An austerity measure is an official action taken by a government in order to reduce the amount of money that it spends on its citizens. Following the worldwide credit crisis of 2008, austerity measures became popular with high-debt governments. For countries with a high debt-to-GDP ratio, austerity measures often become a necessity. Examples of government austerity measures include an increase in the official retirement age (to reduce government retirement payments), a reduction in the number of days garbage is picked up (to reduce municipality costs), and a reduction in school days for children (to reduce government employee costs).
Austerity Measures was last modified: December 22nd, 2014 by admin
As it stands, the U.S. national debt has skyrocketed to above $17.4 trillion. With this year’s budget deficit expected to be around $500 billion, we’ll be at a national debt of $18.0 trillion in no time. In fact, a $30.0-trillion national debt is not out of the question by the end of the next decade.
Any way you look at these very big numbers,.
In its monthly statement of receipts and outlays for the month, the Treasury Department reported that the U.S. government incurred a budget deficit of $107 billion for the month of March 2013. (Source: Department of the Treasury, April 10, 2013.) This monthly budget deficit was a result of the government spending $293 billion while .
The Consumer Confidence Index tracked by the Conference Board plummeted 14% in March 2013 from the previous month. Of the respondents, 36.2% believed jobs are hard to get and only 9.4% thought there were enough jobs out there in the U.S. economy.
As consumer confidence goes the wrong way, I am seeing consumer spending edge downward. Consider.
As mainstream economists continue to focus on the sovereignty of the smallest nation in the eurozone, Cyprus, my worries are focused on the four main economic hubs in the region.
Germany, the main economic hub in the eurozone, is hinting at an economic slowdown ahead, as the crisis in the region becomes more severe. The Ifo Business Climate.
The U.S. Department of the Treasury reported that the U.S. government incurred a deficit of $204 billion for the month of February 2013. So far, we are into the first five months of the government’s fiscal year (started October 1, 2012), and the U.S. government fiscal deficit has already grown by $494 billion. (Source: U.S. Department.
Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.
Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.