Essay sample - Fiscal condition of the federal government today

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Finance & Accounting
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The US financial crisis threatens not only its constituent states but also the world at large.The crisis has been around for some time.It started slowly with fears of the worst since 2003.As the years progressed,the fears came to pass with the present financial status leaving more to be desired in the financial markets. …

Introduction

The US financial crisis threatens not only its constituent states but also the world at large. The crisis has been around for some time. It started slowly with fears of the worst since 2003. As the years progressed, the fears came to pass with the present financial status leaving more to be desired in the financial markets.The last six months have demonstrated financial volatility (not only in US but world over) that has never been witnessed may be since the great depression (O'Connor, 2001. pp.10-15). This paper seeks to evaluate the present fiscal condition of the US federal government with emphasis on the causes of the crisis and an exploration of the effects of the crisis on both the public and private domain. The federal government fiscal crisis is echoed by the serious struggle by the states and local governments through unfathomable and prolonged fiscal crisis which has since spread from the federal government to haunt them. The states', not mentioning the federal government's, revenues are declining sharply or if they are growing, then this growth is indeed very slow to be noticed. This is made worse by the federal government out spending its revenues. The crisis is likely to continue unless some quick and informed remedial measures are not taken.According to the 2002 financial year report, as at September 2003 the federal government had more than $1 trillion reported assets with slightly more than $8 trillion in liabilities leaving $7 trillion accumulated deficit with a reported $365 billion operating deficit ...
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