Deficit

If someone were to spend more than they earn, that difference is called the deficit. The deficit has been a problem for many nations, as politicians have repeatedly spent more money than they are pulling in from revenue. Running a deficit is tolerable if it is temporary and is closely followed by a surplus that paid off the accumulated debt. The problem arises if a government continually runs a deficit, which then causes the overall debt to increase.


Government forecasters are warning the U.S. budget deficit will more than double as a share of economic output by 2040 if current tax and spending laws remain unchanged. On Tuesday June 16, the Congressional Budget Office (CBO) released the 2015…

We need to learn from this example… Similar to the U.S. economy, only years earlier, the Japanese economy also burst following a boom in real estate prices. To help revive its economy, the Bank of Japan brought interest rates to…

Municipal bonds investors might be headed towards a storm, which may cause significant damage to their portfolios. Cities within the U.S. economy are in distress—they are struggling to keep their spending in order to not increase their budget deficit. Detroit,…

As the key stock indices approach highs not seen since just before the financial crisis, the underlying fundamentals are screaming “watch out.” The stock market could be edging higher on nothing but false optimism and greed. The most basic reason…

The Congressional Budget Office (CBO) expects the U.S. federal government to have a lower budget deficit this year than those of the previous four years—finally getting the annual deficit under $1.0 trillion (although, not by much). But I am skeptical…

As currency devaluation is becoming a new goal for countries, central banks in the global economy are losing trust in each other. The notion followed by central banks is that if they devalue their currencies, the prices of their goods…

Mark my words: the U.S. budget deficit will continue to increase and it won’t be too long before the national debt soars to $20.0 trillion. And if the federal government’s deficit isn’t a big enough problem unto itself, my concerns…

How severe is the municipal budget deficit situation? In some cases, it is getting to the point of no return. And it’s not just Californian cities that are in trouble; other municipalities in the U.S. economy are struggling to keep…

In early 2011, silver was the toast of the town, as speculators ran up the price to the $50.00 an ounce level on speculation that the world economies would explode upward. Of course, this has yet to happen since the…

When consumers are cautious, they tend to hold back on any major purchases, such as homes, vehicles, furniture, appliances and travel, to list a few. This will impact spending and gross domestic product (GDP) growth and the ability of companies…

Spain technically blundered into its second recession since 2009 in the first quarter and the country appears to be ravaged by heavy debt and muted growth. The Spanish government is trying to cut the budget deficit, but, with the country’s…

Have you recently taken a look at America’s national debt? What if I told you that your share of the country’s mounting spending spree is around $48,812 per citizen or $135,262 per taxpayer? This national debt could take decades to…

In spite of the eurozone mess, U.S. markets appeared to have forgotten about the severity of the chaos in Europe, instead focusing on a good jobs report and domestic renewal. January began with a bang, with the NASDAQ up close…

The situation in Europe is akin to a Greek Tragedy. There is bickering, in-fighting, and distaste for each other that makes it extremely difficult to get things resolve. The end result is that stock market is suffering. Europe is facing…

Economic issues have a concrete impact on any country's domestic policy. The problem is that world economies are so intertwined that their relationships and any issues arising from these relationships sometimes have an adverse impact on how governments formulate and…