Obama said goodbye and threw Trump a 20 trillion bomb"

Home > Finance

Obama said goodbye and threw Trump a 20 trillion bomb"

2017-01-12 00:34:39 19 ℃

Over the past eight years, the world has changed.

The human into the mobile Internet era; to get away from the global financial crisis in the increasingly serious problem of environment......

This is the eight year of Barack - Hossain as president of the United States of America in the past years. Over the past eight years, now 55 year old Obama left to the world is the most intuitive impression: black hair turns gray.

This can make people sigh, Obama over the past 8 years of experience in the end what?

The photograph: visual China

Just (Beijing time on January 11th morning), Obama delivered a farewell speech in Chicago. In his speech, Obama said that the president should be as smooth as possible to hand over to the Trump. At the same time, he also made a summary of the work of the past.

Obama said the United States is stronger than ever. However, with the development of economy, the gap between the rich and the poor in the United States is very serious. The wealth and income of the richest 1% of the population are increasing.

Achievement: rescued Wall Street, play high-tech

As the first black president, the world was curious and looking forward to Obama. Unfortunately, Omaba came along with the financial crisis, the economic recovery to become his main job.

Obama took office, the implementation of the "Wall Street reform bill" - "Dodd Frank Wall Street reform and Consumer Protection Act", aimed at strengthening the U.S. financial system audit and transparency, improve financial stability, stop government bailouts of financial institutions, to protect consumers from informal financial services.

From the stock market, the S & P 500 of the financial sector in Obama served during the rise of 214%. Among them, the United States is currently the largest market capitalization of JP Morgan Chase's share price rose from $22.85 in February 2009 to $86.43, or up to $278%.

"Over the past 10 years, the S & P 500 financial sector index

However, Wall Street is still in trouble, JP Morgan chase to become the largest U.S. bank, thanks to Wells Fargo Bank Sales scandal. Last September, Wells Fargo has been discovered to complete the sales, fabricated or unauthorized creation of 2 million bank accounts. In the end, the bank was fined $185 million.

In addition to the recovery of Wall Street, Obama also caught up with the mobile Internet era. Not only covers all high-tech industries, the NASDAQ index rose 274% in the past 8 years, a large number of Silicon Valley companies's market value is also rapidly.

In the latest U.S. stock market value list, the top five of the Silicon Valley technology company is four. Among them, apple ranked first with $635 billion 100 million, and the rest include Google parent Alphabet, Microsoft and amazon.

Apple Corp, for example, from the first generation of iPhone available (January 2007), Apple's stock price from $12 \/ share, once in May 2015 rose to the highest point of more than $130, or up to 983%.

The Apple Corp in January 3, 2017 to January 3, 2017 the price trend

Wall Street has become an important driving force behind the financial crisis and manufacturing depression in Silicon Valley. New York Times reported in October last year, Obama may go to Silicon Valley after retiring office.

From the macroeconomic data, Obama resisted the pressure of the financial crisis. 2009, the United States GDP negative growth, but in 2010 began to resume growth. The third quarter of 2016, the actual U.S. GDP initial value rose by 2.9%.

At the same time, the employment situation has improved, the unemployment rate has dropped from 10% in October 2009 to the highest in December 2016 of 4.7%.

USA in recent 10 years, the unemployment rate (source: U.S. Bureau of Labor Statistics)

The stock market, from February 2009 (Obama's inauguration on January 20, 2009) today (January 11, 2017), the Dow Jones index rose from 8000 points to 19963 points, or up to 148%; the S & P 500 index rose 176%.

Split: 2008 calls for unity, but the United States is increasingly divided

For the first time in 2008. In his speech, Obama said:

Let us remember that if this financial crisis taught us anything, it's that we cannot have a thriving Wall Street while we are struggling. In this country, we as a nation, tongshengsi survival."

However, Obama proud of the health care reform of the United States, but the United States has split society, Obama.

In March 2010, Obama signed the patient protection and affordable care act, designed to help the United States to achieve universal health care, improve the quality of medical services.

According to the "Chinese Securities Daily" reported that the United States before reform, the medical insurance system covering only about 84% of the population, the remaining 16% (about 50 million people) do not have health insurance, this group of people is the main social vulnerable groups, such as illegal immigrants and unemployed, people with serious illness and free occupation etc..

But the implementation of 6 years, this reform has not been recognized by the majority of the people of the United states. Opinion polls show that more than half of Americans oppose health care reform. Some of Obama's health care reform measures violate the law of the market. For example, the Health Care Act requires insurers to refuse to insure people with serious illnesses and to enforce the basic coverage of commercial insurance coverage.

A 2016 Brookings Institution Study in June showed that in 2014 8.9% the American middle class income for medical expenses, the total expenditure increased by 25% compared to 2007. By 2015, the total income of the American middle class was 1.6% lower than in 2007. In order to meet the needs of premium subsidies, the government can only open up new taxes, coupled with rising health care costs, exacerbated by the public's aversion to health care reform.

Recently, Trump said on social media, to repeal the health care reform of Obama". This is the second, Trump claimed to be abolished after another political legacy of Obama".

The financial crisis and the increased burden of health care and education have led to a reduction in the number of middle-class Americans, the widening gap between the rich and the poor, and the aggravation of social divisions. Every minute (in) the Congressional Budget Office in August 2016, the report found that in 2013, the top 10% of American households control the total wealth of $76%, the average family wealth is $4 million. The remaining 40% of the top 50% families, with a total wealth of $23%, averaged $316 thousand per household. The remaining 50% Americans enjoy only about $1% of total wealth.

USA social wealth distribution curve (source: the Congressional Budget Office)

Harvard Business School in September last year, the survey predicts that the next ten years, the United States will be the richest 1% of the population of the country's new income of up to 41%, and this proportion is relatively healthy in the 16%.

Associate Professor, deputy director of China world economic and political Academy of Social Sciences Institute of strategic and International Chamber of Ren Lin in the "Guangming Daily" published an article that Trump played during the campaign, many slogans and policies get a lot of grassroots support, in fact reflects the social internal reaction to globalization, on the income gap, but also the United States economic and social long-term accumulation of amplification the problem.

Danger: nearly $20 trillion bomb dropped to Trump

Although Trump vowed that he would abolish some of Obama's policies. However, Obama also gave Trone Andy a time bomb.

Zhou Shijian, a senior fellow at the center for the study of Sino US relations at Tsinghua University, said in an article published in the people's daily, after Mr Obama came to power, a large number of bonds issued to raise funds. In the first term, the national debt of more than 6 trillion U.S. dollars, more than $3 trillion in the term of the national debt of more than $second. After each small () in the United States debt real-time found on the site, as of January 9th, the U.S. debt is more than $19 trillion and 950 billion, the debt to GDP (2015 GDP:18 trillion) of more than 110%, more than 60% of the international warning line.

From 1776 to years of the founding of the United States in the past 200 years, the United States total debt of nearly $1 trillion. In the 28 years from 1981 to 2008, the total national debt reached about $10 trillion, and only in the 8 year of Obama, U.S. Treasury bonds increased by $9 trillion.

"People's Daily" reported that Trump entered the White House, will face the arduous task of promoting economic development. At present, the main measure is to cut taxes, stimulate investment and consumption, thereby promoting economic growth. Trump is the way to go before President Reagan, but before he took office in the face of less than $1 trillion in debt, and the face of nearly $in debt to face up to $20 trillion by the government of the United States, mr.. Massive tax cuts will undoubtedly reduce the U.S. government's tax revenue, and further exacerbate the fiscal deficit. According to U.S. economists estimate that in the first 4 years of Trump's term, U.S. Treasury bonds will soar $10 trillion, by the end of 2020 the total debt will reach $30 trillion. This will bring enormous financial pressure to the U.S. government and the economy, and may even lead to an unprecedented debt crisis.

Daily economic news

China Securities News, people's daily, Guangming Daily