Debt scares once again resurface with US public debt at historically high levels and entitlement spending set to increase further. Some argue the US is basically broke. We will try to show that many of the arguments used are exaggerated and show you a country that should be much more broke, yet is thriving nevertheless. […]
July 2nd, 2018 · Comments Off on The U.S. Is Broke!
May 31st, 2015 · Comments Off on ‘The U.S. Is Broke’ | Seeking Alpha
From time to time, we hear deeply serious economists expound that the US is broke. Invariably, this involves discounting future entitlement obligations to present day dollars, which usually deliver intimidatingly large sums scaring the uninitiated. The curious thing is, if the US is broke, somebody should tell US bond market investors, as rates should rise […]
April 19th, 2013 · Comments Off on Debunking debts and deficits
the UK debt the rose after the First World War, from 129pc to 158pc by the end of the 1920s, because the government pursued an extreme austerity and deflation strategy to restore Britain to the Gold Standard at pre-war parity. It was self-defeating on its own terms. via Debunking debts and deficits.
April 11th, 2013 · Comments Off on US Federal deficit shrinking fast
As Hatzius notes, the deficit is currently running under half the peak of the fiscal 2009 budget and will probably decline further over the next few years with no additional policy changes. via US Federal deficit shrinking fast.
April 5th, 2013 · Comments Off on Antonio Fatas and Ilian Mihov on the Global Economy: Gross Mistake
it is not correct to argue that every time we see debt increasing it means that someone is living beyond his or her means. The reason is that we need to consider assets and not just liabilities. This argument becomes even more relevant when you go from an individual to a country as what is […]