U.S. National Debt to Surpass GDP for Third Year in a Row
Congress' Super Committee Bill Will Determine Direction of Market
Better U.K. Trade Deficit Stabilizes British Pound
The 5 Dumbest Things on Wall Street: December 10, 2010
5. All About the Benjamins
There's been a lot of talk -- largely related to the most recent round of Quantitative Easing -- about the government's penchant for "printing money." Those accusations, founded or not, should no longer be of concern to anyone. As it turns, out the government can't even print money correctly.
It is interesting to see so many of the same people calling for a "double dip" recession while at the same time railing against government spending. The US Government is spending $3.5Tn this year. Admittedly that’s $1.5Tn more than they have but it’s quite a lot of money no matter how you look at it.
Our government is achieving more success in re-inflating our bubble economy as they compel the consumer to spend more than they earn. Today's release of the Personal Income and Spending report along with the ISM Manufacturing report gives yet more evidence that we have learned nothing from the credit crisis which nearly brought down the entire global economy.
A significant risk to economic growth in the U.S. is the record amount of debt being taken on by the U.S. government. The brief video in this post compares the spending in this crisis compared to past crises. Since this crisis began in late 2008, the government has spent $4 trillion supporting various new programs.