Balance Of Payment

The U.S. government spends more than it takes in.
How is it that the United States is the most powerful country in the world and at the same time, the biggest debtor,with a foreign debt exceeding $ 7 trillion and commercial and public deficits hovering around 558,000 million.
Will comment three major causes: the weak dollar, the warsin Iraq and Afghanistan, World Crisis.

First, the weak dollar.
The dollar also lost value against other major currencies and considered a reference in internationalmarkets, as the Japanese yen, Swiss franc and the pound sterling. Undoubtedly, the main cause of this decline is the large deficit of the U.S. trade balance. In simpleterms, this means that the U.S. matter (buy) more goods and services than it exports (sells).

One cause of this deficit is the high purchasing power of U.S. consumers whodo not meet these domestic products only, but every day demand more foreign goods.
High levels of spending for the Iraq war and homeland security as a result of thefight against terrorism, together with the reduction in taxes has been doing the administration of President George W. Bush explain the large U.S. fiscal deficit
U.S.defense spending is equivalent to 41.5% of global spending, while the U.S. GDP is about 20% of the world, so the impact of defense spending in the economy is huge, severaltimes higher than other countries on the list.

Other causes of the U.S. fiscal deficit is the decline in revenues during the worst economic recession and the subsequentinjection by the Federal Reserve of large amounts of dollars for the bailout of large banks and corporations, companies Insurance, car manufacturers after the 2008 crisis.