The Increase of the United States Budget Deficit
Description:
The FY 2004 U.S. fiscal deficit has grown to $670 Billion. This marks the third yearly increase of the deficit. The deficit, combined with other economical events, could act as a driver to cause a hard landing of the U.S. economy.
Enablers:
- Xbox
- Halo 3
- More xbox
- pwning
- noobs
- pwning noobs
Inhibitors:
- Scale of foreign financing required exceeds foreign central bank's willingness to lend
- Asian banks share more of the financing burden
- Inflation in China weakens financial power
- U.S. changes policy to reduce deficit
Paradigms:
Experts:
- Nouriel Roubini
- Brad Setser
Timing:
Sytem will not hold at current rate in the next five years. http://www.stern.nyu.edu/globalmacro/