The United States "Fiscal Cliff"
By Purev NARANTSETSEG
Business Associate, IMC International Ltd.
USA is the World lead country on the development. The US economic and financial environment is favorable and a most successful according to the economic and financial indicators of the Benchmark Report “A Wealth of Opportunities”. (2011, Australia)
Strategies to strengthen the US economic and financial success and advantages and US top place in the World on development are necessary for the Global intensive development. USA percentage in World GDP is 22.2% according to this Benchmarking report. General government net debt of US is 76.7% as a percentage of GDP. USA has ranked in the top rating according to the financial development overall index and financial market index comparing to the other countries in the World. Size of the US Stock markets in the Asia-Pacific Region is 14,543 billion US$ and US has ranked on the top ranking according to the stock market size. Also USA Domestic Debt securities is 25,349 billion US$ and International Debt securities is 6,730 billion US$ according to this Benchmarking report. The US official federal debt is $16 trillion and total government debt is $120 trillion for social security, medicare and veterans according to the “Fiscal Cliff” analysis of the Weiss Research Inc.
The US “Fiscal Cliff” is a World collapse. Evidently, the “Fiscal cliff” has the negative impacts to the Global economic and financial development, US Economy, stock markets and business development and has negative consequences on the variety factors. Impact and consequences of the “Fiscal cliff” are expressed by the indicators such as tax increases, plunge, spending cut, money printing, high inflation, food cost increase, cold and silver cost increase, high unemployment rate, risk urban violence, disaster of middle class and small businesses, moving middle class to the poverty, economy shrinks, destabilization in the Global banking system, worldwide crisis and disaster, companies recession and stock fall.
Taking measures and implementing strategy successfully to decide issues “Fiscal cliff” are necessary for the Global and US economic, financial and social development. Strategy, plan and measures are focused to the Global, US, companies and family scope. Strategies and policy of the International development organizations and multinational large companies have main role in the Global scope to decide negative impacts and consequences of US “Fiscal cliff” to the World Economic and financial development and others regions and countries. The US strategy and policy has key roles in the US and Global development. So US possible strategy is focused to the right tax measures encouraging US people and spending effective management; national economic-financial effective management and improvements; effective debt management; alleviating poverty and unemployment; encouraging middles class and small and medium businesses; right investment, stock markets and banking system protection and encouraging. Main possible strategy of the companies are addressing to the effective correct investments, effective debt management of companies and risk management and wealth and profit protection. Family possible strategy is to protect family wealth, income, saving and profit; is to invest to the correct sectors; is make safe money for kids and retirements and is to invest to right and profitable small businesses.
In final analysis, US economic and financial situation is favorable in the present time. The implementing strategy and measures to protect and strengthen the present economic and financial favorable opportunities and capacity and to decide “Fiscal Cliff” on right ways are necessary for the Global and US development.
Main references:
Australia “A Wealth of Opportunities”, Benchmark Report-2011, Australian Government-Australian Trade Commission
Martin D. Weiss “Emergency Fiscal Cliff Briefing, Weiss Research Inc, 2012
Martin D. Weiss “How to survive America’s Great fiscal Cliff”, Money and Markets, 2012
Martin D. Weiss “Great Fiscal Cliff of 2012-2013”, Money and markets, 2012
Mike Larson “Fiscal Cliff Briefing”, Weiss Research Inc, 2012
“Fiscal Cliff” …an Illusion or Reality, Uncommon Wisdom, 2012