Category: US Debt
The analysis published under this category are as follows.
Sunday, May 24, 2009
Bond and Foreign Exchange Markets Forcing Governments Debt Hand / Interest-Rates / US Debt
By: Michael_Pento
Last week Standard and Poor’s announced that the AAA credit outlook of the United Kingdom was lowered to “negative” from “stable.” The action caused many in the US, including Bill Gross, to impugn the United States’ AAA credit rating and wonder if the same devaluation should be applicable here.
Tuesday, May 19, 2009
Effect of Household Debt Deleveraging on Housing, Consumption and the Stock Market / Economics / US Debt
By: Mike_Shedlock
Inquiring minds are investigating the Federal Reserve Bank of San Francisco report on Household Deleveraging and Future Consumption Growth.
Wednesday, May 06, 2009
Debt Fuelled Tax Payer Bailouts and Economic Stimulus: If You Believe Borrowing Leads to Prosperity / Economics / US Debt
By: James_Quinn
The 1970’s were a simpler time. As kids, we listened to All The Young Dudes by Mott the Hoople on our portable record players. We would cut Monkees’ .98s from the back of our Raisin Bran cereal boxes. There were maybe ten TV stations we could watch. For entertainment we would play board games like The Game of Life, Monopoly, and Risk. I remember having a two day Risk match with friends from our neighborhood. Our parents didn’t smother us with attention. We created our own fun. We organized our own roller hockey league with games played in our back alley and on the side streets of our neighborhood. We played half-ball against the back of our row homes.
Monday, May 04, 2009
Extremely High Debt Levels Ensure Subdued Economic Recovery in 2010 / Economics / US Debt
By: John_Mauldin
Late last week a letter from Jim Welsh crossed my desk. I started reading and found myself being pulled through his very thoughtful letter. I have not met Jim, but think this letter is worthy of an Outside the Box. Jim Welsh of Welsh Money Management has been publishing his monthly investment letter, "The Financial Commentator", since 1985. His analysis focuses on Federal Reserve monetary policy, and how policy affects the economy and the financial markets.
Friday, May 01, 2009
The Great Asset Bubble Built on Debt / Economics / US Debt
By: Dr_Martenson
Where are we going, and what lies next? To address these questions, we need to know how we got here in the first place.
I want to share with you an interesting observation that I think will provide great clarity and insight into our current predicament, as well as indicate that our recovery, such as it is, will be protracted and incomplete.
Read full article... Read full article...
Saturday, April 04, 2009
Debt is a drug...Danger of Overdose? / Interest-Rates / US Debt
By: Andrew_Butter
Kids are diff-erent today, I hear evry mother say...but there's a little yellow pill...Doctor please, some more of these...outside the door, she took four more. (Rolling Stones: Mother's Little Helper).
The problem with drugs is you develop a tolerance to the thrill part, without necessarily developing a tolerance to the addictive part.
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Friday, April 03, 2009
Social Security: There Is No Trust; There Is No Fund / Politics / US Debt
By: Mike_Shedlock
Social Security is back in the limelight where once again its problems will no doubt be ignored.
Wednesday, April 01, 2009
U.S. Debtor Meets G20 Creditors at the Dollar's Funeral / Interest-Rates / US Debt
By: Jim_Willie_CB
An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, US Dollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.Read full article... Read full article...
Saturday, March 21, 2009
United States Can Save Economy By Debt Default or Declare War / Politics / US Debt
By: Pravda
The United States is the largest borrower in the world. The US national debt has already exceeded the level of 11 trillion dollars as of the beginning of 2009 and continues to grow like an avalanche. Experts say that the USA has only two ways to solve the problem: to either declare default or trigger off a war. Read full article... Read full article...
Wednesday, March 04, 2009
Iron Law Of The Burden Of Debt / Economics / US Debt
By: Professor_Emeritus
In my article Growth and Debt: Is There a Trade-off? (February 12, 2009) I have stated the "Iron Law of the Burden of Debt": The liquidation value of total debt doubles every time the rate of interest is halved.
I have received several comments from thoughtful readers.
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Monday, March 02, 2009
President Barack Obama’s Fiscal Year 2009 Budget / Politics / US Debt
By: Richard_C_Cook
“The Last Picture Show” was a 1971 film depicting the decay of small town America. It took place in the fictitious town of Anarene, Texas. We hear a distant tune reminiscent of America’s high and lonely places and the sound of a dry wind blowing. It’s March 2010 in the tiny West Texas town of Anarene. Nothing much happens here any more. The last business shut down a couple of years ago. It was a cement plant that went broke after the housing bubble burst and the banks stopped lending. The kids out of high school drive their jalopies from one end of Main Street to the other past boarded-up storefronts. Read full article... Read full article...
Friday, February 27, 2009
Obama's $3.6 Trillion Budget Continues Bush Doctrine of Bankrupting America / Politics / US Debt
By: Mike_Shedlock
Dear Mr. President, I read your New Era $3.6 Trillion Budget Proposal . I also listened to your speech Tuesday night. You made a great campaign speech. However, the campaign is over. You won. And the reason you won is you offered hope as well as a promise of change.Read full article... Read full article...
Friday, February 20, 2009
U.S. Government Borrowing Trillions of Dollars to Artificially Inflate Deflating Bubble Economy / Economics / US Debt
By: Peter_Schiff
Predatory Legislators - With millions of homeowners now struggling to repay money they clearly never should have borrowed, our leaders have been righteously wagging fingers at predatory lenders who allegedly enticed innocent borrowers, and the country, into a financial snake pit. While the mortgage industry clearly deserves a good share of the blame, unindicted co-conspirators abound. The ringleaders are still at-large and are, in fact, busy hatching a plan to dwarf the earlier mistakes.Read full article... Read full article...
Wednesday, February 11, 2009
U.S. $2trillion Borrowing Binge May Stop Foreigners Lending / Politics / US Debt
By: Submissions
Robert Freeman writes:
Fixing the Economy: Of Fences and Futures - A man calls a carpenter and says that his dog has been getting out. He instructs the carpenter to raise the fence in the back yard by a foot. The carpenter does the job. The next day, the man calls the carpenter back and says that the dog is still getting out. He tells the carpenter to add another foot to the top of the fence. The carpenter does so.
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Wednesday, January 14, 2009
Obama Deficit Spending the Anti-Reagan / Volcker Revolution / Economics / US Debt
By: Michael_Pento
With over 2.5 million jobs lost in 2008 and G.D.P. estimates for Q4 projected to fall at a minus 6% annual rate, all hopes are now pinned on an Obama stimulus program that could exceed $1 trillion. Are investors hopes well-grounded in believing a government going further into debt can bring about a sustained economic recovery? I think not, and here's why: Read full article... Read full article...
Friday, January 09, 2009
U.S. Debt Crisis 2009, What must our Creditors be Thinking? / Interest-Rates / US Debt
By: Chris_Galakoutis
I read an article recently about problem gambling. You can't help but notice all the poker on television these days. Gambling, lotteries, and all forms of speculation become more popular in inflationary times, as more people have difficulty making ends meet. Problem gambling has been known to strain relationships, interfere with responsibilities at home and work, and lead to financial catastrophe, as more good money is thrown after bad.Read full article... Read full article...
Monday, December 29, 2008
U.S. Federal Budget Deficit to Exceed $1 trillion in 2009 / Economics / US Debt
By: Hans_Wagner
Investors trying to beat the market and learning to invest need to consider the impact of the large budget deficits now being considered by the U.S. government. The incoming administration and the new congress intend to spend a lot of taxpayer money to stimulate the economy and fund their programs. This will drive up the already high U.S. deficit now over $10 trillion, or more than $33,000 for each man, women and child in the U.S. So will the contemplated deficit spending do the job or just increase the debt of everyone? Read full article... Read full article...
Thursday, December 11, 2008
Fed Seeks to Issue Own Debt to Soak up Excess Liquidly / Interest-Rates / US Debt
By: Paul_L_Kasriel
The Credit Rating on a Benevolent Counterfeiters Debt - Infinity A? - In today's Wall Street Journal a trial balloon was floated with regard to the Fed issuing its own debt. This is akin to a counterfeiter issuing her own debt. There could never be a default. All the counterfeiter would have to do is print up some new currency to pay the interest on or redeem her debt. The Fed also possesses the power of the printing press, so it would never default on its debt. Of course, there is no guarantee what the future purchasing power of the payments would be to the Fed's creditors, but that is a different issue. Read full article... Read full article...
Wednesday, November 19, 2008
The Road to Financial Ruin: Unrestrained Government Spending / Economics / US Debt
By: Axel_Merk
When just about all economists agree, should we rejoice or be scared? During the Weimar Republic, economists at the Reichsbank argued that printing money to finance a war was “exogenous” to the economy and thus not inflationary. Hyperinflation in the ensuing years proved them wrong. We tend to think we are so much smarter today. Economists know how to run regression models; in the absence of a historic precedent, some economists know how to draw shifting supply and demand curves. But common sense seems to be missing in the toolbox of all but a few. Read full article... Read full article...
Thursday, November 13, 2008
Four Words Obama Will Never Say / Politics / US Debt
By: Michael_Pento
Will the new Obama administration offer a solution to our country's short and long term fiscal imbalances? I'm willing to bet four words you will never hear him say during his tenure are "The budget is balanced!" First, take a look at a couple of estimates regarding how great our long term debt will accrue due to the demographic challenges we face. According to estimates from a 2007 study done by USA Today, the projected debt for our country could reach $59 trillion dollars because of the unfunded mandates from entitlement programs. And if you think that's scary, Richard Fisher, President and CEO of none other than the Federal Reserve Bank of Dallas, puts the figure in a speech given May 28th 2008 at $99.2 trillion!Read full article... Read full article...