austerity measures

Sneaky New Taxes Way Government Debt Will Get Paid Down?

By Thursday, May 15, 2014
Getting Ready Mansion TaxAs 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, it is the American taxpayer who .

All of a Sudden, 2013 Becomes Another Trillion-Dollar Deficit Year

By Friday, April 12, 2013
2013 Becomes Another Trillion-Dollar Deficit YearIn 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 only taking in $186 billion in March. Since October 1, 2012, the beginning of the government’s .

Flat Sales for Wal-Mart Warning Sign of Even Weaker Consumer Spending Ahead

By Thursday, March 28, 2013
Flat Sales for Wal-Mart Warning Sign of Even WeakerThe 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 core durable goods orders for February. New orders for manufactured durable goods excluding .

“Cyprus Problem” a Clear Indicator of What Could Be Ahead for France, Italy, Spain

By Thursday, March 28, 2013
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 Index for Germany edged lower in March. Businesses in the country are .

U.S. Debt-to-GDP Ratio This Year to Surpass Greece’s 2009 “Danger” Level

By Friday, March 15, 2013
U.S. Debt-to-GDP RatioThe 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 of the Treasury, March 13, 2013.) The U.S. government has been running a deficit .

Don’t Be Fooled by the Dow’s Recent Record-Highs

By Wednesday, March 13, 2013
Don’t Be Fooled by the Dow’sI will be first to say that this is a difficult market to play, and it’s certainly full of stock market risk. On one hand, the Dow Jones Industrial Average eclipsed a new record last week when the blue chips index surged to an all-time new record high of 14,413, easily blowing away the previous mark of 14,164 achieved on October 9, 2007. But my trading sense is telling me .

Following the Example: Eight Rounds of Money Printing Later, Japan Falls into Recession for the Fifth Time

By Monday, December 17, 2012
Japan Falls into Recession for the Fifth TimeLast Wednesday, as I was listening to Ben Bernanke during a press conference about the Fed’s recent money printing actions and future plans to spur the U.S. economy, I was wondering why we aren’t looking more at the Japanese economy and what happened in its lost decades. (It used to be called “lost decade.” It’s now been 20 years—hence, officially, it’s “lost decades” now.) You see, what the Federal Reserve .

Pension System Collapsing; Higher Taxes and Austerity Ahead

By Monday, December 17, 2012
As debt-infested European countries are struggling with implementing austerity measures, American taxpayers should buckle up for a taste. The U.S. economy is on its way to austerity measures, but not by choice. According to a study done by investment research firm Morningstar, Inc., 21 states in the U.S. economy have pension systems that are in poor financial condition or that are not fiscally sound. Among the states, Illinois, Kentucky, and .

Get Ready for a Zero Return Stock Market in 2013

By Friday, November 23, 2012
Zero Return Stock Market in 2013The stock market bounced back from an oversold position (although a week later than I thought it would), but there aren’t too many reasons why it should go upward. For the most part, earnings growth is expected to be flat in the fourth quarter. The eurozone is in recession, and Germany expects next year to be tough. And there is the prospect of new austerity measures in both Europe and .

The Society We Are Becoming; the Increasing Dependence on Government Handouts

By Monday, November 12, 2012
Increasing DependenceSince the financial crisis started in 2008, the U.S. policies of the government and the Federal Reserve have simply acted to “kick the can” further down the road. More people have become dependent on government handouts over the past four years than ever before and a vast amount of “created” money has been pumped into the financial system. The October 2012 unemployment rate in the U.S. economy was 7.9% compared .

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From: Michael Lombardi, MBA
Subject: Gold: The Stock Contrarian Investors’ Best Play of the Decade

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