US Debt Crisis 2011

These days, US Debt crisis 2011 is becoming the question of debate. In USA, its administration makes budget in which it mentions its revenue and expenses. If expenses are more than its revenue, it tries to collect from tax or debt by US department of treasury. But now, they fix the limit of loan of US department of treasury. but its expense are more than limit of debt. Due to this, it delays or cancels some expenses and big payments. Due to this US Debt Crisis 2011 has been happened.

Its  animated video has become in youtube. Here is SAM (US Govt.). He has almost four trillion dollars expenses every year. His income is 2.2 trillion. If we do its difference. It will be deficit. He can borrows money. Sam takes loan and promise to pay interest on these loan. He takes new loan and uses  this amount for paying his old loan. Now this loan become $ 14 trillion. This is equal to entire GDP of US. Now, central bank gives him solution. That is,  he should take tax with high rate and cut his spending and issue new dollar notes. Due to this inflation happens. For decreasing this inflation, sam started production in poor countries. With this, his expenses saved but it increases recession in US. People have become unemployed. They  do not pay taxes and get the benefits of unemployement and medical. Now, in real sense this is US Debt Crisis. So following video to know US Debt crisis in detail.