A wave of pessimism has swept over the economy, IF you think November Data is bad wait until January!
US Capital Spending Plummets To Recession Levels
Back in April, we did an extensive analysis of what, in our opinion, is the primary reason for the slow burn experienced by the US, and global economy, and why virtually every liquidity pathway used by central banks is hopeless clogged: the complete lack of capital [...]
Back in April, we did an extensive analysis of what, in our opinion, is the primary reason for the slow burn experienced by the US, and global economy, and why virtually every liquidity pathway used by central banks is hopeless clogged: the complete lack of capital expenditures at the corporate level, and lack of (re)investment spending. Specifically we said that in both the context of Japan’s plunging corporate profitability over the past 30 years [...]
Britain’s fiscal outlook over the next 50 years remains “clearly unsustainable”, despite the government making some progress in reducing current borrowing and public-sector pension commitments, an official watchdog said on Thursday.
Deep spending cuts by the Conservative-led coalition to plug a record budget gap are a political hot potato in recession-hit Britain, with the opposition Labour Party saying they delay growth and some economists calling for more fiscal stimulus.
The Office for [...]
By BYRON TAU |
3/13/12 3:22 PM EDT
The Gingrich campaign is going a second round with the White House over press secretary Jay Carney’s remark that any politician who was promising cheap gas was “lying.”
“The idea of this administration, which has brought us a failed stimulus, boondoggles like Solyndra, $5 gasoline and record budget deficits, lecturing anyone on economics, would be funny if their utter incompetence weren’t so painful for the American people,” [...]
Nassim Nicholas Taleb, author of the best-selling book “The Black Swan,” said the current global market turmoil is worse than it was in 2008 because countries such as the U.S. have larger sovereign-debt loads.
“Definitely, we face a bigger problem now and we will pay a higher price,” Taleb, who is also a professor at New York University, said today at a news conference in [...]
By Tomoko Yamazaki – Sep 13, 2011
Sept. 13 (Bloomberg) — Nassim Nicholas Taleb, author of the best-selling book “The Black Swan,” said he’s more concerned about prospects for the U.S. than Europe because the country lacks awareness of its fiscal woes.
“The difference between Europe and the U.S. is the consciousness of the problem,” Taleb, a New York University professor, said today at a news conference in Tokyo organized [...]
(Reuters) – Days of rioting and looting across Britain looked to be cooling Wednesday after Prime Minister David Cameron’s promised a fightback and flooded city streets with police to try to restore order.
By 9:30 p.m. local time (4:30 p.m. EDT), incidents were limited to isolated skirmishes and standoffs between riot police and groups of youths, after four nights when often unchecked violence had been well under way by nightfall.
The capital [...]
The stage is constructed ahead of the first 2012 presidential debate hosted by FOX News in Greenville, S.C. (Katy Ricalde/Fox News Photo)
FOX News is hosting the first 2012 presidential debate in one of the first primary states Thursday night in Greenville, S.C. Five of the men trying to become the next Republican nominee will do their best to be considered the GOP frontrunner, taking questions [...]
Trade deficit jumps…
WASHINGTON (AP) — A surge in oil prices helped push imports up at the fastest pace in 18 years in January, giving the country the largest trade deficit in six months.
The Commerce Department said Thursday the January deficit increased 15.1 percent to $46.3 billion. Exports rose 2.7 percent to an all-time high of $167.7 billion. But imports rose a faster 5.2 percent to [...]
Pacific Investment Management Co.’s Bill Gross. Photographer: Andrew Harrer/Bloomberg
Bill Gross, who runs the worldâ€™s biggest bond fund at Pacific Investment Management Co., eliminated government-related debt from his flagship fund last month as the U.S. projected record budget deficits.
Pimcoâ€™s $237 billion Total Return Fund last held zero government-related debt in January 2009. Gross had cut the holdings to 12 percent of assets in January, according to the Newport Beach, California-based companyâ€™s [...]
1) Geithner Tells Obama Debt Expense to Rise to Record
“Barack Obama may lose the advantage of low borrowing costs as the U.S. Treasury Department says what it pays to service the national debt is poised to triple amid record budget deficits.
Interest expense will rise to 3.1 percent of gross domestic product by 2016, from 1.3 percent in 2010 with the government forecast to run cumulative [...]
Barack Obama may lose the advantage of low borrowing costs as the U.S. Treasury Department says what it pays to service the national debt is poised to triple amid record budget deficits.
Interest expense will rise to 3.1 percent of gross domestic product by 2016, from 1.3 percent in 2010 with the government forecast to run cumulative deficits of more than $4 trillion through the end of 2015, according to page [...]
VIA FT Alphaville, here’s part of the statement from S&P:
The downgrade reflects our appraisal that Japanâ€™s government debt ratiosâ€“already among the highest for rated sovereignsâ€“will continue to rise further than we envisaged before the global economic recession hit the country and will peak only in the mid-2020s. Specifically, we expect general government fiscal deficits to fall only modestly from an estimated 9.1% of GDP in [...]
1) ECB Steps Up Bond Purchases
“FRANKFURTâ€”The European Central Bank has increased its purchases of government bonds amid rising concerns in financial markets about the ability of Greece, Ireland and Portugal to repay their debts.”
“Although the ECB has spent more than â‚¬61 billion ($79.58 billion) since May on government bonds, borrowing costs haven’t declined for struggling countries on Europe’s fringe. Yield spreads between government debt in [...]
What we have is every industrialized country in the world with debt-to-GDP rations comparable to post-WW2 levels.
The only difference is
1) “Europe” (as an entity) and the United States are running massive current account deficits.
2) Every country is running massive budget deficits
3) The birth rate is less than half of what it was, industrialized populations are aging (in every country), and declining (in the majority of European countries).
4) In the midst [...]
1) Financial system support up $700 billion in past year: watchdog
“(Reuters) – Increased housing commitments swelled U.S. taxpayers’ total support for the financial system by $700 billion in the past year to around $3.7 trillion, a government watchdog said on Wednesday.
The Special Inspector General for the Troubled Asset Relief Program said the increase was due largely to the government’s pledges to supply capital to Fannie Mae [...]