Browsing: Debt and Deficit
Say's Law fell out of favor among economists with the rise of Keynes. But if it still holds true, we can at least take comfort that there is economic life after monetary death.
I’m blessed to be able to travel to Europe once or twice a year. I use the trips as an opportunity to see how the economies are faring over there. And I can tell you this first-hand: the economic situation in Europe is much worse than what we’re hearing from the mainstream media in the U.S. economy.
China’s Dagong Global Credit Rating just downgraded the U.S.’s credit rating from A to A-minus, according to Zero Hedge. Why they did it is interesting.
Now that they are being sued for $5 billion in damages for claiming bad mortgages were actually AAA, ratings agency Standard & Poor's is defending itself in strange ways.
The next battle is coming this fall, although no one seems quite sure when. Regardless, it will have an impact on markets, as before, and could send gold shooting skyward.
No one is really talking about the national debt at present, but they probably should be.
Euro-area government debt is still rising, according to the figures released today by Eurostat. The debt-to-GDP ratio for the euro area rose 4%, to 92.2%, from Q1 2012 to Q1 2013. For the European Union, debt rose from 83.3% to 85.9% in the same period.
They want to keep interest rates low and push speculation in stocks higher. Savings and investment be damned...
Security spending is regarded as a necessary evil. It does not increase standards of living. But how much of it is necessary?
Student loan borrowers, facing mounting debts and diminished prospects for employment, are retreating from other markets they customarily supported, such as housing and auto loans.