Debt Finance Economy - Economy of America

America is number one debt finanace economy. Approximate fiscal deficit is 17% of GDP. Recently we have seen economy of greece is going to default due to high fiscal deficit of GDP. so any economy of country can be default. recently i heard that consent of member on incresing debt finanace bill in senate. we can understand that indication in american economy is negative. Economy of america have option cut on expenses and increse limit of debt. So, quick action has taken by president obama is increse debt limt.we know that metropolitan and other instituion drive by debt money.

so, question is that how american economy being sustain till now. i think first american economy have fleet currency ie. Dollar ($). Still, most of the trade is being in $ in aprroximate across the world.second is american economy is very big economy approximate 30 trillion $ compratively china 5 trillion $ and india 1.5 trillion $ economies.so, rate of investment is high by investors of diffrent part of the world. american economy is favourate for investors.

but now situation of american economy is complex. Their is some challenges first to protect credibility of american economy at global level. Second challenge is to increse growth rate. Third is to increase demand of american product.

we are being see value of $ is going down, earlier value of 1 $ is Rs. 50 at present approx. 44 Rs. recently china devaluate its currency "yuan" that hampered $. In BRIC (Brazil, russia, india & china) conference, member countries want to make unique currency for bilateral trade. So, it will indirect hamper to $.

But if value of dollar will be down it will make competitive currency so, it will create high demand of american product. It will assist to recover or strengthen to American economy.

But it will concern of future we will wait to see what will happen in financial market at global platform. American economy can maintain credibility and value

BY AJAY KUMAR
ajay.mrim@gmail.com