear in the form of trillion dollars of debt. This debt is now transforming in monster for the Americans especially and for the whole world generally. Reason is that the debt is now reaching the level of 16.07USD trillion. The real worry is that its cost becoming out of range for the state departments. Real picture of this threat to the government is presented by the biggest accounting company “Deloitte”. They said that “The debt crisis is likely bigger than you think”. This sentence is enough for announcing the alarming situation for American economy.

During last few economic recessions it has been observed by the economists of the world that American economy shed direct adverse effects on other economies of the world like European countries Australia and third world economies like India, Pakistan etc. Therefore it is clear from the last experience that the economies are on the verge of destruction-if this monster of debt is not handled properly by Americans. The big stock exchanges and their indexes like NYSE, NASDAQ,ASX BOMBAY SE,CAC,DAX,DOW JONES,DSM20,DUBAI FINANCIAL MARKET GENERAL-INDEX,EGX 30,FTSE 100,HANG SENG,IBEX,ISE 30,KL FUTURE,KUWAIT GENERALINDEX have already started showing the bad effects. In other words economies of the world are waiting for the great downturn which can crash most of the economies of the world especially the growing economies.  

American Debt Graph

The deloitte study reveals that the present conditions of debt become worst for the American government when inverters start feeling no interest in providing more loans to the government. Moreover due to this heavy loan the rate of interest is rising rapidly and if this rate reaches the 3 percent level this will be the point of no return and the crackdown of economy start rapidly which not only abolish the control of government on economy but also can create disturbance among the people which is very alarming situation for the economy of the world as a whole. In last recession world has faced the trailer of this disturbance in time street New York and in most of the countries in Europe. When people started the movement of disobedience and created the law and order situation in the country.

The study reveals that the interest of this debts can reaches to the 4.2 trillion USD. This huge amount can solve the major problems of the country as mentioned in the following lines:

•    With this amount America can build 6 space stations.
•    This amount is enough for building the 1300000 km of highways.
•    Pay the tuition fee of all the students in the country.
•    This amount is equal to the triple of the fund utilized by the government in research.
•    This amount is enough for setting off the 80% of global warming atmospheric pollution and  many more.

Taking an eye on the above mentioned facts it is clear that this huge amount is unbearable and no one can grip this monster if it is started its functioning. Moreover this big amount can resolve the big problems facing by the American public in specific and the whole world in general.

Above presented is the grim picture of the situation. However there is another opinion which reveals the other side of the picture. The opinion is that the major part of this 4.2 trillion Which is they payment of interest of this huge debt goes back to the Americans because the majority of the lender belong to the country. It means the payment will not shed worst effects on the economy as a whole. The funds mainly remain in the country i.e. these funds circulate from government agencies to the public which eventually can be utilized on public interest and on welfare of the people. However some other experts say that if the interest payment is made out of country which mainly goes to the Chinese. Than it means that you are financing the Chinese military against your country and your interests.

American Whitehouse

This is as a whole an alarming situation for the economic position of America. It should be resolved timely otherwise something unbearable can be occur in near future. Some good companies are making their way to resolve the upcoming recession like b binary. Their motto is Trade with [b binary] for quick profits and fast, easy withdrawals. Receive a 100% match bonus on your first deposit.
 
 
 
EFFECTS OF RISE AND FALL IN PACE OF CHINESE ECONOMY ON THE AUSTRALIAN MINING INDUSTRY

China is the biggest gainer in world economy in last few decades. The economy of the china dominated almost all the economies of world. They are progressing like the bullet train and no other nation is reaching to their speed. In last four to five years Chinese investors targeted the mining resources like iron, nickel, copper etc. For this purpose they have invested in Australian resources and import lot of raw material from Australia for manufacturing of their domestic as well as international demanded products.In last few four to five years they made the progress with unbelievable speed but now the economist are started talking about the falling speed of their economic growth.

Many experts says that in the year 2011 and 2012 the speed of rising the Chinese’s economy is not with the pace with which they were progressing during 2007 to 2010. Different experts quote different opinions for this fall. Some says that it is due to the effects of world economic recession 2010-2011. They said that due to this slum in economies of the world purchasing power of the people affected adversely and people could not come out from their basic needs of food and housing facilities. That is why a trend appears in the whole world to save every penny for meeting the basic needs of food and housing. While other said that it is the start of downfall of Chinese economy. They said that everything which goes upward will eventually come down. The argument behind their opinion is that china has made superfluous investment in their domestic projects which don’t support their rapid progress requirements. That is why the pace of Chinese economy is slowing down and they say that this will end on total fall of Chinese economy.

As mentioned above Chinese invested huge amount of funds on mining industry on Australian resources. This huge investment generated an artificial temporary boom in the industry and majority of the investors start thinking that investment in this industry is like jackpot in gambling. But this way temporary effect and now slowing speed of Chinese economy is shedding its effects on this industry and it is returning towards its natural pace. Taking in view this trend in mining industry a leading Australian economist Dr Alex Cowie make a report about this trend and he advise the investor not to invest extra in Australian mining industry and find other alternatives. This opinion is on the realistic ground and has various valid points regarding this industry in Australia.

Dr Alex Cowie revels that the boom in iron core, ore and other form of iron is near to end and the biggest gainer of 2008 to 2010 iron is now going to attain its real position in economy and there is no chance of getting boom like past in near future. Therefore, the dreams of getting ultra-high profits from this industry are going to end it is the time for the investor to move towards some other alternative. Those who want to remain in the industry should consider the high tech products in this industry for their investment because there is some scope of high tech products of mining industry in future market.

American Debt compare to other world countries

The findings of Dr Alex Cowie are also appearing in the stock exchanges and rates of shares of iron dealing companies in Australian stock exchanges rapidly falling down like the shares of Blue Scope Steel and One Steel etc. are down more than 80% in the current as compares to the last three to four years. This is the big indicator of the trend reveled by Dr. Alex. Another suggestion of Dr. Alex is that make likely be considerable
asset in energy resources. The reason is that in coming years the reserves of oil and other related commodities are going to extinct in some countries and a worst demand can be generated due to such news which can pay the investor much. Therefore, it is clear from the above discussion that there are major effects of rise and fall of Chinese economy on the mining industry of Australia and related fields.  Therefore be careful in making investment in mining industry especially in Australian environment. However some good companies are already making arrangement for this like trade-rush for the investors of Australian stock exchanges. They claim that Trade with [trade-rush] for quick profits and fast, easy withdrawals. No commission, no spreads or hidden fees.