Category: US Debt
The analysis published under this category are as follows.
Tuesday, December 27, 2011
US Public Debt Grows to World War II Level / Interest-Rates / US Debt
By: Pravda
In early December the ratio of public debt of the United States to GDP has reached 99.5%, which is the highest number since World War II. After placing another portion of the bonds at $160 billion, the U.S. will exceed this significant number. Rating agencies are willing to revise the U.S. credit scores.
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Thursday, December 15, 2011
The Corporate Cash Myth, What About Debt? / Companies / US Debt
By: Neeraj_Chaudhary
A central theme that has absolutely permeated the coverage of the Great Recession is that over the past few years US corporations have cautiously hoarded cash and have stubbornly refused to invest in corporate expansion. Some have described this as a nearly irrational timidity on the part of the private sector and has for many justified the currently robust intervention from the public sector in the form of deficit spending, fiscal stimulus and monetary accommodation. The saying goes that if companies won't spend, government must pick up the slack to restart the economy. The story has been repeated so frequently and so often, that its veracity is rarely questioned.
Tuesday, December 13, 2011
U.S. Household Debt - Deleveraging Posts New Record / Economics / US Debt
By: Asha_Bangalore
Household debt soared prior to the onset of the financial crisis to establish a peak at $13.9 trillion in second quarter of 2008 (see Chart 2). During the thirteen quarters since the peak, household debt has declined $688 billion (see Chart 3) to set a new record for the post-war period.
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Sunday, December 11, 2011
The U.S Debt Crisis, A Look Beyond the Paradigms / Interest-Rates / US Debt
By: Andy_Sutton
Co-Authored by Gregory Olson, CEO – GRO Enterprises : One of the traps all analysts fall into from time to time is their inability to see the forest through the trees. We are all guilty of this from time to time, and those who would deny this simple reality only set themselves up to miss important changes in the paradigms in which they operate. Perhaps the most famous example of this happened in the life and times of Christopher Columbus. We’re sure you recall the mental model of that time; that the Earth was flat. Many very wise people in Columbus’ day felt he was going to sail the Nina, the Pinta, and the Santa Maria right off the edge of the Earth. And there are many other classic examples as well.
Friday, December 09, 2011
Stop Hyperventilating about Federal Debt: USA Is Heading for Party-Time Again / Interest-Rates / US Debt
By: Andrew_Butter
An interesting component of the current atmosphere of angst in America is collective amnesia. Everyone seems to forget:
1: There was a very expensive war. Whether the war was in fact “necessary” so as to Keep America Safe, is debatable. But putting that to one side, it most certainly did not generate a return on investment in the form of looting and pillaging…which always used to be the main justification for going to war in the old days, and that in the cold light of debt servitude, arguably remains the only fiscally-responsible reason for going to war…ever…so long as you win!
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Thursday, December 08, 2011
U.S. Twin Deficits, Phony Money for Worthless Promises / Interest-Rates / US Debt
By: Gary_North
There are two deficits that we hear about most: the federal government's deficit and the balance of payments of the United States. They are linked, but they are very different in their effects.
The federal deficit is seen by Keynesians as mostly a benefit and by Austrians as mostly a liability, and for the same reason: higher government spending.
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Wednesday, November 30, 2011
Deleveraging is Over — It’s Time to Cut the U.S. Budget Deficit / Interest-Rates / US Debt
By: Colin_Twiggs
US commercial bank loans and leases bottomed in April 2011, after shrinking more than $1 trillion in the previous two years. The annual rate-of-change has now recovered to positive territory, relieving downward pressure on asset prices, including stocks and real estate. Deleveraging has come to an end and is only likely to resume if the economy suffers further financial shocks.
Saturday, November 26, 2011
The Hallmark of the Fed is Duplicity, or, What’s Risky is Safe / Politics / US Debt
By: Rob_Kirby
Tom Foolery at Its Finest: The Truman Show Redux : The purpose of this paper is to highlight how hegemonic American economic doctrine has infected global economics in creating a surreal plutocratic corporatocracy, or in other words, what’s black is white, what’s up is down, what’s safe is risky, you get the idea!
Wednesday, November 23, 2011
We Are All Keynesians Now - Except Me / Politics / US Debt
By: Paul_L_Kasriel
If you want federal debt reduction, you are going to get it Super-Committee "failure" or not. The recent debt-ceiling legislation calls for $1.0 trillion less-than-otherwise federal spending over the next 10 years. The "trigger" calls for $1.2 trillion less-than-otherwise federal spending over the next 10 years. And, with the return to the Clinton-era personal tax rates for all household income groups on January 1, 2013, revenues will increase by $3.5 trillion more-than-otherwise over the next 10 years. So, that is $5.7 trillion of less federal debt issuance than otherwise over the next 10 years. Now, that's what I would call a grand bargain. And don't forget, unless Congress acts before yearend 2011, an extra $168 billion of federal debt that otherwise would have been issued won't be because of an expiring FICA tax "holiday" (just in time for the holidays?) and the expiration of extended unemployment insurance benefits. The U.S. as the next Greece? I beg your pardon. Try Canada, eh?
Tuesday, November 22, 2011
The Super-Committee is Dead, Long Live the Debt! / Politics / US Debt
By: PhilStockWorld
In case you are voting in the next election – here are 12 people to get rid of. Much as I may blame one party over another for this failure, they all deserve what’s coming to them for A) Pretending they were going to accomplish something and B) For not now getting up and making very strong statements denouncing the corruption in politics that make it impossible for Congress to do the Nation’s business anymore.
Wednesday, November 16, 2011
U.S. Debt Reality Check / Interest-Rates / US Debt
By: Rob_Kirby
Tic, Tac, Toe, Three Clowns in a Row
Monday, October 31, 2011
Foreign Borrowing Poses An Imminent Threat to the U.S. Dollar and U.S. Financial System / Interest-Rates / US Debt
By: Janet_Tavakoli
The United States is the largest debtor nation in the history of the world, and our borrowing is increasing. In 1950 spending for social programs was only one percent of the total Federal Budget. As the economy grew, social programs expanded to include Social Security, Medicare, Medicaid, Food Stamps, Unemployment Compensation, Supplemental Security for the Disabled, and educational programs. In 1983 as the United States pulled out of an ugly recession and brought inflation under control, social programs consumed 26% of the budget. In fiscal year 2012, they’ll eat up an estimated 57% of the budget.
Sunday, October 30, 2011
U.S. Debt Day of Reckoning Is Coming, Despite Universal Blindness of the Masses / Politics / US Debt
By: Gary_North
The debt ceiling battle led to a compromise. Congress and the President promised to submit to mandatory budget cuts. A bipartisan super committee was set up to put together a package of debt reduction cuts totaling several trillion dollars over supposedly a decade. If the committee deadlocks, the cuts will begin automatically on January 2, 2013. These must be $1.2 trillion in cuts, or $120 billion a year.
Friday, October 21, 2011
Six Layers Of Deficits Mean Debt Retirement Disaster / Interest-Rates / US Debt
By: Dan_Amerman
There is a common but mistaken belief that the children and grandchildren of older Americans will be the ones who will be paying for today's massive government deficits. In this article we will look at six different layers of the deficit and unfunded government promises and put them into personal, per household terms in order to get to the truth of the matter. This truth is that the deficits are far too large to be repaid by taxpayers decades from now, but will be instead effectively repaid through the destruction of retiree savings and retirement investment portfolios in the coming years.
Saturday, October 15, 2011
Investors Lose Confidence in the US Government / Interest-Rates / US Debt
By: Dr_Jeff_Lewis
The equity markets staged a rally on Monday, with a buying spree that was largely seen as a response to European fears. Quietly, the same investors who purchased corporate stock on the open markets moved out of other investments, primarily Fannie Mae and Freddie Mac securities.
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Tuesday, October 11, 2011
Adjusted U.S. Monetary Base Less Excess Bank Reserves / Interest-Rates / US Debt
By: Jesse
Thanks to my friend Gary at NowandFutures.com for this chart.
I like to think of the expansion of the monetary base as it has been implemented this time, versus 1933 , as a large animal passing through the body of a python.
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Friday, October 07, 2011
Financial Debt Destroyed Our Economy / Interest-Rates / US Debt
By: Barry_Elias
The financial industry had few assets to market in the past three decades.
As such, they fervently pursued the marketing of debt. In many instances, it appears this methodology was a sustained, premeditated, and deceitful endeavor).
Wednesday, October 05, 2011
U.S. Debt Crisis, What America Needs is Hope / Politics / US Debt
By: James_Quinn
Finch: Why are you doing this?
Evey Hammond: Because he was right.
Finch: About what?
Evey Hammond: That the world needs more than just a building right now. It needs hope.
Monday, September 26, 2011
FED’s Adjusted Monetary Base / Interest-Rates / US Debt
By: Tony_Caldaro
When the FED started increasing the monetary base exponentially in 2008 we started tracking its growth in Elliott Wave terms. Our first piece on this topic was published in November 2010: http://caldaro.wordpress.com/2010/11/29/feds-adjusted-monetary-base/. Then, we expected the monetary base to bottom just under $2 tln and expand to $2.5 tln in the coming months. We followed that piece with an update in April as the base was reaching the targeted level: http://caldaro.wordpress.com/2011/04/01/feds-adjusted-monetary-base-2/. This weekend, with the current economic situation in mind, we reviewed the FED’s recent chart to determine if it could provide any clues of another Quantitative Easing program in the near future. It did, and more!
Thursday, September 22, 2011
Federal Reserve Board: Operation Twist, "Significant Downside Risk"' to the Economy / Interest-Rates / US Debt
By: Jesse
Nothing unexpected in today's Fed release. It was Operation Twist, with about $400 billion in Treasuries being rolled into the longer end of the curve from 6 to 30 years.
The Fed will be rolling over its Agency debt as it matured.
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