The Problem with US Economic crisis US is the Biggest economy of the world.

Lets understand the basic problem with th e American Finance. The US government has increased the basic facility to its citizen like the Insur ance bill, Heath care, security etc so much that it makes it the burden to its e conomy to almost say $1.6 trillion but the revenue of the US problem is that It had the revenue of only $ 1.2 trillion only. So to make up its deficit the US issue Treasury bills but this further aggravate the problem as this comes at the price of interest it has to pay to its Treasur y bill holders. The interest over all these Treasury bill has cumulated over the se years and now the US is under the huge debt which is almost equal to its GDP. The problem becomes more complex as US government exports the jobs to offshore i n race of making more profit. So the Tax collection by the government is still d ecreased while the burden of its subsidiaries is not coming down. Now the US is coming under the pressure as 1. The debt over the government id too high 2. The revenue is decreasing in the wake of exporting jobs 3. No money in the US banks ( if it had it would have paid its debt) 4. The cost of education in US is so high to be afforded by the citizens. S o this in long term, say the next generation the citizens wont be able to afford to compete with the Asians. So to overcome this entire problem the US government did a blunder in 200 8 crises by. Printing more US $. This added to the headache of US as printing more currency means degrading the value of currency so this has further degraded the value of US $ irreversible. Say till date 1 US $ was enough to buy 10 breads but now it needed $12 to pay fo r the same. But the money with the citizens is the same so this has made the citizens poorer than they were. Now the government cant reduce the subsidiary over its public plans as this woul d cost the government its chair in the parliament and also government cant incre ased its revenue So now what Mr. OBAMA can to avoid these coming crises