It’s not a news now that the U.S financial ship is surrounded by high tides of financial debts. With various reasons that pushed the country into the waves, excessive spending in past few years is one of them. American government has been spending huge amount of money which was much more than what it received as an income. This has lead to an instability in the financial status of the country and has brought an economic insecurity among the citizens. Regular emptying of the reserve with lesser incoming s in the funds, kept on decreasing the funds with the government and the Federal Reserve on the other hand kept on printing more currency to keep the balance. This very attempt of the Fed just created a short term mirage among the people but gradually people came in acquaintance with reality.
Considering the official figures of the government, national debt amount of the country is expected to reach 150% of its GDP. This is the figure that was after the World War II. The Fed has lowered the interest rate to zero and it cannot be done below that. Continuous printing of currency may lead to a state of inflation and the long term interest rates will keep on rising. The federal Reserve has tried its best to keep the economy alive by printing more currencies but all in vain. It further pulled the economy nearer to the grave. The only reason why U.S is still not bankrupt is that it is a country and not a business. It has control over the Fed.