Import is nothing but the export of your future consumption. Meaning of this statement is now getting experienced by the US. The Fiscal deficit of 1.3 trillion ( which is almost equal to Indian GDP) which is financed by the US T-bills, is nothing but the import of the money. As the major buyers of the US T-bills are the major banks world over.
So now the time has come to pay back for the imports by US. Different measures taken by the Obama government, showing no signs to work out in favor of real growth in the economy. The Unemployment data every fortnight is not indicating any signs of real growth.
Basically for real growth, there should be real increase in demand, part of which is irreversible. This is good that governments taking steps to stimulate the demand. but it should only for breaking the fears of people and motivate them to spend there money. What US government is doing is, it is financing the people to create artificial demand. But the real need in the US, is to increase there savings and use these savings to reduce their obligations to other countries.
As far as the US citizen don't learn to save the money and restrict there excess expenditure, any policies taken by the government will not work. The artificial demand created by the government will not sustain for a long time and will collapse now or then. So double dip or W shape recession is the certain. Only the timing have to be determined by the brains in the US who are innovating new ways to postpone US's obligation.
The only learning for other countries from the BIG BROTHER is that there is no one big or small in business. All have to complete there obligations....
