Critical Warning Number 6
Today the U.S. is facing problems aplenty. Its currency is fast losing value as compared to other currencies of the world. Its state of economy is in doldrums even with the three rounds of quantitative easing that have been implemented in order to boost its monetary condition. Recovery has been infuriatingly slow in various sectors since the year 2009.
The U.S. housing market has a long way to go before it can return to the path of average growth. Consumer spending that is a contributing factor to the growth of the economy has been cautious and hence this state is unfavorable for supporting an increase in the number of jobs. The unemployment rate was 7.7% as of November 2012 (Source: Wall Street Journal, December 9, 2012). Though it did fall down from 7.9%, the reason has been attributed to more people dropping out of the labor force, which is definitely not a healthy sign as it is indicative of jobs that are growing harder to find. There is an air of muted recession despite a generally fluctuating price in commodities.
The credit crisis in the euro zone has affected many of its countries. The governments of these countries did not get sufficient revenue in the form of taxes from their citizens on account of the decreased values of the properties. Read More