"The last superpower" in the debt loop

The third came when Wall Street provoked massive leveraged buyout companies for loans to be paid by the company (leveraged buy-out, LBO), which led to the acquisition of companies and fragmentation.

This continued for more than three decades, the process has created a debt jump in two ways - in the manufacturing and non-manufacturing sectors.

Non-productive sector of the economy has accumulated a huge debt. For example, vysokospekulyativnye mergers and acquisitions of companies, which were discussed above, have been financed by debt. In the 90 years of the Internet company, the telecommunications sector, and the whole <New Economy> lumped whole mountains of debt. Politics of post-industrial society implies that organizations and households had to recover their losses due to reduced production. In order to offset the effects of the economic recession, many manufacturers of industrial and agricultural production had to borrow money for the purchase of new equipment, raw materials, and even payroll. To prevent a drop in living standards, millions of American families got into debt for the payment of housing, clothing, medical bills, furniture, appliances and even food.

These two types of debts merged, leading to a sharp jump in the total debt of the country. Tsunami household debt Total debt of the USA consists of three parts:

- Consumer debt, which includes mortgage debt to buy homes, consumer debt for the purchase of home furnishings, car and so on;
- Business debt;
- General government, federal, state and local debt is debt.

Growth of household debt in the years 1945-1970 was relatively small, and until 1978 it did not exceed one trillion dollars. Then, due to high interest rates regime Volcker, he rushed up. By 1990, the debt reached $ 3.63 trillion., And for eleven years has increased to more than four trillion. Formed on the population burden of debt, unprecedented in the history of the country. Government debt at all levels, of which the federal exceeds 80%, continues to grow. By the end of last year they reached $ 7.16 trillion. Business debt - the fastest-growing. It includes two groups of legal entities. The first - non-financial companies, energy and telecommunications, legal persons and unincorporated rural farms. Second - financial companies, which include banks, insurance companies, and the Federal National Mortgage Association (<Fannie Mae>). From 1995 to 2001, the overall business debt doubled to $ 16.3 trillion. By the end of 2001 domestic debt reached U.S. $ 31.12 billion.

Yes, the external debt, which is nearly two trillion, which was used to cover the widening current account deficit of the country. Consequently, the total public debt of the United States - about $ 33 trillion. By comparison, Brazil's debt and unpaid dollar obligations - just over half a trillion. So the U.S. debt - all debts debt!

With terrible speed of self-destruction
The growth of U.S. debt has devastating effects on the economy and financial system. The figure shows the ratio of debt to GDP States. In 1970 GDP growth was accompanied by a $ 1 increase in the debt by $ 1.75. In the 1990s, every dollar of GDP growth was accompanied by an increase in debt of $ 3.60. In 2000-2001, there was an unprecedented leap - up to $ 4.91!