Deficits

By Don Miller, Associate Editor, Money Morning The United States’ AAA credit rating may be at risk sooner than previously thought as the nation fails to deal with its growing debt, Moody’s Investors Service warned last week. Moody’s said December’s extension of the Bush-era tax cuts, combined with results from the November elections, may lead … Continue reading

The amount of debt represents the difference between Government revenues and Govt spending…

I can guess the bear argument before they begin to make it. The republicans win congress and there will be a new mandate. Spending will be cut. Money printing may cease. We may have austerity in the US. The US Dollar will rally. This will crush the bull market in precious metals. First of all, … Continue reading

In the long run, the inflationists are destined to win… but in the here and now, deflationary forces still have the upper hand…..

“May 3 (Bloomberg) — Construction spending in the U.S. unexpectedly increased in March, propelled by gains in state and local government projects.” Here’s the story link: Debt Makes You Free? Rather than help States and Municipalities balance their spending budgets and reduce their outstanding debt, the Federal Govt gave local contruction spending a boost in … Continue reading

The first “cut” of Q1 2010 estimated GDP was released on Friday. It came in slighly below expectations at a 3.2% annualized rate. This number will be revised a couple times over the next of couple months. Don’t forget that because the Govt underestimates true inflation, any estimated GDP statistic is mathematically skewed too high. That … Continue reading