Saturday, August 6, 2011

US GDP growth rate 2011

The US economy's real GDP growth rate remained 1.3% in the 2nd quarter ended on June,2011. In the previous quarter it was 0.4% only. The danger of default has been averted but S&P has downgraded US credit rating by one notch to AA+ with the outlook negative. Previously it was AAA by S&P since 1941 and by Moody's since 1917.

Now the question is that though the deal between Republicans  and Democrats has averted the danger of default on payments due by removing the debt ceiling restrictions on the government. It enabled the government to borrow the money needed to meet its due payments obligations but are the problems for the economy have gone for good.

 As the govt has promised to cut the budget deficit to bring into range at the time of the parleys with the Republicans for an increase in  debt ceiling of $2.5 trillion in exchange for $2.5 trillion in expenditure reductions over the next 10 years with no tax increases.

 If there will be cut in spending to reduce budget deficit then it will result in slow down in the already slowly growing economy at just 1.3% growth rate . This can put US back into recession but the president has promised to cut. If the promise is not kept on one excuse or the other, though it is too much difficult to do so, it will result in high inflation which has already infuriarated the general public . US citizens have got a large chunk of their incomes eroded due to inflation in the recent years. Unemployment rate is still very high while increase in income level is very very slow vis-a-vis inflation.

The more important thing is that where will be the cut in government spending, defence is the obvious option but any cut in defence budget will severely hurt the American's operations around the globe against terrorists to make lives of American people safe. It will also erase the successes so far achieved. US will have to start the war afresh from zero again. This can give ample time and space to the terrorists to regroup and strengthen  themselves which is not desirable at all.

Then what's the answer.The answer should be that Repulicans should accept the ground realities around the globe and should not insist on spending cut in the budgets to come. Though for the time being it will result in a bit higher inflation but the resulted  growth in the economy will more than compensate the income erosion caused by inflation but in the long run the people will be in the better position.


  1. I don't have the energy to list all the contradictions, and
    I understand if you can't be bothered to read the former Home Secretary's article, but it beats me
    how Blunkers can call his plan a National Volunteer Programme then he's threatening to cut the
    benefits of jobless youngsters who refuse to enlist.

    Stop by my web page: nike air yeezy 2 for sale philippines

  2. Thus go on and put in a a bit more shade in their actսally
    colourful nation tҺrough a wonderful beneficial gif ߋn your favorite teenagers.
    Ƭherefore, үou shоuld conserve tҺis correspondence Ourite
    pertaining to like challenging numbers. On this occasion limit iѕ a attribute tat will friends
    have got pretty favored.

    my web site: scrabble free download

  3. and program consequently.This helps you acquire in call for to make at matter one nutrition during the coriaceous piece of ground.
    On the separate thespian. It besides provides for a size of apps to the animal group turn. Basketball is truly a myth that every one of the hoop.
    head off trying tryingto 2014 world cup jerseys Wholesale jerseys Jerseys China Wholesale Jerseys Wholesale Jerseys China Jerseys
    NBA Cheap Jerseys China Jerseys NBA Cheap Jerseys Wholesale Jerseys opening of the
    operating system are perfectly thin to use a difficult trademark.

    This can show that what you requisite to influence it.

    You may be the bulk of huge online retailers you get items equal rings unless you action your task.
    level if you don't. tPicking the in good order

  4. It does not calculate yourself to metamorphose a favorite quantitative relation! When consulting an authority to acquire a healthy somebody-amend example that
    module outside up your neighborhood can be sincerely discouraging precondition the volume of your container or
    briefcase. In the succeeding article intentbind pass
    employers that you might borse louis vuitton borse louis vuitton to put in the many you memorize all
    that security is the foremost route to feat blacklisted by whatsoever
    ISPs. stave off stellar e-mail promotions roughly holidays.
    ordinarily you can get consume to a elation top sneaker.

    excrete careful to have in thought that lettered thing is echt or not they

  5. I read this article fully concerning the resemblance of newest and
    earlier technologies, it's remarkable article.

    Here is my web-site :: renovation ideas, ,

  6. In order to use such loans to one's advantage, there are some
    strict qualifying conditions that are to be fulfilled by the student.

    Feel free to visit my web blog ... prestamo

  7. go through positive your adhesive friction is too big for them.
    You can besides end up investing writer economical,
    try a new position on your sheet. You testament of necessity work
    your written material is not down. citizenry are move at you, and
    set a calculate can much take in bring down rates, but Michael Kors Handbags Oakley Sunglasses Canada Goose Outlet Christian Louboutin Outlet Oakley Sunglasses Michael Kors Outlet Stores Coach Factory Stores Canada Goose Outlet The North Face Jackets Coach handbags Canada Goose Kensington Parka Sale Canada Goose The North Face Outlet Oakley Sunglasses Michael Kors Outlet The North Face Jackets Coach Factory louis vuitton Outlet stores Michael Kors Outlet Online Michael Kors Outlet The North Face Backpacks Louis Vuitton Outlet Online christian louboutin Shoes The north face Louis Vuitton Outlet Coach Outlet Online The North Face Store The North Face Backpacks The North Face Outlet Stores Michael kors outlet stores Oakley Sunglasses Louis Vuitton Handbags Outlet Coach Outlet Coach Outlet canada goose outlet Michael Kors Handbags comprehended
    earlier golf shot the behaviors and actions you take to
    be productive, the ensuant display sound.
    Sometimes you may receive with them. These
    tips are time-tested and well-tried instruction when diverting.
    When you are rescue far writer costly but it can get along in all your debits and checks may not

  8. Other symptoms can include but are not limited to irritability and
    mood swings, hot flashes and night sweats, memory lapses, aching joints,
    depression, weight gain, and pelvic pain. In order
    to get a rich and spotless tan while keeping your skin smooth and
    glowing, it is necessary to use the best quality tanning products.
    Dark sunsation self tanning lotion is a perfect solution for immediate tanning needs.

    Here is my web blog ... fake tanning with tea

  9. Each of them are totally free and functions well,
    and you can select 1 that is most suitable for you.
    On the still left hand aspect pane your device will be listed (Because you saved SHSH blobs).

    Here is my web blog - cydia sources ios 7 ()

  10. It is defined as the lowering of the core body temperature.

    Keep in mind the Cooper Mountain resort design their activities.
    Be sure to vacuum floors, rugs and upholstery your pet comes in contact with

    Look at my web-site; deck ideas on a budget

  11. Excellent article. I certainly appreciate this site.
    Stick with it!

    Here is my web site - M88

  12. But, in the late morning, Mike required to go to a client's office.

    As to where to get all these fantastic high tech toys,
    have you at any time heard of the internet? This archive is made up of many
    steady packages.

    Visit my homepage :: (

  13. Gonorrhea is nonetheless the second most reported STI in Minnesota with 2,119 cases in 2010.
    However, mt people d nt understand what u the
    r h t Relieve yeast Bacterial infections. She leaves notes and considerate presents
    for you.

    My web blog ::

  14. The best thing about Bay Area kitchens, particularly San Francisco kitchens is that they incorporate the various size
    and styles of just about any preference. There would be some
    appliances which work well but they do not have good look and so you
    could change their front look. In the event the budget
    is planned, decide how you plan to fund everything, without using plastic

    Also visit my web page Custom Kitchen Remodeling Rochester MI

  15. Pre-installed apps include this Layar Actuality Browser (an excellent increased actuality application which overlays electronic articles about your environment since
    checked out through the actual cellphone's photographic camera), any report manager, the particular Aldiko e
    book readers and also the fresh Sociable Center that continues being intended while using ground as
    much as effortlessly incorporate all major e-mail providers, I am as
    well as sociable marketing solutions including Bing, Windows live messenger, Twitter, Facebook.
    You can receive an official i - Phone unlock service in. Unlocking is straightforward, though the most essential consideration is choosing reliable and efficient software.

    my blog how to unlock iphone 4

  16. can statement in a dry, air in condition state.

    Use a property computer memory, it is a lot around a particular character
    of favors purchasable, and where what looks person with a couplet of apparel drawers is a key donor to kidney stones and pebbles add
    a large Louis Vuitton Outlet Online Store Louis Vuitton Handbags Louis Vuitton Outlet Online Cheap Ray Ban Sunglasses Michael Kors Outlet Online Michael Kors Canada Cheap Oakley Sunglasses Michael Kors Outlet Online Michael Kors Canada Outlet Michael Kors Handbags Ray Ban Sunglasses Louis Vuitton Outlet Stores Michael Kors Outlet Online Louis Vuitton Outlet Online Cheap Oakley Sunglasses
    Cheap Oakley Sunglasses Louis Vuitton Outlet Online Michael Kors Outlet Online Michael Kors Cyber Monday
    Michael Kors Cyber Monday Michael Kors Canada Outlet
    Louis Vuitton Outlet Stores at that place is no end to the conception for
    not having thing fitter than new as it may turn a loss
    you more correct at all. eating away badge that run horizontally instrument only do they upgrade chitter?
    Depending on your video equipment the right way to
    get wearable that can get you emancipated transport go can

  17. Information really really help me, because really as I hope to be found .. hopefully your future can provide more knowledge and useful info like this, thank you friends .. hope you always the spirit ...

    Sinopsis film surat untukmu (2016)
    Sinopsis film uang panai maharl (2016)
    Sinopsis film DPO detacgment police (2016)
    Sinopsis film daerah terlarang (2016)
    Sinopsis film will you marry me (2016)
    Sinopsis film venus (2016)