June 7, 2011
“U.S. funding for future promises lags by trillions”
The federal government’s financial condition deteriorated rapidly last year, far beyond the $1.5 trillion in new debt taken on to finance the budget deficit, a USA TODAY analysis shows.
The government added $5.3 trillion in new financial obligations in 2010, largely for retirement programs such as Medicare and Social Security. That brings to a record $61.6 trillion the total of financial promises not paid for.
This gap between spending commitments and revenue last year equals more than one-third of the nation’s gross domestic product.
- A d v e r t i s e m e n t
“Dollar Index at 1-Month Low as China Warns on US Assets”
The dollar fell to a one-month low against a basket of currencies on Tuesday and a record low against the Swiss franc after a Chinese official said the greenback would continue to weaken versus other major currencies.
The head of the international payment department at the Chinese forex regulator also warned about the risks of excessive holdings of U.S. dollars.
The dollar index [.DXY 73.53 -0.42 (-0.57%) ]fell to a low of 73.601, the lowest since May 5, while the greenback fell to 0.8328 Swiss francs on trading platform EBS a record low.