Much like a company or a household, to properly run a government, revenue must meet or exceed expenditures. When spending is more than the revenue obtained, there is a budget deficit. One way to reduce the deficit is through budget cuts. Budget cuts for the government can come in many forms, including reducing services and administration. Ultimately, budget cuts are needed to maintain a balance between spending and revenue.
Politicians and the mainstream will certainly love this…Last week, Moody’s Investors Service changed its outlook on the U.S. national debt from negative to stable. (Source: Reuters, July 18, 2013.)Despite the credit reporting agency’s “upgrade” on U.S. national debt, my opinion remains the same: the U.S. national debt. Read More
There’s a belief that the rich become richer because they are frugal and know how to save. The budget cuts and tax increases at the beginning of the year saw higher income taxes for those earning over $400,000 annually. President Obama had hoped to place higher taxes on those making over $250,000 annually but had to settle for $400,000. Read More
Money printing by the Federal Reserve will continue into the near future. And while it will help America avert a recession, the flow of easy money will be disastrous over the longer term.The reality is that the current bull market and rebound in the housing sector that has made some people very rich is a by-product of the Federal Reserve,. Read More
In technical analysis, the chart tells a story. On Monday, the S&P 500 closed below 1,500 for the first time since February 4, driving fears of a multi-year topping, which I have discussed in the past. (Read “Alert: Bulls Should Be Careful Despite an Impressive January.”) The Dow Jones failed to hold above 14,000 for the third. Read More
With all of the recent focus on the fiscal cliff and now earnings, traders appear to be forgetting the massive mess across the Atlantic in Europe and the eurozone. Remember Greece? The European debt crisis took Greece down with two separate bailouts. It was so dire for this beautiful country on the Mediterranean Sea that Greece actually. Read More