AMERICA'S FISCAL PROBLEMS.
They must be over.
The passage of the the debt limit bill by the Congress of the United States yesterday, is just a step in the right direction toward making the nation's finances completely solvent again.
America's fiscal problems are not over yet. The huge amounts that have been borrowed from debtor countries, like China and Japan, over the years must be paid back in full; but it would take more than just the determination to battle out of a pretty bad monetary situation.
Living within its means must be a lesson that should be learned first, as the consumption of world petroleum production, for example, found its way to the United States from Saudi Arabia, Venezuela and Nigeria, in such enormous quantity that 65% of the Net Domestic Product (NDP), in the most part, minimized the Gross Domestic Income (GDI), and made the national economy to become lopsided.
America consumed too much of everything that the rest of the world produced, so that its intake overshadowed its Gross Domestic Income (GDI), and that caused the country's Gross National Product to be under great strain, because what entered the nation as imports outweighed its exports.
Thus, in simple terms, what was used nationally, in the form of goods and services, went beyond what was produced. With that came the trend of all other nations exporting most of their products to the U.S.
That made America the largest economy in the world; a powerhouse that all financial markets around the world measured their performance of growth with, and where they felt safe with their capital investments.
Yet, in the real fiscal atmosphere, with respect to global economic affairs, America was uppity. It had to borrow from those that looked up to its status as the biggest trading giant among all giants. However, that false expectation must be brought to an end from now on.
There must, therefore, be a plan that would curtail the huge expenditure incurred yearly, to balance the vast economic outlay, so as for the borrowing to cease; a plan that would prioritize America's national goals, managing them under strict rules for the economy to grow strong again and become more stabilized than ever before.
It (plan) must be fully geared to paying off the National Debt that presently ran into trillions of dollars, and which must not be left for future generations to inherit.
That should be the first and foremost responsibility of the U.S. government and the lawmakers in Congress.