Thursday, August 4, 2011

US debt tops 100% of GDP: Treasury


US Treasury Secretary Timothy Geithner (C) walks to the Rose Garden at the White House before US President Barack Obama made a statement to the media about the passing of a bill raising debt-ceiling and cutting spending in Washington, August 2, 2011.

Source: Press TV
http://www.presstv.ir/detail/192288.html

The US Department of the Treasury says the country's debt has topped 100 percent of its gross domestic product amid concerns over the slow pace of economic recovery.

Washington's gross debt rocketed $238 billion on Tuesday to reach 100 percent of its GDP immediately after US President Barack Obama signed into law the congress legislation to raise the country's borrowing ceiling, AFP reported on Wednesday.

On Tuesday, Obama voted in favor of a controversial bipartisan plan to raise the debt ceiling of the United States in exchange for spending cuts, just hours before the first ever default in US history.

The US Treasury figures show the new borrowing has increased Washington's total public debt to $14.58 trillion, which stands higher than the end of 2010 GDP of $14.53 trillion.

It has also put the US within a coterie of countries whose public debt exceeds their GDP, including Japan (229 percent), Greece (152 percent), Lebanon (134 percent), Italy (120 percent), and Ireland (114 percent).

According to the default-preventing compromise bill, the US debt ceiling was raised by $2.4 trillion, to reach a total of $16.7 trillion.

With its colossal debt topping its GDP, the United States is now also within the group of highly indebted countries like Italy and Belgium.

The last time America's debt surpassed the size of its annual economy was in 1947, two years after the end of World War II.

Credit ratings agencies such as Moody's Investors Service, have warned Washington to reduce its debt-to-GDP ratio quickly, otherwise it may face losing its triple A rating.

No comments:

Post a Comment

Thanks for commenting on this post. Please consider sharing it on Facebook or Twitter for a wider discussion.

Russia Today (Live)

World News 2017

South Front Military Review 2017

Syria - News 2017

Venezuela News and Opinion

Yemen News 2017

Palestine & Israeli Crime 2017

Iraq News 2017

US News 2017

Debate – Global Issues 2017

Current Affairs - Important Interviews – 2017

Important Information 2016 - 2017

The Russian Perspective

Turkey News 2017

Ukraine News 2016 - 2017

Iran News 2016 - 2017

Important Documentaries

Viewpoint, Discussion & Opinion - 2017

Global Economic News 2017

Egypt News 2016 - 2017

Libya News 2016 - 2017

Bahrain News 2016 - 2017

Abby Martin – Empire Files

George Galloway – Comment & Opinion

Sheik Imran Hosein - Islamic Eschatology

English FA Cup 2016 – 2017

New Age Weather

Space News

Music for the Revolutionary Mind

Global Revolution LIVE!

Watch live streaming video from globalrevolution at livestream.com

Japan’s 3 Nuclear Meltdowns STILL ongoing (News Censored)