Can someone explain to me in detail what the current US economic crisis is about?

Can someone explain to me in detail what the current US economic crisis is about? Topic: Can someone explain to me in detail what the current US economic crisis is about?
June 20, 2019 / By Damiana
Question: I know the US is in trillions of dollars in debt and there is race amongst legislation to find a solution. I read that Boehner's ceiling plan passed the House. What does it mean if there is no solution to this issue? What is the best way to resolve the problem?
Best Answer

Best Answers: Can someone explain to me in detail what the current US economic crisis is about?

Blythe Blythe | 9 days ago
This is a self inflected crisis in other words if the debt celling was raised the government would go on just like it has. The debt celling is a law passed in 1917 during WW1 to keep spending in check. It has been raised every time it has needed to be raised. As to what it means if it is not raised. It will mean that as of 12:01 AM Aug 3 the US will run out of the authority to borrow money. That means that the government takes in about 175 billion dollars per month but spends 325 trillion dollars per month so the difference is money the government won't have to pay its debts. The Treasury Dept. will have to decide which bills will get paid. Now for the real kicker, the constitution requires that congress pays the countries debts so by not raising the debt celling they are in violation of their oath of office by not protecting and defending the constitution. The best way to solve the problem is to pass the debt celling and have this fight where it belongs on Oct 1 when the new fiscal year begins. Because the government will need spending authority for 2012 then. Hope this helps.
👍 166 | 👎 9
Did you like the answer? Can someone explain to me in detail what the current US economic crisis is about? Share with your friends
Blythe Originally Answered: Is the current economic crisis a crisis of Capitalism or a crisis of Leftism?
No. Capitalism failed and you have no idea what left politics really looks like. Workers are not to blame for the situation they confront. Rather, the crisis is an indictment of capitalism. It is the outcome of an economic, social and political development stretching back four decades. Since the mid-1960s, the global position of American capitalism has dramatically deteriorated. Its once dominant industries have been overtaken by rivals in Europe and Asia. In response, the American ruling class has launched a brutal offensive against the living standards and social position of the American working class in order to drive up the level of exploitation. Entire sectors of the American economy—including most manufacturing industries—have been systematically dismantled because they were not sufficiently profitable. Millions of jobs have been destroyed and entire cities devastated. At the same time, American capital has scoured the globe for cheap sources of labor and higher profits. The protracted decline of American manufacturing and the growth of investment banking and speculation as the major source of corporate profit have led to a concentration of power in a financial oligarchy that, for all intents and purposes, dictates political and economic policies. Basing itself on the privileged position of American markets and the US dollar, this oligarchy has been able to borrow resources from all around the world to fund its parasitic activities, which are increasingly divorced from the production of any real value. This process has generated deep structural imbalances in the world economy, including an extreme growth of indebtedness in the United States. The proliferation of speculation in stocks, derivatives and, finally, mortgage-backed securities was the means through which vast fortunes were built up. This process was inherently unstable and has come crashing down.
Blythe Originally Answered: Is the current economic crisis a crisis of Capitalism or a crisis of Leftism?
Some of the great minds are addressing this issue , right now , in the various countries . We cannot ask for anything better than this . It is not just the economists who are involved . Sociologists , scientists , free thinkers ... are all involved . They feed their findings and recommendations to the country heads at the G 20 summit. The world expects that these recommendations will be implemented and monitored . So far so good. Then what goes wrong after this? It is in this implementation that individual countries fail. These country heads may have their own political compulsions and ground realities that make them hesitate to take harsh decisions to implement , fearing some backlash and loss of political base . At this crucial point there is no accountability This is where the G20 and United nations should address the issue . In the earlier years Security of the nations and common natural calamities made the countries come together under the banner of the United nations.Today economic crisis is equally , if not more , an international issue . The United nations should be given powers to pull up wayward countries if they fail to implement the G20 recommendations . If a country head of a rogue nation can be tried for treason and murder of citizens ( at the Hague court) an economic offender of large proportion should also be hauled to the world court for that offence . G20 countries` heads will call this an 'internal matter' and shut the UN out ! This should be changed . An AIG , a citi bank , an auto maker failing anywhere in the world spills on to the world follor and a few greedy people are responsible for these manipulations . These rich people challenge the governments with their own crooked legal ways . if these people are hauled to the world court the world will know their misdeeds. But this is a mere wishful thinking . It will not happen . Alternate energy holds the key to turn the world to another direction . 30 years ago oil changed the economy and lives of millions in the middle east . Mere deserts got converted into oasis and the dollar reserve and dollar trade in oil is choking the world. Find a new energy . and we will find new avenues opening up. May be Africa. May be south america. Implementation is the key.

Aiyana Aiyana
The crisis is about the fact that we are broke and Democrats want to continue borrowing so we can continue to spend money we don't have. They think that continuing to borrow and spend the way we have been will somehow lead to a good conclusion. The end.
👍 60 | 👎 2

Tranter Tranter
You tried this before. Looks like a summer school project since this stuff is all over the news. Do you own homework.
👍 52 | 👎 -5

Tranter Originally Answered: Current economic crisis vs. great depression?
Actually, you know less than you think Hoover was a great interventionist like Roosevelt. Bush and Obama are doing the same thing that the other pair did and it only makes the problem worse. We need to save money and repay our debts. The programs of these 4 presidents has been to increase spending and does not allow us to liquidate and save for the future. This is why the Great Depression did not end until regulations were relaxed after WWII and this will not end either until the government allows us to save again. Look up Hoover's Wikipedia article: you'll be very surprised.

If you have your own answer to the question Can someone explain to me in detail what the current US economic crisis is about?, then you can write your own version, using the form below for an extended answer.