deficit

The United States are facing the risk of losing their top AAA credit rating with the US dollar, stocks and bonds likely to undergo heavy selling pressure, said Bill Gross, the co-chief investment officer of Pacific Investment Management Co and manager of the Pimco Total Return Fund. He said that the USA may be downgraded in "at least three to four years, if that, but the market will recognize the problems before the rating services - just like it did today.”

According to the figures provided by the Chinese central bank by the end of March its foreign exchange reserves increased by 16% to $1.9537 trillion on a year-over-year basis. In a notice on its website the bank said that China’s reserves rose by $7.7 billion in the first quarter which is $146.2 billion less than the same period last year.

The number of the laid off Americans may be increased by 20,000 New Yorkers. Such bad news came from mayor of NYC Mike Bloomberg who has announced his new budget plan. According to the mayor’s statement city faces a $4 billion deficit in the coming year. The official is going to cut city programs by almost $1 billion and is going to ask employee unions to pay more for health care and pensions to close that deficit otherwise he will be obliged to cut 20,000 positions from the payroll.