Recent issues of this newsletter have pointed out that Congressional skirmishes of prior weeks to keep government open were in fact minor league when compared to what was coming in May. The larger battle is about to begin. The Congress, with Administration support, must increase the debt ceiling, this nation’s ability to borrow even more [...]
Archive of posts tagged federal budget deficit
Uncertainty Spring
Just wondering…how does one attempt an economic and financial forecast in the wake of major uncertainties… How will the three-legged catastrophe of a 9.0 earthquake, destructive tsunamis, and potential nuclear meltdown in Japan impact the global economy? Will the plunge in Japanese stock prices of recent days continue to lead U.S. and global stocks lower? [...]
The Mysterious Federal Reserve
The Federal Reserve’s high-stakes “roll of the dice” to keep deflation at bay, while also attempting to stimulate the American economy (and generate a wee bit of inflation) remains largely on track. Where we go from here remains the subject of intense debate as the Fed continues to operate in uncharted waters. U.S. consumer prices [...]
Lookin’ Back…Lookin’ Forward
Calendar year 2010 was quite an emotional ride, with numerous unprecedented events taking place. Let’s hope 2011 is a bit tamer, even as U.S. economic performance is likely to improve. Let’s see… 2010’s list included mind-boggling government stimulus and associated budget deficits around the globe…enormous financial pressure on Southern European nations to get a handle [...]
China Currency
The U.S blinked in recent days, preferring to put off until after the November elections the question of whether or not to declare China a “currency manipulator.” Such a move might have been the correct one. What we don’t need at this juncture is a trade war with China. The U.S.-China relationship is unlike any [...]
Observations
Wednesday of this week marks the end of a very busy (and most welcome) period of speaking events…13 presentations in 11 different industries; 24 flights over 20 days; events in nine different states plus Vancouver, BC; with four separate trips to the East Coast…which is not exactly close to my home in northern Utah… Delta [...]
Autumn View
The American Economy …confidence is lacking Most forecasting economists will tell you that the U.S. economy returned to growth about 12-15 months ago…statistically at least, if not emotionally. The National Bureau of Economic Research, the “official” scorekeeper for the American economy, is expected to make that call at any time in coming months. We do [...]
An Economic Chat
During the past 35 years of writing a weekly economic, financial, and (sometimes) political newsletter, I have periodically tried to present information in an unusual format so as to make “the dismal science” less intimidating and more interesting. Over the years, we have occasionally run a discussion between two old friends—Mrs. Smith and Mr. Jones—regarding [...]
Summertime View
The U.S. Economy …a three quarter stretch The American economy has now registered a reasonable growth pace for three straight quarters, following four straight quarters of economic decline. Constraining a more impressive economic growth rate are sluggish residential and commercial real estate valuations and soft demand, historically high unemployment, and consumer anxiety about ever-expanding government [...]
A Shot Across the Bow
Financial developments within Greece of recent weeks should be considered “a shot across the bow” for similar smaller nations such as Portugal, Spain, and Ireland. Such a warning shot regarding high debt levels should also be taken seriously by larger nations, including the United Kingdom and the United States. The nation of Greece is facing [...]
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