And if we’re following the Japanese experience, with a long, slow on-again/off-again period of depression, we can expect some quarters of growth, followed by quarters of non-growth.
November 9th, 2009 | Bill Bonner | 0 comments | ContinuedAll Posts Tagged With: "gdp"
U.S. Treasury Auctioning Off $81 Billion in New Debt
You have to wonder who is willing to loan money to the United States government – given the state of its fiscal and monetary policies – for thirty years at below 5%.
November 9th, 2009 | Dan Denning | 0 comments | Continued
U.S. Government Must Roll Over $3.4 Trillion in Debt Over Next Four Years
And if America can’t find anyone willing to finance its deficits, what then? Well, the luxury of issuing debts in the currency you also print is that you can print money to pay for them. Technically, you can never become insolvent when you enjoy this privilege. The Fed, for example, can create new money to buy debt issued by the Treasury, funding deficits ad infinitum.
November 3rd, 2009 | Dan Denning | 5 comments | Continued
What’s the Best Way to Get Through a Debt Crisis?
For at least a thousand years, the business cycle went round and round without help from central bankers or economists. It is only since these geniuses have been on the case that really serious problems have arisen.
November 2nd, 2009 | Bill Bonner | 4 comments | Continued
Feds See Every Emergency as an Opportunity
So far, the feds are the only real winners from any of these crises. Federal outlays, as a percentage of GDP have shot up from less than 20% of GDP in 2000 to more than 26% in 2009.
October 28th, 2009 | Bill Bonner | 0 comments | Continued
Harding the Last American President to Deal Honestly With a Major Financial Crisis
Just look up Warren Harding on Wikipedia. The first entry you will find is not the 29th president of the United States of America, but a rock climber with the same name.
October 26th, 2009 | Bill Bonner | 12 comments | Continued
Government Debt
And that assumes there is no big increase in interest rates…and that the economy recovers as planned. If either of those things fails to happen, the situation will degrade fast.
October 26th, 2009 | Bill Bonner | 0 comments | Continued
Separating the Short-term Trends in Financial Markets from the Long-term Trends in Geopolitical History
The Dow Jones slipped under 10,000 at the end of the day Wednesday largely because analyst Dick Bove changed his call on Wells Fargo from “neutral” to “sell.” Bove said the quality of the company’s third quarter earnings was, “pretty poor.” “If you take a close look at the earnings, what you can see is that the improvement is due to a hedging profit…
October 22nd, 2009 | Dan Denning | 4 comments | Continued
Don’t Buy the A-REITs
“Australia stands out like a beacon because the yields here are much greater than other parts of the world,” says AMP Capital Brookfield chief investment officer Kim Redding. He tells Bloomberg that, “If you like the Aussie dollar and you like yield, Australian LPTs would be a pretty good place to be.”
October 20th, 2009 | Dan Denning | 2 comments | Continued
Paying Off Debt is Like Dying…
Voters don’t like hearing about debt. Politicians don’t like talking about it. And economists don’t want to think about it.
October 19th, 2009 | Bill Bonner | 5 comments | Continued
Consumer Economy Not Going to Return to Robust Growth Anytime Soon
Mortgage lenders say they expect the peak in foreclosures to come about a year from now. As for the bottom of price declines, you can expect that in 2013 or beyond.
October 15th, 2009 | Bill Bonner | 1 comment | Continued
A Flawed Theory on How to Manage an Economy During a Recession
Your editor spent last night in a discussion with a querulous and drunk Aussie over the stimulus. “It looks like it worked to me,” he said. “Only world economy still growing. GDP up. We’ve got China. Looks like Ruddy and Swanny know what they’re doing. You’re just a hack. You’ve never run a country. And you’re a Yank!”
October 13th, 2009 | Dan Denning | 100 comments | Continued
Aussie Dollar is Crushing Long-time Rivals Like the Pound and the U.S. Dollar
One way to view a currency, we read somewhere recently, is as a national obligation secured by national assets. Those “assets” are loosely defined as economic growth (GDP) or the tax revenues a government can generate. A growing economy generates royalties and income taxes and demonstrates to international bond investors Australia’s ability to service interest and principal on debt.
October 9th, 2009 | Dan Denning | 18 comments | Continued
Obama Considers New Job Tax Credit
Hey, why not! They had such great success with the Clunker tax credit…and with the first time house buyer tax credit.
October 8th, 2009 | Bill Bonner | 4 comments | Continued
Aren’t You the Least Bit Suspicious that Goldman is Talking Up the Banks?
Goldman Sachs has raised its rating on large banks to “attractive.” In related news, Neal Barofsky, the special inspector general for the Troubled Asset Relief Program has said that the Feds may have, er, not quite told the truth about the health of the banks receiving TARP funds. He didn’t use the word, lie though. How are these two items related? We’ll explain below.
October 6th, 2009 | Dan Denning | 4 comments | Continued
