The 44th President of the United States, Barack Obama has re-instated hope in his people with the words, “yes we can’. Under his long and drawn out plan, he refers the Car industry as the ‘America’s backbone’, and has promised an economic package of roughly $150 billion. He also proposes unemployment benefits coupled with a plan to help the poorest of the poor by virtue of food stamp increase, utilized by 30 million Americans.
The differences between the expenditure and revenue though have a different story to tell! It is estimated that the total amount this difference would approximately total up to $1 trillion, during the period ending September 2009. While this would mean that the year 2008 deficit would be doubled, there’s heartening news that the US Treasury Department plans to float US treasury bonds worth $550 billion (€435 billion) on world financial markets. It is also understood that an additional dose of these bonds that are worth $368 billion would be scheduled for a release in the first three months of the year 2009.
On the other hand it is also speculated that government debt is likely to make America’s competitors quite strong. The silver lining here is that Obama has strong political supporters who would call on the new administration and come up with plans of long-term responsibility with regard to environment and economic policy.
