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10 Oct, 2011

Income divide causes fiscal crises in Europe, US – chinadaily.com.cn

The United States is facing three big difficulties currently. The first one is the high unemployment rate. At present, the unemployment rate of the Untied States runs high at nearly 10 percent. The second one is the high federal debt. The governmental debt keeps inflating, the debt ceiling keeps popping up and rising, and the debt expansion is unsustainable. The third one is the depressed real estate market. While the housing price was slowly rising, the medium and low strata families have kept cashing in to back up their expenses. But now, the real estate market is depressed and wealth of the medium and low strata has shrunken, and therefore the domestic consumption of the United States is trivialized and the economic growth is negatively impacted. Huang said that the problems faced by the United States are also faced by Europe. It is reported that in Spain, up to 40 percent of university graduates cannot find a job.

via Income divide causes fiscal crises in Europe, US | chinadaily.com.cn.