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Federal Targets Reduced
the federal funds target was reduced from 5.25% to a range of 0% to 0.25%, where it has remained since. -
econmic stimulus
the economic stimulus( aka the recovery act) is signed into place and cost the government 831 billion. -
Dollar Decline Lowers Imports and Exports
The dollar declined 40% against the euro from 2001-2007. This meant that U.S. goods and services were 40% cheaper for Europeans, making U.S. companies more competitive, and increasing exports. The recession offset this advantage, causing global trade to decline: exports dropped from $1.8 trillion in 2008 to $1.5 trillion in 2009, while imports fell from $2.3 trillion in 2007 to $1.6 in 2009. Both exports & imports have risen since then, even thought the dollar has maintained its strength since -
Sale Exports Lowers Deficit
The trade deficit continued to decrease, from $706.1 billion to $419.9 billion, respectively. These decreases reflected strong export sales and a steady weakening of import purchases -
Fed Assistance
Total assistance from the Federal Reserve fell to $100 million provided through liquidity facilities, with no direct support given. -
Taking Stand to Raising Retirment Age
Governments around the world are beginning to take notice and take steps to adapt to an aging workforce. More than one million French workers took to the streets in the later part of 2010 to protest the government’s plans to overhaul pensions and raise the retirement age from 60 to 62. In the United States, the median age of workers has risen from 34 to 40 in the past 30 years. -
Unemployment and Recovery Programs Cause Drop in Budget Deficit
As the financial crisis devastated the economy, tax revenues fell. Spending on unemployment insurance and other government recovery programs rose. In 2008, the deficit was about $458 billion. In 2009, it rocketed up to $1.4 trillion. It stayed above the trillion-dollar mark for 2010 through 2012. -
Fed Wants to Maintain "Exceptinally Low Rates"
Fed pledged to maintain “exceptionally low rates” at least as long as unemployment is above 6.5% and inflation is low. With the federal funds target at the “zero lower bound,” the Fed has added additional monetary stimulus through purchases of Treasury and government-sponsored enterprise (GSE) securities -
Americans Spending More Than Their Making
The average household spent $575.00 OVER their budget. This means that they spent way more money than they had coming in. -
Imports of Petroleum Raises Deficit
America's dependence on foreign oil drives the trade deficit. In 2012, the U.S. imported $313 billion in petroleum-related products, up from $252 billion in 2010. This was despite higher oil prices, which jumped from an annual average of $74.67 /barrel to $101.16/barrel in two years. Petroleum-related products include crude oil, natural gas, fuel oil and other petroleum-based distillates such as kerosene. -
government will run out of money
the government will run out of money by october 17,2013 if the government does not approve a new budget.