As it was informed by "Market Leader (US)"
Will USA announce default on its debt?
Not so long ago the press service of the IMF released to the speech made by the IMF's first deputy managing director John Lipsky during the US-French seminar in Washington. The report shows that the IMF is concerned about the current situation of the US economy and national currency (which is a global currency).
Masterforex-V Academy experts have considered the current financial and economic situation:
What is happening to the US economy?
The world’s biggest economy (25% of the global economy) keeps losing its ground:
· According to the World Bank’s forecast released in March the Chinese economy is expected to outpace the US one by 2030.
· Lipsky assumes that it is going to happen by 2020.
· Not so long ago Standard & Poor's decreased the long-term forecast for the US sovereign debt from “stable” down to “negative” for the first time in 70 years.
· Within the next decade the USA’s net budget deficit is expected to grow by $10,6 trillion up to $25 trillion. In order to pay the debt the US economy should grow by 5% every year within the next 10 years, which is very difficult for a developed country (the Fed Res expect the growth to be half as much).
However another (and more dangerous for the global economy) way for the US to solve its economic and debt problems could be the devaluation of the US Dollar: