Every family in America has a loan of 3.63 crore, Trump's bill became a disaster
US President Donald Trump's ambitious Bill One Beautiful Bill passed in the Senate on 4 July yesterday. After this bill is passed, it is estimated that to implement it, you will have to spend 3.4 trillions, which will increase the fiscal deficit of America. Trump may be praising this bill, but in America it is facing heavy opposition. Economists in the US are expressing concern that if it is not stopped, it can force the American families and the global economy system to face major problems.
Actually, the average debt burden on American families is about 2 lakh 30 thousand dollars per family. In the event of 2025, the total national debt of America is equal to about 100 percent of the total GDP of the country, while this loan is about 6 times more than the government's annual income. In such a situation, veteran investors have described Trump's Big Beautiful Bill as Big Burden.
Big Beautiful Bill or Big Burden
Ray Dalo, the famous investor and founder of Bridgewater Associates, has given serious warnings about the new budget bill of the US government. He said that if the same structure of this budget continues, then America will not only get caught in the economic crisis itself, but it will affect the whole world.
Dalo says that the US will spend around 7 trillion dollars every year, while its income will be around 5 trillion dollars. That is, a loss of $ 2 trillion every year. This deficit will increase America's national debt in the coming times.
1.96 crore loan on every American family
According to Ray Dalo, at present, America's debt is 6 times its total government income, 100%of GDP, and an average of $ 230,000 (about Rs 1.96 crore) on every American family. Not only this, if the situation does not improve, then in the next 10 years this debt can reach 7.5 times of income, 130%of GDP, $ 425,000 per family (about Rs 3.63 crore).
Only 2 trillion dollars will take interest
The cost of paying interest and principal on this increasing debt will also increase rapidly. Dalio estimates that in the coming years this burden may increase to $ 18 trillion, out of which $ 2 trillion will be paid interest alone.
What are the options before the government?
According to Ray Dalo, the US government has only three difficult options to deal with this crisis. Cut in government spending, huge increase in tax, printing notes, which will reduce the value of the dollar (inflation) and interest rates will be artificially kept below.
But the decision to print notes can be disastrous for bond holders, as this will reduce their investment value and have a profound impact on the American Treasury market.
America will not drown alone, the world will also be affected
Dalo warned that the effect of the US Treasury Market, which is the backbone of the global financial system, will not be limited to America only if weakens. Its widespread impact will be on the entire global economy and social structure. The economies of all the countries of the world including India will not remain untouched by this shock.
What is the solution?
Dalo has suggested to the US government that it should reduce its budget deficit immediately, it is necessary to reduce it from 7% of GDP to 3%. This requires the cost cut, tax improvement and balance in financial policies. Otherwise the crisis that comes can be deep and painful.
Source: www.tv9hindi.com
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